Unilever: Continued strong performance in the third quarter

Statement from Fernando Fernandez, CEO

"We have delivered another quarter of competitive growth, led by continued strong volume delivery and a step up in price to offset the impact of higher commodity costs. Our Power Brands continued to lead performance, with strong growth across Home Care, Personal Care and Beauty & Wellbeing. Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and South East Asia. Developed market performance reflected tougher prior year comparators and softer performance in Foods.

"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. This progress gives us confidence that we will now deliver at least 3% volume growth for the full year.

"At our Investor Event next week we will set out how this transformation is creating a stronger, more focused Unilever capable of delivering sustained, competitive performance."

Outlook

Following strong performance in the first nine months, we have upgraded our outlook for 2026:

We continue to expect underlying sales growth for full year 2026 to be within our multi-year guidance range of 4% to 6% and modest improvement in underlying operating margin for the full year versus 20.0% in 2025.

We now expect at least 3% underlying volume growth for full year 2026 and underlying sales growth in the second half of around 5%.

Third Quarter Review: Unilever Group

Growth

Underlying sales growth (USG) in the third quarter was 5.2%, with 2.9% from volume and 2.3% from price. On a year-to-date basis USG was 4.9% with 3.8% UVG, with two-year CAGR USG of 4.1% and 2.5% UVG. Power Brands continued to lead growth, delivering 5.8% USG with 3.3% volume. Performance was led by HPC, with Beauty & Wellbeing, Personal Care and Home Care all delivering strong volume-led growth.

Foods was flat, as emerging market and Unilever Food Solutions growth was offset by softness in developed market retail. Underlying price growth stepped up as planned in the third quarter reflecting higher commodity costs, in particular in Home Care and Personal Care.

• Beauty & Wellbeing: 5.7% USG with 3.6% volume and 2.1% price. Hair Care grew double-digit and skin care grew mid-single digit. Growth was driven by strong performance from our Power Brands and prestige portfolio. This included double-digit growth in Dove, Vaseline, Sunsilk, Clear and K18, led by volume. Wellbeing declined in the third quarter, partly due to shipment timings for Amazon Prime Day, and is down 1.0% year-to-date.
• Personal Care: 6.3% USG with 3.8% volume and 2.4% price. Skin cleansing grew high-single digit and deodorants grew mid-single digit, with accelerated price growth reflecting higher commodity costs. Growth was broad-based across geographies, with high-single digit growth in emerging markets and mid-single digit growth in the US. Dr. Squatch was included in USG from September with double-digit growth.
• Home Care: 9.1% USG with 5.4% volume and 3.6% price. Fabric cleaning grew double-digit and home & hygiene and fabric enhancers grew mid-single digit. By region, performance was led by double-digit growth in Asia Pacific Africa and Latin America, including strong delivery in our two largest markets, India and Brazil. Price growth stepped up in the third quarter reflecting higher commodity costs.
• Foods: 0.1% USG with -1.1% volume and 1.3% price. Unilever Food Solutions grew low-single digit and Cooking Aids and Condiments were broadly flat. Growth in emerging markets and in Foods Solutions was offset by a decline in developed market retail, reflecting continued softer market conditions and increased competition in US condiments. We are continuing to take decisive actions to improve US Foods performance through new innovations to strengthen competitiveness and corrective pricing actions. Unilever Food Solutions performance was led by North America growth accelerating to mid-single digit.

By region, growth was led by emerging markets, while developed markets reflected tougher comparators and soft market conditions.

• Developed Markets: -0.9% USG, with -1.7% from volume and 0.7% from price. North America declined 0.7% while continuing to gain volume share, as strong growth in Personal Care and Beauty was offset by declines in Wellbeing and Foods. Europe declined 1.7% in a soft market environment.
• Emerging Markets: 9.5% USG, with strong volume growth of 6.0% and 3.3% from price. Growth was broad-based, including double-digit growth in India, Turkey, Vietnam, and Pakistan, and high-single digit growth in Latin America, Indonesia and South East Asia.

Turnover was €13.3 billion, up 6.7% versus the prior year, reflecting positive underlying sales growth of 5.2%, a 0.8% net contribution from acquisitions and disposals, and a positive currency impact of 0.6%.

Unilever Foods combination with McCormick

In March 2026, we announced an agreement to combine Unilever's Foods business with McCormick, unlocking value by shaping Unilever into a leading pureplay HPC company and creating a global flavour powerhouse in Foods. Separation and integration work is progressing well, led by dedicated project teams comprising more than 200 employees across 20 cross-functional teams.

There has been strong progress on regulatory approvals, with filings submitted on schedule and clear momentum across jurisdictions, reinforcing our confidence in a timely closing.

Closure is subject to McCormick shareholder approval, receipt of required regulatory approvals and the satisfaction of other customary closing conditions. Works Council consultation is underway and is on target to complete prior to closing of the transaction.

Capital allocation

Our capital allocation priorities remain unchanged. We will invest in the growth and productivity of Unilever as a priority. Alongside this we will continue to reshape our portfolio through bolt-on acquisitions and selective disposals, return capital to shareholders through our attractive dividend, and use surplus cash to fund share buybacks.

In March 2026, we announced the agreement to combine Unilever's Foods business with McCormick. This follows the December 2025demerger of The Magnum Ice Cream Company (TMICC). During the third quarter we did not undertake any bolt-on acquisitions. We completed one disposal:

The quarterly interim dividend for the third quarter is €0.4664, in line with the Q2 2026 dividend and up 3.0% vs Q3 2025.

