Unilever has reported a rise in first-quarter underlying sales, driven by strong volume growth across its Power Brands and emerging markets.
The consumer goods giant said underlying sales grew 3.8 per cent in the first quarter of 2026, with volume growth of 2.9 per cent and price growth of 0.9 per cent.
Its Power Brands, which include Dove, Hellmann’s, Knorr, Persil and Vaseline, outperformed the wider group, delivering 5 per cent underlying sales growth and 4 per cent volume growth.
However, turnover fell 3.3 per cent year on year to €12.6bn, as positive underlying sales growth and portfolio changes were offset by a 7.7 per cent hit from currency movements.
Unilever chief executive Fernando Fernandez said the business had “started the year well” with volume-led growth across all business groups.
“There is broad-based momentum across our emerging markets business, with a strong performance in India, and a good recovery in Latin America following the decisive actions we have taken in that region,” he said.
Fernandez said Unilever was continuing to move quickly to build a “simpler, sharper” business with a stronger growth profile and a brand portfolio “fit for the future”.
In March, the group announced plans to combine its Foods business with McCormick, a move it said would help turn Unilever into a leading pureplay home and personal care business while creating a global flavour business in foods.
“Despite heightened macroeconomic uncertainty, the progress we are making to elevate our brands through Desire at Scale and improve operational execution means we remain confident of delivering on our guidance for the year ahead,” Fernandez added.
Unilever reconfirmed its full-year outlook and expects underlying sales growth for 2026 to be at the bottom end of its multi-year guidance range of four per cent to six per cent. It is also targeting underlying volume growth of at least 2 per cent for the year.
The group said it expects a modest improvement in underlying operating margin compared with 20 per cent in 2025.
Beauty & Wellbeing delivered underlying sales growth of 3.6 per cent, led by Dove, Vaseline and prestige brands, while Personal Care grew 3.7 per cent as deodorants and skin cleansing delivered mid-single digit growth.
Home Care was the strongest-performing division, with underlying sales up 6.1 per cent, driven by strong volume-led growth in India and Brazil. Foods grew 2.2 per cent, supported by Hellmann’s and an improving performance from Unilever Food Solutions.
Emerging markets remained the main engine of growth, with underlying sales up 5.7 per cent, including 7 per cent growth in India. Developed markets grew 1 per cent, with North America offsetting a subdued European market.
Unilever said its productivity programme was running ahead of schedule, having delivered €750m of savings by the end of the first quarter against a target of €800m by the end of 2026.
The group also confirmed that its €1.5bn share buyback programme begins today and is expected to complete on or before 6 July 2026. Its quarterly dividend was lifted 3 per cent year on year to €0.4664.
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