LONDON, July 20, 2026, 10:04 BST
- At 09:58 BST, shares were trading at 4,608 pence, falling 1.39%. The London cash market was open.
- Analysts’ initial Q2 consensus forecasts 4.3% growth in underlying sales, with volume growth accounting for 2.5 percentage points.
- Market consensus for H1 anticipates 4.1% growth in underlying sales, while underlying EPS is expected to increase by just 1.6%.
Unilever stock dropped 1.4% on Monday ahead of its results due July 28. The main challenge is converting earnings.
Analysts predict underlying sales will rise by 4.3% in the second quarter, up from 3.1% in the same period last year.
Volume is anticipated to contribute 2.5 percentage points, compared with 1.1 points a year ago. Pricing is projected to slow to 1.8 points.
This would account for around 58% of growth, compared with about 35% provided last year.
| Growth mix | Q2 2025 actual | Q1 2026 actual | Q2 2026 consensus* |
|---|---|---|---|
| Underlying sales increase | 3.1% | 3.8% | 4.3% |
| Volumes | 1.1% | 2.9% | 2.5% |
| Pricing | 2.1% | 0.9% | 1.8% |
| Estimated volume contribution | 35% | 76% | 58% |
Initial analyst consensus. Company data do not include Ice Cream. Volume shares use rounded published elements.
The change is significant. Growth in units more directly challenges brand demand than increasing prices does.
Unilever reported the same trend in the first quarter, with volume increasing by 2.9% and prices gaining 0.9%.
The profit margin stays narrow.
Early estimates show H1 underlying sales growing by 4.1%. Margin increases by 10 basis points to reach 20.3%. Underlying EPS is up by just 1.6%.
The stock, priced at 4,608 pence, is trading roughly 17% under its 52-week peak. It remains valued at close to 21 times its trailing earnings.
This results in a mixed picture. While the price has dropped back, the multiple still requires execution.
Wellbeing is one indicator. Chief financial officer Srinivas Phatak stated, “We expect performance to improve from Q2, driven by Liquid I.V. and Nutrafol.” Unilever
Home Care saw increased momentum at the start of Q2. Sales for the first quarter climbed 6.1%, driven by a 6.2% rise in volume.
Geographical performance varied. Volume increased by 5.0% in Asia Pacific Africa in Q1, while in Europe, it declined by 1.2%.
The Foods deal introduces another valuation metric. Unilever intends to merge the business with McCormick NYSE:MKC.
The transaction is scheduled to close by mid-2027. Cash proceeds are projected to fund €6 billion in buybacks up to 2029.
This figure covers the €1.5 billion programme finalised in June.
Risks: Unilever projects net inflation of €750 million to €900 million for this year, with half attributed to Home Care. Of this total, 70% falls on emerging markets. Brent crude trading above $90 could increase pressure; however, Unilever’s most recent guidance has not been updated.
The obstacle for July 28 has been cleared. Maintain full-year volume growth at a minimum of 2%, and convert the improved mix into accelerated earnings expansion.
