Unilever (NYSE:UL) reported third-quarter underlying sales growth of 5.2%, supported by 2.9% volume growth and 2.3% pricing growth, as the consumer-products company cited broad momentum in its Health & Personal Care businesses and emerging markets.
Chief Financial Officer Srini Phatak said turnover rose 6.7% to €13.3 billion in the quarter. Underlying sales contributed 5.2 percentage points of that increase, while acquisitions, primarily Grüns and Dr. Squatch, added 1.4 percentage points. Disposals reduced turnover by 0.6 percentage points, and currency movements were neutral during the quarter.
Health and Personal Care Drives Growth
Unilever’s Beauty & Wellbeing, Personal Care and Home Care businesses each delivered volume growth above 3% during the quarter. The three Health & Personal Care segments collectively grew 7%, including 4.1% volume growth.
Power Brands, representing about 79% of turnover, grew 5.8%, with 3.3% from volume. Ten Power Brands posted double-digit growth, including Dove, Vaseline, Sunsilk, Clear and Cif.
- Beauty & Wellbeing: Sales rose 5.7%, with volume up 3.6%. Hair care grew double digit, led by Dove, Sunsilk, Clear and K18. Vaseline also delivered double-digit growth. However, Wellbeing declined high single digits in the quarter, partly due to shipment timing that benefited the second quarter.
- Personal Care: Sales increased 6.3%, including 3.8% volume growth. Dove grew double digit, while deodorants grew mid-single digits. Unilever said it further strengthened its U.S. deodorant leadership following the FIFA World Cup.
- Home Care: Sales climbed 9.1%, with volume up 5.4%. Growth included double-digit volume increases in India and Brazil. The company said Omo Wonder Wash is now available in more than 40 markets, while Cif Infinite Clean has reached eight markets.
Foods grew 0.1%, as a 1.1% volume decline was offset by 1.3% price growth. Growth in emerging markets and Unilever Food Solutions was offset by weaker developed-market retail sales, particularly in U.S. condiments.
Phatak said Hellmann’s remains the category leader, but the company has faced increased competition in premium mayonnaise, including avocado-oil products, as well as broader distribution by discount brands. Unilever is responding through additional innovation, price actions and changes to its price-pack architecture. Hellmann’s 100% avocado oil mayonnaise is building distribution, with another major launch planned for the first quarter of next year.
Emerging Markets Offset Developed-Market Weakness
Emerging markets, which account for roughly 60% of Unilever’s turnover, grew 9.5%, including 6% volume growth. India, the company’s largest emerging market, grew 15%, with volume up 7%. Home Care and Beauty & Wellbeing both posted strong double-digit growth in India.
Latin America grew 8.5%, with 6.5% volume growth. Brazil grew high single digit, including double-digit volume growth, supported by market-share improvement in fabric cleaning and deodorants. Indonesia grew 7%, while China posted low-single-digit sales growth and mid-single-digit volume growth, aided by social commerce.
Developed markets declined 0.9%. North America declined 0.7% and Europe declined 1.7%. Management said it expects North America to return to growth in the fourth quarter, citing continued momentum in personal care, hair care and prestige beauty.
In Europe, Unilever said Beauty & Wellbeing and Personal Care remained in good shape, but Foods and Home Care faced pressure from subdued market conditions, increased promotions and retailer buying alliances. Foods represents close to 40% of the company’s European revenue, according to management.
Pricing, Costs and Margins
Pricing accelerated from 0.6% in the first half to 2.3% in the third quarter as Unilever responded to higher commodity costs and normalized promotional spending in Personal Care. Phatak said pricing will increase further in the fourth quarter, while the company remains focused on maintaining competitiveness and protecting volume growth.
Unilever now expects roughly €900 million of inflation for the year, compared with an earlier midpoint estimate of €850 million. The company said it is using pricing, productivity initiatives, formulation flexibility, promotion optimization and tighter overhead management to address the cost environment.
Phatak said Unilever expects 2027 inflation of roughly €700 million to €1 billion, or about 2.5% to 3.5% of the cost base, based on current assumptions. He said Health & Personal Care inflation is expected to be lower than in 2026, while Foods inflation is likely to be higher because of soy and other inputs.
The company maintained its expectation for hard-currency earnings growth and a modest improvement in underlying operating margin versus the 20% reported for 2025. Management said gross margin is likely to be somewhat lower than previously planned because Home Care, a lower-gross-margin business than the group average, is growing faster than expected.
Foods Transaction Remains on Track
Management said the planned combination of Unilever’s Foods business with McCormick remains on track. Phatak said carve-out accounts have been completed and initial Securities and Exchange Commission filings have been made. Antitrust discussions and transitional-service arrangements are also progressing, he said.
Unilever continues to target completion before the first half of next year, with an internal ambition to complete the transaction earlier. Management said it remains focused on improving the Foods business before handing it to McCormick.
About Unilever (NYSE:UL)
Unilever PLC is a global consumer goods company headquartered in London, England. It develops, markets and sells branded products used in households and personal care, with operations serving consumers across developed and emerging markets worldwide.
The company’s portfolio includes beauty and wellbeing products, personal care items, home care products, and foods and refreshments. Its brands include Dove, Vaseline, Axe, TRESemmé, Cif, OMO, Persil, Knorr, Hellmann’s and Ben & Jerry’s, although product offerings vary by market.
Unilever was formed in 1929 through the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie.
