Unilever PLC

The closure of the Strait of Hormuz due to the Iran war is pushing raw material and shipping costs higher, leading many manufacturers to gradually raise prices on goods ranging from beer, house paint, and potato chips to packaging. The Wall Street Journal reports that companies that have announced or are preparing price hikes include Boston Beer Company, Sherwin-Williams, International Paper, and Unilever, aiming to offset rising raw material costs. U.S. crude oil futures traded near 85 dollars per barrel on Friday, up about 25 percent from the start of the war, while the average U.S. gasoline price has risen to about 4.11 dollars per gallon from 2.98 dollars per gallon at the onset of the conflict. Sherwin-Williams is set to raise prices by 8 percent starting September 1 to offset raw material costs linked to oil prices, and following the announcement, its stock price rose more than 8 percent. The impact could exacerbate U.S. inflation and complicate the Federal Reserve's monetary policy, as investors had previously expected the Fed to cut interest rates, but after energy prices surged due to the war, the market is increasingly pricing in the possibility that the Fed may resume raising rates.

Unilever has agreed commitments with its European workers regarding the protection of employees' terms and conditions and consultation timelines ahead of the planned sale of most of its food business to US spices maker McCormick & Co. The London-headquartered FMCG major expects to close the transaction by the middle of next year, a deal that values Unilever's food assets at around $44.8 billion. The worker commitments in the UK and Europe are for two years post the 2027 completion of the transaction, according to Reuters. A representative for the IUF trade union suggested similar work guarantees have not been made to Unilever employees outside of Europe. Once the deal is concluded, Unilever shareholders are expected to own 55.1% of the enlarged group, McCormick shareholders 35% and Unilever 9.9%, with Unilever receiving $15.7 billion in cash.

The Dow Jones Industrial Average closed on July 28, 2026, surging 537.24 points to 52,747.32, boosted by strong earnings from Boeing and Coca-Cola, a more than 4% drop in crude oil prices, and a rotation out of semiconductors into traditional economy sectors ahead of the Federal Reserve meeting this Wednesday. The S&P 500 added 15.60 points to 7,428.78, while the Nasdaq fell 55.17 points to 24,876.91, pressured by chip stocks, with the VanEck Semiconductor ETF sliding more than 3% and shares of Micron and AMD each tumbling over 8%. European markets rose for a third straight session, with the Stoxx 600 gaining 0.35%, supported by strong results from Unilever. West Texas Intermediate crude fell $3.35 to settle at $79.26 a barrel, and Brent dropped $4.27 to $84.09 a barrel.

The London stock market closed higher on Tuesday, with the FTSE 100 index ending at 10,871.02 points, up 89.27 points or 0.83%, supported by consumer goods stocks that rose on strong earnings. Unilever led the gains, surging 8.58%, its biggest daily jump in four years, after the company raised its full-year outlook and reported its strongest quarterly volume growth in over a decade. Man Group shares hit their highest level since 2010 during the session before paring gains, after reporting a larger-than-expected increase in assets under management for the first half. Energy stocks fell 1.43%, the most among sectors, as oil prices dropped on hopes of easing tensions between the US and Iran. Banking stocks declined 1.37%, with Barclays sliding 4.79% despite reporting first-half profit above expectations, suggesting investors may have already priced in the positive news.

European stocks closed higher for a third consecutive day, supported by strong earnings from Unilever, which helped lift consumer goods shares. The STOXX 600 index closed at 646.89 points, up 0.35%, while the FTSE 100 index in London ended at 10,871.02 points, gaining 0.83%. Unilever shares surged 8%, their biggest daily gain in four years, after reporting second-quarter sales that beat expectations. Energy stocks fell the most, dropping 2.4% as oil prices weakened.

