Unilever Share Discussion Threads

[grupo guitarlumber] 26/1/2017 10:34

LONDON-- Unilever PLC disappointed investors on Thursday, warning of a difficult start to the year while reporting lower sales for 2016, driven by slowdowns in refreshments and home care.

Unilever, whose brands include Hellmann's mayonnaise, Dove soap and Ben & Jerry's ice cream, reported a 5.5% rise in net profit from a year earlier to EUR5.5 billion ($5.91 billion) in 2016. But revenue fell 1% to EUR52.7 billion, hit by a negative currency impact of 5.1%.

The company has turned to driving sales growth through price increases in recent quarters, a strategy generally seen as less healthy by investors than boosting volumes since it depends on trading customers up to more expensive products rather than attracting new ones.

Unilever's shares were down 4.4% in Thursday morning trading in London.

Liberum analyst Robert Waldschmidt offered a bearish view on the company, saying Unilever will have to move to shore up volumes by cutting prices in emerging markets despite higher raw-materials costs.

The Anglo-Dutch company, which makes most of its sales from emerging markets, blamed Brazil's economic crisis and the recent demonetization in India for hindering its performance. It logged growth of 6.5% in emerging markets. But it also turned in a lackluster performance in developed markets, where it reported flat underlying sales growth.

Bernstein analysts described the performance by Unilever's personal-care, refreshments and home-care arms as "quite disappointing" in the fourth quarter, noting that only foods--typically a slow-growing business for the consumer goods giant--beat expectations.

For 2016, the personal-care arm reported 4.2% underlying sales growth, roughly flat with the 4.1% reported for 2015. In home care, Unilever reported 4.9% growth, compared with 5.9% last year. In refreshments--made up of tea and ice cream--Unilever reported underlying growth of 3.5%, compared with 5.4% last year. The food arm logged growth of 2.1%, up from 1.5% in 2015.

Write to Saabira Chaudhuri at [e-mail]



(END) Dow Jones Newswires

January 26, 2017 04:33 ET (09:33 GMT)

[miikke] 26/1/2017 10:00

The dividends are attractive despite recent uncertainty

[nimbo1] 07/1/2017 22:08

Its my largest equal individual share holding in my portfolio. Probably a lack of comments as it is a world class company...therefore no need to ever do anything!

[cutlosses] 01/1/2017 20:28

I'm also surprised their is no more interest in this solid profit making, Dividend paying Share.
Their ROCE compares well to most other well known blue chips.
Maybe the lack of interest is because it's simply a buy and hold.

[jdb2005] 01/1/2017 19:31

Surprised there was no entries in December when Unilever started recovering some of its losses. Think the Hair care acquisition is a shrewd move.

[the grumpy old men] 26/11/2016 08:54

Unilever forms partnership with the European Vegetarian Union

By ISN Editorial on 26/11/2016Comments Off on Unilever forms partnership with the European Vegetarian Union
Unilever forms partnership with the European Vegetarian Union

Unilever has established a pioneering partnership with the European Vegetarian Union (EVU) which will see around 500 products printed with the EVU’s well-known V-label on pack. This is the first time such a large collection of brands will be covered by the EVU’s scheme.

Catering for the rising trend in flexitarian and vegetarian eating, the partnership will enable the company to offer its consumers a trusted, European-wide vegetarian standard for its food brands. The uniform labelling means it will be easier and quicker for consumers across the continent to identify which of their much loved Unilever brands are suitable for plant-based diets.

In the UK, household brands such as Hellmann’s, Flora and Knorr will see the EVU’s V-label printed on packs, showcasing these brands as suitable for vegetarians. In fact, Flora, has been tapping into the growing demand for plant-based eating with its ‘Powered by Plants’ initiative since the start of this year. Aimed at educating families on where their food comes from, the initiative recently published research which revealed that 35 per cent of Brits identify themselves as being ‘semi-vegetarian’. This group is predicted to grow by 10 per cent this year1 indicating a clear shift in the nation’s dietary tastes.

Andre Burger, VP Foods, Unilever UK and Ireland said: “Opting for a flexitarian diet is no longer a niche trend but one which has immense mainstream appeal. That’s why through our partnership with the EVU, we want to make it easier for our vegetarian and flexitarian consumers to identify which of our products meet their dietary needs and to encourage more informed and healthier eating choices.”

EVU spokesman, Floris de Graad, says: “This is a landmark moment for the EVU because it is the first time we have been able to partner with a company that intends to bring so many of its products under the V-Label scheme. It is also great news for anyone wanting to reduce the amount of meat in their diet. Now, they simply need to look for our V-label on Unilever’s packaging and they can trust that every product featuring it meets the EVU’s strict definition of vegetarian food.”

By the end of 2017, around 500 of Unilever’s food products will be clearly labelled on-pack with the EVU’s ‘V’ Label. This will support the company’s wider sustainability ambitions as captured in the Unilever Sustainable Living Plan. Specifically, the partnership will contribute towards the company’s ongoing commitment to improve the health and well-being of its consumers and the nutritional quality of its products.

European Vegetarian Union, Unilever

[t999mrb] 14/11/2016 12:33

Strengthening pound will cut raw material and packaging costs for Unilever

[magli] 08/11/2016 00:35

Unilever didn't own Sanex until later that 2006. All down to previous owner and I'm sure they would claim money back.

[keyno] 04/11/2016 11:15

Isn't the current fall rather overdone? The fine will be shared by mega-companies who can always conspire again (or not) and bung up the prices. If they do conspire they might be a bit more clever at it second time round. If they don't conspire they can still bung up the prices.

[joe say] 14/10/2016 08:35

And increased exports - most of which btw go to places other than Europe (which Angela will be delighted about)

[nimbo1] 14/10/2016 08:07

No point overreacting.

Most who have knowledge of the supermarket supply chain says tesco are the nastiest people to negotiate with. Many small business and farmers in the UK have been hurt by Tesco's 'negotiating' practices. At the end of the day this isn't about Tesco standing up for UK consumers it is the beginning of the UK consumer realising what they have done to themselves through Brexit. Im not judging at all by the way - but a simple function of the weaker pound for a consumer economy will be higher prices for everything from marmite to fuel.

[joe say] 14/10/2016 07:22

Bang on xxxxy - no more Marmite or Hellmans in our household from now

[xxxxxy] 13/10/2016 18:11

Unilever has left an unpleasant taste in the mouth. The people now know where they come from. Well done Tesco! Tesco - heroes!

[uncle_sam] 13/10/2016 13:34

Steady on, xxy. Sterling's drop due to Brexit does have real-world costs. Don't be misguided by the Daily Mail's provincialism; its xenophobia and jingoism extends to "Johnny-foreigner" corporations too.

[xxxxxy] 13/10/2016 12:11

Go on Unilever - shove off!

[xxxxxy] 13/10/2016 11:55

Time to stop buying Unilever stuff. Shown their culture of rapacious profiteering. No social consciousness for their customers. And without customers they cease. Their products are largely superfluous anyway.

[joe say] 13/10/2016 10:39

You think they're the ones that are worried !!!!

[redips2] 13/10/2016 08:52

Tesco have been screwing suppliers and small farmers for years now they are getting a taste of their own medicine......

[joe say] 13/10/2016 06:52

Hold firm Tesco

[tonsil] 05/10/2016 21:03

RogerThe Hindenberg disaster was caused by the USA denying Helium to a German owned airship designed solely to work on Helium. They took a chance on reverting to Hydrogen. The rest is history.

[mozy123] 03/10/2016 10:52

P&G - yes they are selling a business to another listed company and have allowed shareholders to covert p&G stock into the stock of the other company