London, May 1, 2026, 12:25 BST
- Unilever PLC plans to lift prices in “small doses,” responding to cost inflation fueled by war.
- Underlying sales were up 3.8% in the first quarter, edging past the 3.6% figure analysts had expected, according to the company’s own consensus.
- Unilever, behind brands like Dove and Vaseline, reaffirmed its 2026 guidance and kicked off a €1.5 billion share buyback.
Unilever PLC plans to implement targeted price increases after costs linked to the Iran war climbed more than anticipated. Still, robust demand for Dove, Vaseline, and home-care lines pushed the company past first-quarter sales projections.
The timing’s key: big consumer-goods players are once again probing how much price pressure shoppers can handle after a two-year stretch where plenty of families switched to cheaper alternatives. Unilever finance chief Srinivas Phatak said expected cost inflation for the full year will hit €750 million to €900 million—running €350 million to €500 million above what the company forecast at the year’s open.
This also serves as an early glimpse at whether Chief Executive Fernando Fernandez can maintain Unilever’s recovery powered by higher volumes—so, more units moved rather than just price hikes—while concentrating the business on beauty, personal care, and home care. Underlying sales growth, which excludes the effects of currency fluctuations and changes to the company’s portfolio, came in at 3.8% for the quarter. Volumes climbed 2.9%, and pricing added another 0.9%.
“There will be frequent price increases but in small doses,” Phatak said to analysts, Reuters reported. Later, he told reporters that if inflation keeps up, hikes could move toward the upper edge of a 2% to 3% band—especially in home care tied to crude oil, and in regions like Asia, Africa, and Latin America. Reuters
Unilever posted a 3.3% decline in first-quarter turnover, coming in at €12.6 billion, as currency swings impacted reported figures. Still, the group’s “Power Brands” notched a 5.0% increase in underlying sales and 4.0% volume growth. Looking ahead, management reiterated that full-year 2026 sales should land at the lower end of its 4% to 6% multi-year growth target, with at least 2% volume growth and a slight margin lift expected from 2025. Unilever
Unilever’s year kicked off on solid footing, Fernandez said, noting growth driven by higher volumes and gains across each business group. He highlighted emerging markets—India stood out—and flagged Latin America’s rebound following last year’s interventions.
Home Care led the way, posting 6.1% underlying sales growth and a 6.2% jump in volume—India and Brazil played a big part in that. Beauty & Wellbeing climbed 3.6%, while Personal Care put up 3.7%. Foods, the segment Unilever plans to merge with McCormick, added 2.2%.
Unilever isn’t the only one feeling the squeeze. According to Reuters, competitors like Nestle, Procter & Gamble, and Reckitt have flagged rising costs tied to the Iran war. That’s renewing pricing pressure across consumer staples, just as softer price hikes had been drawing customers back.
Unilever faces the possibility that it won’t achieve its desired price pass-through. Chris Beckett, consumer staples analyst at Quilter Cheviot, told Reuters the company has to push prices higher, but can’t afford to lose sales volumes. In developed markets—Europe in particular—Beckett said, “there are limits to what they can do”. Reuters
Unilever is leaning on cost cuts to offset the risk. According to the company, its productivity programme—rolled out in 2024—had already generated €750 million in savings through the first quarter. That puts Unilever close to its €800 million goal for the end of 2026.
Unilever kicked off a share buyback worth as much as €1.5 billion on April 30, set to wrap up no later than July 6. According to a regulatory filing, the buyback—handled by Morgan Stanley on a non-discretionary basis—targets a reduction in the company’s share capital.
Unilever shares climbed 1.96% to £42.97 on Thursday, beating the FTSE 100’s performance, according to MarketWatch. Still, the stock sits over 20% beneath its 52-week high—a sign investors remain cautious, looking for proof that a slimmed-down Unilever can deliver growth without relying too much on price hikes.
