Unilever reports best quarterly volumes in over a decade, upgrades annual forecast

[LONDON] Unilever delivered its best quarter for volumes in over a decade and upgraded its annual forecast on Tuesday (Jul 28), as consumers reached for its home care, beauty and personal care brands despite household budget concerns stemming from the Iran war.

The maker of Dove soap and Axe deodorant said second-quarter volumes rose by 5.5 per cent, powered by strength in key markets like India, Indonesia and Latin America, helping it comfortably beat underlying sales growth estimates.

The consumer goods giant has been shifting towards beauty and well-being brands under Fernandez, who was appointed last year to accelerate its turnaround strategy. While the Middle East conflict has saddled companies with higher costs this year, Unilever has softened the blow by raising prices.

The company said it now expects underlying sales growth for 2026 to be within its multi-year forecast of 4 per cent-6 per cent, up from its earlier forecast of growth at the bottom end of that range. It forecast sales growth of 4 per cent-5 per cent in the second half, driven by higher pricing.

Unilever, which is merging its food business with spice maker McCormick, reported underlying sales growth of 5.8 per cent for the quarter ended June 30, compared with analysts’ average expectation of 4.3 per cent, according to a company-compiled consensus.

Turnover for the quarter rose 3.8 per cent to 13 billion euros (US$14.78 billion). Unilever said the separation of its food business was progressing well and expects it to be completed by no later than mid-2027. REUTERS