Unilever has recorded a 3.8% increase in its underlying sales growth (USG), totalling €12.6bn in the period, with volume growth jumping by 2.9%.

The fast-moving consumer goods firm said this increase was driven by its power brands, which saw USG of 5% and 4% volume growth.

Although its turnover dropped by 3.3% year-on-year as a result of currencies, this was offset by positive USG, net acquisitions and disposals, including its ice cream division.

The update comes after Unilever agreed to combine its foods business with the US firm, McCormick, to create a “scaled, global flavour powerhouse”. The separation of Unilever Foods will position Unilever as a “pureplay HPC business”.

The deal is expected to realise approximately $600m of annual run rate cost synergies net of growth reinvestments, and incremental cost and revenue synergies of $100m that will be reinvested to further drive growth.

Chief executive officer at Unilever, Fernando Fernandez, said: "We have started the year well with volume-led growth driven by our power brands and a positive performance across all business groups. There is broad-based momentum across our emerging markets business, with a strong performance in India, and a good recovery in Latin America following the decisive actions we have taken in that region.

"We continue to move at speed to build a simpler, sharper Unilever with a structurally higher growth profile and a brand portfolio fit for the future. In March, we announced an agreement to combine Unilever's food business with McCormick, unlocking value by shaping Unilever into a leading pureplay HPC company and creating a global flavour powerhouse in foods."

As part of its update, Unilever said it has commenced a new €1.5bn share buyback scheme, which is expected to complete on or before 6 July.

In its outlook, the firm said its 2026 outlook remains unchanged, and it expects USG to be at the bottom end of its multi-year guidance range of 4% and 6%, with at least 2% underlying volume growth for the full year.

Following the update, shares in Unilever increased by 1.4%.

Consumer staples analyst at Quilter Cheviot, Chris Beckett, described the update as a "good set of results".

He stated: "The company’s growth is being driven by higher volumes rather than price rises alone, and some of its largest brands, including Dove, Vaseline and its laundry ranges continued to perform particularly well.

"Guidance was left unchanged, with first quarter growth just below the lower end of the 4%-6% organic sales medium term range. On around fifteen times earnings, Unilever is not particularly expensive, but the impending demerger of the food business is likely to keep some investors on the sidelines until what could be a lengthy process is complete. Once that is done, the market may take a fresh look at a simpler and more focused group."

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