Third Quarter Review: Business Groups

Beauty & Wellbeing

Beauty & Wellbeing underlying sales grew 5.7%, with 3.6% from volume and 2.1% from price. On a two-year CAGR basis, USG was 5.4% with 2.9% from volume. Growth was driven by strong performance from our Power Brands and prestige portfolio. This included double-digit growth in Dove, Vaseline, Sunsilk, Clear and K18, led by volume. This was partly offset by a decline in Wellbeing. Price growth stepped up as planned increases landed in market. Growth was led by emerging markets, with strong momentum in Asia Pacific Africa and Latin America, in particular India, South East Asia and Brazil.

• Hair Care accelerated with double-digit growth, led by volume. Dove continued to grow double-digit, driven by premium innovations including in serums, masks and scalp care, and strong growth in India and the US. Sunsilk and Clear both delivered double-digit growth, led by Latin America and South East Asia. Our prestige brand K18 delivered another quarter of very strong double-digit growth.
• Skin Care grew mid-single digit. Vaseline delivered double-digit growth, with broad-based performance across our markets, in particular Asia Pacific Africa. Growth in our prestige brands was led by Hourglass, Paula's Choice and Dermalogica.
• Wellbeing declined high-single digit in the third quarter partly driven by shipment timings for Amazon Prime Day, which benefited the second quarter. On a year-to-date basis Wellbeing is down 1.0% reflecting conscious choices to rebalance revenues and relative pricing between direct-to-consumer, club, pure-play online and omni-channel retailers.

Liquid I.V.'s international expansion and continued share gains in the mass retail and online channels were offset by reduced distribution and the entry of private label in the club channel. Measures to improve customer acquisition in Nutrafol remain at an early stage. Grüns recorded very strong growth in its first full quarter with Unilever; it will enter our USG disclosure in June 2027. We expect sequential improvement in Wellbeing's performance versus the third quarter.

Personal Care

Personal Care underlying sales grew 6.3%, with 3.8% from volume and 2.4% from price. On a two-year CAGR basis, USG was 5.2% with 2.4% from volume. Growth was driven by high-single digit growth in skin cleansing and mid-single digit growth in deodorants. Our largest brand, Dove, grew double-digit with mid-single digit volume. Growth was broad-based across regions with high-single digit growth in emerging markets and mid-single digit growth in the US. Price growth accelerated in the third quarter as planned pricing reflected higher commodity costs. Both Wild and Dr. Squatch grew double-digit, with Dr. Squatch included in USG from September.

• Deodorants grew mid-single digit, led by volume. Emerging markets grew double-digit, with double-digit growth in Latin America and high-single digit growth in Asia Pacific Africa. The US grew mid-single digit supported by stronger brand equities and further strengthening of our market leadership reflecting the continued benefits of the FIFA World Cup 2026™ sponsorship. Dove deodorants delivered double-digit growth.
• Skin Cleansing grew high-single digit, with balanced volume and price. Growth was broad-based with double-digit growth in emerging markets and mid-single digit growth in both North America and Europe. Dove skin cleansing grew double-digit, supported by the strength of its premium body serum ranges.
• Oral Care declined low-single digit, with growth in South East Asia and India offset by subdued markets in Europe.

Home Care

Home Care underlying sales grew 9.1%, with 5.4% from volume and 3.6% from price. On a two-year CAGR basis, USG was 6.1% with 3.9% from volume. Growth was led by emerging markets with double-digit growth in Asia Pacific Africa and Latin America, including strong performances from our two largest markets, India and Brazil. Price growth stepped up in the third quarter in response to higher commodity costs, which are expected to contribute to accelerated pricing for the remainder of the year.

• Fabric Cleaning grew double-digit, with high-single digit volume. Price growth increased to mid-single digit in the third quarter in response to higher commodity costs. Growth was strong across emerging markets with double-digit growth and record market shares in India, and double-digit growth in Brazil.
• Home & Hygiene grew mid-single digit, with balanced volume and price. Cif delivered another quarter of double-digit growth as its Infinite Clean range continued to perform well, supported by new variants and expansion into additional markets.
• Fabric Enhancers grew mid-single digit, with balanced volume and price. Performance was led by Comfort, with particular strength in Asia Pacific Africa.

Foods

Foods underlying sales grew 0.1%, with -1.1% from volume and 1.3% from price. On a two-year CAGR basis, USG was 1.8% with 0.1% from volume. Growth in emerging markets was offset by a decline in developed market retail, reflecting continued softer market conditions and increased competition in US condiments. We are continuing to take decisive actions to improve US Foods performance through new innovations to strengthen competitiveness and corrective pricing actions. Unilever Food Solutions delivered low-single digit growth with acceleration in North America. India grew high-single digit led by continued double-digit growth in Horlicks.

• Cooking Aids was broadly flat, as positive price was offset by volume decline. Good growth in emerging markets, in particular across South East Asia, Brazil and Africa, was offset by a decline in developed markets.
• Condiments was broadly flat, as positive price was offset by volume decline. Emerging market growth was offset by weakness in developed markets reflecting soft market conditions and lower presence in the fastest growing segments of premium and avocado mayonnaise in the US, which we are taking decisive actions to address. We are confident in Hellmann's future delivery given the brand's continued strong equity and category leadership position.
• Unilever Food Solutions grew low-single digit with balanced volume and price. Growth was led by acceleration in North America to mid-single digit growth, reflecting our strong customer proposition. China delivered continued low-single digit growth.