Unilever PLC (LSE:ULVR) said it is launching a €1.5 billion share buyback today as it posted better-than-expected growth for the first quarter of the year, with volume growth driving a rise in underlying sales.
The owner of consumer brands ranging from Cif and Colgate to Hellman's and Marmite reported 3.8% underlying sales growth in the first three months of 2026, with volumes up 2.9% and pricing contributing 0.9%. Forecasts were for sales growth of just over 3.6%.
Turnover fell 3.3% to €12.6 billion, reflecting currency headwinds despite positive trading momentum.
For the full year, the company said it expects underlying sales growth at the lower end of its 4% to 6% range and at least 2% volume growth.
Alongside the buyback, a 3% rise in the quarterly dividend was announced.
Chief executive Fernando Fernandez said: "We have started the year well with volume-led growth driven by our Power Brands."
Growth was broad-based across divisions, with Home Care the strongest performer at 6.1% underlying sales growth, while Beauty & Wellbeing, Personal Care and Foods also expanded.
Emerging markets led the performance, with 5.7% underlying sales growth thanks to strong demand in India and a recovery in Latin America. Developed markets grew 1.0%.
Power Brands delivered 5.0% underlying sales growth and 4.0% volume growth.
During the quarter, the group agreed to combine its Foods business with McCormick & Company, a move aimed at reshaping the business towards higher growth categories.
Fernandez said the deal would help create “a global flavour powerhouse” but the share price reaction shows many investors do not agree.