For the first half of the year, Unilever achieved organic revenue growth of 4.8%, with sales volume up 4.2% and prices up 0.6%. In the second quarter, the pace accelerated significantly. Organic revenue growth reached 5.8%, and volumes rose by 5.5%. This means that nearly all of the growth came from actual increases in product sales, not from price increases. For a consumer goods company, this is a significant signal, as it indicates a recovery in demand for its brands even in an environment where households remain price-sensitive.[1]

Quarterly revenue reached 13 billion EUR, up 3.8% year-over-year. For the first half of the year, the company reported revenue of 25.6 billion EUR, representing growth of just 0.5%. The discrepancy between strong organic growth and modest reported revenue growth was primarily due to the strengthening of the euro and unfavorable movements in other currencies. Currency fluctuations reduced growth by approximately 4.9 percentage points. For investors, therefore, volume trends are more significant in this case than the change in reported revenue itself.1

Dove, Vaseline, and Cif Demonstrated the Strength of Key Brands

Unilever’s most important brands, which the company refers to as Power Brands, account for approximately 78% of total revenue. In the first half of the year, they increased organic revenue by 6% and sales volume by 5.4%, outperforming the group’s overall results. In the second quarter, sales in the Beauty and Wellbeing division rose by 8.1%, Personal Care by 5.9%, and Home Care by as much as 9.1%. Growth was driven primarily by the Dove, Sunsilk, Vaseline, and Cif brands, several of which achieved double-digit growth rates.1

At the same time, Unilever continued to spend heavily on advertising and promoting its brands. Marketing investments reached 16.1% of revenue, and management focused spending on premium innovations, digital campaigns, and World Cup-related activities. The company is striving not only to boost short-term sales but also to strengthen the position of its largest brands in categories with higher growth potential. The result is volume growth and market share gains in personal care, cosmetics, and household products.1 [1]

Emerging Markets Have Become the Main Driver of Growth

Emerging markets account for approximately 60% of Unilever’s revenue and drove a 7% increase in organic sales in the first half of the year. In the second quarter, growth accelerated to 8.3%, with volumes rising by 7.4%. India was particularly strong, with organic sales rising 10% in the second quarter. The home care and hair care divisions also achieved all-time high market shares there. Indonesia grew by 7% in the first half of the year, and Latin America by 7.6%.1

Performance in developed markets was significantly weaker. Organic sales in Europe fell by 0.9%, while North America grew by 2.7%. In the second quarter, growth in Latin America accelerated to 8.9%, driven almost entirely by higher volumes. The results confirm that Unilever’s future growth will largely depend on India, Brazil, Indonesia, and other countries with rising consumption. It is precisely these markets that can help the company offset weaker performance in Europe and a slower pace in other developed markets.1

Profitability Remains Strong, and Shareholders Are Receiving More Capital

Stronger volumes have also begun to show up in the financial results. Adjusted operating profit reached €5.2 billion in the first half of the year, up 0.9% year-over-year. The adjusted operating margin increased by 0.1 percentage points to 20.3%. Net profit, however, fell by 3.5% to €3.3 billion, and diluted earnings per share decreased by 2.5%. Adjusted earnings per share, on the other hand, rose by 2.4% to €1.61.1

Cash flow trends were also positive. Free cash flow increased by approximately €500 million to €1.5 billion. Unilever also completed a €1.5 billion share buyback and raised its quarterly dividend by 3% to €0.4664 per share. The company also completed ahead of schedule a productivity improvement program that was expected to deliver annual savings of 800 million EUR. Higher cash generation and savings give management more leeway to invest in growth and further reward shareholders.1 [2]

The Upgraded Outlook Turns the Results Into a More Compelling Investment Story

Following a strong first half, management raised its full-year 2026 guidance. Organic sales growth is expected to reach 4% to 6%, with sales volume projected to increase by approximately 3%. Prior to the earnings release, the company had anticipated growth at the lower end of this range and volume growth of at least 2%. In the second half of the year, organic growth is expected to reach 4% to 5%, this time with a greater contribution from higher prices. Unilever also expects a slight improvement in its adjusted operating margin compared to the 20% level in 2025.1 [3]

An important part of the investment story remains the spin-off of the food division and its merger with McCormick. In the second quarter, the food division saw organic revenue grow by only 0.2% and sales volume decline by 0.1%, while all other divisions grew significantly faster. The results therefore support management’s strategy to transform Unilever into a more focused company built on cosmetics, personal care, and household products. For investors, the key question will be whether the company can translate the current momentum into long-term earnings growth, more stable margins, and higher earnings per share.[2] [4]

[1,2,3,4] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.

[1] https://www.unilever.com/files/unilever-q2-2026-results-full-announcement.pdf

[2] https://www.reuters.com/business/retail-consumer/unilever-beats-second-quarter-sales-growth-estimates-2026-07-28/