Unilever has upgraded its full-year volume growth forecast after delivering stronger-than-expected third-quarter sales, but shares slipped Wednesday nonetheless.

Underlying sales rose 5.2%, including 2.9% volume growth and 2.3% price growth, while turnover increased 6.7% to €13.3bn, driven by demand in emerging markets and continued growth across its beauty, personal care and home care brands.

The consumer goods giant now expects underlying volume growth of at least 3% in 2026 and underlying sales growth of around 5% in the second half. It maintained its full-year underlying sales growth guidance of 4% to 6% and expects a modest improvement in underlying operating margin from 20% in 2025.

Its Power Brands, including Dove, Vaseline and Persil, continued to lead performance, with underlying sales growth of 5.8%. Beauty and wellbeing sales rose 5.7%, personal care increased 6.3% and home care grew 9.1%, supported by strong volumes and higher prices to offset rising commodity costs.

Emerging markets delivered 9.5% underlying sales growth, led by double-digit gains in India, Turkey, Vietnam and Pakistan, alongside high-single-digit growth in Latin America and south-east Asia.

CEO Fernando Fernandez said: “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. 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."

Unilever said its planned combination of its foods business with McCormick remained on track, with regulatory filings progressing and completion subject to shareholder and regulatory approvals. The transaction is intended to sharpen Unilever's focus on its home and personal care businesses following the demerger of The Magnum Ice Cream Company in December 2025.

Unilever shares were down around 2.2% at £47.85 by about 9:30am GMT, near the bottom of the FTSE 100.

Victoria Scholar, head of investment at interactive investor says, “On the whole, Unilever’s trading statement was positive with forecast topping quarterly sales growth and strength in emerging markets. However, shares have sold off, indicating that investors were hoping for more.

"The lack of a significant full-year guidance upgrade may have contributed to the disappointment, as well as some pockets of weakness in the report particularly in its performance in Foods and developed markets which may have dented sentiment."

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