UL

Unilever stock has delivered a 33.1% gain over the past five years, yet the current share price around US$47.76 screens as only a mixed value story, with the Discounted Cash Flow (DCF) intrinsic value estimate suggesting the shares trade at roughly a 22.9% discount. Recent headlines around the planned sale of Colman's mustard as part of the wider merger of Unilever's food operations with McCormick also put the focus firmly on what investors are paying for the core business today. Over five years Unilever has returned 33.1%, which points to steady value creation even though the stock has been softer more recently. The planned merger of Unilever's broader food operations with McCormick may support long term cash flow potential, while execution risk around divestments such as Colman's and integration plans could weigh on how confidently investors price those cash flows. On Simply Wall St's broader checks Unilever earns a mixed value profile, with the company screening as attractively priced on some measures but not others, reflected in a value score of 4 out of 6. The issue now is whether Unilever's current discount to intrinsic value and its recent news flow leave enough upside to compensate investors for the business and integration risks ahead. Scan beyond Unilever and the Colman's sale by reviewing hand picked consumer staples and branded goods stocks in the 11 high quality undervalued stocks. The Discounted Cash Flow (DCF) model here uses projected free cash flows to estimate what Unilever is worth today. On the cash generation side, Unilever produced last twelve month free cash flow of about €7.0b, with the model assuming these cash flows continue to grow from this base rather than shrink. That feeds into a 2 Stage Free Cash Flow to Equity framework that tapers growth over time. On these inputs, the DCF points to an estimated intrinsic value of about £62 per share compared with a current share price near £48, which implies the stock screens roughly 22.9% undervalued. The planned sale of the Colman's mustard brand as part of the wider McCormick deal helps explain why investors may be applying a discount, since it adds uncertainty around how much of today's cash flow profile will remain after portfolio changes. Overall, the DCF suggests Unilever stock currently appears undervalued relative to the cash flows the business is projected to generate under the model’s assumptions. Our Discounted Cash Flow (DCF) analysis suggests Unilever is undervalued by 22.9%. Track this in your watchlist or portfolio, or discover 11 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Unilever. P/E is a useful cross check for Unilever because earnings remain a key focus for investors in large, mature consumer brands. On this measure, Unilever trades on a P/E of about 21.5x, compared with a broader Personal Products industry average near 18.7x. That means you are paying a higher multiple than the sector in general. However, Simply Wall St’s model, which looks at factors such as growth, margins, scale and risk, puts Unilever’s fair P/E closer to 23.3x. That is also very close to the peer group average of about 23.7x. With the current P/E sitting slightly below that fair ratio, the stock lines up broadly with what this earnings based framework would suggest for Unilever. Overall, Unilever appears roughly fairly valued on its P/E multiple compared with what the model implies and how similar companies are priced. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Unilever sit alongside the valuation work above and explain which combinations of future growth, margins and earnings would need to hold for Unilever's stock to be worth meaningfully more or less than today’s price. They are hosted on Simply Wall St's Community page. Where a single ratio or model gives you one number to look at, these narratives unpack the future it depends on so you can watch how reality compares over time. Community views on Unilever are split, with some investors seeing meaningful upside while others think the stock already prices in a lot of good news. Bull case: 9% undervalued Read the full Bull Case to see why Unilever could be undervalued Bear case: 13% overvalued Read the full Bear Case to see why Unilever could be overvalued Do you think there's more to the story for Unilever? Head over to our Community to see what others are saying! For Unilever, the Discounted Cash Flow (DCF) work suggests a clear intrinsic value gap, while the market multiple view points to a stock that is priced roughly in line with peers. The mixed broader checks mean valuation is not a one way signal and investors still need to weigh business quality and execution closely. The crux is whether the planned portfolio reshaping, including the McCormick combination and related disposals, supports resilient cash flows and margins. The key question from here is whether that current discount reflects opportunity or is a fair penalty for integration and portfolio risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ULVR.L. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The Magnum Ice Cream Company (MICC) posted first-half core earnings above analyst expectations on July 30. Cost cuts since its 2025 spinoff from Unilever (UL) drove the beat, alongside a heatwave-driven summer surge for Ben & Jerry's. Revenue reached €4.7 billion, up from €4.5 billion a year earlier, with organic sales growth of 4.7% across every region. Adjusted EBIT climbed 7.5% to €716 million, though separation costs pulled net profit down to €349 million. Ben & Jerry's led the gains across the portfolio. Growth accelerated sharply once summer heat set in across Europe. New stick and sandwich formats pulled fresh buyers into the brand, both in the Americas and in Europe. Peter ter Kulve, the company's CEO, praised a frontline-first operating model in a statement tied to the results. Sustained heat across Europe has already lifted other heatwave-driven cooling stocks this summer, and that trend now extends to frozen treats. Magnum, Cornetto, and the Heartbrand also posted gains. All four core brands showed positive momentum, and Yasso, the company's high-protein pint line, kept growing at a double-digit pace. The pattern echoes the seasonal plays behind several US stocks to watch this July. A productivity programme launched in 2024 delivered €90 million in first-half savings, most of it from the supply chain. Waste reduction and better factory use both contributed. Meanwhile, a favorable working capital swing tied to the Unilever separation nearly doubled Free Cash Flow to €273 million. Standalone financing pushed net finance costs up to €72 million, compared with just €10 million a year earlier. That shift lines up with the broader high-rate backdrop highlighted by the Fed's July decision to hold rates steady, a move that rattled bond markets and pushed long-term borrowing costs to multi-year highs. The earnings beat nonetheless continues a summer pattern of firms topping Wall Street estimates. It follows Robinhood's earnings beat and Intel's surprise profit beat earlier this season, both delivered despite mixed investor reactions. Shares of Magnum Ice Cream (EURONEXT: MICC) were changing hands near €16.16 ahead of the print, up roughly 19% for the year and close to the all-time high of €16.74 hit on July 7. The stock has climbed steadily since bottoming near €11 in late April, and the chart shows that run largely intact heading into results day. Management reaffirmed full-year guidance of 3% to 5% organic sales growth. The company now enters peak summer demand with momentum intact. A pending antitrust review of its freezer-cabinet practices in Türkiye adds a regulatory wrinkle to watch. The next quarter should still show whether the heat and the cost discipline both hold. Read the Original story Heatwave Boosts Ice Cream Sales as Magnum Beats Earnings Forecasts by Phil Haunhorst at beincrypto.com

Image source: The Motley Fool. Tuesday, July 28, 2026, at 3 a.m. ET Chief Executive Officer - Fernando Fernandez Chief Financial Officer - Srinivas Phatak Investor Relations - Jemma Spalton Fernando Fernandez: Good morning, and thank you for joining us for Unilever's Second Quarter and Half Year Results. In a moment, Srini will take you through the details of the results. But first, let me highlight the key elements of our performance over the first half as I see them and how desired at the scale is fundamental to our strong delivery. I have said consistently that volume growth is our overriding priority. It is a true measure of demand and even more important signal of progress during times like this of heightened volatility. It is particularly encouraging, therefore, to be able to present today a strong volume-led half for Unilever. And not just a strong performance, but an accelerating one, with underlying sales growth in the second quarter of 5.8%, with volume up 5.5% and. This is Unilever's best quarterly volume performance since 2010. Our underlying volume growth over the last 4 quarters average 3%, a testament to the strength of our brands and our disciplined execution. This strong first half results reflect progress against our key strategic priorities, including most notably, the performance of our power brands, now sitting at 78% of our turnover. These brands continue to outperform, delivering underlying sales growth in the second quarter of 6.9%, with 6.8% coming from volume. A strong innovation program meant there were particularly great performances from Dove, Dirt is Good, Comfort, Sunsilk and Vaseline. Prioritizing these brands means focusing resources and investing competitively, which is why our brand and marketing investment is concentrated on our power brands. Significantly, today's results also reflect broad strength across our HPC business with underlying sales growth in the second quarter of 7.6% and with volume up 7.4%. It was also a good half for our emerging market businesses, which maintained the good momentum with 8.3% growth in the second quarter, with 7.4% coming from volume. India led the way with quarter 2 underlying sales up 10% and volume up 5%. This was a strong broad-based performance. It reflects the evolution of our emerging market portfolio to increasingly focus on high-growth segments, social first demand generation and go-to-market transformation alongside the benefits from corrective actions in fundamentals that we have taken over recent times in key markets. Our developed market business delivered a robust performance with volume growth in the second quarter of 2.8%. North America continues to outperform, led by personal care, beauty and prestige, while markets in Europe remain subdued. And in terms of profitability, we delivered 10 basis points of margin expansion and continue to invest competitively behind our brands while generating earnings growth of 2.4% in hard currency. This strong first half results are a direct consequence of bringing our mantra of desire at scale to life across the business. Desire at scale is a growth operating system, shaping how we build brands, how we innovate, how we activate them in markets and how we convert demand into sales, whether in elevating the quality, reach and relevance of our brands through the sassy framework combining science, standout aesthetics, superior product experience, social proof and contemporary execution or through embedding the concept of a frontline sales machine by taking our actuation programs and the quality of our execution to new better levels in every market. Sassy brands and frontline machine are 2 sides of the same coin and at the heart of each is a focus on making our brands and our activations culturally relevant. Our progress on this was recently recognized at the annual Com Festival of ativ where we were the most awarded advertiser of any of the company's present. Our brands received 35 awards, a demonstration of Unilever's ability to rethink how we create demand in this world of infinite content and distribution through algorithms. Here are local teams competed for the chance to play the final in the Emirates Stadium. Our 5 power video series has over 130 million views and 180,000 hours of work time, deepening almost cultural relevance in our second largest home care market with double-digit for cleaning growth in the second quarter. Dove won 6 can lions for its partnership with Revit during the launch of the intensive repair 101 serum hair mask. -- the publish and amplify customer reviews, whether positive or negative, real consumers, real feedback, real beauty. The campaign created more than EUR 1 billion impressions and help make our product the #1 here mark in the U.S. during the campaign. Or take Liquid I.V., with its role in the Amazon Prime Videos hit series of campus is one of the most popular cities this year, reaching 56 million viewers worldwide over the first 12 days of release. Liquid I.V. is integrating to a series with the main character becoming a Liquid I.V. brand ambassador within the show in cell. These are creative executions, designed to travel, earn attention, strengthen