Unilever tops Q3 sales forecasts but shares dip on developed markets softness

Unilever has reported a 5.2% increase in underlying sales growth for the third quarter, exceeding analysts' expectations of 4.8%. The consumer goods giant achieved a turnover of €13.3 billion, marking a 6.7% increase from the same period last year. Volume growth stood at 2.9%, boosted by 2.3% price hikes aimed at countering rising commodity costs. Power Brands, the company's top-selling brands, contributed to the strong performance with a 5.8% rise in underlying sales and 3.3% increase in volume.

Despite the overall growth, Unilever's shares dipped by around 2% due to softness in developed markets. The Home Care, Personal Care, and Beauty & Wellbeing divisions demonstrated robust performance, with Home Care recording a 9.1% sales growth, Personal Care at 6.3%, and Beauty & Wellbeing at 5.7%. Foods, however, saw minimal growth at 0.1% with flat turnover.

The company's strong third-quarter performance has prompted Unilever to upgrade its full-year outlook, projecting at least 3% underlying volume growth for 2026 and around 5% sales growth in the second half. CEO Fernando Fernandez expressed confidence in achieving at least 3% volume growth for the year, attributing this success to continued volume delivery and price increases. The Home Care, Personal Care, and Beauty & Wellbeing segments showed broad-based strength, with each division posting impressive growth figures.