Unilever Raises Sales Growth Outlook

By the Editorial Team · Wednesday, July 29, 2026

Unilever reported accelerated volume growth in most segments during the second quarter, except for a marginal 0.2% increase in its foods business, which it plans to combine with McCormick in a deal expected to close in 2027 and create a company valued at over $65 billion. The move underscores Unilever’s shift away from foods toward beauty and personal care products, while the company also raised its full-year sales growth forecast and saw its shares rise 8% in London trading.

Unilever reported accelerated volume growth across most of its product categories in the second quarter, with the exception of its foods segment, which saw underlying sales increase marginally by 0.2%. The performance came as the company advances its strategic plan to separate its foods business.

The London-based consumer goods giant has been shifting its focus away from foods for over a decade, recently divesting margarine and spreads brands to private equity firm KKR and spinning off its ice cream business into Magnum Ice Cream. The latest move involves a planned combination of Unilever’s remaining foods unit with U.S.-based spice and seasoning manufacturer McCormick. This transaction is expected to close in 2027 and is anticipated to create a company valued at more than $65 billion, including debt.

The deal aligns with Unilever’s broader pivot toward beauty, personal care, and home products. As part of the arrangement, McCormick, headquartered in the United States, plans a London listing targeted at Unilever’s predominantly European investor base. This listing intends to enhance capital flow and liquidity for shareholders. Additionally, McCormick will maintain international headquarters and preserve operations in the Netherlands, reflecting Unilever’s historical ties to the country.

Analysts have interpreted the mixed results in the foods segment as supporting management’s decision to divest the business. James Edwardes Jones, an analyst at RBC Capital Markets, described the quarter as strong overall, noting that the food segment’s modest performance reinforced Unilever’s rationale for the planned spin-off.

Unilever also raised its full-year sales growth outlook on Tuesday, now projecting underlying sales growth within its multiyear target range of 4% to 6%, an upward revision from its previous expectation near the lower bound. The company anticipates underlying volume growth of approximately 3%, improved from an earlier forecast of at least 2%.

Shares of Unilever closed up 8% in London trading following the results and announcement.

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