By Aimee Look

Unilever booked a rise in underlying sales in the first quarter, as it carries out its largest portfolio shuffle yet.

Underlying sales for the Dove soap-maker rose 3.8% on year in the quarter, above company-compiled analyst estimates of 3.6% growth.

The behemoth struck a deal with spice-maker McCormick around a month ago to combine their food businesses and form a new company valued at around $65 billion including debt.

The cash-and-stock deal is expected to give Unilever shareholders a 65% stake in the new business, which hasn't been particularly well-received by some European investors amid reluctance surrounding exposure to leveraged U.S.-listed food assets.

Unilever's deal with McCormick, separating out its food business, is part of its larger strategy shift to hone in on beauty, personal-care and home products. Under new boss Fernando Fernandez, who took the helm last year, the legacy business has gotten a makeover. Unilever has replaced a slew of leaders and cut its white-collar workforce as part of a broader restructuring effort.

Mimicking the moves of many consumer goods conglomerates seeking to slim down their businesses, Unilever in the past few years has shed food brands, spinning off of its ice-cream arm into Magnum Ice Cream, selling off its tea business and divesting its margarine and spreads brands.

Turnover for the quarter fell to 12.6 billion euros ($14.71), down 3.3% on year, largely in line with analyst expectations.

Unilever said it expects underlying sales growth to come in at the bottom end of its multi-year guidance of 4% to 6%.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

April 30, 2026 02:25 ET (06:25 GMT)

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