brand equity and converting to growth. We know the mark for leadership continues to rise and we will ensure we stay a different tier of demand generation. Being a frontline machine means activating our brands within these big cultural moments and across the biggest cultural events. And they don't come much bigger than the FIFA World Cup, where Unilever Personal Care was an official sponsor. We have not approached the World Cup as a conventional corporate sponsorship or a one-off event. We have activated 35 runs across more than 120 markets by bringing creator content, social media production, retail distribution and local store conversion together on an unprecedented scale, involving more than 50,000 content creators with a combined audience of more than 600 million people and 180 limited edition products. We have leveraged the event to further strengthen our creator first operating model. including through the House of Fresh, with in-person creator hubs in Mexico City, New York and Miami, enabling creators to build dedicated content from live events and boost the storytelling to a wider audience. We also develop our capabilities around AI-enabled content at scale using our AI studios. And we will go on capturing the learnings and deploying them in future sports marketing events that will continue to play a key role in building demand and on equity. The FIFA World Cup has been a pivotal moment for Unilever showing our ability to turn a global cultural moment into coordinated execution across creators, content, retail and shopper conversion at the scale, few companies can match. Before Srini takes you to the results in more detail, let's roll the video. Srinivas Phatak: Thank you, Fernando. Let me start with our growth. The first half was characterized by strong high-quality growth. Underlying sales grew 4.8% with 4.2% from volume and 0.6% from price. Growth strengthened further in second quarter with underlying sales growth of 5.8% and volume growth of 5.5%. Importantly, growth was broad-based and supported by stronger execution across the business. On a 2-year basis, volume growth averaged 2.7% in the first half providing further evidence that the improvement we are seeing is becoming more consistent and sustainable. The 3 HPC business groups led delivery, Beauty & Wellbeing, Personal Care and Home Care, all accelerated in the second quarter supported by strong power brand performance, premium innovations and improved executions, particularly in emerging markets in North America. Pricing in second quarter was 0.2% and 0.6% for the half. Lower price in quarter 2 was largely due to timing and some deliberate choices. For example, in Home Care, we continue to lap the corrective pricing actions in Brazil. And in Personal Care, we deliberately elevated promotional support behind FIFA World Cup activations. These actions enabled us to drive quality volume growth. As commodity-related pricing lands in the market and we normalize promotional spend post FIFA, we expect pricing to lead growth during the second half of the year. Our power brands continue to demonstrate the strength of the strategy and the quality of execution behind it. In the first half, Power Brands grew at 6% with 5.4% coming from volume. Momentum strengthened further in the second quarter with growth of 6.9% and volume of 6.8%. On a 2-year basis, power brand volume growth averaged 3.5% underlying the consistency of their outperformance. In the second quarter, 15 of our 30 power brands grew in double digits. Dove, Vaseline, K18, Hourglass and Comfort were particularly supported by innovation, premiumization and stronger execution. Nonpower brands returned to positive growth in the second quarter. We continue to optimize our tail brands and related investments while strongly supporting local jewels. Beauty and well-being delivered high-quality first half with underlying sales growth of 5.9%, including 4.5% from volume. -- performance accelerated in the second quarter with growth increasing to 8.1% and volume growth to 6.9%. Growth was broad-based across categories and geographies. with emerging markets maintaining strong momentum and developed markets improving. Hair Care led performance with 9% underlying sales growth in the first half. Dove, Sunsilk and K18 all delivered double-digit growth supported by innovation and premiumization. K18 continued to benefit from its bio technology-led innovations, while Dove was supported by premium innovations, including the fiber repair range. Skin Care grew low single digits led by volume. Vaseline continued to deliver double-digit growth, supported by premium innovations across Gluta-Hya and Proderma. We're also seeing the benefit of strong cultural relevance, including K-pop star Jennie being appointed as global brand ambassador. In the second quarter, our prestige beauty portfolio accelerated further with Paula's Choice, Hourglass and Tatcha all delivering double-digit growth. Overall skin growth was partially offset by the softer delivery of local brands in Asia Pacific and Africa. Well-being grew low single digit in the first half with an improved second quarter. Liquid I.V. grew high single digit in the first half supported by stronger activation, international expansion and the timing of shipments for Amazon Prime Day. We continue to focus on innovations and activations to drive market development. the category opportunity and the unit economics remain very attractive. Olly delivered double-digit growth driven by distribution gains, growth in the digital channels and emerging markets performance. Beauty and well-being underlying operating profit increased by 1% to EUR 1.3 billion. Underlying operating margin increased by 10 basis points to 19.5% as improved overhead efficiency more than offset gross margin headwinds and the increased investment behind Power Brands and premium innovations. Personal Care delivered strong first half with underlying sales growth of 4.8%, including 4.1% from volume. Growth strengthened in the second quarter with USG increasing to 5.9% and UVG of 6.8%. This reflected a broad-based momentum across deodorants and skin cleansing. Deodorants grew across both developed and emerging markets. In the U.S., we regained market leadership. It sustained high growth in Dove. In Latin America, Rexona supported a strong return to growth in Brazil following the actions taken to improve format mix and reset the shelf space. In cleansing grew mid-single digit led by volume. Dove delivered high single-digit growth, supported by premium innovations, while Lux grew mid-single digit behind fragrance led innovation in China. Growth in the U.S. and emerging markets was partially offset by a flat performance in Europe. Oral Care grew low single digit, with growth in Asia Pacific Africa offset by softer market conditions in Europe. The FIFA program amplified the Personal Care momentum in the second quarter. It brought together media, creators, customers and in-store execution behind brands, including Rexona and Dove. It's about a strong volume growth and helped us build new capabilities in creative-led content, AI-enabled asset creation and stronger perfect store execution. The activation also had some impact on price in the quarter, reflecting higher promotional support alongside strong prior year comparators. We expect pricing to build in the second half as higher commodity costs are reflected in the market. Underlying operating profit increased by 4.8% to EUR 1.5 billion, while underlying operating margin improved by 10 basis points to 22.2% in as productivity and overhead efficiencies offset gross margin pressure. Home Care delivered an outstanding first half and was our fastest-growing business group. Underlying sales grew 7.6% with almost all of the growth coming from volume. So accelerated further in the second quarter to 9.1% with volume growth of 8.6%. Performance was broad-based across categories, brands and markets, with share gains across the 3 home care categories. These gains reflected stronger execution, investment behind our power brands and improved competitiveness in key markets. Fabric Cleaning led the performance with strong growth delivery in India, Brazil and Indonesia. India delivered its strongest home care growth in 3 years, supported by innovations and continued share gains. Brazil delivered high single-digit growth as the corrective actions taken last year helped restore competitiveness. Fabric Enhancers maintained strong momentum, led by comfort and supported by premium formats and fragrance led innovation. Home and hygiene also performed well with Cif delivering double-digit growth and Domestos growing in high single digit. Home Care remains our business group with the highest exposure to commodity inflation and emerging market footprint. In the first half, we've executed our playbook well with calibrated pricing combined with formulation flexibility and channel-appropriate pack price offerings. In half 2, we expect the growth profile to shift more towards pricing. Underlying operating margin increased by 30 basis points to 15.8%, reflecting strong overhead discipline and productivity delivery despite commodity and currency headwinds. Underlying operating profit increased by 3.2% to EUR 0.9 billion. Foods grew 1.2% in the first half driven by volume. Growth slowed in the second quarter to 2% and as continued strength in the emerging markets was offset by weaker performance in North America and Europe. Condiments grew low single digit, led by volume with good performance from Hellman in emerging markets. In U.S., condiments performance was below our expectations arising from increased competition in the faster-growing premium segments such as avocado oil mayonnaise. This issue is well understood and we have targeted innovation and execution plans in place to strengthen our competitiveness and improve the performance during the second half. Emerging markets remained resilient with strong performances from Helman's across Brazil and Asia Pacific, Africa. Cooking aids was flat, Knorr low single digit with good performance across emerging markets, offset by category softness in developed markets. Unilever Food Solutions also continued to grow, supported by good momentum in China and in the U.S. alongside strong performances across Middle East and Latin America and Southeast Asia. Underlying operating profit was EUR 1.5 billion, down 4.3%. Underlying operating margin was unchanged at 23.3% and as lower gross margin from commodity inflation and increased investments in the value propositions were offset by overhead efficiencies and continued cost discipline. Turning to regions. Emerging markets continue to be a strong growth engine with strong volume net growth in the first half. In North America, we continued our volume outperformance while Europe was subdued. Asia Pacific Africa delivered 7.3% underlying sales growth with 6.1% from volume. In the second quarter, India led the performance with growth accelerating to 10%. Delivery was balanced between volume and price. We had double-digit growth in Beauty & Wellbeing and Home Care, with Hair Care and Home Care, both reaching record share levels. China grew mid-single digit, led by beauty and well-being with all the business groups contributing. Our growing presence in the faster growing digital and e-commerce channels supported the improvement despite a soft market. Indonesia grew 7%. Performance was broad-based across business groups, and led by double-digit growth in Home Care and Beauty & Wellbeing. This was also supported by a sharper focus on high-growth segments, social-first demand generation and the ongoing transformation of our go-to-market model. Africa also grew mid-single digit, led by volume. Latin America delivered 7.6% growth with 5.7% volume, accelerating in the second quarter to $0.089 growth and 8.8% volume. Brazil returned to strong volume-led growth as the corrective actions taken last year restored competitiveness led by fabric cleaning and improving momentum in deodorants. Looking ahead, Brazil tax reforms are expected to bring lower prices from the start of next year, which may lead to some temporary retail stock reductions in the fourth quarter. In the second quarter, Argentina delivered high single-digit volume growth, while Mexico delivered mid-single-digit volume growth led by Personal Care. North America grew 2.7% with 3.2% from volume and continued to outperform the market. Growth strengthened in the second quarter to 3.6% with 4.4% volume led by deodorants, skin cleansing and our prestige beauty brands. Europe declined by 0.5% in the first half in softer market environment with the shortfall concentrated in food, beauty and well-being and Personal Care Group, while Home Care continued to gain share. Turning now to turnover. First half turnover was EUR 25.6 billion, up 0.5% on last year. This reflected strong operational delivery. Underlying sales growth was 4.8%, including 4.2% from volume. Acquisitions net of disposals added a further 0.7%. The acquisition contribution was led by