Unilever PLC reported its strongest quarterly volume performance since 2010, with underlying sales growth of 5.8% in the second quarter of 2026. The company's power brands, which now represent 78% of turnover, delivered underlying sales growth of 6.9%, driven by strong volume gains. Emerging markets grew 8.3%, led by a 10% increase in India. Unilever achieved a 10 basis point margin expansion and 2.4% earnings growth in hard currency. However, the foods segment slowed to 0.2% growth due to heightened competition in North America and Europe, and oral care posted low single-digit growth amid increased competitive pressure. Currency fluctuations reduced first-half turnover by 4.9%, and the company flagged potential fourth-quarter retail stock disruptions in Brazil from upcoming tax reforms.

The FTSE 100 rose 0.8% on Tuesday, lifted by strong earnings and a drop in oil prices that offset concerns from a chip-sector sell-off in Asia. The blue-chip index closed up 89.27 points at 10,871.02, while the FTSE 250 added 0.5% and the AIM All-Share fell 0.5%. Unilever and Croda both surged 8.0% after well-received results, and GSK advanced 3.5% on better-than-expected second-quarter profit, but Barclays dropped 4.8% following what analysts called a messy set of numbers. Brent oil fell to 84.87 dollars a barrel from 89.71 dollars, and the pound was little changed at 1.3306 dollars ahead of the Federal Reserve's interest rate decision.

Unilever shares rallied more than 7% in both London and U.S. premarket trading after the company reported strong first-half results and raised its full-year outlook. Underlying sales grew 5.8% in the quarter, with a 5.5% volume increase that beat the consensus estimate of 5.2%, while pricing edged up just 0.2%. The company now expects full-year underlying sales growth within its 4% to 6% multi-year range, an improvement from its prior forecast of growth at the bottom end, and anticipates volume growth of 3% for the year. Volume gains were seen in all categories except food, and RBC Capital Markets analyst James Edwardes Jones noted that even the weak European food performance supports management's plan to offload that business.

The UK's FTSE 100 index rose 0.59% on Tuesday, driven by a strong rally in Unilever shares after the consumer goods giant reported better-than-expected earnings and raised its full-year guidance. The benchmark was up 63.90 points at 10,845.65 nearly half an hour past noon. Unilever climbed nearly 8% as it upgraded its full-year underlying sales growth guidance to the 4% to 6% range from its previous expectation of growth at the bottom end of the range, supported by around 3% underlying volume growth, and reported its best quarter of sales volume growth in 16 years. Other notable gainers included Admiral Group up over 4%, Relx up 3.6%, and Compass Group, Diageo, Imperial Brands, Croda International, Babcock International, Reckitt Benckiser, The Sage Group, and Experian climbing between 2.5% and 3%. Barclays Group shed more than 5% after reporting increased second-quarter operating costs, while Natwest Group and Lloyds Banking Group both eased about 1.3%. In economic news, UK shop price inflation rose 0.9% year-on-year in July 2026, missing expectations of 1.2% and marking the slowest increase since December 2025.

The UK's Competition and Markets Authority is inviting comments on the anticipated acquisition by McCormick & Company of the food business of Unilever Plc. The regulator announced on Tuesday that interested parties may submit their views on the impact of the deal until August 5. McCormick is merging with Unilever's food business in a Reverse Morris Trust deal that values the food arm at about $45 billion and the combined company at around $65 billion. Under the terms, McCormick will pay $15.7 billion in cash and about $29.1 billion in shares, leaving Unilever and its shareholders with roughly 65% of the new entity and McCormick shareholders with about 35%. The merger brings together brands like Hellmann’s and Knorr with McCormick's spices and condiments to create a leading global player in sauces, seasonings, and other grocery staples.

Smart investors are rotating out of AI and data center trades into quality dividend stocks trading at multi-year lows. General Mills yields 6.49% with 56 straight years of payments, while AT&T yields 5.42% at a fresh 52-week low. Elliott Investment Management's $4 billion stake in PepsiCo signals over 50% upside potential if the company executes its proposed strategic transformation. McDonald's approaches 50 years of dividend increases and yields 2.59%, and Unilever trades near its 52-week lows with a 3.65% yield. All five stocks are rated Buy by top Wall Street firms.

