3Lun·

Unilever Q2: Record Volume + Food Spin-Off Takes Shape 🚀

📊 Key Figures for H1 2026:

USG H1: +4.8% — Q2 even +5.8%
Q2 volume: +5.5% — CEO: "best volume quarter in over a decade"
Power Brands: +6% USG (78% of revenue)
Operating Margin: 20.3% (+10 basis points)
€800 million productivity program fully implemented, completed ahead of schedule
€1.5 billion share buyback completed
Guidance raised to the full 4–6% range

The McCormick Deal — 3 Companies Emerge:

1️⃣ Unilever PLC — HPC Pure Play

Dove, Axe, Rexona, Persil, Domestos, Vaseline …

→ Higher margins, clearer focus

2️⃣ NEW “McCormick” + Flavor Powerhouse (€20 billion in revenue)

Knorr, Hellmann’s, Colman’s + McCormick portfolio

→ 65% of shares will go to Unilever shareholders

3️⃣ McCormick remains independent

Timeline: Closing in 12–15 months.

Unilever shareholders will automatically receive shares in the new flavor powerhouse—similar to the J&J/Kenvue deal back then or the current Comcast/NBCU deal

💡 The core thesis:

A focus on a HPC pure play should drive higher margins (traditional conglomerate discount reduction). Emerging markets are performing strongly (India, Latin America), and power brands are accelerating growth. The split provides an additional catalyst for unlocking value

$ULVR (+0,54 %)
$MKC (+1,38 %)

3 Comentarios

NichtRelevant@NichtRelevant

3Lun

I’ve become rather pessimistic about branded food manufacturers (not just Unilever). Because of all the private-label brands, margins and the potential for price increases are under relatively heavy pressure. I believe the winners in times of inflation and (in some cases, perceived) loss of purchasing power are more likely to be the big discount chains.
Still, good luck—maybe the breakup will actually make a difference. 👍

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finanzperpetuum@finanzperpetuum

3Lun

@NichtRelevant Absolutely—the topic of private labels is old hat and resurfaces during every period of inflation, but in my opinion, that’s too sweeping a generalization.

Brand power: Private labels mainly displace weak B-brands. For strong brands (Dove, Hellmann’s, etc.), brand loyalty remains high. When money is tight, consumers might switch to store brands for rice, milk, or toilet paper, but they remain loyal to their favorite brands longer when it comes to specific tastes or beauty products. The current restructuring is therefore focusing even more on top brands. In a few years, we’ll probably be buying a little here and there again 🤓

Unilever’s latest figures show the opposite: +5.5% volume growth in Q2; Unilever is growing through volume, not just price increases. So customers aren’t exactly fleeing in droves. And the operating margin in Q2 proves that Unilever is growing strongly despite private labels and has pricing power.

Regional differences: In Germany and Central Europe, private-label penetration is extremely high (often over 30–40%). Globally, however—especially in the growth markets of Asia and Latin America—private labels play a much smaller role. FMCG giants like Unilever generate a huge portion of their business precisely in these emerging markets.

My take: Don’t just look at German supermarkets; look at the global markets. Private labels are a lasting hurdle for mid-tier companies, but they are not a structural death sentence for global market leaders with strong top brands.

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NichtRelevant@NichtRelevant

3Lun

@finanzperpetuum That's one way of looking at it. I suppose people (in this case, me) tend to focus heavily on the local market and less on the EM.
I hope you bought more before today's rally!! 😉

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