Dr. Squatch, Minimalist and Wild and with one month of [ Gruns ] following the completion in June. These businesses are all aligned to our strategy of increasing exposure to premium and higher growth spaces. The disposal impact reflected the continued reshaping of the portfolio as we concentrate investments behind fewer, bigger and more scalable brands. Currency reduced our first half turnover by 4.9%. Importantly, that impact eased materially to 2.4% in the quarter as the moments in the U.S. dollar and in most of the emerging market currencies became less adverse. Based on July spot rates, we expect the full year impact to be around 3%, implying a meaningfully lower headwind in the second half. Underlying operating margins increased by 10 basis points to 20.3% in a materially tougher cost environment while we maintain competitive investments behind our brands. Our gross margins improved sequentially related to second half of 2025. However, on a year-on-year basis, gross margins declined by 70 basis points, given inflation headwinds arising from Middle East conflict and a calibrated approach to pricing. We responded decisively in the areas which are within our control through productivity, sourcing flexibility, reformulation, pricing architecture and better cross-functional execution across procurement, supply chain, R&D and the business groups. For the second half, we expect gross margins to remain at similar levels to the first half on an absolute basis despite higher inflationary impact. We will see benefits of higher pricing landing in the P&L. Brand and marketing investments remained competitive at 16.1% of turnover with incremental investment focused on our power brands. Overheads improved by approximately 70 basis points, reflecting the completion of our EUR 800 million productivity program ahead of the schedule and together with the continued simplification and cost discipline. Underlying operating profit was EUR 5.2 billion, up 0.9% versus the prior year with strong operational performance offset by currency headwinds. Underlying earnings per share increased 2.4% to EUR 1.61. Operational performance contributed more than 7 percentage points of growth, reflecting strong volume-led sales growth, modest margin improvement and continued productivity delivery. Finance costs increased as a result of higher cost of debt, although they remain well controlled at 2.5% of average net debt. We continue to expect the full year finance cost to remain below 3%. Excluding the currency impact, tax was a modest positive contributor. The underlying effective tax rate increased slightly from 26% from 25.6% in the prior year, reflecting fewer benefits from tax settlements and other one-off items. Our full year expectation remains around 26%. Share buybacks contributed 0.7 percentage points to the EPS growth following the completion of the EUR 1.5 billion program in June. Minorities and other items added 1.3 percentage points. Currency reduced the underlying EPS growth by around 6 percentage points in the first half. We expect this headwind to moderate in the second half, consistent with improving currency impact turnover and profits. Overall, this is a strong earnings performance delivered despite a significant currency headwind, while we continue to maintain competitive investments behind our brands. Free cash flow was EUR 1.5 billion, an increase of EUR 0.5 billion versus the prior year. Improvement was driven primarily by operating profit and a strong working capital performance. Capital allocation remains disciplined and unchanged. We increased the second quarter dividend by 3% and completed the EUR 1.5 billion share buyback program Inc. As announced alongside the Foods transaction, we expect operational performance and transaction proceeds to support a EUR 6 billion of share buybacks between 2026 and 2029. This reflects the strength of our cash generation and a disciplined approach of returning surplus capital to shareholders. On portfolio development, we completed the acquisition of Gruns in June. Gruns is a fast-growing U.S. super green supplements brand. It's highly complementary to our existing well-being portfolio and increases our exposure to premium, high-growth and digitally led consumer spaces. Turning to the outlook. Based on the momentum we have built in the first half, we have upgraded our full year outlook. We expect underlying sales growth to be within a multiyear range of 4% to 6% and with around 3% UVG for the full year. Inflationary pressures are expected to continue in half 2 with heightened volatility. We are confident of managing this while maintaining supply resilience. As we land pricing, we do expect some volume sensitivities. For the second half, we expect growth of 4% to 5%, led by pricing. As shared earlier, currency in half 2 is expected to improve versus first half of 2026. We continue to expect a modest improvement in underlying operating margin versus 2025. While the external environment remains uncertain, we enter the second half with stronger fundamentals, improved pricing, disciplined cost management and healthy brand investments. Taken together, this gives us the confidence in telling another year of competitive growth, modest margin improvement and strong cash generation. And with that, back to you, Fernando. Fernando Fernandez: Thank you, Srini. Let me sum up after what has been a very successful first half of the year. We have been consistent in our conviction that to truly succeed in this fast-changing environment, you have to simultaneously perform and transform. Our delivery in the second quarter and in the first half as a whole is further evidence that we are doing that. The transformation of our portfolio remains on track with the acquisition of Gruns in June and our progress on combining Foods with McCormick. At the same time, we have delivered a strong volume-led first half with broad-based strength. Our strategy built on desire at scale is working. We are creating a marketing and sales machines with brands that are embedded in culture and with innovation driving the outperformance of our power brands. This gives us confidence in our full year delivery, including volume growth of around 3% for the year with growth in the second half led by pricing. Thank you for listening. And with that, Srini and I will now take your questions. Jemma Spalton: Our first question comes from Celine at JPM. Go ahead, Celine. Celine Pannuti: Yes. So my first question, obviously, a very strong volume-led performance this morning. I wanted to understand, first of all, if you can talk about sell-in, sell-out, if you've seen any difference. But more importantly, I want like to understand the resilience of the performance. You seem to imply that you have gain probably market share. But how resilient you're seeing the performance is going to be when you raise prices, you are giving us a guidance for the second half, which is reassuring. But can you talk about your confidence and the visibility you may have that the volume will effectively sustain are going to be 15-plus-percent level in the second half of the year? My second question is for the full year, you now raised the guidance on volume to 3% versus 2% prior. Can you talk about how the markets you are facing in terms of market growth has developed. It seems effectively that the emerging markets are doing very well. How confident are you about the emerging market performance? And do you think that is there anywhere where you -- if you could as well talk about where you gained market share specifically that brought you to 3% for the full year? Fernando Fernandez: Thank you, Celine. Well, we are really pleased with the first half performance, strong volume growth, strong support with our brands, disciplined management of our overheads and expansion of operating margin in the context of significant cost volatility and the return of commodity inflation. And this has been the best quarter in terms of volume growth in more than 15 years, 4.2% at company level power brands at 6%, Dove, our largest brand at 9%, with a strong acceleration in emerging markets, while U.S. continue outperforming is a readily soft market there. But it's not a strong quarter in isolation. We have delivered 2.7% underlying volume growth across the last 10 quarters. and we have accelerated in the last year to 3.1%. We believe this is a result of stronger brands. 60% of our revenue is now increasing what we call a miser brand superior course the metrics of brand. And we continue investing strongly behind our innovation. So we believe this -- the performance is resilient is broad-based. Of course, Emerging Markets is a highlight. We have a portfolio that is diversified in terms of short office category segments, price points and this give us resilience against volatility. India that is, as you know, our second largest market has accelerated strongly. We have achieved record market share in both laundry and here that are our 2 biggest categories there. In the case of laundry, we are growing more than 5% above the average of the market. China is getting slowly better. We grew mid-single digit there. good acceleration in foodservice, but also our beauty business is really doing very well. In Indonesia, we are happy with the improvement in fundamentals that we have seen there. we are operating there with probably the lowest level of stores that we have had in history. All the other Southeast Asian regions in Vietnam, Philippines, also South Asia, the Pakistan and Bangladesh, showing good growth. Of course, we have a strong contribution for LATAM. I have mentioned this previously, I have never seen 2 years -- 2 bad years, took bad consecutive years in LATAM. The business is coming back strongly. We grew laundry double digit. The ore is coming back. The FIFA activation in LATAM has been excellent and our bitbusiness and food base continuing strong there. So we see resilience. We see the turnover weighted market volume growth at around 1.5%, the growth at which Unilever is exposed. So if you look at our volume growth, really significantly above that means that we are gaining share in many of the categories. Of course, we have some issues, particularly condiments in U.S. that has been a red flag for us. We have been losing some share there, particularly in the premium segment, but we are addressing that in the short term. So we are confident. The markets remain relatively soft, as I mentioned, 1.5% volume growth, but our performance has been consistent. This is not a strong quarter in isolation. Jemma Spalton: Our next question comes from Nicolai at Bank of America. Go ahead, Nicolai. Nicolas Jerome Ceron: I have 2 questions, please. The first one is on destocking from retailers in the U.S. You haven't mentioned that at all, and we hear many of your peers talk about it. Maybe could you tell us why you think that happens to your peers and not to you would be quite useful to understand. And the second question is on your oral care business. performance is probably a bit weaker than the rest of the business. And I haven't heard you talk a lot about your old care business overall in recent quarters. We can see from some of your peers, there's huge growth in the category potentially. But if I look at the performance over the last few years, you seem to be in $1 of share overall. So do you think there's enough focus from the organization on this business? Fernando Fernandez: Thank you, Nicolas. Regarding talking in U.S. really, it's not -- we have seen something, but it's not material at company level, really. We have seen a bit more destocking in foods than in HPC. But really, we didn't wanted to call it out because it's not material, and these kind of things can go one way or the other. But we have not seen significant difference between selling and sellout. There is a bit of destocking, particularly in foods, but is, as I mentioned, not really material. I feel your second question is about Oral Care, if I'm wrong, we have been growing low single digits in Oral Care in the first half. We are not happy with the performance in that category. We come from -- we came from a couple of years that really we are very, very strong, particularly in Pepsodent and Close Up, particularly in Asia, where our... Jemma Spalton: Please go ahead, Warren. Warren Ackerman: Warren here at Barclays. I've got 2 questions on the housekeeping. The housekeeping, Fernando, is there any update on where we are at on the McCormick deal? Anything to say on timing or any other comments about savings would be great. Then my 2 questions are, firstly, on the U.S., can you maybe dive a little bit deeper into what's happening category-by-category. It looks Liquid I.V.'s reaccelerated, but U.S. hairs also accelerating, of course, doing well. I often hear it's mainly Liquid I.V., but it does look quite broad based. So I love to hear your kind of view subcategory and outlook for the U.S. business specifically, how are shares trending and how you're thinking about the U.S. consumer? And then the second one is on margins with Srini. Can