Unilever boosts outlook on robust first half

(Sharecast News) - Consumer goods giant Unilever boosted its full-year outlook on Tuesday, following a bumper end to the first-half. The owner of Dove, Lynx and Persil, among many others, said underlying sales growth in the six months to June end had risen 4.8%, driven by robust performances in both homecare and beauty and wellbeing. Company-wide volumes sparked 4.2% and prices 0.6%.

Operating profits were 2.6% higher at €4.9bn.

Fernando Fernandez, chief executive, said there had been a "significant step-up in the second quarter", including the best volume quarter for over a decade. Underlying sales growth in the final three months of the period was 5.8%, outstripping consensus for 4.3%.

He continued: "Our power brands continued to outperform, with all business groups delivering volume-led growth. Emerging markets showed momentum - India, Indonesia and Latin America all delivered strong growth - while North America again outperformed its market."

As a result, the blue chip now expects underlying sales in the second half to rise by between 4% and 5%, led by pricing, and full-year sales growth of between 4% and 6%.

It had previously forecast full-year sales growth to come in at the bottom end of that range.

Fernandez said: "The macroeconomic environment remains uncertain, but our consistency, discipline and strong first half performance give us confidence that we are well positioned to deliver our upgraded full-year outlook."

Under company veteran Fernandez, who took the top job in March 2025, Unilever has been refocusing to become a pure-play home and personal care specialist. Its ice cream business was spun off last year, and in March it agreed to merge its food business - home to Hellman's, Knorr and Pot Noodle - with American spice maker McCormick. The combination is poised to create a company worth around $45bn.

Fernandez said the deal was "progressing well". On track to close by mid-2027, last week McCormick confirmed it would seek a secondary listing in London for the combined business. The deal still requires regulatory approvals.

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