Unilever PLC

Latest Results (26.08.2026):

Unilever PLC — Q2 2026 / First Half 2026: the company reported a strong, volume‑led first half with underlying sales growth (USG) of 4.8% in H1 and an acceleration to 5.8% in Q2 (5.5% volume in Q2). Turnover for H1 was €25.6bn (+0.5% reported), underlying operating margin was 20.3% (up 10bps) and underlying EPS rose to €1.61 (+2.4%), while diluted EPS was €1.38 (down 2.5%). Free cash flow was €1.5bn, net debt €26.0bn, a €1.5bn share buyback was completed and the planned Foods combination with McCormick is on track.

Sales and volume

Underlying sales growth H1 2026: 4.8% (4.2% volume, 0.6% price). Q2 accelerated to USG 5.8%, driven by 5.5% volume — the best quarterly volume performance at Unilever in over a decade. Power Brands (78% of turnover) delivered 6.0% USG and 5.4% volume.

Turnover and currency

H1 turnover €25.6bn, up 0.5% on a reported basis — includes +0.7% from net acquisitions and -4.9% from adverse currency. Q2 turnover €13.0bn, +3.8% reported (currency headwind smaller in Q2: -2.4%).

Profitability and margins

Underlying operating profit €5.2bn (+0.9%) and underlying operating margin 20.3% (+10bps). Reported operating profit €4.9bn (+2.6%). Gross margin was 46.8% (down ~70bps) with brand & marketing investment at 16.1% of turnover; overheads improved materially (c.70bps) helped by an €800m productivity programme completed ahead of plan.

Earnings per share

Underlying EPS (diluted) €1.61, up 2.4% (including c. -6.0% adverse currency); diluted GAAP EPS €1.38, down 2.5%. Share buybacks reduced average shares and contributed positively to underlying EPS (c.0.7%).

Cash flow, debt and shareholder returns

Free cash flow €1.5bn (H1); closing net debt €26.0bn (net debt / UEBITDA ~2.3x). A €1.5bn share buyback announced in Feb 2026 was completed in June (30.7m shares repurchased). Quarterly dividend €0.4664 per share (Q2), up 3% versus Q2 2025. Management signals up to €6bn of buybacks between 2026–2029 funded by Foods separation cash receipts and operations.

Business group performance

Beauty & Wellbeing +5.9% USG (4.5% volume); Personal Care +4.8% USG (4.1% volume); Home Care +7.6% USG (7.4% volume); Foods +1.2% USG (volume only). Foods underlying operating profit declined ~4.3% while its margin was broadly flat as the business prepares for separation.

Geographic trends

Emerging markets strong: USG 7.0% (5.8% volume), with India +8% H1 (10% in Q2) and broad strength across APAC/Africa and Latin America. North America grew 2.7% (3.2% volume) and accelerated in Q2; Europe was subdued at -0.9% USG.

Restructuring, productivity and one‑offs

Restructuring costs €131m in H1 (down from €265m prior year). The €800m productivity programme launched in 2024 was completed ahead of plan, supporting overhead improvements. Non‑underlying items before tax were ~€308m in H1.

Foods separation and outlook

Unilever’s Foods combination with McCormick is progressing; McCormick announced the combined operating model and executive team on 23 July and completion is expected by mid‑2027 subject to approvals. Management upgraded FY26 guidance: full‑year USG expected within 4–6% (around 3% underlying volume growth); H2 USG guidance 4–5% led by pricing, and a modest improvement in full‑year underlying operating margin versus 20.0% in 2025.