you talk a little bit about the H2 moving part of any? I heard you saying the absolute gross margin will be the same in H2. But what do you expect for BMI and overheads in H2? And any updated view on NMI given the Middle East conflict? Fernando Fernandez: Thank you, Warren, and I will take the U.S. question and Srini will talk about margins in the McCormick product, which is really good. In the U.S., as you know, we have delivered 4% volume growth in North America in the last 3 years and during the first half of 2026, despite some softening in Wellbeing. And I believe that this outperformance in the U.S. that has been a very consistent one, reflects the profound information we have done to our portfolio. and the huge focus that we have put in a strengthening relations with our key retailers showing them our ability to grow market. During the first half, the growth was broad based. We have a strong growth in the other and in skin cleansing in hair in prestige. Particularly in British, we delivered close to 12% growth in the first half. In Hair Care, more than 8% with Hair Care at global level more than 9%. So it has been a strong performance. Of course, the FIFA event, the World Cup has some impact in our detente and skin cleansing performance. I would like to highlight also that against often, we have regained market leadership in U.S. after 2 years. As you remember, we have some issues in the premium segment in the last couple of years, but we have been sorting out that and we are very pleased with regaining market leadership in that very important category in the biggest market globally. Liquid I.V. returned to double-digit growth in quarter 2 after lapping a very strong comparator in the first quarter. There were some benefits from shipment phasing given that Amazon Prime Day this year materialized in quarter 2 and last year was in quarter 3. But we continue to see solid market growth in the powder hydration market. We are back to competitive share gains in Amazon in Walmart in the grocery channel when it comes to powder hydration. We have some issues in the club channel that is around 30% of our revenue where we have lost some space to private label. And then I believe that the disappointing element of our performance in quarter 2 has been in foods, in which our Condiment business has suffered some share losses, particularly due to the development of the mayonnaise premium segment around alternative oil formulation, particularly of the oil ones, and also some poor return of our promotional program during the quarter. So there is a clear action plan now in place, including the launch of Hellmann's avocado line. It is hitting the market now. We are gaining significant points of distribution in the U.S. in Foods. This is already materializing some key retailers. And we're investing in new price architecture, particularly in the squeeze format that has been under a bit of pressure. So we see the quarter 2 performance in foods as an outlier in what has been a consistent outperformance in the sector, but we are very confident in the right deductions that we have put in place, and we expect the second half to be better. So in summary, very good performance in Care deranking in Prestige, improving in Wellbeing even if we expect some pressure in the short term. And in Foods, disappointing performance in but we see that as an allied we expect what the second half to be better. Srini? Srinivas Phatak: Yes. Warren. On the McCormick side, we continue to make good progress. As we have said, more than 100 people are actually working from either side towards integration. You've already seen that last week announced that the secondary listing is going to be based in U.K. You would have also seen the leadership announcements, which is actually important for us because we have 4 members from a Unilever side who are going to be on the top table of the combined company. both from the point of view of running the P&L also from key functional areas with again a strong or really being in Netherlands. Obviously, there are some good milestones coming up in terms of SEC filings, carve-out accounts. All of that is actually progressing on track. We're also pleased that we're making good progress when it comes to some of the tax-related discussions and regulatory whatever has worked so far is broad on track, and therefore, that gives us the confidence to say that we are here on course really getting this merger finalized. Coming to commodity pricing and margins. I think good to start by anchoring is to voice at the end of first quarter. At that stage, we had indicated to the commodity inflation for the year. It was likely to be in the range of about $750 million to $900 million, and this was about 350 to 500 ml above an assumptions. At that stage, we also said that the pricing in half 2 is likely to be higher than half 1 and 4x better in half 2. As we sit here today, the outlook remains broadly unchanged. In the first half, we had an inflation impact of about EUR 100 million, which is landed into the P&L. Also looking ahead, we expect about EUR 550 million impact. This is a total inflation on a like-for-like basis, which includes commodities, controlled costs, all elements to it. So we expect about EUR 550 million 2nd half, which means that the full year outcome is approximately EUR 850 million. As you would appreciate, there's been a lot of movement in some of the commodities in the last few days. here for the ranges that we are working with is somewhere could be between 800 to 900, but a center point really being 850. Important to again highlight here that a lot of the inflation is concentrated in home care, and 70% M&As from our emerging markets. And the basket that we talk about, it's crude, it's veg oils, palm, SBO packaging materials and parts of LAB and also parts of energy costs. Our approach has been always balanced and disciplined. In half 1, we also had some benefit of the covers. We have taken calibrated pricing, leveraging pack price architecture, formulation, flexibility, productivity programs and tight cost control. India is also a good example with large home care footprint, where do you start to see that there's been a good balance between price and volume in the half. So from a logical perspective, the pricing at 0.6% was slightly -- Fernando already touched upon some of the elements and the press release also give some more color to it. Importantly, if I come back to gross margins, therefore, how does it all add up. Important to highlight that on a sequential basis, our gross margins have actually improved. While on a year-on-year basis, they are lower. But if you were to actually compare half 2 of last year to half 1 of this year, we have made a step-up. It's also important to highlight that we did benefit from volume leverage because that, again, is a source of gross margin for us. However, we had adverse mix. We had adverse mix because of higher contribution from home care. While Home Care makes it up on its own margin at a on percentage basis, but at a gross margin level, obviously, there are differentials will exist between the categories. It's also important to highlight that in half one. the highest inflation impact was in Home Care. Pricing was calibrated, and therefore, the gross margin drag also came from home care. Pricing is now landing. It started to land in quarter 2, and you'll see more of that landing in second half. Along with that, we will pull all the drivers in the value chain. And therefore, the combination of what we had spoken about earlier, gives us the confidence to say that we'll have gross margins at similar levels. of first half, which is we will take the 46.8% levels. Our commitment to investing behind brands remains unchanged and we've said this multiple times to the days of underinvesting in the business are over for us. And the normative levels that we've called out on brand and marketing investment is 15% to 16%. In the half, it had it slightly higher at about 16.1%. That's also led from innovations and prefiled activations. On overheads, you see that it's been a fundamental shift in philosophy. We have seen a big step-up in terms of productivity. We completely landed the productivity program in the first half, and we'll continue to maintain the discipline. So the combination of aging pricing, volumes, mix, healthy levels of investments actually gives us the confidence to really guide for a modest margin expansion for the full year. Jemma Spalton: The next question comes from Olivier at Goldman Sachs. Jean-Olivier Nicolai: Just 2 questions, please. First, in the U.S., Dove and Baseline are both growing very strongly. You mentioned the premium innovation. I was just wondering how much room do you think you have for -- to further premiumize those 2 brands, which historically have been operating in the mainstream segment. And secondly, you mentioned in the press release, I think, some tax reform in Brazil in which could first of all, thanks for flagging this ahead. Could you tell us if it will affect a specific category? And what's the magnitude of it? Is it a bit like GST in India and could it affect Q3 initially? Fernando Fernandez: Srini will take on the tax question in Brazil, Olivier. Let me talk a bit about an Vaseline in the U.S. And globally, I feel the development of search and LLM play in favor of big brands. We are now activating LLM rankings in more than 20 markets for more than 20 brands. This is something which we are putting a lot of focus to ensure that we are at the forefront of how people discover brands in the future. Not significant changes in the cost of media at this stage, but this is something that is changing very, very fast. So I cannot predict the future in terms of that. I will -- let me cover also in emerging markets, Chinese exports in Home Care. We have not seen significant Chinese exports in Home Care. We have seen the development of some Chinese players where some new channels emerge, like TikTok Shop, particularly in Southeast Asia. In skin care, we have seen a couple of brands really making some inroads in Southeast Asian markets like Indonesia but particularly in face care, not in our segments of our portfolio. Tax? Srinivas Phatak: See, the Brazil tax reform is actually -- it's really something which is reshaping the tax system and not changing what I would believe as the fundamental economics of the market. What is the key change. Brazil is actually moving into -- moving from about 5 existing spaces to a dual VAT system. It starts in 20 when we enter the first one where the federal taxes become common under something called CBS, which removes some of the elements such as called packages and the likes. The reform is also designed around the principle of revenue neutrality. Therefore, over a period of time, there should not be a fundamental change to the economics of the business. However, what could this mean? This could be some movements in the lines of the P&L? Higher VAT rates will mean that we have to -- that will be reduced or reported revenue realizations. However, we will get the benefit of taxes, input taxes, which earlier were not ratable. Now you can start to take credit of it, which basically reduces the cost. So as a consequence of this reported revenue will be lower. Cost will be lower, which means that there will be an adverse impact on USG, there will be a positive impact on margins. While the overall profitability of the business will remain unchanged. But again, this is subject to the final tax rates being notified by the Brazilian regulatory authorities, which is expected to happen in the next few months. The point that we are highlighting from a quarter 4, while all of this change will happen effective first January, this could actually potentially lead to some market disruptions in quarter 4. We don't expect anything from a quarter 3-point of view. And why is that likely to happen? Because it's really going to come from how customers are going to view this change in transition and classically over big tax reform agenda items, given that regulation sometimes tends to be nebulous, customers will reduce some of the stocking pattern. There is also some lack of clarity or visibility as regards to the stock, which will be sitting with the customers, while when they sell, it will go at higher whether they will get some of the input credits or not. So there are a few of these moving parts because of which we expect there could be some bit of destocking in quarter 4. While we have factored some of that into our full year guide, we will get better clarity on this as the regulation emerges. Only the last point, because it's important to recognize that this is not like a GST kind of reform in India, where the overall incidence of the taxes came down and which gave more money into the hands of the consumers. This is more a revenue-neutral mechanism by the government to simplify so we expect the unit economics and broadly to remain unchanged. And last part, there is likely to be impact on the HPC side of the business. Foods is relatively