Unilever has upgraded its full-year sales guidance after posting its strongest quarter for volume growth in more than a decade, with second-quarter volumes jumping 5.5% and underlying sales rising 5.8%, well above analysts' expectations. The consumer goods giant now expects underlying sales growth of 4% to 6% for 2026, up from the lower end of that range, with second-half growth of 4% to 5% driven by higher pricing. Shares climbed more than 8% in Tuesday trading.
The results reflect CEO Fernando Fernandez's pivot toward beauty and well-being brands, supported by marketing spend that reached 16.1% of second-quarter turnover. First-half turnover edged up 0.5% to €25.6 billion, with underlying operating margins hitting 20.3%.
Unilever also completed ahead of schedule an €800 million productivity programme launched in 2024 and expects to finalise a joint venture spinning off its slow-growth foods business with US spice maker McCormick by mid-2027. The company warned further price rises are coming.