Consumer goods giant Unilever was the top FTSE performer today after reporting the fastest volume growth in more than a decade and upgrading its full-year outlook on the back of stronger-than-expected results.

The London-based group reported underlying sales growth of 4.8% in the first half of 2026, driven by 4.2% volume growth and 0.6% pricing. Growth accelerated in the second quarter to 5.8%, including 5.5% volume growth, making it the company's strongest quarterly volume performance in over ten years.

Unilever said its Power Brands, which account for 78% of turnover, delivered underlying sales growth of 6.0%. Home Care led all divisions with 7.6% growth, while Beauty & Wellbeing grew 5.9%, Personal Care rose 4.8% and Foods increased 1.2%.

Emerging markets continued to outperform, with India, Indonesia and Latin America delivering strong growth, while North America remained resilient. Europe was the weakest region, with underlying sales declining 0.9%.

Turnover rose 0.5% to €25.6bn, while underlying operating margin improved by 10 basis points to 20.3%. Underlying earnings per share increased 2.4%.

Unilever now expects full-year underlying sales growth to be within its long-term 4% to 6% guidance range, with around 3% underlying volume growth, compared with previous guidance for the lower end of the range. It also forecast second-half underlying sales growth of 4% to 5%, led by pricing, alongside a modest improvement in underlying operating margin from 2025's 20.0%.

The combination of these positive factors sent shares more than 6% higher in early trading to to approach the symbolic 5,000 pence level, and making the stock one of the FTSE 100's biggest gainers and strongest performers.

The company also completed its €800m productivity programme ahead of schedule, increased its quarterly dividend by 3% and completed a €1.5bn share buyback.

The planned combination of Unilever's Foods business with McCormick remains on track for completion by mid-2027, with separation work progressing as planned, it added.

CEO Fernando Fernandez said: "We have delivered a strong volume-led performance in the first half, with a significant step-up in the second quarter - the best volume quarter at Unilever in over a decade.

"These results show our ability to continue performing while transforming our portfolio. Our combination of Foods with McCormick is progressing well and will unlock significant value, making Unilever a focused pureplay HPC company, while giving Foods the platform to thrive as part of a global powerhouse in flavour. The macroeconomic environment remains uncertain, but we are well positioned to deliver our upgraded full year outlook."

AJ Bell investment director Russ Mould commented: "Unilever’s shares shot to the top of the FTSE 100 leaderboard, and their highest mark since March, as the consumer goods giant’s first-half results pleased and chief executive Fernando Fernandez raised sales and profit expectations for 2026 overall.

“Shareholders will be particularly pleased to see an acceleration in organic sales growth to 5.8% year-on-year in the second quarter, the fastest rate of increase in more than a decade and well ahead of analysts’ forecasts."

Wealth Club chief investment strategist Susannah Streeter said the results showed that Unilever's "razor-sharp focus on power brands is paying off", with customers continuing to favour trusted brands despite ongoing cost-of-living pressures.

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