Unilever lifts outlook amid turnaround efforts
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Under chief executive Fernando Fernandez, the company has cut jobs and spun off its food and ice cream divisions.
PHOTO: REUTERS
LONDON – British consumer goods giant Unilever on July 28 upgraded its full-year outlook as it slims down and refocuses on its core home and personal care business.
Profit after tax fell more than 5 per cent to €3.3 billion (S$4.8 billion) compared with the first half of 2025, said the maker of products such as Dove soap and Cif surface cleaner.
Unilever reported increases in both volume of sales and prices in the first half.
Under chief executive Fernando Fernandez, the company is undergoing a turnaround to boost its performance, including cutting jobs and spinning off its food and ice cream divisions.
Fernandez highlighted a “strong volume-led performance in the first half, with a significant step-up in the second quarter”.
“The macroeconomic environment remains uncertain, but... we are well positioned to deliver our upgraded full-year outlook,” he said in an earnings statement.
Higher inflation, triggered by a surge in energy costs linked to the Middle East war, has weighed on consumer confidence, dampening the outlook for spending.
The group now expects underlying sales growth of between 4 and 6 per cent in 2026, having previously forecast growth at the bottom end of that range.
Shares in the company rose 5 per cent in early deals on London’s top-tier FTSE 100 index.
Second-quarter sales growth was spurred by its emerging markets division, including India, where Unilever has focused on expanding sales.
Underlying price growth was lower in the second quarter due to promotions during the football World Cup and competition.
Unilever agreed to a multibillion-dollar deal in March to spin off most of its food business.
Brands such as Hellmann’s mayonnaise and Knorr seasonings will combine with McCormick’s Schwartz and Ducros herbs to form a new business.
The parties hope to complete the deal by mid-2027, subject to shareholder and regulatory approvals.
In 2025, Unilever spun off its ice cream division, which included the Magnum and Ben & Jerry’s brands.
Fernandez took over as CEO in March 2025 after Hein Schumacher spent less than two years in the role, during which time the company posted two sets of disappointing annual results. AFP
