Unilever lifts volume outlook as emerging markets drive Q3 beat

Oct 28 — Unilever nudged up its annual volume growth forecast on Wednesday after third-quarter underlying sales beat ​expectations, driven by strong demand in emerging markets and price increases that helped offset higher commodity costs.

The consumer goods group, which has been simplifying ‌its portfolio under CEO Fernando Fernandez to focus on beauty and personal care brands, has raised prices ⁠for home and personal care products to ​counter higher energy and transport costs ⁠linked to the Iran war.

Major consumer goods and food companies, including Coca-Cola, Procter & ‌Gamble, Nestle and Reckitt, ‌have warned of further price hikes next year to offset rising energy, raw ⁠material and freight costs tied to the conflict, ⁠even as shoppers remain cautious about spending.

Unilever reported underlying sales growth of 5.2% for the quarter, ahead of the 4.8% expected by analysts in a company-compiled consensus.

The maker of Dove soap and Hellmann's mayonnaise maintained its 2026 sales and profit margin guidance and said it expects underlying sales growth of around ‌5% in the second half of 2026.

It now expects ​full-year underlying volume growth of at least 3%, up from previous guidance of around 3%, after posting volume growth of 2.9% in the third quarter and price growth of 2.3%.

EMERGING MARKET GROWTH LED BY INDIA

"Emerging markets were again a key driver, with broad-based growth across markets, led by India and continued strength in Latin America and Southeast Asia," Fernandez, who was appointed last year, ​said in a statement.

Performance in developed markets was weaker, reflecting tougher comparisons with a year ‌earlier and softer ‌results in ⁠the Foods business, he said.

Unilever joined a growing list of consumer goods companies that beat quarterly sales expectations on stronger-than-expected volume growth.

Procter & Gamble and Swiss food group Nestle last week both reported quarterly sales ahead of estimates, helped by higher volumes. French cosmetics ‌group L'Oreal also reported sales ​that comfortably exceeded expectations.

Procter & Gamble, however, warned that ‌rising raw material, energy ⁠and freight costs ​would weigh on annual profit.

(Reporting by Yadarisa Shabong in Bengaluru. Editing by Harikrishnan Nair and ​Mark Potter)

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