Unilever warned on Thursday that 2026 sales growth would come in at the bottom end of its forecast range after a slowdown in the U.S. and Europe, knocking its shares, even as emerging markets delivered a fourth-quarter sales beat. After spinning off The Magnum Ice Cream Company in December, CEO Fernando Fernandez – who took over in March 2025 – is under pressure to show that Unilever’s emphasis on personal care, beauty and wellbeing, which now account for more than half of turnover, is a winning strategy.
The maker of Dove soaps and Hellmann’s mayonnaise said it expects 2026 underlying sales growth at the lower end of its 4% to 6% multi-year guidance range due to softer market conditions. Even so, Unilever said it expects a “modest” improvement to the 20% profit margin reported for 2025 and unveiled a new 1.5 billion euros ($1.8 billion) share buyback programme. Its shares fell more than 3% in early trading before trimming losses to trade 0.6% lower at 0939 GMT. “There are signs of progress at Unilever given its reorganisation and new strategy, however we think it will take time,” RBC Capital Markets analyst James Edwardes Jones said in a note.
