$UL

The fund manager diary discusses company updates and market sentiment. Chubb management said diversification limits impact from excess US property insurance capacity. Unilever reported Q2 underlying sales growth ahead of expectations and confident full-year outlook. Visa cited a 20% rise in card spending in some host cities during the FIFA World Cup. Microsoft’s Azure performed strongly. Apple reported Q3 results with a Q4 sales guidance downgrade due to memory chip supply constraints, despite 2

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.

Coca-Cola, Unilever and Adidas reported stronger sales in China in the first half of the year despite a sluggish retail market. Adidas said China sales rose 16% year on year in its half-year earnings report, citing market share gains and support from the 2026 FIFA World Cup. Analysts attributed growth to consumption upgrading and demand divergence.

Global FMCG firms are expanding investments and retail distribution in India, citing resilient consumer demand and market growth. Mondelez said Q2 2026 demand stayed “solid” and it added 100,000 stores. L’Oreal reported India business grew over 70% in the June quarter. Reckitt cited high single-digit growth from wider distribution and execution.

Mondelez, L’Oréal, Reckitt and Unilever said in earnings calls they are increasing investment in India on resilient consumer demand and expanding distribution. Mondelez added 1 lakh stores and called consumer confidence “very strong”. L’Oréal reported India growth of over 70% in the June quarter. Reckitt cited high single-digit growth, and Unilever said India accelerated strongly.

Unilever said it expects no major job losses in the Netherlands after selling its food division, which employs about 1,000 people there. The business, including Knorr and Calvé, is being sold to US firm McCormick & Co. CFO Srinivas Phatak said the new entity will keep Netherlands infrastructure, including an international HQ in addition to US HQ, and the Wageningen research center. The deal was valued at 39 billion euros.

Unilever CEO Fernando Fernandez said the company will keep investing in India to protect its leadership and expects India to drive growth in the next decade. CFO Srinivas Phatak projected high-single-digit Indian unit growth, with profit growth slightly ahead of revenue. Unilever reported 4.8% USG in H1, including 8% USG in India. Hindustan Unilever (HUL) reported Q1 FY27 net profit down 2.22% YoY to Rs 2,680 crore; sales up 10% YoY to Rs 17,184 crore.

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.

Mondelēz growth boosted by emerging markets as Europe sees decline Like other major FMCGs, the biggest growth for Mondelēz is outside developed markets. Consumer confidence in emerging markets is “stable”, says Mondelēz CEO Dirk Van de Put. In India in particular, it is very strong, although slightly softer in China. This comes as the company expands its emerging market distribution, especially in Brazil, India, China and Southeast Asia.