Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “Unilever is holding up well, with sustained volume growth in emerging markets such as India and South America helping to offset weaker demand across Europe, the US and the UK.

" Unilever is betting on its “power brands following the decision to divest its food division and concentrate on home and personal care - representing a significant strategic shift. While the move is expected to reduce revenues by around 22% from 2027, it should create a more focused business with stronger margins and improved long-term profitability.

"The group has also built a degree of resilience through substantial cost savings, putting it on track to exceed its productivity targets. However, rising commodity costs, particularly for palm oil, crude oil and packaging, remain a key headwind and could absorb a large proportion of those efficiency gains.

"By streamlining its portfolio and investing behind its strongest beauty, wellbeing and personal care brands, Unilever is strengthening its competitive position. The challenge now will be sustaining momentum in emerging markets while navigating cost inflation and reigniting growth in developed economies, where premium personal and home care categories have generally proven more resilient."

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