Unilever (ULVR) Barclays 19th Annual Global Consumer Conference summary

Strategic transformation and portfolio evolution

• Significant portfolio transformation includes separation of Ice Cream and planned combination of food business with McCormick, aiming to create a global flavor powerhouse.

• Successful bolt-on acquisitions (e.g., Nutrafol, Liquid I.V., Tatcha, Dermalogica, Paula's Choice, Minimalist, Horlicks Protein) have strengthened competitiveness, especially in the U.S. and India, and are being expanded internationally.

• Marketing philosophy shifted to 'desire at scale,' leveraging superior science, aesthetics, influencer-driven campaigns, and AI-driven content, with increased brand investment from 13% to 16% of revenue.

• Leadership overhaul with 8 of 10 board members and 9 of 11 top executives new in the last three years, driving a culture of accountability and performance.

• Portfolio transformation to a €39bn HPC pureplay, with leading positions in beauty, personal care, and home care categories.

Key performance highlights and financial outlook

• Achieved strong H1 2026 results with 6.0% underlying sales growth and upgraded full-year outlook to 4–6% USG, driven by Home and Personal Care (HPC) segment performance.

• Recent quarters show strong volume growth (5.5% in Q2, highest since 2010), with consistent 2%-3% volume growth expected going forward.

• Premium segments and market making provide structural margin tailwinds, while inflation and pricing are managed through portfolio breadth and savings programs.

• U.S. business remains a priority, with 22% of revenue post-foods separation, focus on premium and wellness brands, and continued capital allocation for bolt-on acquisitions.

• Confidence in sustaining 4%-6% USG with balanced volume and price growth, supported by strong positions in emerging markets and ongoing strategic investments.

Emerging markets and India growth opportunity

• 62% of revenue now comes from emerging markets, which benefit from favorable demographics, urbanization, and improved macroeconomic stability.

• India is highlighted as the largest exponential growth opportunity in FMCG, with a young population, rising incomes, and rapid urbanization.

• Hindustan Unilever (HUL) reaches 9 out of 10 Indian households, with $6.5B turnover and 23.6% EBITDA margin; turnover doubled and EBITDA tripled over the past decade.

• Five structural shifts in India—youthful demographics, increased female workforce, digitalization, infrastructure improvements, and modernizing villages—are driving consumption growth.

• Competitive advantage in driving consumption and premiumisation, with tiered portfolios and superior product availability.