| Segment information |
2. Segment information | | Segmental reporting Following the demerger of the Ice Cream business, the Group’s operating and reportable segments are the four Business Groups of Beauty & Wellbeing, Personal Care, Home Care and Foods (previously reported as Nutrition). The segmental disclosure provided is consistent with information reviewed by our chief operating decision-maker, the Unilever Leadership Executive. | | ■primarily sales of hair care (shampoo, conditioner, styling), skin care (face, hand and body moisturisers), and includes Prestige Beauty and Wellbeing. | | ■primarily sales of skin cleansing (soap, shower), deodorant and oral care (toothpaste, toothbrush, mouthwash) products. | | ■primarily sales of fabric care (washing powders and liquids, rinse conditioners) and a wide range of home and hygiene cleaning products. | Foods (previously Nutrition) | ■primarily sales of cooking aids & mini-meals (soups, bouillons, seasonings), condiments (mayonnaise, ketchup) and Unilever Food Solutions. | Revenue Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs, and are based on the contractual arrangements with each customer. Discounts can either be immediately deducted from the sales value on the invoice or off-invoice and settled later through credit notes when the precise amounts are known. Amounts provided for discounts at the end of a period require estimation; historical data and accumulated experience are used to assess the provision using the most likely amount method and in most instances, the discount can be recognised using known facts with a high level of accuracy. Any differences between actual amounts settled and the amounts provided are recognised in the subsequent reporting period and are not material year-on-year. Rebate accruals, representing the unsettled portion of variable consideration due back to customers not yet invoiced, totalled €3,481 million at 31 December 2025 (2024: €3,815 million; 2023: €3,816 million). Customer contracts generally contain a single performance obligation and turnover is recognised when control of the products being sold has transferred to our customer, as there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the customer but depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance. This is considered the appropriate point where the performance obligations in our contracts are satisfied as Unilever no longer has control over the inventory. Our customers have the contractual right to return goods only when authorised by Unilever. If material, an estimate is made of goods that will be returned, and a liability is recognised for this amount. An asset is then recorded for the corresponding inventory that is estimated to return to Unilever using a best estimate based on accumulated experience. Our customers are distributors who may be able to return unsold goods in consignment arrangements. Underlying operating profit Underlying operating profit means operating profit before the impact of non-underlying items within operating profit. Underlying operating profit represents our measure of segment profit or loss as it is the primary measure used for the purpose of making decisions about allocating resources and assessing performance of segments. Items are classified as non-underlying due to their nature and/or frequency of occurrence. |
Our segments are comprised of similar product categories. 8 categories (2024: 8; 2023: 8) individually accounted for 5% or more of our revenue in one or more of the last three years. The following table shows the relevant contribution of these categories to Group revenue for the periods shown: (a)The 2024 and 2023 comparatives have been restated from those previously published to reflect the demerger of our Ice Cream business (see note 21). * Cooking Aids previously reported as Scratch Cooking Aids; Condiments previously reported as Dressings. 2. SEGMENT INFORMATION continued The Group operating segment information is provided based on four product areas: Beauty & Wellbeing, Personal Care, Home Care and Foods. | | | | | | | | | € million Beauty & Wellbeing | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Underlying operating profit | | | | | | | Share of net profit/(loss) of joint ventures and associates | | | | | | | Significant non-cash charges: | | | | | | | Within underlying operating profit: | | | | | | | Depreciation and amortisation | | | | | | | Share-based compensation and other non-cash charges(c) | | | | | | | Within non-underlying items: | | | | | | | Impairment and other non-cash charges(d) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Underlying operating profit | | | | | | | Share of net profit/(loss) of joint ventures and associates | | | | | | | Significant non-cash charges: | | | | | | | Within underlying operating profit: | | | | | | | Depreciation and amortisation | | | | | | | Share-based compensation and other non-cash charges(c) | | | | | | | Within non-underlying items: | | | | | | | Impairment and other non-cash charges(d) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Underlying operating profit | | | | | | | Share of net profit/(loss) of joint ventures and associates | | | | | | | Significant non-cash charges: | | | | | | | Within underlying operating profit: | | | | | | | Depreciation and amortisation | | | | | | | Share-based compensation and other non-cash charges(c) | | | | | | | Within non-underlying items: | | | | | | | Impairment and other non-cash charges(d) | | | | | | |
(a)The 2024 and 2023 comparatives have been restated from those previously published to reflect the demerger of our Ice Cream business (see note 21). (b)Non-underlying items include (loss)/gain on disposal of group companies, impairment, restructuring costs, acquisition and disposal-related costs and other one-off items classified separately due to their nature and/or frequency of occurrence (see note 3). (c)Other non-cash charges within underlying operating profit include movements in provisions from underlying activities, excluding movements arising from non-underlying activities. (d)Other non-cash charges within non-underlying items includes movements in restructuring provisions and movements in certain legal provisions. 2. SEGMENT INFORMATION continued The Unilever Group is not reliant on turnover from transactions with any single customer and does not receive 10% or more of its turnover from transactions with any single customer. Segment assets and liabilities are not provided because they are not reported to or reviewed by our chief operating decision-maker, which is the Unilever Leadership Executive (ULE). Turnover and non-current assets for the country of domicile, the United States and India (being the two largest countries outside the home country) and for all other countries are: (a)The 2024 and 2023 comparatives have been restated from those previously published to reflect the demerger of our Ice Cream business (see note 21). (b)For the purpose of this table, non-current assets include goodwill, intangible assets, property, plant and equipment and other non-current assets as shown on the consolidated balance sheet. Goodwill is attributed to countries where acquired business operated at the time of acquisition; all other assets are attributed to the countries where they were acquired. No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total. ADDITIONAL INFORMATION BY GEOGRAPHIES Although the Group’s operations are managed by product area, we provide additional turnover information based on geographies. (a)The 2024 and 2023 comparatives have been restated from those previously published to reflect the demerger of our Ice Cream business (see note 21). (b)Americas sales in North America were €11,220 million (2024: €11,140 million; 2023: €11,065 million) and in Latin America were €7,402 million (2024: €8,465 million; 2023: €7,732 million). The Group’s turnover classified by markets is: (a)The 2024 and 2023 comparatives have been restated from those previously published to reflect the demerger of our Ice Cream business (see note 21). Transactions between the Unilever Group’s geographical regions are immaterial and are carried out on an arm’s length basis.
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