Unilever’s best sales decade result lifted the FTSE 100 on Tuesday, with the consumer goods giant leading blue-chip gains as a sharp fall in oil prices boosted global markets.
Brent crude, the international benchmark, fell 6% to $90.98 per barrel after the US said President Trump was pausing strikes on Iran while an Omani delegation led talks to secure transit through the Strait of Hormuz. The retreat followed a run to two-month highs above $100 last week after Iran-backed Houthi forces claimed responsibility for tanker strikes in the Red Sea.
Unilever’s Best Sales Decade Driven by Volume Recovery
Unilever reported underlying sales growth of 3.8% in Q2 2025, its strongest volume quarter in over a decade, according to the company’s Unilever investor relations results release. Growth was split between volume of 1.8% and price of 2.0%, a balance the company has been targeting as it shifts away from pure price-led gains.
For the first half of 2025, underlying sales growth came in at 3.4%, with volume contributing 1.5% and price 1.9%. Underlying operating margin edged up 10 basis points to 20.3%, and free cash flow improved by €0.5 billion to €1.5 billion. Underlying earnings per share for H1 2025 rose 2.4% to €1.61.
Fifteen of Unilever’s 30 Power Brands grew at double-digit rates in Q2, with Dove, Vaseline, Sunsilk, Comfort and Dirt is Good among the contributors. Following the H1 performance, the company upgraded its full-year 2026 outlook.
‘The numbers delivered genuine volume acceleration that suggests the long promised shift from price led to demand-led growth is starting to stick,’ said Adam Vettese, an analyst at eToro.
Barclays Buyback Fails to Reassure Despite Profit Beat
Barclays announced a new £1bn share buyback on Tuesday after Q2 2025 profit before tax rose to £1.9bn, up from £1.7bn a year earlier and above the consensus forecast of £1.72bn, according to Yahoo Finance.
The bank was nonetheless the FTSE 100’s biggest faller on Tuesday morning, shedding 5%. The buyback pushed the CET1 capital ratio to the top of the 14.0% target range, from 14.3% at end-2025, according to a note from Hargreaves Lansdown.
Investment banking income growth accelerated to 20% in Q2, driven by a 45% uplift from equities trading. The interim dividend nearly doubled to 5.9p per share. But the profit mix drew scepticism.
‘The indifference may lie with the mix of earnings and concerns over quality rather than quantity, as the investment bank provided the bulk of the upside profit surprise while the sale of an American Airlines co-branded credit card operation and the acquisition of Best Egg gave a bit of a messy feel to the numbers,’ said Russ Mould, investment director at AJ Bell.
Hormuz Diplomacy Keeps Oil in Focus
The Strait of Hormuz remains the central variable for oil traders. The US and Iran signed a memorandum of understanding in June to open the strait to commercial shipping, but the deal collapsed as fighting broke out over which routes vessels could use, according to CNBC. Negotiations on an interim arrangement, under which inbound ships would transit Iranian waters while outbound vessels would sail through Omani waters, were still under way, CNBC reported, citing regional sources.
Any breakdown in those talks would likely put upward pressure on crude prices again, testing the relief that drove Tuesday’s equity gains across global markets.
