Unilever Stock Gains After Favorable Q3 Report: China & Developed Market Trends Upbeat

• Unilever reports higher-than-expected underlying sales in Q3, supported by prices and volume growth.
• Sales in China and developed markets fared well.
• Unilever’s stocks in the U.S. and London rose after the report.

Unilever Plc.’s U.S.-listed shares rose 2.6% in early premarket trading on Thursday, after the consumer packaged goods giant reported underlying sales for the third quarter above market expectations.

The company’s shares on the London Stock Exchange were up 1.8% by afternoon local time.

Unilever’s underlying sales, a metric that does not include the impact of currency fluctuations and mergers and acquisitions, rose 3.9%. That’s higher than the 3.7% growth estimate from analysts and the 3.8% rate in the second quarter.

Growth was driven by increases in both prices and volumes, which rose by 2.4% and 1.5%, respectively. The company reported strong sales in developed markets and saw a rebound in China and Indonesia, two regions that had recently faced challenges. In North America, underlying sales grew 5.5%, mainly driven by volumes.

Unilever reaffirmed its guidance for the full year, with underlying sales growth expected to be 3% to 5%.

The results come amid challenging macroeconomic conditions mainly due to U.S. tariffs that have increased input and product costs and shifted consumer spending patterns. Companies, especially those selling directly to consumers, are navigating a delicate balance between raising prices and protecting margins as the trade landscape evolves.

Unilever’s turnover declined 3.5% to 14.72 billion euros ($17.09 billion), falling short of the 14.77 billion euros target, mainly due to currency headwinds. On Stocktwits, the retail sentiment for UL was ‘neutral,’ unchanged since the start of the week. The stock is up 9.3% year-to-date.

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