Unilever PLC (LSE:ULVR) reported underlying sales growth of 5.2% in the third quarter of 2026, supported by higher volumes across its Beauty & Wellbeing, Personal Care and Home Care businesses, while raising its full-year underlying volume growth forecast to at least 3%.
The consumer goods group recorded quarterly turnover of €13.3 billion, an increase of 6.7% compared with the corresponding period of 2025. Underlying volume growth contributed 2.9 percentage points, while price growth contributed 2.3 percentage points.
Unilever’s Home Care division recorded the highest underlying sales growth at 9.1%, followed by Personal Care at 6.3% and Beauty & Wellbeing at 5.7%. Foods reported broadly unchanged underlying sales, with a 0.1% increase.
The company maintained its full-year underlying sales growth guidance of 4% to 6% and expects a modest improvement in its underlying operating margin compared with the 20.0% recorded in 2025.
Unilever also confirmed that its proposed combination of its Foods business with McCormick remains on schedule, subject to regulatory and shareholder approvals.
Third-Quarter Turnover Increases 6.7% to €13.3 Billion
Unilever reported turnover of €13.3 billion for the three months ended 30 September 2026, compared with €12.4 billion in the corresponding period last year.
The 6.7% reported increase reflected underlying sales growth of 5.2%, a net contribution of 0.8% from acquisitions and disposals, and a positive currency-related impact of 0.6%.
Underlying sales growth comprised 2.9% volume growth and 2.3% price growth.
The company said pricing increased during the quarter in response to higher commodity costs, particularly within Home Care and Personal Care.
Unilever’s Power Brands recorded underlying sales growth of 5.8%, including volume growth of 3.3%.
Performance varied across geographic markets, with emerging markets contributing most of the group’s underlying sales growth.
Nine-Month Turnover Reaches €38.9 Billion
For the first nine months of 2026, Unilever reported turnover of €38.9 billion, representing an increase of 2.7% from €37.9 billion in the corresponding period of 2025.
Underlying sales growth for the nine-month period was 4.9%, comprising volume growth of 3.8% and price growth of 1.1%.
Acquisitions contributed 1.3% to reported turnover growth, while disposals reduced it by 0.6%.
Currency-related movements had a negative impact of 2.9%.
The group reported a two-year compound annual growth rate of 4.1% for underlying sales and 2.5% for underlying volume.
The nine-month performance was supported by growth in Home Care, Personal Care and Beauty & Wellbeing, while Foods recorded lower reported turnover.
Full-Year Volume Growth Forecast Raised to at Least 3%
Following its third-quarter performance, Unilever increased its underlying volume growth expectation for 2026.
The company now forecasts volume growth of at least 3% for the full year.
It also expects underlying sales growth of approximately 5% during the second half.
Unilever maintained its multi-year underlying sales growth guidance range of 4% to 6% for 2026.
The group continues to anticipate a modest improvement in its underlying operating margin compared with the 20.0% achieved in 2025.
The revised volume outlook reflects performance during the first nine months and management’s expectations for the remainder of the year.
Beauty & Wellbeing Sales Rise 9.5% to €3.5 Billion
Unilever’s Beauty & Wellbeing division reported third-quarter turnover of €3.5 billion, an increase of 9.5% compared with the previous year.
Underlying sales grew 5.7%, comprising volume growth of 3.6% and price growth of 2.1%.
For the first nine months, turnover reached €10.0 billion, up 3.4%, while underlying sales increased 5.8%.
Hair Care recorded double-digit growth during the quarter, supported by higher volumes and demand across several brands.
Dove, Sunsilk, Clear and K18 each reported double-digit growth.
Dove benefited from product developments in serums, masks and scalp care, alongside sales growth in India and the United States.
Sunsilk and Clear recorded growth across Latin America and South East Asia.
The prestige hair care brand K18 also delivered double-digit growth.
Skin Care Growth Offsets Decline in Wellbeing
Within Beauty & Wellbeing, Skin Care recorded mid-single-digit underlying sales growth.
Vaseline reported double-digit growth, supported by performance across several markets, particularly in Asia Pacific Africa.
The company’s prestige skin care portfolio also contributed, including Hourglass, Paula’s Choice and Dermalogica.
