Unilever Stock Earnings Reports

Unilever reported a strong, volume-led first half and upgraded its full-year outlook. Underlying sales grew 4.8% for H1 with volume up 4.2%; Q2 accelerated to 5.8% underlying sales and 5.5% volume — the company highlighted this as its best quarterly volume performance in many years. Power brands (78% of turnover) outperformed (Q2 underlying growth 6.9%, volume 6.8%). Home Care and HPC categories led performance (Home Care Q2 volume +8.6%; Beauty & Wellbeing and Personal Care also accelerated). Emerging markets were a major driver (India, LATAM, Indonesia notable), while Europe lagged and Foods underperformed in parts of North America (condiments/mayonnaise premium segment). Margin and cash: underlying operating margin expanded modestly (+10bps to 20.3% H1) despite commodity and currency headwinds; underlying EPS +2.4%; free cash flow improved to €1.5bn. Inflation/commodities: management expects c.€850m full‑year commodity/inflation headwind (c.€550m in H2), and expects pricing to lead growth in H2 (guidance: full-year underlying sales growth 4–6% with ~3% volume; H2 growth 4–5% led by pricing). Currency headwinds eased in Q2 and are expected to be materially smaller in H2. Portfolio and capital allocation: completed acquisition of Gruns; continued portfolio shaping (Foods transaction with McCormick progressing); announced disciplined buyback plans (€6bn buybacks 2026–2029 expected supported by transaction proceeds). Marketing & activation: heavy investment behind power brands and large creator/content activations (FIFA World Cup program) viewed as strategic to build demand. Risks/points to watch: pricing elasticity/volume sensitivity as pricing steps up in H2, ongoing commodity/currency volatility, competitive pressure in U.S. condiments, potential Q4 disruption from Brazil tax reform (possible retailer destocking), and the impact of cycling FIFA activations into next year.