Unilever reported a 3.8% rise in underlying sales for the first quarter, beating analyst estimates of 3.6%. The Dutch‑based consumer goods giant, best known for Dove soap, attributes the lift to a robust portfolio reshuffle that precedes a major merger with spice maker McCormick. The deal will spin off their food businesses into a new entity expected to launch next.

The cash-and-stock transaction values the combined food unit at roughly $65 billion, including debt. Unilever shareholders will receive a 65% stake in the spinoff, while McCormick will hold the remaining equity. European investors have voiced concerns over exposure to leveraged U.S.-listed assets, sparking debate about the strategic fit of the merger within Unilever’s broader portfolio. Ahead of the 2025 fiscal year, analysts predict a modest impact on earnings per share for the coming quarters.

Unilever’s stronger‑than‑expected sales momentum amid the split signals resilience in its core beauty and personal care segments. The $65 billion deal positions the company to streamline operations and focus on high‑margin brands. Investors will watch how the transition affects liquidity and whether the new food entity can sustain growth without diluting Unilever’s capital structure by the end of 2026 in quarterly reports.