Quick Overview
- First-quarter underlying sales growth reached 3.8% at Unilever, surpassing the 3.6% consensus forecast
- Volume expansion hit 2.9%, significantly exceeding the 1.8% analyst projection
- Power Brands portfolio delivered 5.0% underlying sales growth alongside 4.0% volume increases
- Underlying sales in emerging markets climbed 5.7%, driven by robust results in India and Latin American territories
- Company maintains full-year outlook: underlying sales growth projected at lower end of 4%–6% target range
The consumer goods giant delivered first-quarter underlying sales expansion of 3.8%, outpacing the 3.6% consensus estimate from Wall Street analysts. Volume gains reached 2.9%, substantially beating the 1.8% projection.
The Power Brands portfolio emerged as the primary growth catalyst. This strategic collection of brands achieved 5.0% underlying sales expansion and posted 4.0% volume growth during the three-month period.
Across all business divisions, volume posted positive growth. The Home Care segment particularly shone, propelled by strengthening consumer demand throughout critical emerging market regions.
Emerging market territories collectively delivered 5.7% underlying sales growth. India registered particularly impressive results, while Latin American operations rebounded following strategic interventions the company characterized as “decisive actions” implemented throughout the region.
Chief Executive Fernando Fernandez stated the organization kicked off the year with “volume-led growth” and highlighted “broad-based momentum” throughout its emerging markets operations.
Despite ongoing macroeconomic headwinds and uncertainty, Fernandez expressed continued confidence in achieving full-year targets. Since assuming leadership last year, Fernandez has spearheaded an extensive business reorganization.
This transformation initiative has encompassed leadership changes at senior levels and reductions in administrative workforce.
Historic Portfolio Transformation at Unilever
Approximately one month ago, the company announced a landmark agreement with seasoning giant McCormick to merge their respective food operations into a combined entity carrying an enterprise value of approximately $65 billion, including debt obligations.
The transaction structure provides Unilever shareholders with a 65% ownership stake in the newly formed business. However, the proposed merger has encountered skepticism from certain European institutional investors concerned about increased exposure to debt-laden U.S. food sector assets.
This McCormick transaction aligns with Unilever’s broader strategic pivot toward concentrating on beauty, personal care, and home care categories — systematically reducing its food business footprint.
In recent years, the company has executed several major divestments: spinning off its ice cream division into Magnum Ice Cream, selling its tea portfolio, and offloading its margarine and spreads brands.
Magnum Ice Cream, whose portfolio includes the Ben & Jerry’s brand, posted organic sales growth of 4.5% in Q1, exceeding the 2.6% analyst forecast. Quarterly revenue totaled €1.77 billion.
Home Care Division and Latin American Markets Outperform
RBC Capital Markets equity analysts highlighted that Home Care and Latin America emerged as the strongest performers for organic sales expansion in the first quarter — climbing 6.1% and 6.2% year-over-year, respectively.
The Home Care segment’s growth stemmed entirely from volume expansion. Across Latin American markets, both volume gains and pricing contributed to the organic growth figure.
“Unilever’s actions to restore its performance in these areas bore fruit,” wrote RBC analysts James Edwardes Jones and Wassachon Udomsilpa.
Quarterly turnover reached €12.6 billion, representing a 3.3% year-over-year decline, broadly consistent with market expectations.
The company’s full-year guidance remains unmodified. Management anticipates underlying sales growth at the lower end of its multi-year 4%–6% target corridor, with minimum 2% underlying volume growth, and marginal operating margin improvement compared to the 20.0% achieved in 2025.
Unilever also verified that its €1.5 billion share repurchase program — initially disclosed in February — commenced today and is scheduled for completion by July 6.
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