Unilever PLC (UL): BCG Matrix [Dec-2025 Updated]

Honestly, looking at Unilever PLC's portfolio right now feels like watching a strategic pivot in real time; you need to know where the future cash engines are versus where the clean-up is happening. We've got clear Stars like Liquid I.V. and K18 driving double-digit volume, backed by reliable Cash Cows such as Knorr and the core Home Care segment which managed a solid 3.1% underlying sales growth in Q3 2025. But here's the rub: the company is actively shedding Dogs via the Ice Cream demerger, while segments like Foods/Nutrition are Question Marks demanding heavy investment to escape a low 1.3% volume growth. Dive in below to see the precise map of where Unilever PLC is investing for growth and what's on the chopping block.

Background of Unilever PLC (UL)

You're looking at Unilever PLC (UL) right as it's finalizing a major structural shift, which is key context for any portfolio analysis you plan to do. Honestly, the company's narrative in late 2025 is all about simplification and focus, especially with the Ice Cream demerger wrapping up in the fourth quarter.

Looking at the latest numbers from the third quarter of 2025, Unilever delivered underlying sales growth (USG) of 3.9%, or 4.0% when you exclude the soon-to-be-spun-off Ice Cream business. This growth was supported by a volume increase of 1.5% for the group. For the full year 2025, management reconfirmed its outlook, expecting USG to land within the 3% to 5% range.

The company's turnover for the third quarter was €14.7 billion, which was down 3.5% year-over-year, largely due to currency effects and net disposals. Despite this turnover dip, the underlying operating margin is expected to improve for the full year, helped by strong productivity efforts. The productivity programme is ahead of schedule, delivering cumulative savings of about c.€650 million by the end of 2025.

Unilever is heavily leaning on its 30 Power Brands, which accounted for 78% of turnover in Q3 2025 and grew their underlying sales by 4.4% in that quarter. Key growth drivers mentioned include brands like Dove, which outperformed the market with 6% USG in Q3, and strong double-digit growth from names such as Vaseline, Liquid I.V., and Nutrafol. The strategic focus is clearly on the Beauty & Wellbeing and Personal Care Business Groups, with disproportionate investment planned for the US and India.

Strategically, the company is actively shaping its portfolio. In September 2025, Unilever completed the acquisition of the personal care brand Dr. Squatch while simultaneously selling The Vegetarian Butcher. Post-Ice Cream demerger, the remaining core structure will center on four Business Groups: Beauty & Wellbeing, Personal Care, Home Care, and Foods.

Unilever PLC (UL) - BCG Matrix: Stars

You're looking at the high-potential brands within Unilever PLC's portfolio, the ones that dominate fast-growing markets. These are the Stars, and honestly, the Q3 2025 numbers show this group is pulling significant weight, especially within the Beauty & Wellbeing focus area.

The overall Beauty & Wellbeing segment is definitely in a growth phase, posting underlying sales up 5.1% in Q3 2025. That growth comprised 2.3% from volume and 2.7% from price. This segment represented 22% of Unilever PLC's total turnover for the quarter, which is a substantial base for a high-growth quadrant. If these brands maintain their share as the market growth slows, they're set up to become the next generation of Cash Cows.

Here's a look at the specific high-momentum brands that fit the Star profile, based on their Q3 2025 performance:

• Liquid I.V., Nutrafol, Hourglass, and K18 all delivered double-digit growth in Q3 2025, indicating strong market share gains in expanding categories.
• The overall Beauty & Wellbeing segment, a strategic focus, grew underlying sales by 5.1% in Q3 2025.
• Premium-focused brands in Personal Care and Prestige Beauty are clearly gaining market share in developed markets like North America, fueling this high-growth trajectory.
• Dove Hair, which saw double-digit growth in Q3 2025, driven by new fiber repair technology innovation.

To give you a clearer picture of the momentum, check out this breakdown of the key growth drivers within the Star category based on Q3 2025 results. Remember, these are the brands management needs to support heavily with promotion and placement right now.

The strategy here is clear: invest in these Stars to solidify their market leadership. If you keep that market share while the market growth naturally decelerates, these brands transition into the Cash Cow quadrant, generating the cash needed to fund the next set of Question Marks. For instance, the 2.3% underlying volume growth in the segment shows that consumers are actively buying these products, not just reacting to price increases (2.7% price contribution).

