Unilever (LSE:ULVR) reported underlying sales growth of 3.8% for the first quarter of 2026, largely driven by a 2.9% increase in volumes. Growth was broad-based across all business segments, with strong contributions from its Power Brands portfolio.
Emerging markets were the main engine of expansion, particularly India and a recovering Latin America. However, reported turnover declined 3.3% to €12.6 billion, reflecting a significant negative impact from currency movements.
Outlook maintained as productivity gains support margins
Unilever reaffirmed its full-year 2026 guidance, expecting sales growth toward the lower end of its 4%–6% target range, alongside modest margin improvement.
This outlook is supported by a cost-efficiency programme that has already delivered €750 million of its planned €800 million in savings, helping offset inflationary pressures and support profitability.
Strategic shift toward core HPC business accelerates
The company is advancing a major strategic repositioning to focus more heavily on home and personal care. This includes plans to combine its Foods division with McCormick, alongside a series of disposals and the acquisition of U.S. supplements brand Grüns.
Unilever is also enhancing shareholder returns, with a higher dividend and the launch of a €1.5 billion share buyback programme.
Balanced outlook with supportive fundamentals
Unilever’s outlook is underpinned by stable profitability and consistent free cash flow generation, although leverage has increased somewhat.
Technical indicators remain supportive, with the stock trading above key moving averages and showing positive momentum, though some measures suggest it may be overbought in the near term. Valuation appears relatively elevated at around 22.7 times earnings, but this is partly offset by a dividend yield of approximately 3.44% and ongoing capital return initiatives.
More about Unilever
Unilever is a global fast-moving consumer goods company with leading positions in home and personal care, beauty and wellbeing, and food products. Its portfolio includes major brands such as Dove, Vaseline, and Hellmann’s, alongside a wide range of home care products. The company has a strong presence in emerging markets, including India, Latin America, China, and Indonesia, which remain key drivers of its long-term growth.
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