Unilever reports 3.8% sales growth in Q1 FY26
This performance is mainly driven by the 2.9% volume growth and the 0.9% points from price, with its Power Brands up 5.0%.
UK – Unilever has announced 3.8% underlying sales growth in the first quarter of fiscal year 2026.
The company reaffirmed its full‑year 2026 outlook, expecting underlying sales growth at the bottom end of its 4–6% multi‑year range, at least 2% underlying volume growth, and a modest improvement in underlying operating margin to 20.0% from 20.0% in 2025.
Emerging markets grew underlying sales by 5.7% (4.2 pts volume, 1.5 pts price), led by India (about 7% growth), Latin America’s return to positive volume growth and solid progress in China and Indonesia.
Developed‑market growth was 1.0% (0.9 pts volume, 0.1 pts price), supported by North America’s Personal Care and Beauty performance, partly offset by softer conditions in Europe.
Reported group turnover was €12.6 billion (USD 14.74 billion), down 3.3% year‑on‑year as 3.8% underlying sales growth and deal impacts were more than offset by a‑7.7% foreign‑exchange drag.
Beauty & Wellbeing (25% of turnover) grew underlying sales 3.6%, with high‑single‑digit hair care growth driven by Dove Hair Fibre Repair and a rebound in Sunsilk and Clear; Dove and Vaseline delivered double‑digit volume gains, while prestige brands Hourglass, Tatcha and Dermalogica added premium momentum.
Wellbeing dipped into the low single digits year‑on‑year due to a tough comparator, but Olly posted double‑digit growth via digital channels and expanded distribution.
Personal Care (26% of turnover) rose 3.7%, with 1.1 percentage points from volume and 2.5 from price, led by mid‑single‑digit gains in deodorants and skin cleansing.
Dove was the main growth engine, particularly in North America, while Rexona and Axe improved sequentially as Brazil‑focused format‑mix changes took hold.
Home Care (24% of turnover) posted 6.1% underlying growth, almost entirely volume‑driven (6.2 pts volume, 0.1 pt price), with strong performance in India and Brazil, mid-to-high-single-digit gains from Fabric Cleaning, Cif, and Comfort, and improved competitiveness in key markets.
Foods (also 25% of Q1 turnover) grew underlying sales 2.2% (2.4 pts volume,‑0.2 pt price), led by Hellmann’s; Unilever Food Solutions continued its gradual recovery.
Emerging‑market Foods grew mid‑single‑digit on volume, while developed‑market Foods were flat against weaker category dynamics.
Unilever is advancing its transformation into a home and personal care‑focused company via the planned Foods combination with McCormick, expected to close by mid‑2027, aiming for about USD 600 million in annual net cost collaboration and up to USD 100 million in additional cost and revenue partnership for reinvestment.
The company also continues to streamline its portfolio with recent disposals and the agreed acquisition of Grüns, a fast‑growing U.S.
VMS greens‑supplement brand. Capital allocation remains focused on growth and productivity, selective acquisitions and disposals, and shareholder returns via a €0.4664 (USD 0.55) per‑share interim dividend (up 3.0% year‑on‑year) and a €1.5 billion (USD 1.76) share‑buyback programme starting in April 2026.
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