Unilever has upgraded annual growth forecasts after the CPG giant logged its best quarter of volume growth in more than a decade.
Underlying sales growth came in at 4.8% for the first half of 2026 as its focus on power brands and promotional activity around the World Cup lowered prices and helped push volumes 4.2% higher.
Volumes accelerated at a faster pace in the second quarter to increase 5.5% as Unilever activated its largest ever sports partnership as the official personal care sponsor for the recent World Cup.
“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,” CEO Fernando Fernandez said.
“Our power brands continued to outperform, with all business groups delivering volume-led growth. Emerging markets showed momentum, while North America again outperformed its market.
“These results show our ability to continue performing while transforming our portfolio.”
He added the group’s brands were now stronger and execution was sharper.
Fernandez took charge from Hein Schumacher in early 2025 with a brief to push harder and faster with an ongoing turnaround. He has prioritised a shift away from food to focus on health, beauty and wellbeing.
Earlier this year, he agreed to sell the group’s food business to McCormick as part of plans for Unilever to become a pureplay home, personal and beauty care group.
In the first half, Unilever’s beauty & wellbeing division registered underlying sales growth of 5.9%, with double-digit rises from Dove, Sunsilk and Vaseline.
Personal care grew underlying sales by 4.8%, supported by the World Cup sponsorship starting in the second quarter, while home care recorded growth of 7.6%.
Growth at the food business was more subdued, up just 1.2% in the half, with softer demand in developed markets holding back a better performance in emerging markets.
Group turnover in the half nudged up 0.5% to €25.6bn as adverse currency translation offset the operational performance. Operating profits increased 2.6% to €4.9bn.
Following the strong first-half results, Unilever lifted its outlook for 2026, with underlying sales growth of 4% to 6% now expected on a 3% rise in volumes.
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