28th Jul 2026 09:46
(Alliance News) - Unilever PLC on Tuesday boosted annual guidance after posting stronger-than-expected underlying sales growth in the first half.
Unilever shares rose 6.2% in response to 4,914.00p each on Tuesday morning in London, the top performer in the FTSE 100 index, which was up just 0.4%.
The London-based consumer goods maker behind brands such as Dove, Vaseline and Sure booked pretax profit of EUR4.66 billion for the six months that ended June 30, up 1.8% from EUR4.58 billion a year earlier.
Revenue advanced 0.5% to EUR25.62 billion from EUR25.51 billion. On an underlying basis, first-half sales grew 4.8%, ahead of company-compiled consensus for a 4.1% increase. For the second quarter alone, underlying sales grew 5.8%, ahead of consensus of 4.3%.
In Developed markets, which account for about 40% of the company's turnover, underlying sales increased 1.5%, led by North America, "while Europe remained subdued". Emerging markets, which make up 60% of turnover, saw underlying sales growth of 7.0%.
The Beauty & Wellbeing recorded 5.9% underlying sales growth, Personal Care 4.8%, and Home Care 7.6%. The improvement was notably softer for the Foods division, with underlying sales growth of 1.2% in the first half, "reflecting a softer market environment and increased competition in US condiments", according to Unilever.
Condiments business McCormick last week said it will seek a secondary share listing in London after agreeing to merge with Unilever's food business. Unilever on Tuesday said the separation and integration process is moving ahead, with completion expected by the middle of 2027 at the latest.
Unilever also noted that its EUR800 million "productivity programme, launched in 2024 to simplify the business and remove stranded overheads related to Ice Cream", had been completed ahead of schedule.
Unilever spun off Magnum Ice Cream Co NV back in December.
Chief Executive Fernando Fernandez commented on Tuesday: "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.
"These results show our ability to continue performing while transforming our portfolio."
Fernandez added: "Our combination of Foods with McCormick is progressing well and will unlock significant value, making Unilever a focused pureplay [home and personal care] company, while giving Foods the platform to thrive as part of a global powerhouse in flavour."
Unilever now expects underlying sales growth for 2026 within its 4% to 6% multi-year guidance range, "with around 3% underlying volume growth". It previously saw underlying sales growth for the full year at the bottom end of the 4% to 6% range, with "at least 2% underlying volume growth".
Unilever declared a dividend of EUR0.4664 per share for the second quarter, the same as for the first quarter and up 3.0% from a year before.
The company also noted that it completed its EUR1.5 billion share buyback programme in February. The spinoff of Unilever Foods, together with cash from operations, is expected to support EUR6 billion in share buybacks between 2026 and 2029.
By Holly Munks, Alliance News reporter
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