LONDON — Double-digit growth at beauty “power brands” Dove, Sunsilk and Vaseline helped to drive Unilever’s underlying sales up nearly 5 percent in the first half to 25.6 billion euros, with overall growth accelerating in the second quarter.
The markets reacted with gusto, sending shares up 7 percent to 49.54 pounds in mid-morning trading on Tuesday following the first-half results announcement.
Sales in Unilever‘s beauty and well-being division were up 5.9 percent to 6.5 billion euros on the back of double-digit growth at Dove, Sunsilk and Vaseline and strong performance at the prestige beauty brands, which include Dermalogica, Paula’s Choice and Tatcha.
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The company said the well-being brands saw “low-single-digit” growth with an acceleration in the second quarter.
The personal care division, anchored by Dove, grew 4.8 percent in the six months to 6.8 billion euros.
Operating profit rose 2.6 percent to 4.9 billion euros on a reported basis, reflecting operational performance and lower restructuring costs, the company said.
Unilever added that its 800 million euros productivity program, launched in 2024 to simplify the business and remove overheads related to the now-divested ice cream division, was completed ahead of schedule.
Chief executive officer Fernando Fernandez said the consumer giant saw “strong” volume-led performance in the first half, with a “significant step-up” in the second quarter, the best quarter, by volume, in more than a decade.
He added that all business groups delivered volume-led growth, while emerging markets showed momentum, and India, Indonesia and Latin America delivered strong contributions. North America once again outperformed although Europe remained soft with a 0.9 percent decrease in underlying sales, driven by “soft” markets.
“These results show our ability to continue performing while transforming our portfolio. Our brands are stronger, our execution is sharper and we are driving desire at scale,” he said, adding that Unilever’s proposed merger of its foods division with the U.S. giant McCormick & Co. is “progressing well, and will unlock significant value.”
As reported, Unilever is working toward becoming a pure-play home and personal care company, following the spin-off of its ice cream division and the proposed sale of foods.
Fernandez added that while the macroeconomic environment remains uncertain, “our consistency, discipline and strong first-half performance give us confidence that we are well positioned to deliver our upgraded full-year outlook.”
Following the strong first-half performance in the first half, Unilever has upgraded its 2026 outlook.
It expects underlying sales growth in the second half to range from 4 to 5 percent, with a “modest improvement” in underlying operating margin for full year 2026 versus 20 percent in 2025.
It’s been a big year so far for Unilever, which was the official personal care sponsor of the FIFA World Cup in its bid to convert “cultural moments” into sales growth. The brand was also the most awarded advertiser at Cannes Lions in June, winning 35 prizes for its advertising and marketing initiatives.