not impacted by these changes given the tax structure. Jemma Spalton: Next question comes from David Hayes at Jefferies. Go ahead, David. David Hayes: 2 for me. Just firstly on LATAM steel. Pricing was obviously flat in the quarter despite the hyperinflation or contributions in the region. So clearly, some sort of price reset going on there, which I know you called out was going on since the beginning of the year. So the question is, is that done now? Should we expect pricing to step up quite notably in the second half? And where you have reset prices, have you seen competition following down? Or is that something you're now watching as you go into the second half? And then secondly, just in terms of the second half volumes, I'm trying to get a gauge here between third and fourth quarter. So I guess, if I play back to your volumes are running at about 3% over a long period of time. if we took the average of the second quarter and the third quarter, so relatively flat volumes in the third quarter. average 3. Is that the sort of thing we should be thinking in terms of the pre-buy, the benefit of the World Cup, et cetera, on volumes in the second quarter? Fernando Fernandez: Thank you, David. Well, let me start with the second question. We don't see any significant difference between selling and sell out. Of course, that means that there is no prebuy. Why would we allow retailers to prebuy at a lower price? That doesn't make a lot of sense. So basically, you don't -- you should really not consider that there is any significant one-off in the results we have had -- what is important is we are not carried away by a quarterly result. We look at long-term trends. The relevant trends of this business is that we have grown 2.7% UEG growth in the last 10 quarters and 3% in the last year. We will not give guidance in the quarter 3 and quarter 4, but Srini can give more color on the split of that. On Latin America, our performance in Latin America is really accelerating. We delivered close to 9% growth in the second quarter. And this took the up to close to 8% growth with 6% in volume. LATAM is one of our Unilever strongest business. And as I mentioned before, we have -- we have never had 2 weak years in a row. We have corrected some of the own goals that we scored last year, and we are very pleased with the on performance that we have had in the first half. We have seen the impact of the decisive actions that we have taken in both laundry and the rents to restore competitiveness, particularly in Brazil, and we continue keeping good momentum in Beauty and Food in laundry, in particular, we delivered our digit volume growth in Brazil. And there are 2 main reasons for that, a very successful introduction of our Wonder was innovation in the liquids segment, the 1 that in U.K., you see as parcel in the case of Brazil and romo and also the impact of the pricing correction actions that we took in the first half of last year to restore competitiveness in the Power segment. This is already lapping we expect a real acceleration of pricing in laundry in the second half. In deos, that is another very important category for Unilever in Brazil. We are seeing month after month recovery of the aerosol format that is crucial to boost market growth. The action that we have put in place in the category rebalancing our investment, increasing the one in aerosol relative to the one in contract applicator format is working. And of course, we also benefit from what has been an excellent activation around the World Cup. So we expect deos to gain further momentum in Latin America and being a solid contributor to growth in the second half of the year. Performance in the rest of Latin America is strong. Argentina grew volumes mid-single digit despite what is a tough market there, makes it also improve. And in other important markets like Chile and Central America, particularly our bid and personal care business has a lot of momentum. Second half, anything else, Srini? Srinivas Phatak: There's a couple of elements just to get it out of the way. On a couple of times that's come on the first half performance. I think Fernando has made it very clear that most of it has really got to do with the underlying momentum rather than one-off factors. Having said that, Fernando also mentioned briefly in his comments that we did have a bit of a phasing benefit from an Amazon Prime event. We just thought we quantify it. It starts up between $25 million to $30 million, which at a group level will mean about 20 basis points for the quarter. So that's really something which is a phase in which has come in. Ideally, it would have been a prior have happened in quarter 3. Now it's come into quarter 2. Now coming back to the questions related to volumes. Therefore, we've always said, listen, always anchor our business in terms of when you think about multiple years, 2 year CAGRs, MAT trends, that's more reflective of, let's say, the underlying strength of the business. And if you see in that context, Fernando has explained that even in half 1, we are 2.7%, if you look at the running rate it's 3. What changes in half 2? Obviously, we start with a base which is higher. In half 1 of last year, we had about 1% volume, which stands up to 2% in half 2. That's an important element a lot. Second element is that we'll also have pricing, which is going to start landing. It's already started in quarter 2. We should expect some bit of volume sensitivities, and I think it's healthy. That's really the way we manage the business on its totality of volume price competitiveness. I think that's the second element. Third, it's also important to understand that some of the vectors of growth or some of the geographies of growth will change to actually see you will start to see a very strong base we had in U.S. and Indonesia. Equally, you'll start to see that some of the base that we have in India and Brazil will be actually soft. So multiple moving parts. So rather than getting to a very specific quarter to quarter 3 elements to it. The best way to really start thinking about our business is on a running basis to CAGR. And therefore, the volume guide that we have given to the full year at 3%, I think, is more reflective of the performance. Fernando Fernandez: I feel just to highlight again, the diversification of our portfolio, particularly in HPC, in terms of geographic category segments, price points give us resilience. We see that as a significant competitive advantage and give us a lot of confidence to really deliver the numbers that we have given in the upgraded guidance. Jemma Spalton: The next question comes from Jeff Stent at BNP. Jeff Stent: Just one question. I think you said earlier there was no significant one-offs in the results. This is with FIFA, the biggest activation program in the history of the company. So and try to just ease that though. And I'm wondering if you could maybe give us a sense of what you think the FIFA activation added in terms of growth and I'm just kind of thinking forward to next year when at some point, we're going to talk about cycling and all of this. So any color or any quantification you can give on the FIFA activation in aggregate would be great. Fernando Fernandez: Thank you, Jeff. Well, we are very pleased with the our GAP execution. We have activated more 35 runs across 120 markets, more than 50,000 creators doing content for Unilever brands simultaneously. And we believe that this is a proof of what nil creating in terms of a new social first model of reach an engagement for our brands at a scale that I personally believe very few companies can match. On top of that, we have had extraordinary execution in store across practically all the geographies of Unilever in unprecedented magnitude. So this should have some impact in our sellout, of course, the FIFA World Cup finished on the 19th of July. So we don't have yet the results to really validate what has happened there. Even in some indication, for example, regaining market leadership in the rand U.S. gives a sense that this has been working. But of course, we don't do an event like FIFA for a 2 months we do this to increase the awareness and differentiation of our brands through the immersion of these brands in a massive cultural event like the World Cup. We believe that there will be a residual effect of this activity in terms of the strengthening of our brands. As I mentioned before, as I have mentioned before, we have close to 60% of our revenue, strengthening brand equity, what we call a misread superiority and we believe that we will see as a result of FIFA activation, particularly for Personal Care business, a significant ability in the image of our brands, and this should result in an improvement in competitiveness in the long run. Srinivas Phatak: Maybe just to add color to 2 points on this. When you really look at the 2-year CAGR and the 3-year CAGRs, it actually then starts to reflect the momentum of our business in Personal Care, whether you see it from a deodorant point of view or when you see skin cleansing, that's also reflected in our gaming back leadership in the U.S. and retrans. And skin cleansing, Fernando has already spoken about the performance of Dove and how it's really strengthened. The other angle to also see is when you really look at the first half of the performance. What we've really called off as a true one-off is really the Amazon Prime effect. Given our supply resilience, given the fact that we have the financial strength from a balance sheet given that we have the formulation flexibility R&D, it is quite possible that we have gained at the expense of some of the regionals and the locals in home care, notably in different parts of the world. But that's actually genuine demand and supply dynamics enabled by what I would really call as a very resilient and agile supply chain. So that's where it also helps us because when you start gaining consumers in an era like this, we tend to really market development and the way we really run our business hold on to some of the consumers. So it's important to really distinguish between what is really a phasing impact versus fundamentally servicing the demand requirement, which actually then starts to enable us to grow well and grow competitively. Jemma Spalton: Our next question comes from Jeremy at HSBC. Go ahead, Jeremy. Jeremy Fialko: So a couple from me. First one is, would you be able to give us a bit more color on the volume performance, in particular, if you took the different divisions, how you distinguish between the kind of absolute units and tied and the mix that you're getting across the different divisions? And then secondly, perhaps you could elaborate on the point about some of the local competition the extent to which they were supply constrained. Is that something you see persisting over the balance of the year? Or do you think that some of those constraints are now kind of lifting and some of those peers are now coming back into the market a little bit more? Fernando Fernandez: Well, let me take on the local competition and Srini will give more color in the volume mix split. We have a very resilient supply chain. Our absolute priority has been supply security, given the developments in the Middle East. And we have done that in the first half. Probably this has promoted some kind of competitive advantage versus local players that have suffer in terms of customer service, particularly in Asia. We have no visibility in terms of security supply for the next 4 to 6 months, particularly in the category that is more affected. That is laundry power. So there has been some kind of advantages that we have benefited. But consumers that you take the propensity of them to stay in great brands like the 1 we have, we believe that there is a high probity of that. Volume and mix? Srinivas Phatak: So from an external perspective, Jeremy, you're conscious that we call it as UVG. UVG for spent always been a combination of volumes and mix. And it's our intention never to really split the 2. That's how we have really reported the results. But if I were to reflect half 1 performance, obviously, we've had volume growth, which have been ahead of mix. Normally, we'll get a UVG benefit, which is more than volumes. But just given the strong performance from home care across the markets, personal care and across various segments. In this half, if I were to really give a qualitative comment, it would be that our volume growth has been ahead of our UVG. That's also the mix comment that I made. Again, volumes in UVG have been fairly strong and consistent across the HPC categories. It reflects in terms of both of the growth or the volume-led growth over 7%. Obviously, our volumes have been lower in foods, and I think that's also fairly visible. And is really notably coming from a U.S. performance, which Fernando has clearly explained as to what is really driving it. Just putting a geography angle to it, volume growth have continued to be very strong in emerging markets. volume growth have also remained quite strong and above market