It's about sustaining that leadership. For Dove Hair, the double-digit growth is fantastic, but you've got to keep the innovation pipeline flowing, like that fiber repair tech, to fend off competitors who will definitely try to catch up. For the Wellbeing brands, like Liquid I.V., maintaining the momentum of newer lines, such as the one now making up nearly 30% of its sales, is defintely key to securing that future Cash Cow status.

Finance: draft 13-week cash view by Friday.

Unilever PLC (UL) - BCG Matrix: Cash Cows

Cash Cows are business units or products with a high market share but low growth prospects, generating more cash than they consume. For Unilever PLC (UL), these stable performers anchor the portfolio, funding other strategic areas. The focus here is on mature segments delivering consistent, high-margin returns.

Knorr and Hellmann's, two of the largest brands in Foods, continue to demonstrate stability. The overall Foods business delivered underlying sales growth of 3.4% in Q3 2025, composed of 1.3% underlying volume growth and 2.1% underlying price growth. Specifically, Hellmann's maintained strong momentum, achieving mid-single digit growth led by volume. This suggests a market leader milking a mature category.

The core Home Care business delivered a solid 3.1% underlying sales growth in Q3 2025, with strong 2.5% volume growth. This strong volume relative to price growth (0.6%) indicates market share defense or gain in a mature space, a classic Cash Cow trait. Investments here are likely focused on efficiency, as suggested by the strong volume performance.

The overall Dove brand portfolio is a massive, mature Power Brand that consistently generates high cash flow for reinvestment. Dove hair, specifically, accelerated growth within the Beauty & Wellbeing segment, which saw 5.1% underlying sales growth in Q3 2025. Dove hair grew double-digit with balanced volume and price, supported by the successful roll-out of its new fibre repair technology range. Power Brands, which contributed 78% of turnover, saw underlying sales growth of 4.4%.

Developed markets, which account for 44% of group turnover, provide stable returns, delivering 3.7% underlying sales growth in Q3 2025. This growth was volume-led at 2.7%, with price contributing 1.0%. This stable, volume-backed performance is the hallmark of a reliable cash generator.

Here is a snapshot of the key segment performance that underpins the Cash Cow status for Unilever PLC (UL) as of Q3 2025:

The cash flow from these mature, high-share businesses supports the entire corporation. For instance, the quarterly interim dividend for Q3 was €0.4528, up 3.0% versus Q3 2024. Furthermore, Unilever PLC (UL) anticipates an improvement in underlying operating margin for the full year 2025, with second half margins of at least 18.5% (or at least 19.5% excluding the demerged Ice Cream business).

The stability provided by these units is evident in the overall financial outlook:

• Power Brands underlying sales growth was 4.4% (excluding Ice Cream).
• Overall underlying sales growth for Q3 was 3.9%.
• The full year 2025 underlying sales growth expectation remains within the range of 3% to 5%.
• Dove hair achieved double-digit growth.

The strategy for these Cash Cows involves maintaining current productivity levels to maximize cash extraction. Investments into supporting infrastructure, rather than heavy promotion, are key to improving efficiency and increasing cash flow further. You're looking at the engine room of the company's financial stability right here.

Unilever PLC (UL) - BCG Matrix: Dogs

Dogs are business units or products characterized by a low market share in a low-growth market. For Unilever PLC, this segment is being actively pruned as part of a strategy to sharpen focus on core, higher-growth areas.

The most significant action signaling non-core status for a large segment is the demerger of the Ice Cream division, which includes brands like Magnum and Ben & Jerry\'s. This separation, which houses The Magnum Ice Cream Company (TMICC), is expected to be completed by mid-November 2025, with Unilever reporting the unit as a discontinued operation starting in Q4 2025. Prior to this, the Ice Cream unit contributed 16% of Unilever\'s overall turnover. In the third quarter of 2025, this division reported sales growth of 3.7%.

Unilever PLC has been actively divesting non-core food brands, a clear indication of identifying units that do not fit the future profile. These sales align with the strategy to focus on Condiments, Cooking Aids & Mini Meals, and Unilever Food Solutions.