However, Wellbeing sales declined by a high-single-digit percentage during the quarter.
Unilever attributed part of the reduction to shipment timing associated with Amazon Prime Day, which had benefited second-quarter sales.
For the first nine months, Wellbeing underlying sales declined 1.0%.
The company also reported changes in channel distribution and pricing arrangements, including reduced distribution and private-label competition affecting Liquid I.V. in the club retail channel.
Management said measures to improve customer acquisition for Nutrafol remained at an early stage.
Grüns recorded growth during its first full quarter under Unilever ownership but will not be included in underlying sales growth calculations until June 2027.
Unilever expects Wellbeing performance to improve sequentially from the third quarter.
Personal Care Underlying Sales Increase 6.3%
Unilever’s Personal Care division reported third-quarter turnover of €3.6 billion, up 9.7% from the previous year.
Underlying sales growth was 6.3%, consisting of 3.8% volume growth and 2.4% price growth.
For the first nine months, turnover increased 6.2% to €10.5 billion, while underlying sales grew 5.3%.
Skin cleansing products recorded high-single-digit growth, while deodorants increased by a mid-single-digit percentage.
Dove, the group’s largest brand, reported double-digit growth, including mid-single-digit volume growth.
Unilever said growth was recorded across emerging markets and the United States.
The company also increased prices during the quarter to reflect higher commodity costs.
Deodorants and Skin Cleansing Contribute to Personal Care Growth
Deodorants recorded mid-single-digit growth during the quarter, supported by higher sales volumes.
Emerging markets reported double-digit growth, including double-digit increases in Latin America and high-single-digit growth in Asia Pacific Africa.
US deodorant sales increased by a mid-single-digit percentage.
Unilever said its FIFA World Cup 2026 sponsorship contributed to brand activity during the period.
Dove deodorants recorded double-digit growth.
Skin cleansing also increased by a high-single-digit percentage, supported by both volume and pricing.
The company reported double-digit growth in emerging markets and mid-single-digit increases in North America and Europe.
Dove’s body serum product ranges contributed to the category’s performance.
Wild and Dr. Squatch also recorded double-digit growth, with Dr. Squatch included in underlying sales calculations from September.
Oral Care declined by a low-single-digit percentage, as growth in India and South East Asia was offset by lower sales in Europe.
Home Care Reports 9.1% Underlying Sales Growth
Home Care generated third-quarter turnover of €3.1 billion, an increase of 7.5% compared with the previous year.
Underlying sales growth reached 9.1%, comprising volume growth of 5.4% and price growth of 3.6%.
For the first nine months, Home Care turnover totalled €9.0 billion, up 3.6%, while underlying sales increased 8.1%.
Growth was led by emerging markets, particularly India and Brazil.
Unilever reported double-digit growth in Asia Pacific Africa and Latin America.
Higher commodity costs contributed to increased pricing during the quarter, and the company expects further pricing effects during the remainder of the year.
Fabric Cleaning and Household Products Support Home Care Performance
Fabric Cleaning recorded double-digit underlying sales growth, supported by high-single-digit volume growth.
Price increases also contributed, with category pricing growth reaching a mid-single-digit percentage.
Unilever reported double-digit Fabric Cleaning growth in India and Brazil.
The company said its market share in India reached record levels during the quarter.
Home & Hygiene products recorded mid-single-digit growth, with contributions from volume and pricing.
Cif delivered double-digit growth, supported by its Infinite Clean product range and expansion into additional markets.
Fabric Enhancers also grew by a mid-single-digit percentage, led by Comfort and demand across Asia Pacific Africa.
Foods Sales Remain Broadly Unchanged at €3.1 Billion
Unilever’s Foods division reported third-quarter turnover of €3.1 billion, unchanged on a reported basis from the previous year.
Underlying sales increased 0.1%, with price growth of 1.3% offsetting a volume decline of 1.1%.
For the first nine months, Foods turnover declined 2.6% to €9.4 billion.
Underlying sales growth for the nine-month period was 0.8%.
The company reported growth in emerging markets and its Unilever Food Solutions business, offset by lower retail sales in developed markets.
Unilever cited subdued market conditions and increased competition in US condiments.
Management is implementing product innovation and pricing measures intended to improve the performance of its US Foods business.
