GLOBAL | Unilever has reported underlying sales growth of 5.2 percent for the third quarter of 2026, supported by increased volumes and pricing adjustments to offset higher commodity costs.
The global FMCG company recorded turnover of €13.3 billion, up 6.7 percent on the corresponding quarter last year. Volume growth contributed 2.9 percent to underlying sales growth, while pricing contributed 2.3 percent.
Performance was strongest across its Home Care, Personal Care, and Beauty & Wellbeing divisions, while Foods remained largely flat.
Home Care delivered underlying sales growth of 9.1 percent, including volume growth of 5.4 percent. Personal Care grew 6.3 percent, and Beauty & Wellbeing increased 5.7 percent, supported by brands including Dove, Vaseline, Sunsilk, and Clear.
The Foods division recorded underlying sales growth of just 0.1 percent, with volumes declining 1.1 percent and pricing increasing 1.3 percent.
Unilever attributed the weaker Foods performance to softer retail conditions in developed markets and increased competition in US condiments. Cooking aids and condiments were broadly flat, although growth in emerging markets helped offset declines elsewhere.
Unilever Food Solutions delivered low-single-digit growth, with North American performance accelerating to mid-single digits. India also recorded high-single-digit growth in Foods, supported by continued double-digit growth from Horlicks.
The company said it was addressing its US Foods performance through product innovation and corrective pricing measures, particularly in condiments.
Emerging markets continued to outperform developed markets, recording underlying sales growth of 9.5 percent, compared with a 0.9 percent decline in developed markets. Growth was particularly strong in India, Latin America, and South East Asia.
Chief executive Fernando Fernandez said the results reflected continued volume growth and higher pricing to manage commodity costs.
"We are performing while transforming Unilever. We are becoming simpler and sharper, with greater focus and stronger execution as we drive Desire at Scale across our brands."
Unilever also confirmed that its planned combination of its Foods business with McCormick, announced in March 2026, was progressing. More than 200 employees across 20 teams are involved in separation and integration work, with regulatory filings submitted on schedule.
Completion remains subject to McCormick shareholder approval, regulatory clearance, and other customary conditions.
Following its first nine months of trading, Unilever has upgraded its full-year volume growth outlook to at least 3 percent. It continues to expect underlying sales growth of between 4 and 6 percent for 2026, alongside a modest improvement in underlying operating margin.
