Unilever (LSE: ULVR) shares have suffered from all the global turmoil happening in 2026. The price has crashed more than 20% from February’s high. And we’ve had a 16% drop over the past 12 months.
But first-quarter results released Thursday (30 April) make me think this could be one for cool long-term heads to consider. So what were the highlights? They include:
- Underlying sales growth of 3.8%.
- Full-year outlook for 4%+ sales growth.
- New €1.5bn share buyback.
Long-term strength
Currency effects did result in a 3.3% fall in total turnover, coming in at €12.6bn. But that 3.8% underlying growth in sales value was made up of a 2.9% volume increase — and only 0.9% in price rises. I rate that as a solid sign of Unilever’s long-term strength.
I’m thinking Unilever shares have what it takes as a defensive investment. The key is that the company has such a wide range of product lines covering so many essential categories. And its international reach provides geographic defence against localised disruption.
Actually, considering the worldwide fallout from the Middle East crisis, I’d say this quarter shows superb global resilience. I think it’s summed up by the opening words from CEO Fernando Fernandez.
We have started the year well with volume-led growth driven by our Power Brands and a positive performance across all business groups. There is broad-based momentum across our emerging markets business, with a strong performance in India, and a good recovery in Latin America following the decisive actions we have taken in that region.
Buyback too
The new €1.5bn share buyback shows how much surplus capital Unilever is throwing off, even in times of economic pressure. It’s starting right away, and management intends to complete it by July.
And looking forward, Unilever expects to return a total of €6bn in buybacks between 2026 and 2029. We’re also looking at a full-year dividend forecast at 4.1%, which is pretty decent. And future repurchases should help keep per–share measures like the dividend yield going.
Do Unilever shares sound like the kind of thing it would be nice to tuck away in a Stocks and Shares ISA and just forget for a couple of decades? Diversification is a vital part of long-term investing. And I reckon Unilever could be considered as a cornerstone for any ISA, whatever an investor’s main strategy.
Uncertain year?
One thing does count against it at the moment. And that’s uncertainty over the upcoming sale of the company’s foods business to McCormick. It’s not expected to conclude much before mid-2027. And that’s if a shareholder vote, regulatory approvals, and other formalities work out.
Is it a mistake? And will Unilever get enough cash from the transaction? Investors do appear split over the deal. Forecasts did show solid earnings growth in the next few years — but the foods disposal means they’re up in the air now.
Investors should expect some volatility, I think. But with Unilever shares lowly valued compared to historic averages, now could be a great time to consider adding some to your long-term ISA holdings.
