Jeffrey Stent's questions to UNILEVER (UL) leadership • Q3 2025
Question
Jeffrey Stent asked for more details on the high single-digit decline in Mexico beyond macroeconomic factors, and whether Unilever still expects to grow hard currency earnings this year.
Answer
CEO Fernando Fernandez attributed Mexico's soft markets to reduced remittances, tariff uncertainty, and low GDP growth, noting strong competitiveness but softening margins and poor pickup during promotional periods. CFO Srinivas Phatak expressed confidence in achieving positive hard currency earnings for the current year, driven by gross margin trajectory, increased absolute brand spend (15-16% BMI), significant productivity savings ($650 million program), and efficiencies in taxation and interest lines.