Unilever Raises Annual Volume Growth Outlook After Strong Q3 Sales
Unilever nudged up its annual volume growth forecast after third-quarter underlying sales beat expectations, driven by strong demand in emerging markets and price increases that helped offset higher commodity costs.
The consumer goods group, which has been simplifying its portfolio under CEO Fernando Fernandez to focus on beauty and personal care brands, has raised prices for home and personal care products to counter higher energy and transport costs linked to the Iran war.
Major consumer goods and food companies, including Coca-Cola, Procter & Gamble, Nestle and Reckitt, have warned of further price hikes next year to offset rising energy, raw material and freight costs tied to the conflict, even as shoppers remain cautious about spending.
Unilever reported underlying sales growth of 5.2% for the quarter, ahead of the 4.8% expected by analysts in a company-compiled consensus.
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The maker of Dove soap and Hellmann's mayonnaise maintained its 2026 sales and profit margin guidance and said it expects underlying sales growth of around 5% in the second half of 2026.
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It now expects full-year underlying volume growth of at least 3%, up from previous guidance of around 3%, after posting volume growth of 2.9% in the third quarter and price growth of 2.3%.
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"Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and Southeast Asia," says Fernandez, who was appointed last year.