Unilever announced its best quarterly volume growth in over a decade on July 28, as second-quarter volumes rose by 5.5%. The consumer goods giant attributed this growth to strong demand for its home care, beauty, and personal care products, particularly in key markets such as India, Indonesia, and Latin America. The company reported underlying sales growth of 5.8% for the quarter ended June 30, surpassing analysts' expectations of 4.3%, according to a company-compiled consensus.
Key Details
The company’s turnover for the quarter increased by 3.8% to 13 billion euros (approximately US$14.78 billion). Unilever's Chief Executive Fernando Fernandez noted that the performance was driven by a combination of higher volumes and prices. He stated,
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.
Background
Unilever also upgraded its annual sales forecast, now expecting underlying sales growth for 2026 to fall within its multi-year forecast of 4%-6%, an increase from its previous estimate at the lower end of that range. The company anticipates sales growth of 4%-5% in the second half of the year, primarily driven by higher pricing. Additionally, Unilever indicated that it is progressing well with the separation of its food business, which is expected to be completed by mid-2027.
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Unilever's strong performance may influence consumer goods stocks positively, particularly those exposed to similar market dynamics. The anticipated acceleration in pricing could lead to higher costs for consumers, impacting spending patterns in the sector. Investors will watch for further updates on Unilever's progress with its food business separation and any adjustments to its pricing strategy in light of commodity costs.