Unilever’s stock jumped over 6% in early London trading, reaching its highest level since March. The surge came after the company reported underlying sales growth of 5.8% for Q2, exceeding analyst expectations of 4.3%. This marked Unilever’s best daily gain in two years, reversing its 16% slump since the Iran conflict erupted.
Revenue rose 3.8% to €13 billion despite a 2.4% currency headwind. Volume growth was a standout, climbing 5.5% the strongest quarterly pace in more than ten years. Markets in India, Indonesia, and Latin America fueled this momentum.
Strong Sales from Home Care and Power Brands
Home Care led all divisions with a remarkable 9.1% sales increase, followed by Beauty & Wellbeing at 8.1%, and Personal Care at 5.9%. Meanwhile, the Foods segment barely moved, growing just 0.2% as soft demand and stiff competition in developed markets like the U.S. slowed momentum. Volumes even dipped slightly in Foods.
Unilever boosted its full-year sales guidance to a 4%-6% growth range, up from a previous expectation at the low end of this spectrum. Volume growth forecasts were raised to around 3%. The company anticipates sales growth of 4%-5% in the second half, led by pricing efforts, and projects a modest improvement in its underlying operating margin.
Unilever continues its plan to spin off the Foods business in a merger with McCormick, a U.S.-based spice maker, with the deal valued near $65 billion and expected to close by mid-2027.
Marketing costs ticked up to 16.1% of turnover this quarter, with campaigns targeting the FIFA World Cup. CFO Srinivas Phatak confirmed the company will no longer underinvest in its brands, reflecting a strategic shift after years of restraint.
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