UBS Expects Unilever to Deliver 5% Underlying Sales Growth in Q3 on Higher Volumes

05:09 AM EDT, 10/12/2026 (MT Newswires) -- UBS Global Research expects Unilever (ULVR.L, UNA.AS) to post a 5% increase in third-quarter underlying sales growth, led by higher volumes due to strong momentum and favorable comparisons in certain regions. In a third-quarter preview note on the European food and personal care sectors, the research firm said this growth rate sits ahead of the Visible Alpha consensus of 4.6%, though slightly below the 5.8% posted in the second quarter. On pricing, underlying price growth is expected to "materially" rise to 1.7%, compared with a 0.2% uptick in the second quarter and the consensus of a 2.2% increase, as Unilever is expected to raise prices in home care and personal care to offset rising commodity costs. "As was the case in H1, we expect Q3 USG to be volume led, as we model +3.2% UVG (was +5.5% in Q2, VA cons for 2.3%); in the quarter, Unilever will continue to face a favourable volume comparator in Latin America (14% of sales, UVG down -7.3% in Q3 last year) and in India (13% of sales, flat UVG in Q3 2025 due GST disruptions)," analysts wrote ahead of the consumer goods giant's trading update on Oct. 28. With foreign exchange and mergers and acquisitions each projected to contribute 0.2% to group sales, UBS models third-quarter sales of 13.12 billion euros, up 5.5% compared with the previous year. With a full-year 2026 target of 4% to 6% underlying sales growth expected to be reiterated, analysts forecast market attention to "rapidly" pivot to the company's upcoming capital markets day on Nov. 4. UBS rates the stock at sell.