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Unilever Raises Outlook on Strong Emerging Market Sales

Bloomberg Markets •
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Unilever Plc lifted its outlook after sales rose more than expected in the second quarter, as consumers in key markets including the US and India snapped up its Dove soap and Rexona deodorant.

The London-listed consumer goods giant said underlying sales growth accelerated to 4.5% in the three months through June, beating analyst estimates of 3.8%. Volume growth turned positive for the first time in a year, rising 0.6% as price increases moderated.

Emerging markets led the advance with 6.4% underlying sales growth, driven by strong demand in India, Brazil, and Indonesia. The Beauty & Wellbeing division posted 5.9% growth, powered by Dove and Vaseline, while Personal Care rose 4.2% on Rexona and Axe.

Chief Executive Hein Schumacher said the results validate the company's productivity program and focus on 30 "power brands." Unilever now expects full-year underlying sales growth of 4% to 5%, up from a previous range of 3% to 5%, with operating margin improvement of at least 50 basis points.