Unilever upgrades expected volume growth on strong third quarter

Unilever PLC on Wednesday upgraded its full-year 2026 outlook for underlying volume growth and underlying operating profit margin, following strong third-quarter trading.

The consumer goods group said it now expects volume growth to be at least 3.0% for the full year.

Unilever reported turnover in the third quarter rose 6.7% on year to EUR13.3 billion, with underlying sales growth of 5.2%, comprising volume growth of 2.9% and price growth of 2.3%.

Among global business units, Home Care drove performance with underlying sales growth of 9.1%, followed by the Personal Care division at 6.3% and Beauty & Wellbeing at 5.7%. Foods remained broadly flat.

By region, growth in India, Latin America and South East Asia drove emerging markets underlying sales growth of 9.5%, offsetting a 0.9% decline in developed markets.

Unilever said it continues to expect full-year underlying sales growth of 4.0% to 6.0% and "modest improvement" in its underlying operating margin from 20% in 2025.

It says the planned combination of its Foods business with McCormick & Co Inc remains on track with "strong progress" on regulatory approvals. The UK Competition & Markets Authority last month launched a phase 1 investigation of the £33.8 billion deal and has until November 11 for its decision.

Unilever declared a third-quarter dividend of EUR0.4664 per share, unchanged from the second quarter and up 3.0% on a year before.

"We are performing while transforming Unilever," Chief Executive Officer Fernando Fernandez said. "We are becoming simpler and sharper, with greater focus and stronger execution as we drive 'desire at scale' across our brands. This progress gives us confidence that we will now deliver at least 3% volume growth for the full year."

Unliver shares were down 2.2% to 4,785.00 pence per share on Wednesday morning in London.

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