Unilever posts decade-high beauty volume growth fueled by Desire at Scale strategy

Unilever has reported that its beauty, personal care, and home care divisions drove its H1 2026 results and delivered the best volume quarter the company has seen in over a decade. The financials indicate the effectiveness of the company’s Desire at Scale strategy at driving demand. 

Unilever’s Beauty & Wellbeing, Personal Care, and Home Care divisions accounted for 75% of the company’s total turnover. The trio generated €3.7 billion (US$4.2 billion) in underlying operating profit in the first half of the year. Their combined growth lifted the entire group to 4.8% underlying sales growth, of which volume accounts for 4.2%. In the second quarter, the three business divisions recorded 5.8% growth.

The Beauty & Wellbeing division, making up a quarter of Unilever’s total sales, grew its underlying sales by 5.9% in the first half. Almost all of that growth (4.5%) came from volume, while only 1.3% was driven by price. The divide points toward positive consumer demand, which CEO Fernando Fernandez attributes to the company’s Desire at Scale strategy.

“These results show our ability to continue performing while transforming our portfolio. Our brands are stronger, our execution is sharper, and we are driving Desire at Scale,” he says. 

The company’s Desire at Scale framework aims to solidify its power brands for future growth by connecting with young consumers. The strategy includes updating product formulas and packaging and reimagining their marketing and positioning — elevating the brands from mass-market staples to premium, aspirational must-haves.

Unilever has already used the strategy to revamp multiple of its heritage labels, such as Vaseline, and the H1 results show that the company is reaping the intended benefits. Unilever’s power brands, which now make up 78% of turnover, grew at 6%, outpacing the rest of the portfolio.

Dove’s premium range helped drive volume-led growth.Food limped on with barely any growth (1.2%), underpinning why Unilever is spinning it off. The company is divesting the division to McCormick, leaving Unilever as a pure-play Home, Personal, and Beauty Care company. The separation is on track, with completion expected by mid-2027.

Premium boosts beauty

Premium products led the charge for Unilever’s Beauty & Wellbeing division. Its star performers were Dove, Sunsilk, and Vaseline, which all posted double-digit volume-led growth.

Dove’s premium innovations, like its Fibre Repair hair range, and the company’s other prestige beauty brands, such as Paula’s Choice and Hourglass, were highlighted.

The Skin Care category grew at a slightly slower pace, but even there, Vaseline’s premium innovations pulled their weight. Earlier this year, Unilever announced that it was overhauling the heritage label to drive more demand among younger consumers.

As such, the company introduced expanded lineups, including a Vaseline Gluta-Hya lip gloss range, and updated product formulas. Unilever designed the lip glosses specifically to look good on TikTok videos.

Profit-wise, Beauty & Wellbeing delivered €1.3 billion (US$1.48 billion) in underlying operating profit, up 1% from last year. Its operating margin ticked up to 19.5%, though the company continued to spend heavily on marketing for its power brands.

While actively aiming to capture Gen Z and Gen Alpha’s attention and buyer power, the company reported spending 16.1% of its turnover on brand and marketing investment. With a total turnover of €25.6 billion (US$29.1 billion) for the first half, the figure represents a significant investment, though the company did not give the exact euro amount. 

Dove drives Personal Care

Personal Care was Unilever’s most profitable division, contributing 27% of the company’s overall turnover for H1. The business arm posted 4.8% underlying sales growth, led by volume at 4.1% and a small contribution from pricing, at 0.7%.

Vaseline’s Gluta-Hya range supports Unilever’s premium skin care push.Underlying operating profit for Personal Care came in at €1.5 billion (US$1.7 billion), up nearly 5% from last year. The operating margin improved to 22.2%, marking the highest among all divisions. The company also said it spent heavily on FIFA World Cup-related marketing for the division during the second quarter.

The division’s biggest brand, Dove, recorded high single-digit growth from both its deodorant and skin cleansing lines. Categorically, deodorants grew mid-single-digit and skin cleansing delivered mid-single-digit growth. Dove’s premium Serum Body Wash and Lux brands were spotlighted.

Oral Care, a smaller part of the division, grew in the low single digits with a balance between volume and price.

Home Care survives headwinds

Home Care made up 23% of group turnover, delivering 7.6% underlying sales growth, with 7.4% of that growth being volume. The company says the figure was driven by genuine market share gains.

In India, Unilever’s biggest Home Care market, the division achieved double-digit growth and its highest-ever market share. Brazil also grew in the high single digits.

Among the Power Brands, Cif, Dirt Is Good, Comfort, Sunlight, Domestos, and Radiant are highlighted for high single-digit growth. 

Fabric Cleaning, comprising laundry detergents, and Fabric Enhancers, comprising fabric softeners, each grew in the high single digits. Home & Hygiene, which includes surface cleaners and bleach, grew mid-single-digit.

Despite strong sales, Home Care’s underlying operating profit was €0.9 billion (US$1.02 billion), with an operating margin of 15.8%, marking the lowest of the three divisions. The company cited pressure from rising commodity costs and currency headwinds, but said that disciplined spending on brands and better overhead management helped offset some of that pressure.

Vaseline’s Gluta-Hya lip glosses were designed with younger consumers in mind.“The macroeconomic environment remains uncertain, but our consistency, discipline, and strong first half performance give us confidence that we are well positioned to deliver our upgraded full year outlook,” Fernandez says.

Underdog markets rise

Unilever says that its emerging markets made up 60% of group turnover and grew at 7% in H1, 8.3% in Q2. India grew 8%, of which 6% is volume, reaching double-digit growth in Q2.

Indonesia grew 7%, and Latin America grew 7.6%. The company also says Brazil bounced back to double-digit growth in Q2 after corrective actions taken last year. China further delivered mid-single-digit growth.

Unilever’s developed markets were more subdued, recording 1.5% growth overall. North America outperformed its market with 2.7% growth, of which 3.2% was volume, while Europe shrank by 0.9%. The company says Europe was weighed down by soft food markets and negative pricing.

“Our Power Brands continued to outperform, with all business groups delivering volume-led growth. Emerging markets showed momentum — India, Indonesia, and Latin America all delivered strong growth — while North America again outperformed its market,” Fernandez says.

Based on the strong H1 performance, Unilever upgraded its 2026 full-year outlook, expecting underlying sales growth in a 4% to 6% range, and around 3% in volume growth.