Overview
- Unilever reported stronger-than-expected second-quarter results on Tuesday, July 28, with underlying sales up 5.8% and volume growth of 5.5%, its best quarterly volume performance in more than a decade.
- The beat was driven by power brands and Home Care, with double-digit gains at names such as Dove, Vaseline and Sunsilk and Home Care growing fastest across the group.
- Foods remained the clear laggard, with sales weak in developed markets and margin pressure from higher commodity costs and extra investment in the category.
- Management upgraded full-year guidance and raised its volume target after completing a €800 million productivity programme ahead of schedule and increasing marketing spend to support growth.
- Investors responded with roughly a 6% jump in Unilever shares and the company says the planned Foods combination with McCormick is progressing toward regulatory and shareholder approvals for mid-2027 completion, though commodity and regional headwinds remain a risk.