London, May 20, 2026, 09:15 (BST)
Unilever PLC shares dropped nearly 1% in early London trade Wednesday, trailing a weaker FTSE 100. Traders are weighing cost pressures at the Dove maker against its push for a leaner, higher-growth business.
Unilever shares were at 4,249.50 pence as of 09:15 on Davy’s 20-minute-delayed feed, off 0.99%. Hargreaves Lansdown also had Unilever down 1.00%. The FTSE 100 slipped 0.37%. Prior close for Unilever was 4,292p, according to Hargreaves Lansdown. London stock trading runs from 8:00 a.m. to 4:30 p.m. BST on weekdays.
Unilever is making changes as it restructures. Chief Executive Fernando Fernandez wants to shift focus to beauty, wellbeing, personal care, and home care. The group has spun off ice cream and is combining most of its Foods unit with McCormick.
Unilever’s Q1 sales beat brought bulls out. The group posted 3.8% underlying sales growth and volumes up 2.9%. Underlying sales skip things like currency and deals. Power Brands led with 5.0% growth in underlying sales.
Unilever CEO Fernandez told investors in the latest update that Unilever is working quickly to become a “simpler, sharper Unilever”. The company said the McCormick deal puts it on track to be a pureplay HPC company, referring to home and personal care, and will also set up a new standalone global food-flavour unit. Unilever
Unilever is still dealing with high costs. Reuters said on April 30 the company forecasts 750 million to 900 million euros of cost inflation for the full year, covering things like logistics and factories. CFO Srinivas Phatak told reporters price hikes will come in “small doses”. Reuters
The trade is awkward. Chris Beckett, who covers consumer staples at Unilever investor Quilter Cheviot, told Reuters Unilever is limited in some markets and “not easy to take pricing”. Reuters also noted Nestle, Procter & Gamble, and Reckitt have warned about higher costs due to the Iran war. That puts Unilever’s pressure in line with what other staples names are seeing. Reuters
Unilever is leaning on capital returns again. The company kicked off a share buyback of up to 1.5 billion euros on April 30, set to run until July 6 at the latest. A buyback lets it return cash and cut the share count. Purchases under the program for the week through May 15 showed up in a May 19 regulatory filing.
McCormick is still hanging over the deal and driving moves. Unilever said it aims to close the Foods combination by mid-2027 at the latest, but that depends on McCormick shareholder approval, sign-off from regulators, and other conditions. The company is looking for about $600 million in annual cost synergies, with another $100 million in cost and revenue synergies expected to go back into growth.
The ice-cream part is still in play. Reuters said on May 15 that Blackstone and CD&R have started looking at bids for Magnum Ice Cream Company, the owner of Ben & Jerry’s and Cornetto. Unilever retains a 19.9% stake and aims to get out in five years. JPMorgan analysts called a takeover unlikely, citing tax issues.
The downside is clear. Price hikes might not last if consumers trade down, Europe stays soft, and the Foods deal could face delays or not deliver all the synergies Unilever promised. The company’s latest quarterly filing pointed to raw-material swings and the McCormick deal, warning the transaction might not close as planned or that expected synergies could get pushed back.
Unilever shares are moving on results rather than hopes. Investors will get the next readout when the company posts its second-quarter and first-half numbers July 28. The Q3 trading statement is due Oct. 28.