when it comes to North America. The only other place where they have been tepid, again to reasons explain has been Europe. Jemma Spalton: Our next question comes from Guillaume at UBS. Guillaume Gerard Delmas: First question for me is on price elasticity. Because it seems that when you push promo activities, price corrective measures, it does really pay off, and we got some very strong evidence of that in the second quarter. And then looking at your guidance for the second half, I mean, it does suggest that volumes could very quickly normalize as you raise prices. So my question is, are elasticities increasing at the moment in your categories, I mean, maybe with a more price-conscious, less brand loyal consumer -- or are you simply being a bit conservative when it comes to your guidance for volume growth development in the back half? And I guess related to that, as you further premiumize your portfolio, should we see declining elasticities basically in your business? And then my second question is very quickly if you could unpack your performance in skin care because the business grew low single digits, I think, in the first half despite baseline being very strong, continued momentum, acceleration in prestige wondering what is weighing on your growth in skin care at the moment? And do you anticipate you'll be able to address this drag in the coming quarters? Fernando Fernandez: Thank you, Guillame. Let me start with Hiker and then I go into pricing and elasticity. We have very strong performance in Vaseline. We have very strong performance in prestige in the lives of Tatcha or Paula's Choice improving. So the issues in skincare for us is some decline in some of our Asian legacy brands, particularly Fair & Lovely in India and Ponds in Southeast Asia. We are working very hard to build a new portfolio of brands that are more future fit, and this is what we are doing with our prestige portfolio and with baselines care. But it's very clear that there are some brands that in a market that is premiumizing very fast, like the Asia market, brands like Fair & Lovely an ponds have some efficiencies that we need to fix. In terms of pricing, well, in previous earnings calls, we have been very clear that we were going to manage the business in the context of a very volatile environment, focusing on volume growth, precompetitive and disciplined management of every single line of the P&L. And this is what we have done managing costs through formulation flexibility, promotional optimization, tighter management of overheads and being cautious on pricing until having more clarity in terms of supply security and commodity cost environment. Pricing has been a bit soft in the first half at 0.6%, and this is the result of the levered actions that we have taken like India laundry liquid, and Brazil power relative price correction last year, some increase promotional activity in FIFA activation. And in the case of Foods, taking a bit longer in the negotiation of European retailers due to the need of calibrating the impact of the Middle East conflict in cost. In terms of elasticity, let me say first that we have now around 90% of our revenue in the relative pricing that we want to stay. That was not the case 3 or 2 years ago, in which that level was in the territory of 50% to 60%. Today, we have 90% of our revenue in the relative pricing versus competition that we want our brands to be. The other 10% is evenly split during areas in which we are a bit above strategic pricing and areas where there is -- we are slightly below strategic pricing. Regarding elasticity, at this stage, it's difficult to predict elasticity in the future when you have had so much cumulative inflation since covet. So the reaction we have seen in our pricing corrections in places like India under liquids or laundry powers in Brazil has been strong. The same in some particular corrections that we have done in Hair Care. So it's true that elasticity seems to be significant when we adjust the pricing to what it should be in terms of a strategic price index. Going forward, our portfolio is premiumizing. We tend to see lower elasticity in the most premium areas of our portfolio. And real in second half, I don't want to really, at this stage, comment a lot. We have taken a cautious approach here, ensuring that in our guidance, we consider a logical volume slowdown when we put pricing up. Remember also that our sequential inflation in second half will be in the territory of EUR 500 million or so. This gives you an idea of what is the kind of pricing that we need to keep our margin sequentially improving as we have done in the first half versus the second half next year, you will do your months, I will not do it for you, but you can model that easily. Jemma Spalton: Our next question comes from Tom Sykes at Deutsche Bank. Go ahead, Tom. Tom Sykes: Yes. Just firstly, on India, is there at all a risk that margins need to be adjusted downwards a bit in order to stimulate longer-term higher growth in India. Are you at all in emerging markets seeing competition from Chinese producers. Chinese exports of Beauty & Personal Care very strong? Is that something at all across your emerging markets you're seeing? And then finally, on gross margin and the A&P. Have you got a benefit on search costs from the switch to LLMs? And is that something that is likely to continue, but we see that in higher trade spend rather than coming through the A&P line, please? Fernando Fernandez: Thank you, Tom. Let me start by the LLM. I mentioned this in our previous earnings call. I feel the development of search and LLM play in favor of big brands. We are now activating LLM rankings in more than 20 markets for more than 20 brands. This is something which we are putting a lot of focus to ensure that we are at the forefront of how people discover brands in the future. Not significant changes in the cost of media at this stage, but this is something that is changing very, very fast. So I cannot predict the future in terms of that. I will -- let me cover also in emerging markets, Chinese exports in Home Care. We have not seen significant Chinese exports in Home Care. We have seen the development of some Chinese players where some new channels emerge, like TikTok Shop, particularly in Southeast Asia. In skin care, we have seen a couple of brands really making some inroads in Southeast Asian markets like Indonesia but particularly in face care, not in our segments of our portfolio. India? Srinivas Phatak: So the India model is really one which is related to growth, volume, premiumization and through that really, really driving the profit expansion. Even if you really look at the guide, which comes from Hindustan Unilever Limited, they have said that they want to keep the EBITDA margins at the current level, and that's the right approach. Classically, if you see, India benefits from really having a portfolio which straddles the pyramid, whether it's across the price points, benefit segments, channels and therefore, that gives them the levers to manage this. So fundamentally coming back, it's not a question of not being price competitive. So it's really a question of getting the right volume mix premiumization through that, really generating the profits and investing back into the business. From our perspective, we ideally want to see India as a high single-digit growth market. And if we can have bottom line growth slightly ahead of top line, I think that it's really a virtuous circle, which then serves the business in India as well as the group very well. Fernando Fernandez: Yes. Let me highlight again, we will invest in India to protect the leadership position we have. We really believe that the next decade is a decade of India. We enjoy a privileged position there, and we believe that it will be a key contributor to the growth history of India. Jemma Spalton: Our final question comes from Ed Lewis at Rothschild. Go ahead, Ed. Edward Lewis: A couple of ones from me. Just one, the Unilever markets, you've been pretty positive about the change there. And I just sort of as we look at this quarter, just to understand how much having that structure in place now that helps you navigate the volatile environment. And then just also related to that, just looking at the sales channels. How much is that a function of improved performance we're seeing? Is that -- are you much more relevant now sort of in the right channels than where you were before? And is that really what we're seeing in places like Asia and especially China in the Beauty business with the improvement you're seeing there? Fernando Fernandez: Thank you, Ed. Well, very solid performance in 1-year liver market once again. We are running a very clear strategy in these markets, simplifying our portfolio. driving very, very strongly beauty and personal care, particularly that basin our U.S. portfolio, solidifying what are strong loan deposition and diverting the ones in which we believe that there is not sustainable position in the future as we have done recently with Colombia and Ecuador. The reasons has been running with a lot of discipline with a strong overhead discipline. This is a part of the business that was dilutive to our profitability, and it has become last year accretive. So we are very happy with the development of UL, the 1-year Unilever markets, and we continue seeing presence in these markets with a much more focused portfolio than in the past, a key contributor to a growth history of Unilever in the future. In terms of channel exposure, of course, there is a significant change in our portfolio with the growth of Wellbeing, with the growth of Prestige with the premiumization that we have achieved also in our core. This gives us much more exposure to premium channels like online. We have had mid-teens growth in e-commerce last year in the most important market of U.S. and we continue delivering in line with that. So there is always some issues that you have to sort out. As I mentioned before, we have some issues in the club channel in U.S., particularly in the Wellbeing. But overall, we see that our portfolio has given us a good exposure. And you know there is growth in every single channel. One of the key drivers of the growth that we are seeing in India, our improvement in general train now. So this is a challenge that was not growing for us, but now is growing in the mid- to high single digit. That basically shows that if you look, if you hand for the growth, you will find the growth in different channels, in different segments of the market. I believe that's the last question, Jemma. And with that, let me close with a couple of thoughts. We have delivered a strong volume-led first half and an accelerating 1 with the best volume quarter at Unilever in over 15 years. Importantly, this performance is not a one-off. It reflects, as I mentioned before, good sustained performance with an average 3% volume growth over the last 4 quarters or if you go longer, 2.7% over the last 10 quarters. As we move into the second half, the price growth will accelerate. We will keep managing the business with discipline, protecting the competitiveness of both our pricing and our brand investment, and emphasizing the drivers of demand with a higher return in niche market. This is what we call desire scale working in practice. Alongside strong performance, we continue to transform our portfolio with the combination of food and McCormick progressing well. And we are really on track to make deliver a focused pure-play HPC company. The environment remains uncertain, but the strength of this first half give us confidence in our updated outlook. We will deliver USG of 4% to 6% for the year with around 3% in volume. Second half growth of 4% to 5%, led by pricing and the most improvement in underlying operating margin versus the 20% that we delivered last year. With that, thank you for your time. Thank you very much. Bye-bye. Before you buy stock in Unilever, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Unilever wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Unilever. The Motley Fool has a disclosure policy. Unilever (UL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Unilever PLC (NYSE:UL) reported strong volume-led growth with underlying sales growth of 5.8% in the second quarter, marking the best quarterly volume performance since 2010. The company's power brands, which now account for 78% of turnover, delivered underlying sales growth of 6.9% in the second quarter, driven by strong volume growth. Emerging markets showed robust performance with 8.3% growth in the second quarter, led by India with a 10% increase in underlying sales. Unilever PLC (NYSE:UL) achieved a 10 basis points margin expansion and earnings growth of 2.4% in hard currency, demonstrating effective cost management. The company successfully leveraged cultural events like the FIFA World Cup to enhance brand engagement and market presence, involving over 50,000 content creators and reaching a combined audience of more than 600 million people. Unilever PLC (NYSE:UL) faced