LONDON — Unilever has raised its outlook for 2026 after reporting 5.5% volume growth in the second quarter, its strongest quarterly performance in more than a decade. The consumer goods giant said underlying sales increased 5.8%, comfortably exceeding market expectations.

The performance was supported by strong demand for beauty, personal care and home-care products, with brands including Dove, Vaseline and Cif contributing to growth. Unilever's beauty and wellbeing division was particularly strong as the company continues shifting its focus towards higher-growth consumer categories.

The company now expects underlying sales growth of between 4% and 6% for 2026, improving its previous outlook, while volume growth is expected to reach around 3%. The stronger forecast has boosted investor confidence, with Unilever shares rising sharply in London trading.

Unilever is also progressing with plans to separate its food business and combine it with US-based McCormick. The transaction is expected to allow the company to concentrate more heavily on beauty, personal care and home products.

The latest results provide an important boost for Unilever's turnaround strategy, showing that investment in major consumer brands and marketing is beginning to translate into stronger demand despite continued pressure on household budgets.