Unilever (NYSE:UL) reported Q1 turnover of €12.6 billion, down (3.3)% year-on-year as positive underlying sales growth and net portfolio moves were offset by a (7.7)% currency headwind.
Power Brands led performance with 5.0% underlying sales growth and 4.0% volume growth, and all Business Groups delivered volume increases, with Home Care up 6.1% USG and volume growth of 6.2%.
"We have started the year well with volume-led growth driven by our Power Brands, and we remain confident of delivering on our guidance for the year ahead," said Fernando Fernandez.
By region, emerging markets grew 5.7% USG with a 4.2% volume contribution and developed markets were resilient at 1.0% USG, with India up 7% and China delivering mid-single-digit growth.
Unilever said its productivity programme has delivered €750 million of the €800 million target by the end of Q1 2026 and reiterated it expects a modest improvement in underlying operating margin versus 20.0% in 2025.
The company disclosed its agreement to combine Unilever Foods with McCormick, expecting roughly $600 million of annual run-rate synergies and completion by mid-2027 subject to approvals.
Capital allocation remains unchanged, with a quarterly Q1 dividend up 3% versus Q1 2025, a €1.5 billion buyback commencing immediately and cash receipts expected to support €6 billion of buybacks between 2026 and 2029.
Unilever will host a webcast this morning and lists its next reporting milestones as the AGM on 13 May and half‑year results on 28 July.