challenges in the foods segment, with growth slowing to 0.2% in the second quarter due to increased competition in premium segments in North America and Europe. The oral care business underperformed compared to other segments, with low single-digit growth and increased competition impacting market share. Currency fluctuations negatively impacted first-half turnover by 4.9%, although this effect is expected to moderate in the second half. The company anticipates potential market disruptions in Brazil due to upcoming tax reforms, which could lead to temporary retail stock reductions in the fourth quarter. Despite strong overall performance, the skincare segment experienced low single-digit growth, with legacy brands like Glow & Lovely and Ponds facing challenges in rapidly premiumizing markets. Warning! GuruFocus has detected 2 Warning Sign with UL. Is UL fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the resilience of Unilever's performance, especially in light of potential price increases in the second half of the year? How confident are you in maintaining volume growth? A: We are pleased with our strong volume growth, which is the best in over 15 years. Our performance is resilient and broad-based, with significant contributions from emerging markets like India and China. We have a diversified portfolio that provides resilience against volatility. We are confident in maintaining our market share and expect continued growth, even with price increases. Q: What is Unilever's perspective on the destocking issue in the US, and how is the oral care business performing? A: We have observed some destocking in the US, particularly in foods, but it is not material at the company level. Our oral care business has grown low single-digits, and while we are not satisfied with this performance, we are addressing increased competition and have plans to improve in the second half. Q: Can you provide an update on the McCormick deal and discuss the US market performance, particularly in categories like Liquid IV? A: We are making good progress with the McCormick deal, with key milestones on track. In the US, we have seen broad-based growth across categories like deodorants, skin cleansing, and prestige beauty. Liquid IV has returned to double-digit growth, and we are addressing challenges in the foods segment with targeted innovations. Q: How is Unilever handling the tax reform in Brazil, and what impact will it have on the business? A: The Brazil tax reform is transitioning to a dual VAT system, which will affect reported revenue and costs but is designed to be revenue-neutral. We expect some market disruptions in Q4 due to customer adjustments, but the overall profitability of the business will remain unchanged. Q: What are the expectations for pricing and volume growth in the second half, and how does Unilever view price elasticity? A: We expect pricing to lead growth in the second half, with some volume sensitivities. Our portfolio is increasingly premiumized, which typically results in lower elasticity. We are cautious in our guidance, considering potential volume slowdowns with price increases, but remain confident in our strategic pricing positions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Unilever PLC? Here are five stocks we like better. Unilever raised its full-year outlook after second-quarter underlying sales growth accelerated to 5.8%, driven by 5.5% volume growth—the company’s strongest quarterly volume performance since 2010. Growth was led by power brands, Home Care and emerging markets: Home Care sales increased 9.1% in the second quarter, while India grew 10%. Foods underperformed, slowing to 0.2% growth amid weakness in North America and Europe. Despite roughly €300 million of first-half inflation, underlying operating margin improved to 20.3%. Unilever expects greater pricing contributions in the second half, continued modest margin improvement and €6 billion in share buybacks from 2026 to 2029. AirJoule Technologies: A Cool Shot at a Multibagger Unilever (NYSE:UL) reported accelerating volume-led growth in the second quarter, prompting the consumer products company to raise its full-year outlook as it expects pricing to become a larger contributor in the second half. Underlying sales rose 4.8% in the first half, including 4.2% from volume and 0.6% from price, Chief Financial Officer Srinivas Phatak said on the company’s results call. Second-quarter underlying sales growth accelerated to 5.8%, driven by 5.5% volume growth, which management described as Unilever’s strongest quarterly volume performance since 2010. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit McCormick & Company Falls to Value Levels Income Investors Love First-half turnover was €25.6 billion, up 0.5% from a year earlier. Acquisitions net of disposals contributed 0.7% to turnover growth, while currency movements reduced turnover by 4.9%. Underlying operating profit rose 0.9% to €5.2 billion, and underlying earnings per share increased 2.4% to €1.61. Free cash flow increased €500 million year over year to €1.5 billion. Unilever said its power brands, which account for 78% of turnover, grew 6% in the first half and 6.9% in the second quarter. Second-quarter power-brand volume growth was 6.8%, with 15 of the company’s 30 power brands posting double-digit growth. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 5 Oversold Large-Cap Stocks That May Be Worth Buying Soon Beauty and Wellbeing recorded first-half underlying sales growth of 5.9%, accelerating to 8.1% in the second quarter. Hair care grew 9% during the half, supported by Dove, Sunsilk and K18. Vaseline posted double-digit growth, while the prestige beauty portfolio also accelerated, with Paula’s Choice, Hourglass and Tatcha each delivering double-digit growth in the second quarter. Personal Care grew 4.8% in the first half and 5.9% in the second quarter. Unilever said it regained market leadership in U.S. deodorants, supported by Dove, while Rexona returned to growth in Brazil after changes to format mix and shelf space. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Home Care was the company’s fastest-growing business group, with underlying sales up 7.6% in the first half and 9.1% in the second quarter. Nearly all first-half growth came from volume. The segment benefited from strong fabric-cleaning growth in India, Brazil and Indonesia, as well as continued momentum in fabric enhancers led by Comfort. Foods grew 1.2% in the first half but slowed to 0.2% growth in the second quarter. Management cited weaker performance in North America and Europe, particularly in U.S. condiments, where it said increased competition in premium mayonnaise products using alternative oils, including avocado oil, hurt performance. The company said it is rolling out a Hellmann’s avocado line and adjusting pricing and distribution plans. Emerging markets continued to be a key growth driver. Asia Pacific Africa delivered 7.3% underlying sales growth in the first half, with 6.1% from volume, while Latin America grew 7.6%, including 5.7% volume growth. India led the second-quarter performance, with 10% underlying sales growth. Management said the country achieved record market shares in laundry and hair care. China grew by a mid-single-digit rate, aided by digital and e-commerce channels, while Indonesia grew 7% on broad-based gains across business groups. North America grew 2.7% in the first half, with 3.2% volume growth, and growth accelerated to 3.6% in the second quarter. The company cited gains in deodorants, skin cleansing, hair care and prestige beauty. Europe declined 0.9% in the first half amid a softer market environment, with the weakness concentrated in Foods. Management said it had not seen a material divergence between sell-in and sell-out trends in the U.S. While some retailer destocking occurred in Foods, it was not material at the company level. Underlying operating margin expanded 10 basis points to 20.3% in the first half despite a 70-basis-point year-over-year decline in gross margin. Phatak said inflation, including commodity, controlled-cost and other pressures, totaled about €300 million in the first half and is expected to total about €550 million in the second half. The company now expects full-year inflation of roughly €800 million to €900 million, centered around €850 million. Much of the inflation is concentrated in Home Care and emerging markets, according to Phatak. Unilever maintained Brand and Marketing Investment at 16.1% of turnover, with additional spending directed toward power brands, innovation and FIFA World Cup activations. The company said overheads improved by approximately 70 basis points after completing an €800 million productivity program ahead of schedule. Phatak said Unilever expects second-half gross margins to remain around first-half levels on an absolute basis as higher pricing reaches the income statement. The company expects some volume sensitivity as prices rise. Unilever raised its full-year outlook and now expects underlying sales growth within its multiyear range of 4% to 6%, with approximately 3% volume growth for the year. It expects second-half underlying sales growth of 4% to 5%, led by pricing, and continues to target a modest improvement in underlying operating margin versus 2025. The company expects currency headwinds to ease in the second half. Based on July spot rates, it projected a full-year currency impact on turnover of around 3%, compared with a 4.9% reduction during the first half. On capital allocation, Unilever increased its second-quarter dividend by 3% and completed a €1.5 billion share repurchase program in June. It expects operating performance and proceeds from the Foods transaction to support €6 billion in share buybacks between 2026 and 2029. Unilever also completed the acquisition of U.S. supplements brand Grüns in June. Management said the business complements its wellbeing portfolio and expands its exposure to premium, high-growth and digitally led consumer segments. The company said its planned combination of Foods with McCormick is progressing, with regulatory, tax, filing and integration work continuing. Unilever PLC is a global consumer goods company with roots dating back to the early 20th century, formed from the merger of the British firm Lever Brothers and the Dutch company Margarine Unie. The company develops, manufactures and markets a broad portfolio of branded products in personal care, home care and foods and refreshments. Unilever's corporate structure and listings reflect its long history in both the United Kingdom and the Netherlands, and it operates at scale across diverse consumer markets worldwide. Unilever's business is organized around major product categories—Beauty & Personal Care, Home Care and Foods & Refreshment—and includes numerous well-known consumer brands across those categories. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Unilever Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Unilever stock has delivered an 18.2% gain over the past five years, and today the Discounted Cash Flow (DCF) intrinsic value estimate points to meaningful upside while market multiples suggest the shares are closer to fairly valued, creating a clear valuation tension for investors to weigh. Over five years, Unilever shares are up 18.2%, which is a moderate return that leaves plenty of focus on whether the current price still offers an appealing entry point. Ongoing portfolio changes toward Health and Personal Care, including the planned McCormick Foods combination, may support margin quality and valuation. However, any setback in execution or integration could limit how much of that potential is reflected in the share price. On Simply Wall St's broader checks, Unilever scores 4 out of 6, which is a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether Unilever's current share price offers enough margin between market value and intrinsic value to justify taking on the risks around its portfolio reshaping and earnings profile. Unilever delivered -1.0% returns over the last year. See how this stacks up to the rest of the Personal Products industry. The Discounted Cash Flow (DCF) model values a company based on the cash it is expected to generate for shareholders over time. For Unilever, the model is built on latest twelve month free cash flow of about €6.8b and assumes that cash flows continue to grow rather than contract. On that basis, the 2 Stage Free Cash Flow to Equity approach points to an intrinsic value of around £64.42 per share. Compared with the current share price, that DCF estimate implies the stock trades at roughly a 29.2% discount, which indicates Unilever screens as undervalued on cash flows. Because the planned McCormick Foods combination is expected to reshape the portfolio, the current market price may reflect execution risk even though the cash flow outlook used in the model supports a higher valuation. Overall, the DCF work suggests Unilever stock appears undervalued relative to the cash flows currently built into the model. Our Discounted Cash