Unilever has raised its full-year outlook after stronger demand for brands including Dove, Vaseline and Persil helped second-quarter sales surpass expectations.

The consumer goods giant posted underlying sales growth of 5.8 per cent for the three months to 30 June, ahead of analysts’ forecasts of 4.3 per cent.

The performance was driven largely by a 5.5 per cent increase in sales volumes, while prices edged up 0.2 per cent. Second-quarter turnover climbed 3.8 per cent to €13bn.

Unilever said the period marked its strongest quarter for volume growth in more than a decade, as its key “Power Brands” continued to outperform the wider portfolio.

Beauty and wellbeing sales rose 8.1 per cent during the quarter, supported by double-digit growth from Dove, Sunsilk and Vaseline, alongside a strong performance from its prestige beauty brands.

Personal care grew 5.9 per cent, while home care jumped 9.1 per cent as brands including Cif, Comfort, Domestos and Persil owner Dirt Is Good benefited from increased demand, particularly across emerging markets.

However, Unilever’s foods division recorded growth of just 0.2 per cent, as softer trading in developed markets and increased competition in US condiments weighed on the business.

Across the first half, underlying sales increased 4.8 per cent, including volume growth of 4.2 per cent, while turnover rose 0.5 per cent to €25.6bn.

Underlying operating profit edged up 0.9 per cent to €5.2bn and its underlying operating margin increased 10 basis points to 20.3 per cent.

Chief executive Fernando Fernandez said the performance demonstrated that Unilever’s brands were becoming stronger and its execution was improving, despite continued uncertainty in the wider economy.

The FMCG giant now expects full-year underlying sales growth to fall within its long-term four per cent to six per cent range, rather than at the bottom of that bracket as previously forecast.

It also expects underlying volume growth of around three per cent and second-half sales growth of between four per cent and five per cent, led by price increases.

Unilever is continuing to reshape its portfolio as it progresses with plans to combine its foods business with US spice maker McCormick, creating a more focused beauty, wellbeing, personal care and home care group.

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