July 25 (Reuters) - On Thursday, Unilever (ULVR.L), opens new tab exceeded expectations for its first-half profitability, driven by firm pricing, though its sales growth fell short of forecasts.

Shares of the consumer goods giant, known for making products like Dove soap and Hellmann's condiments, surged by 6.8% during early trading, leading London's FTSE 100 index (.FTSE), opens new tab.

Unilever experienced a 3.9% increase in underlying sales for the second quarter, falling short of analysts’ expectations of a 4.2% rise, according to a company-compiled consensus.

The company maintained its full-year outlook, expecting underlying sales growth to fall within the 3% to 5% range, with the majority of that growth coming from volume gains. Additionally, its forecasted operating margin of at least 18% came in stronger than anticipated by the market.

Similarly, Switzerland's Nestle (NESN.S), opens new tab posted lower-than-projected first-half sales growth on the same day, causing it to reduce its outlook for the year.

“Much work lies ahead, but we are committed to transforming Unilever into a company known for consistently strong performance,” CEO Hein Schumacher expressed in a statement.

Following a prolonged global cost of living squeeze, some consumer goods companies have started dialing back their price increases in an attempt to win back customers who opted for cheaper alternatives, such as private-label items.

Unilever's price growth during the quarter was more modest than anticipated at 1%, but its underlying volume growth exceeded predictions, coming in at 2.9%.

The industry has grappled with rising expenses over the past few years, with costs related to sunflower oil, shipping, packaging, grain, and energy all surging during the pandemic and following Russia's invasion of Ukraine.

Unilever saw its underlying operating profit climb 17%, reaching 6.1 billion euros ($6.61 billion) for the first half of the year, surpassing market estimates of 5.44 billion euros.

The company’s operating margin grew by 250 basis points to 19.6%, although it anticipates this rate of growth will decelerate in the second half of the year.

(Exchange rate: $1 = 0.9226 euros)