Condiments and Cooking Aids Record Flat Sales
Underlying sales in Cooking Aids remained broadly unchanged, as price increases offset lower volumes.
Growth in South East Asia, Brazil and Africa was balanced by declines in developed markets.
Condiments also recorded broadly flat underlying sales.
Unilever said its US portfolio had lower exposure to some faster-growing segments, including premium and avocado mayonnaise.
The company is introducing products and adjusting pricing to address these competitive conditions.
Unilever Food Solutions recorded low-single-digit growth, supported by a mid-single-digit increase in North America.
China also contributed low-single-digit growth.
In India, Foods recorded high-single-digit growth, supported by double-digit growth in Horlicks.
Emerging Markets Deliver 9.5% Underlying Sales Growth
Unilever reported third-quarter emerging market turnover of €8.0 billion, with underlying sales growth of 9.5%.
Volume increased 6.0%, while pricing contributed 3.3%.
For the first nine months, emerging market turnover reached €23.5 billion, with underlying sales growth of 7.9%.
Growth was recorded across several major markets, including India, Turkey, Vietnam, Pakistan, Latin America, Indonesia and South East Asia.
India, Turkey, Vietnam and Pakistan each recorded double-digit underlying sales growth.
Latin America, Indonesia and South East Asia reported high-single-digit increases.
The company said emerging market performance contributed to group volume growth during the quarter.
India Records 15% Underlying Sales Growth
Unilever reported underlying sales growth of 15% in India during the third quarter, including volume growth of 7%.
The company said the performance reflected growth across its principal business groups and a lower comparative base from the previous year.
Home Care and Beauty & Wellbeing recorded double-digit increases.
Personal Care and Foods grew by high-single-digit percentages.
Hair Care was a contributor, supported by demand for Dove and TRESemmé products.
India remained one of the principal contributors to the group’s emerging market performance.
Asia Pacific Africa Sales Increase 10.1%
The Asia Pacific Africa region generated turnover of €6.0 billion during the third quarter.
Underlying sales growth was 10.1%, comprising volume growth of 5.8% and price growth of 4.1%.
For the first nine months, regional turnover reached €17.3 billion, with underlying sales growth of 8.3%.
Indonesia recorded 7% growth, supported by volume increases across Home Care, Personal Care and Beauty & Wellbeing.
China reported low-single-digit growth, with mid-single-digit volume increases and contributions from all business groups.
Unilever said social commerce activity supported performance in China, alongside new products within its Beauty & Wellbeing and Personal Care portfolios.
Africa recorded mid-single-digit growth, supported by Vaseline, Home Care and Foods.
Americas Revenue Reaches €5.0 Billion
Unilever’s Americas business reported third-quarter turnover of €5.0 billion.
Underlying sales growth was 2.8%, comprising volume growth of 0.9% and price growth of 1.8%.
For the first nine months, turnover reached €14.7 billion, with underlying sales growth of 4.0%.
Performance differed between North America and Latin America.
North American underlying sales declined 0.7% during the quarter, although the company reported continued volume market share gains.
Growth in Personal Care and Beauty was offset by lower sales in Wellbeing and Foods.
Latin America recorded underlying sales growth of 8.5%, including volume growth of 6.5%.
Brazil reported high-single-digit growth, supported by double-digit volume increases.
Mexico recorded low-single-digit growth, while Argentina reported double-digit growth.
European Underlying Sales Decline 1.7%
Unilever reported third-quarter turnover of €2.3 billion in Europe.
Underlying sales declined 1.7%, comprising a 0.4% reduction in volume and a 1.3% decline in pricing.
For the first nine months, European turnover reached €6.9 billion, with underlying sales down 1.2%.
Beauty & Wellbeing recorded mid-single-digit growth, while Personal Care increased by a low-single-digit percentage.
The company reported growth in Dove products and deodorants.
However, these increases were offset by lower sales in Home Care and Foods.
Unilever attributed the declines to subdued market conditions in the region.
Unilever Foods Combination With McCormick Remains on Schedule
Unilever confirmed that preparations for the proposed combination of its Foods business with McCormick are progressing.
The transaction was announced in March 2026 and is intended to separate Unilever’s Foods operations from its remaining consumer goods businesses.
