Unilever (ULVR) Q1 2026 TU earnings summary

Executive summary

• Underlying sales growth reached 3.8% in Q1 2026, driven by 2.9% volume growth and 0.9% price growth, with Power Brands leading at 5% USG and 4% volume growth.

• Growth was broad-based across categories and geographies, with strong momentum in emerging markets, especially India (7% growth), Brazil, Turkey, Vietnam, and Latin America, and resilient performance in North America.

• Developed markets remained resilient despite a challenging environment, with North America delivering 2.2% volume growth and Europe more subdued.

• Strategy focused on elevating brands, operational excellence, and decisive portfolio actions, including the planned separation and combination of the Foods business with McCormick.

Financial highlights

• Q1 2026 turnover was €12.6 billion, down 3.3% year-on-year due to a 7.7% FX headwind, despite 3.8% underlying sales growth.

• Portfolio changes contributed a net positive 0.9%, with acquisitions (Dr. Squatch, Wild, Minimalist) adding 1.4% and disposals (mainly foods and tea in Indonesia) subtracting 0.5%.

• Productivity program delivered €750 million in savings by end of Q1, targeting €800 million by end of 2026.

• €1.5 billion share buyback program commenced, expected to complete by July 2026, with €6 billion targeted between 2026 and 2029.

• Quarterly dividend increased by 3% year-over-year to €0.4664 per share.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: underlying sales growth expected at the bottom end of 4%-6% range, with at least 2% underlying volume growth.

• Modest operating margin improvement expected versus 20.0% in 2025, supported by volume growth, mix, savings, and productivity.

• Pricing expected to play a larger role in H2 due to commodity cost pressures, especially in Home Care.

• Currency impact on turnover expected to be around -3% for the full year.

• Capex above 3% of turnover, restructuring at around 1% of turnover, and net finance costs below 3% of average net debt.