Unilever upgrades 2026 outlook after strong first half

Power Brands, which account for 78 per cent of turnover, delivered 6.0 per cent underlying sales growth

Unilever has reported underlying sales growth of 4.8 per cent for the first half of 2026, driven primarily by higher volumes, and has upgraded its full-year outlook following stronger-than-expected performance in the second quarter.

The company recorded turnover of €25.6 billion, while underlying operating margin increased to 20.3 per cent. Underlying earnings per share rose 2.4 per cent as growth across its Power Brands and emerging markets offset currency headwinds.

Volume growth accelerates in second quarter

Underlying sales growth accelerated to 5.8 per cent in the second quarter, supported by 5.5 per cent volume growth, marking Unilever's strongest quarterly volume performance in more than a decade. Power Brands, which account for 78 per cent of turnover, delivered 6.0 per cent underlying sales growth, with all business groups contributing to volume-led growth.

Fernando Fernandez, CEO, Unilever: "We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter – the best volume quarter at Unilever in over a decade. Our Power Brands continued to outperform, with all Business Groups delivering volume-led growth. Emerging markets showed momentum – India, Indonesia and Latin America all delivered strong growth – while North America again outperformed its market."

Emerging markets lead performance

Emerging markets, representing 60 per cent of group turnover, posted underlying sales growth of 7.0 per cent, led by India, Indonesia and Latin America. Developed markets grew 1.5 per cent, with North America outperforming while Europe remained subdued. Home Care recorded the strongest growth among the business groups at 7.6 per cent, followed by Beauty & Wellbeing at 5.9 per cent and Personal Care at 4.8 per cent. Foods grew 1.2 per cent.

The company completed its €800 million productivity programme ahead of schedule, while maintaining brand and marketing investment at 16.1 per cent of turnover.

Foods separation progresses

Unilever said the planned combination of its Foods business with McCormick remains on schedule. In July, McCormick announced the operating model and executive team for the combined business, along with plans for a secondary listing in London. The transaction is expected to be completed by mid-2027, subject to shareholder and regulatory approvals.

Company raises full-year guidance

Following its first-half performance, Unilever now expects underlying sales growth for 2026 to be within its multi-year guidance range of 4 per cent to 6 per cent, with around 3 per cent underlying volume growth. The company also anticipates a modest improvement in underlying operating margin compared with 2025.

Fernando Fernandez: "These results show our ability to continue performing while transforming our portfolio. Our brands are stronger, our execution is sharper and we are driving Desire at Scale. The macroeconomic environment remains uncertain, but our consistency, discipline and strong first half performance give us confidence that we are well positioned to deliver our upgraded full year outlook."

www.unilever.com

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