Specific divestitures completed or agreed upon in 2025 include:

• The sale of the British snack brand Graze to Katjes International, announced on December 1, 2025.
• The sale of the Dutch brand Conimex to the Finnish firm Paulig, with the disposal completed in April 2025.
• The sale of The Vegetarian Butcher completed in March 2025.
• Agreements to sell the Unox and Zwan brands to Zwanenberg Food Group, expected to complete in 2025.

This portfolio pruning targets underperforming local brands. The Chief Executive Officer identified approximately €1 billion worth of local brands within the European food division and an additional €500 million in smaller markets for disposal, as they lack scalability for the long-term strategy. This aligns with an earlier reported plan to sell food brands generating €1 billion in turnover a year.

Certain legacy product lines within the Foods and Refreshment segments are also candidates for this classification due to long-term market challenges. The overall Foods and Refreshment division saw only flat growth in FY25.

The following table summarizes some of the specific legacy assets under review or recently divested, which fit the low-growth/low-share profile:

The Foods division overall is being anchored more firmly on power brands like Knorr and Hellmann\'s, which together accounted for 60% of the food business\'s €13.4 billion turnover in 2024. For context, Unilever\'s total turnover in Q3 2025 was €14.7 billion, and the underlying operating margin for H1 2025 was 19.3%.

The strategy is clear: these units are candidates for divestiture because expensive turn-around plans are generally avoided for Dogs. You need to focus capital elsewhere, like on the Beauty & Wellbeing segments or the US and India growth anchors.

Unilever PLC (UL) - BCG Matrix: Question Marks

You're looking at the parts of Unilever PLC (UL) that are burning cash right now but operate in markets where the future could be very bright-if you can get the market share up quickly. These are the Question Marks that demand heavy investment to move them into the Star quadrant, or they risk becoming Dogs.

The Foods/Nutrition segment, for instance, shows growth potential but needs a serious volume push. In the third quarter of 2025, this group delivered an Underlying Sales Growth (USG) of 3.4%, but only 1.3% of that came from volume, with the remaining 2.1% being price-driven. That low volume contribution suggests buyers aren't yet fully adopting the offerings, requiring significant marketing spend to accelerate adoption and gain share. This unit needs to quickly convert that modest volume growth into something more substantial.

Geographically, Latin America is a clear cash consumer right now, grappling with tough macroeconomic conditions. For Q3 2025, this region saw its underlying sales decline by 2.5%, largely due to a sharp 7.3% drop in volume. The region is fighting headwinds, but the 5.2% price increase shows an attempt to offset the volume loss. The strategy here is to invest to stabilize volume, or risk further cash drain.

In specific markets, the business in Indonesia required a major reset following significant prior-year challenges. For instance, in the third quarter of 2024, Unilever Indonesia reported an 18% year-on-year decline in sales, which was driven primarily by a significant drop in sales volume. This situation absolutely demands heavy investment or a strategic divestiture to stop the cash bleed and return to a growth trajectory.

Also, consider newer, smaller acquisitions in high-growth areas, which are textbook Question Marks. Hindustan Unilever Limited (HUL), a part of Unilever PLC, acquired the premium skincare brand Minimalist in early 2025. This move was a direct investment into a high-growth, science-backed segment. The deal valued 90.5% of Minimalist at ₹2,955 crore. Minimalist, founded in 2020, had already achieved an Annual Revenue Runrate (ARR) of INR 500 cr before the acquisition, showing high-growth potential that requires continued, significant marketing spend to prove scalability across HUL's broader footprint.

Here is a snapshot of the financial pressure points that define these Question Mark areas:

The core challenge for these units is the cash consumption versus return profile. You need to decide quickly where to place your bets.

• Invest heavily to capture market share quickly.
• Focus on rapid adoption to avoid becoming a Dog.
• Deploy global R&D and offline presence to scale new brands like Minimalist.
• Address macroeconomic pressures in geographies like Latin America.
• Execute a major business reset in markets like Indonesia.

If you don't see a clear path to rapidly increase market share, the capital tied up in these low-share, high-growth areas is better deployed elsewhere. Finance: draft the capital allocation proposal for the top three high-potential Question Marks by next Wednesday.