Toiletries & cosmetics: Apr–Jun results at UK company Unilever

Research evidence excerpt

Toiletries & cosmetics: Apr–Jun results at UK company Unilever

Toiletries & cosmetics: Apr–Jun Global Markets Research 29 July 2026

results at UK company Unilever

EQUITY: JAPAN TOILETRIES & COSMETICS

Research Analysts

HPC segment performed well Japan toiletries & cosmetics

Yuji Ohana - NSC

yuji.ohana@nomura.comQuick Note +81-3-6703-1143

Focus on core competencies delivering results

UK-based Unilever announced 26/12 Q2 (Apr–Jun 2026) results on 28 July, local time.

Sales were up 6% y-y on a local currency basis (+6ppt from volumes and a small

contribution from prices), surpassing the Bloomberg consensus forecast for a 4%

increase. The share price rose 8% from the previous day's close, as Unilever also

announced an upward revision to full-year sales guidance. Performance was weak in the

food segment, which is due to be spun off, but better than expected in the HPC (toiletries

& cosmetics) segment. By region, performance was strong in North America and Asia, but

weak in Europe owing to lackluster consumer spending.

Implications for Japanese stocks: Unilever has been selling off food-related businesses

in recent years, with a view to focusing resources on the HPC segment. This strategy

looks to have been successful, as HPC sales have compared favorably with global rivals

in recent years. That said, we expect the competitive environment to remain tough, as

Japanese HPC companies similarly have been working to expand globally by

concentrating on core businesses.

North America: Sales rose 4% y-y. Prices fell, partly because of FIFA World Cup

promotions. Unilever said there had been some retailer destocking in the food segment in

anticipation of H2 inflation, but no material divergence between sell-in and sell-out trends

in the HPC segment.