Flow (DCF) analysis suggests Unilever is undervalued by 29.2%. Track this in your watchlist or portfolio, or discover 10 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Unilever. The P/E ratio is a good fit for Unilever because earnings are still a core yardstick for how investors look at large, branded consumer goods groups. Unilever currently trades on a P/E of about 20.4x, which sits close to both the wider peer average of 20.9x and above the Personal Products sector average of 18.8x. That positions the stock at a modest premium to the broader industry but broadly in line with large listed peers. Simply Wall St's fair P/E, which blends factors such as growth, profitability, size and risk, sits slightly higher at 22.0x. That is only a small gap from the current 20.4x multiple, so the market price does not suggest a clear discount or a stretched valuation on earnings. When set alongside the DCF work, the market multiple view points to a stock that the market is pricing in a relatively balanced way. Overall, Unilever looks roughly fairly valued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Unilever pick up where the valuation puzzle leaves off by spelling out which assumptions about Unilever's future growth, margins and earnings would need to hold for the stock to be worth meaningfully more or meaningfully less than it is today. Each narrative treats fair value as a thesis about how the business might develop over time, so you can see how that view holds up as new information comes through on the Community page. Community views on Unilever are split, with one side seeing clear value on offer and the other arguing expectations already look full. Bull case: 11% undervalued Read the full Bull Case to see why Unilever could be undervalued Bear case: 15% overvalued Read the full Bear Case to see why Unilever could be overvalued Do you think there's more to the story for Unilever? Head over to our Community to see what others are saying! For Unilever, the Discounted Cash Flow (DCF) work points to meaningful upside, while the P/E view says the stock is priced about right relative to peers. That split largely comes down to cash flow assumptions versus the market’s expectations for growth and margins, with the broader valuation checks sitting in the middle rather than firmly backing either side. The key question is whether Unilever can execute on its portfolio reshaping and protect margins in the face of competition. Whether the current discount is an opportunity or a fair reflection of those risks is what ultimately separates the bull and bear cases. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ULVR.L. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Volume‑led Q1: Unilever delivered underlying sales growth of 3.8% in Q1 driven by volumes (+2.9%) and pricing (+0.9%), with Home Care a standout (volumes +6.2%) and strong emerging‑market growth while Europe lagged (-0.9%). FX hit and capital action: Reported turnover was €12.6bn, down 3.3% as foreign exchange reduced sales by ~7.7%; the company announced a €1.5 billion share buyback and reiterated 2026 guidance at the bottom of its 4–6% underlying sales range and at least 2% volume growth. Higher inflation and strategic moves: Full‑year inflation is now expected at about €750–900 million (≈€350–500m higher than prior), prompting selective pricing—notably in Home Care—plus mitigation actions, and Unilever confirmed plans to separate Foods and combine it with McCormick to create two more focused businesses. Interested in Unilever PLC? Here are five stocks we like better. McCormick & Company Falls to Value Levels Income Investors Love Unilever (NYSE:UL) reported a “good start” to 2026, delivering underlying sales growth of 3.8% in the first quarter, led by 2.9% volume growth and 0.9% pricing, according to CEO Fernando Fernandez. CFO Srini Phatak said the quarter extended a volume-led growth profile that Unilever has sustained across recent periods, with average volume growth of 2.5% over the last nine quarters. Fernandez said growth was “broad based across categories,” highlighting Home Care as a standout with volumes up 6.2% in the quarter, supported by innovation and strong performances in India and Brazil. He also emphasized continued momentum in Unilever’s Power Brands, which represent around 78% of turnover and grew 5% in the quarter with volumes up 4%. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook 5 Oversold Large-Cap Stocks That May Be Worth Buying Soon Phatak said Home Care delivered 6.1% underlying sales growth, driven almost entirely by volume (6.2%) with pricing broadly flat. He highlighted double-digit volume growth in Brazil and high single-digit volume growth in India, including double-digit growth in liquids and “record market share in powders.” Fernandez added that Home Care strength was broad-based across fabric cleaning, home and hygiene, and fabric enhancers, pointing to Cif growth of around 15% and Domestos at high single-digit growth. Phatak said Beauty & Wellbeing posted 3.6% underlying sales growth, with 1.9% volume and 1.6% pricing. Hair delivered “high single-digit growth,” led by double-digit growth in Dove Hair and K18, while skin grew low single-digit with strength in Vaseline. Wellbeing declined low single-digit against a “very strong” prior-year comparator, though Phatak noted OLLY delivered double-digit growth and management expects improvement from the second quarter driven by Liquid I.V. and Nutrafol. → These 3 AI Stocks Just Crushed Earnings: Still Time To Buy? History Says These are 3 Stocks to Buy for December Personal Care delivered 3.7% underlying sales growth, driven by 1.1% volume and 2.5% pricing. Phatak said Dove led results, including double-digit growth in deodorants and high single-digit growth in skin cleansing, supported by North America and premium innovation rollouts. Oral care was flat, with growth in Asia Pacific Africa offset by softer performance in Europe. Foods grew 2.2% on an underlying basis, with 2.4% volume and slightly negative pricing. Phatak said Hellmann’s delivered mid single-digit volume growth, supported by premium innovations and strong execution, while cooking aids grew low single-digit with strength in Asia Pacific Africa but softer conditions in developed markets, “notably Europe.” Unilever Food Solutions also grew low single-digit, supported by improving away-from-home consumption trends, particularly in China. → SanDisk Earnings Crush Estimates With 251% Revenue Surge Emerging markets again contributed meaningfully. Phatak said Asia Pacific Africa delivered 5.9% underlying sales growth with 5% volume growth, and India accelerated to 7% with 6% volume growth. He described the improvement as “broad-based,” reflecting sharper portfolio choices, “fewer bigger growth bets,” and better execution, including e-commerce and modern trade outperforming the core business. China delivered another quarter of mid single-digit growth, with Phatak citing premium innovation, improved go-to-market execution, and progress in social and digital channels. Indonesia grew 4%, which Phatak framed as an improved and “more sustainable” trajectory following a reset, with market shares stabilizing and “around half the business now gaining share.” Fernandez said he was pleased with improvements in China’s food service channel and noted Indonesia’s run rates have improved for five consecutive quarters. Latin America delivered 6.2% underlying sales growth, combining 2.6% volume and 3.5% pricing. Phatak said momentum improved across the region, supported by Brazil laundry following “corrective pricing actions” and Mexico Personal Care driven by operational improvements. Developed markets were mixed. North America delivered 2.1% underlying sales growth, driven by 2.2% volume, while Europe declined 0.9% with volume down 1.2% and price up 0.3%. Fernandez attributed European softness to subdued consumer demand and increased promotional pressure in Foods. He said Unilever expects “a slight recovery” in Europe as the year progresses and is “banking” on a strong second quarter in Personal Care tied to FIFA activations. Reported turnover for the quarter was EUR 12.6 billion, down 3.3% year-over-year. Phatak said underlying growth was “more than offset by currency headwinds,” with foreign exchange reducing reported turnover by 7.7%. Based on April spot rates, Unilever expects the full-year FX impact on turnover to be around minus 3%. Portfolio changes contributed a net positive 0.9%, with acquisitions adding 1.4%—Phatak cited Dr. Squatch, Wild, and Minimalist—partly offset by a 0.5% impact from disposals, primarily related to foods and the tea business in Indonesia. Unilever reiterated its outlook for 2026, expecting underlying sales growth “at the bottom end” of its 4% to 6% multi-year guidance range and at least 2% underlying volume growth for the year. Fernandez told analysts he was confident in delivering above 2% volume growth, citing a strong start to the second quarter, strengthening brand equities, and a robust innovation and activation plan, including FIFA sponsorships in Personal Care. On capital returns, Phatak announced a new EUR 1.5 billion share buyback, expected to be completed toward the end of the first half. Fernandez said the company chose to accelerate the buyback due to market valuation weakness and management’s confidence in Unilever’s future valuation and performance. Phatak said Unilever now expects full-year inflation of about EUR 750 million to EUR 900 million, including both material and non-material costs such as logistics and factory operations. He said this is roughly EUR 350 million to EUR 500 million higher than prior expectations, based on a working assumption of crude at around EUR 100. Phatak said about 50% of Unilever’s net inflation is expected to come through Home Care, with 70% of that concentrated in emerging markets. While Unilever will pursue mitigation actions—including competitive buying, commodity covers, formulation flexibility, packaging interventions, SKU focus, and productivity—he said “pricing will be needed in selected markets and categories, notably Home Care.” Pricing will be “calibrated” and executed “in small doses,” he said, adding that management expects pricing to play a bigger role as the year progresses, particularly in the second half. Fernandez said Unilever’s focus will be on volume growth, price competitiveness, and disciplined management of costs, emphasizing that “the times of being uncompetitive in Unilever in any driver of demand are gone.” Management said it has not seen any material retailer stocking ahead of anticipated price increases. Fernandez also addressed Unilever’s announced plan to separate its Foods business and combine it with McCormick, describing the deal as a “growth-led separation” designed to create “two businesses with improved growth profiles.” He said the transaction would result in a simpler, more focused Unilever as a pure-play Home and Personal Care business, alongside a scaled “global flavor powerhouse” within Foods, citing strategic fit through complementary geographic footprints and a stronger combined presence across retail and foodservice. Fernandez said Unilever has dedicated teams working alongside McCormick and that “all work streams” to separate and integrate Foods are underway. He added that transitional service agreements are intended to ensure continuity and provide time to remove stranded costs before they affect profit and loss statements. Across the wider business, Fernandez said Unilever is pursuing three interconnected priorities: Elevating brands through its “Desire at Scale” model Improving operational excellence and execution Taking “decisive portfolio actions” to unlock value In examples of brand-building, he cited Dove—“close to a EUR 7 billion brand,” with more than 6% growth for 14 consecutive quarters—and Vaseline, which he said has delivered double-digit growth over the last five years. He also pointed to Wonder Wash, which he described as having around EUR 200 million of annualized turnover, and Hellmann’s flavored mayonnaise, which he said has reached EUR 100 million of annualized turnover across 35 markets. Unilever plans to provide more detail at a Capital Markets Day on Nov. 4, Fernandez said. Unilever PLC is a global consumer goods company with roots dating back to the early 20th century, formed from the merger of the British firm Lever Brothers and the Dutch company Margarine Unie. The company develops, manufactures and markets a broad portfolio of branded products in personal care, home care and foods and refreshments. Unilever's corporate structure and listings reflect its long history in both the United Kingdom and the Netherlands, and it operates at scale across diverse consumer markets worldwide. Unilever's business is organized around major product categories—Beauty & Personal Care, Home Care and Foods & Refreshment—and includes numerous well-known consumer brands across those categories. The article "Unilever Q1 Earnings Call Highlights" was originally published by MarketBeat.