Unilever (LSE: ULVR) has raised its full-year volume growth forecast to at least 3% after third-quarter underlying sales growth of 5.2%. The consumer goods group, whose brands include Dove, Hellmann’s and Vaseline, said in today’s trading statement that emerging markets and home and personal care drove the quarter.
Underlying sales growth split into 2.9% from volume and 2.3% from price, with Unilever saying it raised prices in response to higher commodity costs. Nine-month underlying growth is 4.9%. Quarterly turnover was €13.3bn, up 6.7%, helped by acquisitions net of disposals.
“This progress gives us confidence that we will now deliver at least 3% volume growth for the full year.”
Fernando Fernandez, chief executive of Unilever
Full-year underlying sales growth is still expected within Unilever’s 4% to 6% range, with second-half growth of around 5%. The company also expects a modest improvement in underlying operating margin from 20.0% in 2025.
Home Care grew 9.1% in the quarter, Personal Care 6.3% and Beauty & Wellbeing 5.7%. Foods managed 0.1%, with volumes down 1.1%, as growth in emerging markets and Unilever Food Solutions was offset by softness in developed-market retail and increased competition in US condiments.
Unilever said it is taking decisive actions, including new innovations and corrective pricing.
The regional gap was wide. Emerging markets grew 9.5% against a 0.9% decline in developed markets, which Unilever linked to tougher prior-year comparisons and soft market conditions. India rose 15%, while Europe fell 1.7% and North America 0.7%, where Unilever said it still gained volume share.
The Foods weakness matters because Unilever agreed in March to combine that business with McCormick, leaving it a pure-play home and personal care company.
It said separation work is progressing well and regulatory filings were submitted on schedule; closing still needs McCormick shareholder and regulatory approvals.
For UK holders, the interim dividend is €0.4664 a share, up 3.0% on a year earlier, or £0.3907 per London-listed share, going ex-dividend on the 12th of November. Unilever holds an Investor Event in New York next Wednesday.