Unilever Q1 Sales Up 3.8% on Home Care and Beauty Volume Gains
UL•Unilever delivered 3.8% underlying sales growth in Q1, powered by 6.1% volume-driven Home Care expansion and 3.6% Beauty & Wellbeing gains, lifting turnover to €12.6 billion despite a 7.7% currency headwind. The company maintained its 4–6% full-year growth outlook while flagging €750–900 million in cost inflation.
1. Q1 Performance
Unilever achieved 3.8% underlying sales growth in the first quarter, outpacing the 3.6% analyst consensus. Volume growth of 2.9% outstripped price increases of 0.9%, supporting turnover of €12.6 billion despite a 7.7% drag from currency movements.
2. Segment Growth
Home Care led with 6.1% underlying growth, almost entirely volume-driven at 6.2%, boosted by strong demand in India and Brazil. Beauty & Wellbeing rose 3.6% with double-digit gains for Dove and Vaseline, while Personal Care grew 3.7% and Foods recorded 2.2% growth.
3. Cost Pressure and Productivity
Full-year cost inflation is projected at €750–900 million, €350–500 million above initial forecasts, driven by logistics and factory pressures. The productivity program has delivered €750 million in savings by the end of Q1, nearing its €800 million target for 2026.
4. Outlook and Strategic Moves
Unilever reaffirmed its 4–6% underlying sales growth guidance for 2026 with at least 2% volume growth and a slight margin improvement. The company is set to spin off its Foods unit in a €44.8 billion deal with McCormick, targeted for completion by mid-2027.
