Unilever reported first-quarter underlying sales growth of 3.8%, ahead of the 3.6% analysts had expected. Volume growth of 2.9% also beat the 1.8% forecast.
Unilever posted Q1 underlying sales growth of 3.8%, topping the 3.6% analyst estimate, as demand for Dove soap and cleaning products in emerging markets helped offset softer US trends. The company kept its outlook at the low end of its 4%-6% target. pic.twitter.com/jJoc2UuTuZ
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The company’s Power Brands were the main driver. That group saw underlying sales rise 5.0% and volume grow 4.0% in the quarter.
Every business group posted volume gains. Home Care was a standout, fueled by accelerating demand across key emerging markets.
Emerging markets as a whole grew underlying sales 5.7%. India delivered a strong performance, while Latin America bounced back following what the company called “decisive actions” taken in the region.
CEO Fernando Fernandez said the company started the year with “volume-led growth” and pointed to “broad-based momentum” across its emerging markets business.
He also noted that despite macroeconomic uncertainty, the company remains confident in its full-year guidance. Fernandez has been at the helm since last year and has overseen a broader restructuring of the business.
That restructuring has included replacing several senior leaders and cutting white-collar headcount.
The company struck a deal with spice-maker McCormick roughly a month ago to combine their food businesses into a new company valued at around $65 billion including debt.
Under the cash-and-stock deal, Unilever shareholders would receive a 65% stake in the new business. The deal hasn’t been warmly received by some European investors, who are wary of exposure to leveraged U.S.-listed food assets.
The McCormick deal fits into Unilever’s wider strategy to focus on beauty, personal care, and home products — shedding food exposure in the process.
Over recent years, Unilever has spun off its ice-cream arm into Magnum Ice Cream, sold its tea business, and divested its margarine and spreads brands.
Magnum Ice Cream, which includes Ben & Jerry’s, reported Q1 organic sales growth of 4.5%, beating the 2.6% analyst estimate. Revenue hit €1.77 billion for the quarter.
RBC Capital Markets analysts noted that Home Care and Latin America were the top performers for organic sales growth in Q1 — up 6.1% and 6.2% on year, respectively.
Home Care’s growth was entirely volume-driven. In Latin America, both volume and price contributed to the organic growth figure.
“Unilever’s actions to restore its performance in these areas bore fruit,” wrote RBC analysts James Edwardes Jones and Wassachon Udomsilpa.
Turnover for the quarter fell to €12.6 billion, down 3.3% on year, largely in line with expectations.
Full-year guidance remains unchanged. Unilever expects underlying sales growth at the bottom end of its 4%–6% multi-year range, with at least 2% underlying volume growth, and a modest improvement in operating margin versus the 20.0% recorded in 2025.
The company also confirmed its €1.5 billion share buyback programme — announced in February — begins today and is expected to wrap up by July 6.
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