Unilever Share Discussion Threads

[cwa1] 17/1/2022 07:48

Seen a few broker comments this morning, on average they are suggesting a 5%ish drop in share price for ULVR on the news. We'll soon see how accurate their guesses are...

[1nf3rn0] 17/1/2022 07:24

Unilever PLC17 January 2022Unilever updateLondon, 17 January 2022. The management and Board of Unilever are committed to accelerating the company's growth and repositioning the portfolio into higher growth categories. As a result of the reporting of Unilever's interest in GSK Consumer Healthcare, we are today bringing forward a planned update, setting out the strategic direction that the company is pursuing.Unilever's strategic directionFollowing the unification of Unilever, the Board has undertaken an extensive process to review strategic pathways to reposition Unilever's portfolio into higher growth categories.This concluded that Unilever's future strategic direction lies in materially expanding its presence in Health, Beauty, and Hygiene. These categories offer higher rates of sustainable market growth, with significant opportunities to drive growth through investment and innovation, and by leveraging Unilever's strong presence in emerging markets.The Board also concluded that major acquisitions should be accompanied by the accelerated divestment of intrinsically lower growth brands and businesses. This would provide funding and enable separation dis-synergies to be offset by acquisition synergies.Unilever is committed to strict financial discipline to ensure that acquisitions create value for shareholders. The company benefits from a strong balance sheet and cash generation, and remains committed to maintaining an A-band credit rating. Following any acquisition, the company would target a return to current levels of gearing over the short to medium term.Consumer Health is an attractive strategic optionConsumer Health is a highly complementary category for Unilever, with good potential for synergies and a number of routes to build scale.GSK Consumer Healthcare would be a strong strategic fit. 45% of GSK Consumer Healthcare is in Oral Care and VMS - categories in which Unilever already has presence and substantial capabilities. OTC would be an attractive adjacent category, with the ability to combine Unilever's consumer and branding expertise with GSK Consumer Health's technical OTC capabilities. The acquisition would create scale and a growth platform for the combined portfolio in the US, China, and India, with further opportunities in other emerging markets.We believe that this would be an attractive and synergistic combination for the shareholders of Unilever, which would also deliver value and certainty for the shareholders of GSK and Pfizer.Accelerating operating performanceAs well as addressing its long-term strategic direction, Unilever has been focused on accelerating growth within the existing business. A series of initiatives have been implemented to enhance operating performance. These include increased focus on operational excellence to improve market competitiveness, and aligning resources to five clear strategic choices. We have also strengthened our portfolio through the establishment of fast-growing new businesses of scale in Prestige Beauty and Functional Nutrition, and the divestment of Spreads and Tea.Later this month we will announce a major initiative to enhance our performance. After a comprehensive review of our organisation structure, we intend to move away from our existing matrix to an operating model that will drive greater agility, improve category focus, and strengthen accountability.During 2021 we started to see the results of the operational initiatives in our growth momentum, despite the challenges in our markets posed by the Covid pandemic. At the trading update in October, Unilever reported Q3 YTD growth at its fastest rate for eight years. We will update on our performance for Q4, and the full year, on February 10th.The management and Board of Unilever remain focused on continuing to build momentum across the business and reshaping the company for a strong and sustainable future.ENDS

[marksp2011] 17/1/2022 07:14

"including likely cost savings of a billion pounds a year."

LOL

A 10% cost saving from taking and integrating the GSK brands into the ULVR machine?

Cost takeout would be closer to 40% over 3 years. All ULVR needs is the brands and the manufacturing. They will be able to integrate the manufacturing over time

[philanderer] 17/1/2022 00:50

Unilever faces £14bn hurdle to sweeten Glaxo bid

[essentialinvestor] 17/1/2022 00:44

Marked down at the open would expect.

Reports they are in talks with banks about
Financing a higher offer - would be very
surprised if the market reacts well to this.

[justiceforthemany] 16/1/2022 23:43

The City have known for a while you can be sure of that. Significant boost in profits and EPS; yes added debt but prospect of 'growth' usually adds a higher multiple to the P/E ratio.

[pander45] 16/1/2022 22:43

Yes, tomorrow will be interesting, I'd say it's been around the city for some time though, a worst kept secret probably. As usual.

[philanderer] 16/1/2022 19:17

Yes, I hold roughly the same in both as well. Haven't a clue how the market will react tomorrow.

[bogman1] 16/1/2022 15:51

I hold both. Looks like gsk will do better out of this than uni. Just hoping it weighs in my favour!

[riskonricky] 16/1/2022 15:34

I think this is exactly what is happening here. Merger complications can be blamed for underperformance for another three years meanwhile the seven figure salary keeps rolling in.

[careful] 16/1/2022 15:12

ULVR and GSK are both working hard to improve performance.

Mega deals are such a distraction, they allow the senior directors to appear to justify their salaries and avoid the more difficult and less glamorous task of running the business.

They rarely work out.

[careful] 16/1/2022 12:46

Boring companies did someone say?
Bring it on, boring is the place to be right now.

You can keep crypto, fangs Tesla Scottish mortgage....give me GSK and ULVR

New lamps for old did not work out for Alladin.

[justiceforthemany] 16/1/2022 12:37

Almost certainly the market makers and hedge funds would have been informed of this possible deal weeks ago and probably why the share price has gone nowhere for months now. Late rise into the close Friday.

[montyhedge] 16/1/2022 11:57

A boring company bids for another boring company, that's why GSK unloading it.

[justiceforthemany] 16/1/2022 11:48

The fact it has been rejected is good news for Unilever shareholders. I doubt the largest stakeholders would approve such a deal anyway.

[spoole5] 16/1/2022 11:06

This will get a serious markdown in the morning. The thought of this inept management undertaking a deal of this magnitude will not be well received.

[shieldbug] 16/1/2022 10:20

Trouble is most Unilever customers don't speak English. Something incomprehensible to many Unilever shareholders who remain bogged down in the minutiae of marmite, wokeness and the evil doings of Ben & Jerrys. Narrative eats fundamentals.

[shieldbug] 16/1/2022 10:13

The whole point of the deal seems to be to take a portfolio of slow growing developed world brands and sell them into the emerging markets.

[careful] 16/1/2022 10:09

Synergies will be huge.

[saltaire111] 16/1/2022 09:37

Purp - I think you’ll be waiting a long time to get your cash back at that level. They’ve already offered more than the consensus valuation for GSK’s consumer unit and GSK has turned it down because they know Jope will come back with more. My view is that this is absolutely the WRONG thing to do. They’ll overpay, and within six month of it completing they’ll discover that what they’ve bought is worth about half what they paid. The share price will crater as a result and then Unilever will become the target of a cheapskate take-out by Berkshire. I can see it happening...

Salty.