UK M&A value is tracking to a record high in 2026, reaching £178.9 billion in the year to July 7 and putting the market on pace for an annualized total of around £347 billion, which would eclipse the prior high of £309.2 billion set in 2015, according to PitchBook data. The top 10 deals accounted for roughly 52% of overall M&A value, with eight of those 10 largest transactions struck by strategic acquirers in the first six months, led by McCormick's $44.8 billion merger with Unilever's food business in March. Sponsor acquisitions made up just 33.1% of overall UK deal value in the first half of the year, the second-lowest share since 2014, and PE accounted for only 15.1% of the value of the 10 largest deals, as firms like EQT took Intertek private for £10.9 billion and TDR Capital acquired Escode for £3.09 billion. The gap stems from financing, as roughly two-thirds of McCormick's Unilever Foods combination was funded in stock, a currency PE funds cannot offer, while corporate acquirers rely on balance-sheet cash and equity to pursue scale that would once have drawn sponsor competition.

The global fast moving consumer goods market is projected to grow from US$ 4.72 billion in 2024 to US$ 7.22 billion by 2034, at a compound annual growth rate of 5.44%, according to a new report by Zion Market Research. The food and beverage segment held the largest share at over 42% in 2024, driven by daily non-discretionary demand. In-house production accounted for approximately 65% of the market, while supermarkets and hypermarkets dominated distribution with a 48% share. Asia Pacific led the global market with a 45% share, fueled by population concentration and rising middle-class incomes in countries such as China. Key players include Procter & Gamble, Unilever, Nestlé, The Coca-Cola Company, and PepsiCo.

Greg Abel, who took over as Berkshire Hathaway CEO in 2026, should consider buying into McCormick as it plans to acquire Unilever's food business, despite the earlier Kraft Heinz merger's poor outcome. McCormick, an industry-leading spice and flavor company, is looking to roughly double its size by purchasing Unilever's well-run brands like Hellmann's and Knorr, a deal requiring about $16 billion in cash. With Berkshire holding nearly $400 billion in cash, Abel could help finance the transaction, potentially securing preferred stock, while McCormick's stock offers a historically high 3.7% yield and a low price-to-earnings ratio of around 9x. Unlike the struggling Kraft and Heinz, McCormick and Unilever's food unit are strong businesses, making this a more compelling investment than a cost-cutting merger.

McCormick announced an agreement to merge with Unilever's food division in a $45 billion transaction, adding brands like Hellmann's mayonnaise and Knorr bouillon to its portfolio. The deal aims to reduce McCormick's reliance on its core spice and seasoning business, where private-label brands now command nearly 40% of unit volume, by shrinking that segment from over 30% of total sales to less than 15%. The combined company projects operating margins to expand from 17% to 21% post-integration, but the transaction is structured as a Reverse Morris Trust, which will heavily dilute existing McCormick shareholders and increase debt to 4 times net debt-to-EBITDA. The merger is not expected to close until at least mid-2027, creating an extended overhang.

The global AI in cosmetics formulation market is projected to grow from $0.58 billion in 2025 to $1.6 billion by 2030, at a compound annual growth rate of 22.3%. This growth is driven by rising demand for personalized skincare, advanced data-driven techniques, and rapid product development. Key players include BASF SE, Unilever PLC, and L'Oreal S.A., with North America leading in market size and Asia-Pacific expected to be the fastest-growing region. Innovations such as Nouryon's AI-powered BeautyCreations portal and strategic moves like The Estee Lauder Companies' acquisition of DECIEM Beauty Group highlight industry trends toward enhanced personalization and efficiency.

Unilever is expanding its Liquid IV powdered hydration brand into Spain, Germany, France, Sweden and Iceland. The brand is already sold in the UK and Italy in Europe, and will also launch in South Korea this year, taking Liquid IV to 15 markets globally. In Spain and Germany, the brand will launch via Amazon, while Spain will also be served through Costco; France, Sweden and Iceland will be supplied through Costco. The European expansion follows strong momentum in the UK, according to the company. Unilever will roll out both Liquid IV Hydration Multiplier and Liquid IV Sugar Free in the new markets.

