Unilever Launches €1.5 Billion Buyback as Volume Growth Drives Q1 Underlying Sales

Unilever Plc reported first-quarter turnover of €12.6 billion, representing a 3.3% decline from the previous year. The company attributed this drop primarily to a 7.7% negative currency impact, though underlying sales growth remained positive at 3.8%. The results highlight a strategic shift toward volume-led growth, with underlying volume increasing by 2.9% and pricing contributing a modest 0.9%. This trend was most pronounced in the company's 'Power Brands,' which saw underlying sales rise by 5.0%, supported by a 4.0% increase in volume. Performance was broad-based across all business groups. Home Care led the portfolio with 6.1% underlying sales growth, driven by acceleration in key emerging markets. Beauty & Wellbeing and Personal Care also posted gains of 3.6% and 3.7%, respectively, while the Foods segment grew by 2.2%, benefiting from strength in Hellmann's. Geographically, emerging markets remained the primary growth engine, posting a 5.7% increase in underlying sales, including a 7% jump in India. Developed markets grew by 1.0%, with strength in North America offsetting a subdued European market. Looking ahead, Unilever reaffirmed its fiscal 2026 guidance, expecting underlying sales growth at the lower end of its 4% to 6% target and at least 2% volume growth. The company also declared a first-quarter interim dividend of €0.4664 per share and commenced a €1.5 billion share buyback expected to conclude by July 6.