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London, July 28, 2026 – Unilever has upgraded its full year sales outlook after reporting mixed results in the first half of 2026, highlighting both the challenges of inflation and the early gains from CEO Fernando Fernandez’s turnaround strategy.
The consumer goods giant posted a profit after tax of €3.3 billion, down 5 percent from the same period in 2025.
Despite the decline, underlying sales growth accelerated, supported by stronger volumes and pricing.
The company now expects sales growth between 4 and 6 percent for the year, an improvement from its earlier forecast at the lower end of that range.
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Shares rose 5 percent on London’s FTSE 100 following the announcement, reflecting investor confidence in Fernandez’s restructuring moves.
Since taking over in March 2025, he has aggressively reshaped the portfolio, spinning off the ice cream division home to brands like Magnum and Ben & Jerry’s and agreeing to merge the food business, which includes Hellmann’s and Knorr, with McCormick in a multibillion euro deal scheduled to close by mid 2027.
Emerging markets have been crucial to the rebound.
India delivered strong second quarter sales, offsetting weaker demand in Europe, where rising energy costs tied to the Middle East conflict have pressured household budgets.
Promotions during the football World Cup also boosted consumer spending, underscoring the importance of marketing agility in volatile conditions.
Fernandez emphasized that the company’s “strong volume-led performance” demonstrates renewed competitiveness across its portfolio.
His leadership marks a sharp contrast with predecessor Hein Schumacher, who oversaw two disappointing annual results before stepping down.
Still, risks remain. Inflation continues to weigh on consumer confidence, and regulatory hurdles could complicate the McCormick merger.
Analysts caution that Unilever must prove its leaner structure can sustain growth beyond short-term promotional boosts.
For investors, the turnaround is beginning to show tangible results.
By focusing on home and personal care categories with higher margins and expanding in growth markets, Unilever is positioning itself for resilience in a turbulent global economy.
The upgraded outlook signals progress, but Fernandez’s strategy will be tested further as the company navigates inflationary pressures and completes its food business spin off.
