Quick Summary
- First-quarter underlying sales expansion reached 3.8% for Unilever, surpassing the 3.6% consensus projection
- Volume expansion of 2.9% significantly exceeded the anticipated 1.8% figure
- The Power Brands portfolio delivered 5.0% underlying sales expansion alongside 4.0% volume increases
- Developing markets achieved 5.7% underlying sales growth, with India and Latin America showing particular strength
- Annual outlook maintained: revenue expansion expected at the lower threshold of the 4%–6% target corridor
Unilever’s first-quarter performance delivered underlying sales expansion of 3.8%, surpassing the 3.6% consensus among financial analysts. The volume expansion metric of 2.9% similarly exceeded projections that had anticipated just 1.8% growth.
The Power Brands portfolio emerged as the primary catalyst for these results. This segment registered underlying sales expansion of 5.0% alongside volume increases of 4.0% during the three-month period.
Positive volume momentum was recorded across all operational divisions. The Home Care segment delivered particularly impressive results, propelled by accelerating consumer demand throughout strategic developing markets.
Developing markets collectively achieved underlying sales expansion of 5.7%. The Indian market contributed robust performance figures, while Latin America experienced a notable turnaround following what company representatives characterized as “decisive actions” implemented throughout the territory.
Chief Executive Fernando Fernandez characterized the opening quarter as demonstrating “volume-led growth” and emphasized “broad-based momentum” throughout the company’s developing markets operations.
Despite ongoing macroeconomic volatility, Fernandez expressed continued confidence in the company’s annual projections. Since assuming leadership responsibilities last year, Fernandez has guided an extensive organizational transformation.
This transformation initiative has encompassed leadership team restructuring and reductions in corporate administrative workforce.
Historic Portfolio Transformation Underway
Approximately one month ago, the consumer goods giant announced an agreement with seasoning manufacturer McCormick to merge their respective food operations into a newly established entity carrying an approximate $65 billion valuation when including debt obligations.
The transaction structure, combining cash and equity components, would grant Unilever shareholders a 65% ownership position in the combined enterprise. Certain European institutional investors have expressed reservations regarding the deal, citing concerns about exposure to debt-laden American food sector assets.
This McCormick transaction aligns with Unilever’s broader strategic pivot toward beauty, personal hygiene, and household care products — systematically reducing food sector exposure.
In recent years, the company has separated its frozen dessert division into Magnum Ice Cream, liquidated its tea operations, and divested margarine and spread brands from its portfolio.
Magnum Ice Cream, encompassing the Ben & Jerry’s franchise, posted first-quarter organic sales expansion of 4.5%, exceeding the 2.6% analyst consensus. Quarterly revenue totaled €1.77 billion.
Home Care Division and Latin American Region Show Outstanding Performance
RBC Capital Markets research analysts highlighted that the Home Care division and Latin American operations delivered the strongest organic sales expansion in the opening quarter — advancing 6.1% and 6.2% year-over-year, respectively.
The Home Care segment’s expansion derived entirely from volume increases. Within Latin America, both volume expansion and pricing adjustments contributed to the organic growth calculation.
“Unilever’s actions to restore its performance in these areas bore fruit,” wrote RBC analysts James Edwardes Jones and Wassachon Udomsilpa.
Total turnover for the quarter decreased to €12.6 billion, representing a 3.3% year-over-year decline, closely matching market expectations.
The annual guidance framework remains unmodified. Unilever anticipates underlying sales expansion at the lower boundary of its multi-year 4%–6% corridor, accompanied by no less than 2% underlying volume growth, plus marginal operating margin enhancement compared to the 20.0% figure recorded during 2025.
The corporation additionally reaffirmed its €1.5 billion share repurchase initiative — revealed in February — commences today with anticipated completion scheduled for July 6.
