Key Highlights

  • Unilever PLC (LSE:ULVR) reported third-quarter underlying sales growth of 5.2%, ahead of expectations of 4.8%.
  • The group raised full-year underlying Volume growth guidance to at least 3%.
  • Home Care grew 9.1%, Personal Care 6.3% and Beauty and Wellbeing 5.7%, while Foods was flat.
  • Chief executive Fernando Fernandez said an investor event in the week after the results would set out how the transformation is creating a more focused company.

Why Unilever Is in Focus Today

Unilever PLC (LSE:ULVR) has been one of the standout consumer stocks of the latest reporting season, and it remains in focus on the FTSE 100 this week. On 28 October 2026, the maker of Dove, Vaseline, Hellmann's and Persil reported third-quarter underlying sales growth of 5.2%, beating expectations, and raised its volume guidance. Fernando Fernandez also said the company would host an investor event the following week to explain how its transformation is creating a sharper, more focused business, making early November a key period for the shares.

On Wednesday, 4 November, the FTSE 100 rose 1.8% after the US midterm elections. Consumer staples companies have reported mixed results, with Haleon and Reckitt cutting parts of their guidance, so Unilever's performance stands out.

Third-Quarter Results in Detail

Turnover rose 6.7% to €13.3 billion. Underlying sales growth of 5.2% was made up of 2.9% volume growth and 2.3% price growth, as Unilever raised prices to offset higher Commodity costs linked to the Iran conflict. Power Brands grew 5.8% with 3.3% volume growth. For the first nine months, underlying sales growth was 4.9%.

By Business group, Home Care led with 9.1% growth, Personal Care grew 6.3% and Beauty and Wellbeing 5.7%, with prestige Brand K18 delivering double-digit growth. Foods grew just 0.1%, with volumes down 1.1%, as competition in US condiments and softer developed market retail weighed. Emerging markets grew 9.5%, led by India, Turkey, Vietnam, Pakistan, Latin America and South East Asia, while developed markets declined 0.9% against tougher comparisons.

Guidance

Unilever now expects at least 3% underlying volume growth for 2026, up from around 3%, and underlying sales growth of around 5% in the second half. It continues to expect full-year underlying sales growth within its 4% to 6% range and a modest improvement in underlying Operating Margin from 20.0% in 2025. The third-quarter Dividend was €0.4664 per share, up 3% year on year. Despite the beat, the shares slipped around 2% to 4,785p on the day as investors weighed the outlook for margins.

Portfolio Transformation

Unilever has been reshaping itself under Fernandez. It completed the demerger of The Magnum Ice Cream Company in December 2025 and in March 2026 agreed to combine its Foods business with McCormick, a deal it says is on track with progress on regulatory approvals. The aim is a simpler group focused on beauty, wellbeing, personal care and home care, with higher growth and margins.

Market Context on 4 November

The fall in oil prices below $100 a barrel could ease input costs for packaging and logistics over time. A weaker dollar after the US elections helps emerging market currencies, which matter greatly for Unilever. Competition remains intense in the United States and Europe.

Emerging Markets Engine

Emerging markets account for a large share of Unilever's turnover and have been the main source of growth. India, through Hindustan Unilever, is one of its largest markets, and the company has also delivered double-digit growth in Turkey, Vietnam and Pakistan, with high single-digit growth in Latin America and Indonesia. Price increases in these markets often reflect local Inflation and currency movements, while volume growth reflects rising consumption. The sustainability of this growth is central to Unilever's outlook, particularly as developed markets remain soft.

Investor Event Expectations

Investors expect the investor event to set out medium-term growth and margin targets for the more focused company, plans for cost savings and productivity, and Capital allocation priorities, including Buybacks and dividends. Clarity on how the group will reinvest savings into its Power Brands will be closely examined.

Risks to Consider

Risks include commodity cost inflation, weaker volumes if price increases deter consumers, currency movements, execution risk in the McCormick transaction, and competition. Developed market weakness is a concern.

What Investors Are Watching Next

Investors will focus on the investor event for medium-term targets, capital allocation plans and detail on the post-transformation portfolio. Progress on the McCormick deal, fourth-quarter trading and the full-year results on 11 February 2027 will be the next milestones for Unilever PLC (LSE:ULVR).