Unilever Volume Growth Pushes FTSE 100 Toward Record Highs

Unilever reported Q2 2025 underlying sales growth of 3.8%, its strongest volume quarter in over a decade. The company upgraded its full-year 2026 outlook. Barclays announced a £1bn share buyback after Q2 profit beat expectations, but shares fell 5%. Oil prices dropped 6% to $90.98 per barrel amid geopolitical developments.

In 2026, major US business deals included SpaceX's $250B merger with xAI, valuing the combined entity at $1.25T; Paramount's $110B acquisition of Warner Bros. Discovery; SpaceX's $60B acquisition of AI startup Cursor; Devon Energy and Coterra Energy's $58B merger; and Unilever's $66B merger with McCormick. Some deals faced regulatory scrutiny and shareholder concerns.

Unilever reported full-year 2025 GAAP operating margin of 17.9%, up from 16.8% in 2024, and announced a €1.5 billion share buyback. Turnover fell 3.8% to €50.5 billion, but underlying sales rose 3.5% after currency and portfolio effects. Free cash flow was €5.921 billion, down €0.4 billion, with demerger costs cited.

Unilever agreed, according to Reuters citing a memo, to protect employment terms for workers in its European and UK food business for two years after its planned merger with US spice maker McCormick. The protection is set to run until at least mid-2029. The deal, agreed in March, values Unilever’s Food unit at about $44.8B and the combined entity at about $65B, expected to close mid-2027 subject to approvals.

Unilever said it upgraded its full-year outlook as it refocuses on home, beauty and personal care. In H1 2025, profit after tax fell over 5% to 3.3 billion euros, while sales volume and prices rose. It now expects underlying sales growth of 4% to 6%. The turnaround includes job cuts and planned food spin-off with McCormick, targeted for mid-2027.

Reuters reports that Unilever agreed to a two-year worker protection commitment for employees in its European and British food business tied to its planned 2027 merger with US spice maker McCormick. The memo says terms and pay for affected workers are protected until at least mid-2029, beyond typical EU and UK legal requirements. Unilever employs about 4,800 in the region.