Unilever Posts Strongest Volume Growth in Over a Decade

Consumer goods giant Unilever has raised its full-year outlook after recording its strongest quarterly volume growth in more than a decade, ahead of a £33.8 billion ($43 billion) deal to spin off its food business.

The owner of Dove and Simple saw its shares surge 6% following a strong first-half performance, with sales growth accelerating to 5.8% in the second quarter.

This acceleration was driven by a 5.5% increase in sales volumes, marking the company's highest underlying volume growth in more than 10 years.

Overall, first-half sales edged up 0.5%, while pre-tax profits rose 1.8% to €4.66 billion (£3.98 billion) for the six months ending June 30. Operating profits climbed 2.6% to €4.89 billion (£4.17 billion).

Unilever now expects full-year sales growth to land within its multi-year target range of 4% to 6%, up from its previous forecast at the lower end of that spectrum. The group also raised its underlying volume growth forecast to around 3%, compared to its previous guidance of at least 2%.

All of Unilever's business groups reported volume-led underlying growth in the first half of the year, with Beauty & Wellbeing, Personal Care, and Home Care each showing accelerated momentum in the second quarter.

Underlying sales in the Beauty & Wellbeing division grew by 5.9%, buoyed by core brands like Dove, Sunsilk, and Vaseline, alongside sustained momentum in prestige beauty. This strong momentum in prestige beauty mirrors broader beauty industry trends, where retailers like Sephora have boosted first-half sales for luxury groups like LVMH. Meanwhile, the Wellbeing business recorded low-single-digit growth, with performance improving in the second quarter.

Personal Care underlying sales increased by 4.8%. Skin cleansing and deodorants both recorded mid-single-digit growth, supported by premium product launches under the Dove brand and marketing campaigns tied to the FIFA World Cup 2026. While Unilever celebrates this volume-led growth, other British beauty players are navigating complex turnarounds, such as Revolution Beauty's efforts to eye a recovery after beating its initial turnaround expectations.

These half-year results arrive as Unilever prepares to combine its food business with US rival McCormick in a joint venture. Announced in March, the deal will create a food giant combining brands like Unilever's Marmite with McCormick's French's mustard.

However, the move has faced some friction; several Unilever shareholders recently criticized leadership at the annual general meeting for approving the transaction without a shareholder vote.

Unilever Chief Executive Fernando Fernandez commented on the interim results: "We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter—the best volume quarter at Unilever in over a decade.

"These results show our ability to continue performing while transforming our portfolio.

"Our combination of Foods with McCormick is progressing well and will unlock significant value."