Unilever (LSE:ULVR) delivered a solid first-half performance in 2026, reporting underlying sales growth of 4.8%, supported primarily by a 4.2% increase in sales volumes. Growth was led by the company’s Power Brands, with every business group recording volume-led gains and particularly strong demand across emerging markets. Turnover increased modestly to €25.6 billion despite significant foreign exchange headwinds, while the underlying operating margin improved to 20.3%. The company also completed its €800 million productivity programme ahead of schedule, providing additional support for profitability.
Home Care and Personal Care were the strongest-performing divisions during the period, helping offset softer trading in the Foods business, where developed markets and the US condiments segment continued to face pressure. Unilever also made further progress with the planned separation of its Foods division through its proposed combination with McCormick, a move that will create a more focused business centred on home, personal care, beauty and wellbeing products. Reflecting the strength of its first-half performance, management upgraded its outlook for both sales growth and operating margin for the full 2026 financial year, expressing confidence despite ongoing macroeconomic uncertainty.
The company’s outlook remains supported by consistent profitability, dependable free cash flow generation and positive technical indicators, with the share price continuing to trade above key moving averages. However, leverage remains higher than some peers, technical momentum appears close to overbought territory, and valuation remains relatively demanding at around 22.7 times earnings. These factors are partially balanced by a dividend yield of approximately 3.44%, continued share buybacks and management’s positive earnings outlook.
About Unilever
Unilever is one of the world’s largest consumer goods companies, with a portfolio spanning home care, personal care, beauty and wellbeing products, alongside a significant foods business. Its portfolio of Power Brands generates the majority of group revenue and has a strong presence across high-growth emerging markets, including India, Indonesia and Latin America, while maintaining substantial operations throughout North America and Europe.
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