Unilever posts best volume growth in 16 years, upgrades full-year outlook

Strongest volume growth since 2010

Unilever reported underlying sales growth of 5.8% in the second quarter of 2026, with turnover reaching €13bn. Volume growth hit 5.5%, the highest quarterly increase in 16 years. The result comfortably beat the 4.3% analyst consensus compiled by the company. The performance was driven by double-digit sales growth in Brazil and Argentina, and a 10% rise in India, where home-care and haircare brands gained market share. In Latin America, a World Cup promotion for the Rexona deodorant brand helped boost sales. Indonesia also contributed to the emerging-market demand, with consumers snapping up Dove soap and Rexona deodorants.

These results show our ability to continue performing while transforming our portfolio. Our brands are stronger, our execution is sharper and we are driving desire at scale.

Guidance raised for the full year

The company now expects full-year underlying sales growth "within" its multi-year range of 4% to 6%, an upgrade from the earlier forecast of growth at the "lower end" of that band. Volume growth for 2026 is now projected at around 3%, up from the previous 2% guidance. The upgrade reflects confidence that the momentum from emerging markets and the beauty and personal care pivot will continue. Unilever had previously guided for full-year sales growth at the bottom end of the 4-6% range, but the strong Q2 performance prompted the revision.

Portfolio transformation accelerates

Under CEO Fernando Fernández, appointed last year, Unilever is shifting away from its traditional food business toward faster-growing categories like beauty and personal care. The company is merging its food operations with US spice and sauce maker McCormick to create a new $66bn business, expected to close in mid-2027 subject to McCormick shareholder approval. Last week, McCormick announced a secondary listing of the combined entity in London. This follows the separation of Unilever's ice cream division, now listed in the Netherlands as the Magnum Ice Cream Company. Activist investor Nelson Peltz, who joined the board in 2022, has long pushed for a break-up of the conglomerate. Last month, Fernández had to address investor concerns that the turnaround was moving too rapidly and could affect performance.

Market reaction and external pressures

Unilever shares rose 6.5% in early London trading following the announcement. The results come amid higher costs linked to the Iran war, which have pressured consumer goods companies and their customers. Despite this, Unilever's trusted household brands like Dove and Domestos have retained consumer loyalty. The company's home care and beauty brands benefited from consumers reaching for trusted names during the uncertainty.