McCormick & Company is leaning on health-focused innovation, cost savings, and portfolio expansion to drive long-term growth, even as consumer segment volumes remain negative. The company's Comprehensive Continuous Improvement program helped expand adjusted gross margin by 270 basis points to 40.2% in the latest quarter, while adjusted operating income rose 30.1% to $336.4 million. The acquisition of a controlling 75% stake in McCormick de Mexico contributed 12.3 percentage points to total sales growth, and the proposed Unilever Foods combination is expected to generate about $600 million in annual run-rate cost synergies. Flavor demand is benefiting from at-home cooking and better-for-you trends, with a majority of second-quarter briefs tied to health and wellness innovation. The stock currently carries a Zacks Rank #4 (Sell), reflecting cautious consumer spending and the need for better volume execution.

Unilever stock may be 23% undervalued according to a Discounted Cash Flow analysis, even as the company considers a bid for Thorne valued at up to $4 billion. The DCF model estimates an intrinsic value of about £59.08 per share, roughly 23.4% above the current market price, based on a latest twelve-month free cash flow of approximately €6.8 billion and assumptions of gradually growing cash flows. In contrast, Unilever trades on a price-to-earnings ratio of about 20.0 times, close to the peer average of 20.7 times and slightly above the wider Personal Products industry at 18.5 times, suggesting the stock is roughly fairly valued on an earnings basis. Broader valuation checks show a mixed picture, with four out of six indicators flagging value, leaving investors to weigh whether the current discount reflects execution and integration risk around the potential Thorne deal or presents a margin of safety.

Global mergers and acquisitions surged to $2.6 trillion in the first half of 2026, up about 30% from a year earlier, putting dealmakers on track to potentially surpass the record set in 2021. Companies struck 38 deals valued at $10 billion or more, the most ever in a six-month period, including NextEra Energy's $67 billion bid for Dominion Energy and Unilever's planned $45 billion sale of its food division to McCormick. A business-friendly regulatory environment under the Trump administration and a push for scale driven by artificial intelligence are fueling the boom, with strong cross-border activity into the US. Private equity, however, lagged as high valuations and low interest rates made exits difficult, while some ambitious tie-ups like GameStop's $53 billion move on eBay were rejected. Deal makers expect the momentum to continue after the summer, though potential headwinds include economic concerns and the November election.

McCormick & Company shares have fallen 50% from record highs as investors weigh the proposed $15.7 billion combination with Unilever's food business. The deal, which includes a $15.7 billion cash payment to Unilever, would triple McCormick's business but push its leverage ratio to 4.0 times EBITDA, above the company's target. McCormick plans to reduce debt below 3 times EBITDA within two years, and its second-quarter results showed 16.7% revenue growth with adjusted earnings per share of 80 cents, beating estimates. The stock now trades at roughly 8 times current-year earnings, a deep discount to its historical mid-20s multiple, while offering a 4% dividend yield backed by nearly 40 years of consecutive annual increases.

McCormick & Company used its second-quarter earnings call to emphasize that its Flavor Solutions segment is driving the business, while management works to restore volume trends in U.S. consumer spices. Flavor Solutions' organic sales rose 3%, with growth split nearly evenly between price and volume, and the Americas segment posted 4% organic growth, helped by large CPG customers, private label, high-growth innovators, and stronger branded foodservice demand. Adjusted EPS came in at $0.80, beating the Zacks Consensus Estimate of $0.69 by 15.9%, and revenues of $1.94 billion topped the estimate of $1.90 billion by 2%, with gross margin expanding 270 basis points and adjusted operating income rising 30%. Management reaffirmed its 2026 outlook and said it is refining revenue growth management, adjusting price-pack architecture, expanding distribution, and increasing value-focused marketing to improve consumer trends by the third quarter and return to volume growth in the fourth. The company also provided updates on the pending Unilever Foods combination, with integration planning advancing and financial targets reiterated, including a 21% operating margin at close and mid- to high-single-digit adjusted EPS accretion within the first 12 months after closing.