Unilever Q3 sales grow 5.2% as FY volume growth forecast improves

Unilever plc (LON:ULVR) has announced its Trading Statement – Third Quarter 2026

Continued strong performance in the third quarter

•         Strong growth and volume delivery – underlying sales growth (USG) of 5.2%; 2.9% volume growth with 2.3% price growth in response to higher commodity costs

•         Power Brands leading performance – 5.8% USG and 3.3% volume growth

•         Broad-based strength across HPC – 7.0% USG with 4.1% volume growth

•         Emerging market momentum – led by strong growth in India, Latin America and South East Asia

•         Turnover of €13.3 billion up 6.7% – positive operational performance, net acquisitions and currency impact

•         Unilever Foods combination with McCormick on track

•         Quarterly dividend up 3% vs Q3 2025

“We have delivered another quarter of competitive growth, led by continued strong volume delivery and a step up in price to offset the impact of higher commodity costs. Our Power Brands continued to lead performance, with strong growth across Home Care, Personal Care and Beauty & Wellbeing. Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and South East Asia. Developed market performance reflected tougher prior year comparators and softer performance in Foods.

We are performing while transforming Unilever. We are becoming simpler and sharper, with greater focus and stronger execution as we drive Desire at Scale across our brands. This progress gives us confidence that we will now deliver at least 3% volume growth for the full year.

At our Investor Event next week we will set out how this transformation is creating a stronger, more focused Unilever capable of delivering sustained, competitive performance.”

Fernando Fernandez

Following strong performance in the first nine months, we have upgraded our outlook for 2026:

We continue to expect underlying sales growth for full year 2026 to be within our multi-year guidance range of 4% to 6% and modest improvement in underlying operating margin for the full year versus 20.0% in 2025.

We now expect at least 3% underlying volume growth for full year 2026 and underlying sales growth in the second half of around 5%.

Growth

Underlying sales growth (USG) in the third quarter was 5.2%, with 2.9% from volume and 2.3% from price. On a year-to-date basis USG was 4.9% with 3.8% UVG, with two-year CAGR USG of 4.1% and 2.5% UVG. Power Brands continued to lead growth, delivering 5.8% USG with 3.3% volume. Performance was led by HPC, with Beauty & Wellbeing, Personal Care and Home Care all delivering strong volume-led growth. Foods was flat, as emerging market and Unilever Food Solutions growth was offset by softness in developed market retail. Underlying price growth stepped up as planned in the third quarter reflecting higher commodity costs, in particular in Home Care and Personal Care.

•         Beauty & Wellbeing: 5.7% USG with 3.6% volume and 2.1% price. Hair Care grew double-digit and skin care grew mid-single digit. Growth was driven by strong performance from our Power Brands and prestige portfolio. This included double-digit growth in Dove, Vaseline, Sunsilk, Clear and K18, led by volume. Wellbeing declined in the third quarter, partly due to shipment timings for Amazon Prime Day, and is down (1.0)% year-to-date.

•         Personal Care: 6.3% USG with 3.8% volume and 2.4% price. Skin cleansing grew high-single digit and deodorants grew mid-single digit, with accelerated price growth reflecting higher commodity costs. Growth was broad-based across geographies, with high-single digit growth in emerging markets and mid-single digit growth in the US. Dr. Squatch was included in USG from September with double-digit growth.

•         Home Care: 9.1% USG with 5.4% volume and 3.6% price. Fabric cleaning grew double-digit and home & hygiene and fabric enhancers grew mid-single digit. By region, performance was led by double-digit growth in Asia Pacific Africa and Latin America, including strong delivery in our two largest markets, India and Brazil. Price growth stepped up in the third quarter reflecting higher commodity costs.

•         Foods: 0.1% USG with (1.1)% volume and 1.3% price. Unilever Food Solutions grew low-single digit and Cooking Aids and Condiments were broadly flat. Growth in emerging markets and in Foods Solutions was offset by a decline in developed market retail, reflecting continued softer market conditions and increased competition in US condiments. We are continuing to take decisive actions to improve US Foods performance through new innovations to strengthen competitiveness and corrective pricing actions. Unilever Food Solutions performance was led by North America growth accelerating to mid-single digit.

By region, growth was led by emerging markets, while developed markets reflected tougher comparators and soft market conditions.

•         Developed Markets: (0.9)% USG, with (1.7)% from volume and 0.7% from price. North America declined (0.7)% while continuing to gain volume share, as strong growth in Personal Care and Beauty was offset by declines in Wellbeing and Foods. Europe declined (1.7)% in a soft market environment.

•         Emerging Markets: 9.5% USG, with strong volume growth of 6.0% and 3.3% from price. Growth was broad-based, including double-digit growth in India, Turkey, Vietnam, and Pakistan, and high-single digit growth in Latin America, Indonesia and South East Asia.

Turnover was €13.3 billion, up 6.7% versus the prior year, reflecting positive underlying sales growth of 5.2%, a 0.8% net contribution from acquisitions and disposals, and a positive currency impact of 0.6%.

Unilever Foods combination with McCormick

In March 2026, we announced an agreement to combine Unilever’s Foods business with McCormick, unlocking value by shaping Unilever into a leading pureplay HPC company and creating a global flavour powerhouse in Foods. Separation and integration work is progressing well, led by dedicated project teams comprising more than 200 employees across 20 cross-functional teams.

There has been strong progress on regulatory approvals, with filings submitted on schedule and clear momentum across jurisdictions, reinforcing our confidence in a timely closing.

Closure is subject to McCormick shareholder approval, receipt of required regulatory approvals and the satisfaction of other customary closing conditions. Works Council consultation is underway and is on target to complete prior to closing of the transaction.

Capital allocation

Our capital allocation priorities remain unchanged. We will invest in the growth and productivity of Unilever as a priority. Alongside this we will continue to reshape our portfolio through bolt-on acquisitions and selective disposals, return capital to shareholders through our attractive dividend, and use surplus cash to fund share buybacks.

In March 2026, we announced the agreement to combine Unilever’s Foods business with McCormick. This follows the December 2025 demerger of The Magnum Ice Cream Company (TMICC). During the third quarter we did not undertake any bolt-on acquisitions. We completed one disposal:

•         August 2026: Unilever completed the sale of our Home Care businesses in Colombia.

The quarterly interim dividend for the third quarter is €0.4664, in line with the Q2 2026 dividend and up 3.0% vs Q3 2025.

Following the release of this trading statement on 28 October 2026 at 7:00 AM (UK time), there will be a live webcast at 8:30 AM available on the website www.unilever.com/investor-relations/results-and-presentations/latest-results.

A replay of the webcast and the slides of the presentation will be made available after the live meeting.