The company said more than 200 employees are working across 20 cross-functional teams on separation and integration activities.
Regulatory filings have been submitted according to the planned timetable.
The transaction remains subject to approval from McCormick shareholders, receipt of required regulatory approvals and satisfaction of other customary closing conditions.
Consultation with relevant works councils is also underway.
Unilever said it expects the consultation process to be completed before the transaction closes.
The company did not announce a revised completion date.
Portfolio Restructuring Continues Following Ice Cream Demerger
The proposed Foods combination follows the December 2025 demerger of The Magnum Ice Cream Company.
Together, these transactions form part of Unilever’s programme to reshape its business portfolio.
Following the proposed Foods separation, the remaining business would be more concentrated on Beauty & Wellbeing, Personal Care and Home Care.
Unilever said it continues to prioritise investment in growth and productivity, alongside selective acquisitions and disposals.
No bolt-on acquisitions were completed during the third quarter.
In August 2026, the company completed the disposal of its Home Care businesses in Colombia.
The group also intends to continue returning capital to shareholders through dividends and potential share repurchases.
Quarterly Dividend Increases 3% Year-on-Year
Unilever declared a third-quarter interim dividend of €0.4664 per ordinary share.
The payment is unchanged from the second-quarter 2026 dividend and represents an increase of 3.0% compared with the third quarter of 2025.
For ordinary shares traded on the London Stock Exchange, the dividend is equivalent to £0.3907 per share.
For shares traded on Euronext Amsterdam, the payment is €0.4664 per share.
American Depositary Receipt holders will receive US$0.5219 per ADR.
The currency conversions were determined using applicable exchange rates dated 26 October 2026.
The shares are scheduled to trade ex-dividend on 12 November 2026, while the ex-dividend date for ADRs is 13 November.
The record date is 13 November, with the deadline for dividend reinvestment elections set for 27 November.
Payment is scheduled for 18 December 2026.
CEO Fernando Fernandez Comments on Quarterly Performance
Fernando Fernandez, Chief Executive Officer of Unilever, commented on the company’s sales performance and revised volume expectations.
“We have delivered another quarter of competitive growth, led by continued strong volume delivery and a step up in price to offset the impact of higher commodity costs. Our Power Brands continued to lead performance, with strong growth across Home Care, Personal Care and Beauty & Wellbeing. Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and South East Asia. Developed market performance reflected tougher prior year comparators and softer performance in Foods.
We are performing while transforming Unilever. 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.
At our Investor Event next week we will set out how this transformation is creating a stronger, more focused Unilever capable of delivering sustained, competitive performance.”
Investor Event Scheduled for November
Unilever is scheduled to hold an investor event in New York on 4 November 2026.
The company intends to provide further information about its business transformation, portfolio strategy and operational priorities.
The event follows the third-quarter trading statement and the revision to the group’s full-year volume growth outlook.
Unilever’s fourth-quarter and full-year 2026 results are scheduled for publication on 11 February 2027.
Outlook for the Remainder of 2026
Unilever expects underlying sales growth of between 4% and 6% for the full year, with underlying volume growth of at least 3%.
The company anticipates second-half underlying sales growth of approximately 5% and a modest improvement in underlying operating margin compared with 2025.
Performance during the third quarter was supported by growth in Home Care, Personal Care and Beauty & Wellbeing, particularly across emerging markets.
Foods remained broadly unchanged on an underlying sales basis, while developed markets recorded lower sales.
Unilever continues to implement pricing changes in response to commodity costs and is progressing its proposed Foods combination with McCormick.
Further information about its business strategy is expected at the November investor event.
More About Unilever
Unilever PLC is a London-listed multinational consumer goods company operating across Beauty & Wellbeing, Personal Care, Home Care and Foods.
Its portfolio includes brands such as Dove, Vaseline, Sunsilk, Clear, TRESemmé, Cif, Comfort, Hellmann’s and Horlicks.
The company sells products across developed and emerging markets, with operations spanning Asia Pacific Africa, the Americas and Europe.
Unilever completed the demerger of The Magnum Ice Cream Company in December 2025 and announced an agreement in March 2026 to combine its Foods business with McCormick.
The group continues to develop its consumer goods portfolio while investing in product innovation, distribution and operational efficiency.
Leave a Reply