Consumer goods group Unilever has upgraded its full-year sales guidance after delivering its strongest quarterly volume growth in more than a decade, providing fresh momentum as it presses ahead with a €39 billion (£33.8 billion) deal to separate its food business.
Shares in the maker of Dove soap and Marmite climbed 6 per cent after the company reported underlying sales growth of 5.8 per cent in the second quarter, driven by a 5.5 per cent increase in volumes — its strongest quarterly performance in more than 10 years.
For the first six months of 2026, sales edged up 0.5 per cent while pre-tax profit rose 1.8 per cent to €4.66 billion (£3.98 billion). Operating profit increased 2.6 per cent to €4.89 billion (£4.17 billion).
The stronger-than-expected performance prompted Unilever to raise its annual outlook. The group now expects full-year sales growth to fall within its medium-term target range of 4 to 6 per cent, having previously guided investors towards the lower end of that range. It also lifted its forecast for underlying volume growth to around 3 per cent.
The results come as Unilever advances plans to combine its food division with US rival McCormick in a joint venture that will unite brands including Marmite and French’s mustard. The transaction is designed to sharpen Unilever’s focus on faster-growing beauty, personal care and wellbeing categories while creating a larger standalone food business.
Chief executive Fernando Fernandez said the results demonstrated the company’s ability to improve operational performance while reshaping its portfolio.
“We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter — the best volume quarter at Unilever in over a decade,” he said.
The update is likely to reassure investors after some shareholders criticised the company for approving the McCormick transaction without holding a formal shareholder vote, arguing the deal represented a significant strategic shift.
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