Unilever (ULVR) BNP Paribas CEO Conference 2026 summary

Strategic portfolio transformation

• Announced a major transaction to combine the foods business with McCormick, creating a €20 billion global flavor-focused company with Unilever shareholders retaining a 65% stake.

• The move aims to make Unilever a pure-play HPC (Home and Personal Care) company, simplifying operations and resource allocation.

• The foods separation is expected to close within 12–15 months, with prior experience from the ice cream carve-out aiding execution.

• The new foods entity is positioned for 3–5% organic growth, leveraging complementary portfolios and expanded food service reach.

• The transaction was chosen for its strategic fit and tax efficiency, with McCormick seen as the optimal partner.

Operational and financial performance

• HPC segment has delivered 5% top-line and 2.5% volume growth over three years, with significant margin expansion.

• Margin expansion is driven by brand equity, volume growth, and targeted CapEx for efficiency, with 55% of CapEx now focused on margin initiatives.

• Inflationary pressures are concentrated in home care, but are considered manageable, with continued earnings growth expected.

• No artificial volume boosts were seen in Q1; volume share gains are attributed to operational efficiency.

• The company is not pursuing large acquisitions to regain scale, instead focusing on bolt-on deals, especially in the U.S. premium segment.

Market focus and growth outlook

• Post-foods exit, over 60% of revenue will come from emerging markets, with India highlighted as a key exponential growth driver.

• U.S. business has shown strong recent growth, with a focus on premiumization and digital channels.

• Quick commerce is rapidly expanding in India, now accounting for 4% of sales and supported by a dedicated organization.

• Emerging markets are expected to deliver mid- to high-single-digit growth, with less currency drag than in the past.

• The company is leveraging its strong market shares in India across multiple categories to sustain growth.