Unilever Share Discussion Threads

[nick100] 10/2/2022 08:56

Alliance News) - Consumer products maker Unilever on Thursday hailed the progress of its restructuring programme, as the under-fire firm launched another large share buyback programme and promised to make no major acquisition in the "foreseeable future" after its failed tilt at the GSK Consumer Healthcare business.

In January, Unilever announced major changes to organisation to make it simpler and more category-focused. The company will be organised around five category-focused business groups, each responsible and accountable for their strategy, growth and profit delivery. The new organisation is expected to generate around EUR600 million of cost savings over two years, it said.

For 2021, Unilever generated revenue of EUR52.44 billion, up from EUR50.72 billion in 2020. The figure was higher than the company-compiled consensus forecast of EUR52.11 billion. Pretax profit rose to EUR8.6 billion from EUR8.0 billion the year prior.

Underlying pretax profit was EUR9.6 billion, up from EUR9.4 billion in 2020. Underlying sales growth was 4.5% in 2021, beating the consensus estimate of 4.3%.

Unilever declared a quarterly dividend of EUR0.4268 per share, which results in 3% dividend growth for 2021.

The company also said it will conduct a share buyback programme of up to EUR3 billion over the next two years, which it expects to commence in the first quarter. This matches the amount of share buybacks the company completed in 2021.

Looking ahead, Unilever expects underlying sales growth in 2022 in the range of 4.5% to 6.5%. It also expects high input cost inflation in the first half of over EUR2 billion. This may moderate in the second half to around EUR1.5 billion, it noted.

Unilever is facing pressure from activist investors, after a failed attempt to buy the consumer healthcare arm of drugmaker GlaxoSmithKline for GBP50 billion.

"We have engaged extensively with our shareholders in recent weeks and received a strong message that the evolution of our portfolio needs to be measured," said Chief Executive Officer Alan Jope.

"We therefore do not intend to pursue major acquisitions in the foreseeable future and will conduct a share buyback programme of up to EUR3 billion over the next two years."

Unilever shares were down 3.3% early Thursday.

[big7ime] 10/2/2022 08:50

ULVR is one of the safest investments in inflationary times, eps up 5%
bought some more this am
Thanks mms for misjudging this

[essentialinvestor] 10/2/2022 08:36

I'll take that )

[spoole5] 10/2/2022 08:33

Could end blue!

[roguetraderuk] 10/2/2022 08:29

activists want in as low as poss. any wipeout bid is unlikely given the size and what needs to be paid today. but in six to twelve months the offer can be lower esp if share price dwindles. any buyer for even just parts of it needs to be able to squeeze out returns on top of the offer price.

[wad collector] 10/2/2022 08:22

I do love the phrasing
"We have engaged extensively with our shareholders in recent weeks and received a strong message that the evolution of our portfolio needs to be measured."

Well that is one way of putting it...

[spoole5] 10/2/2022 08:21

There will be more activist shareholders soon. Collectively they will force change

[spoole5] 10/2/2022 08:20

Need to get rid of the management first

[roguetraderuk] 10/2/2022 08:19

33 quid is where i am looking at. theres no reason for the shares to have any support where they are now on a business case. you can only look to corporate action but thats not a given here.

[roguetraderuk] 10/2/2022 08:17

sell the food division then let one of the jnj spin offs pick you up. shareholders get a bid while jnj unit gets to improve margins and boost their own shares. everyone happy. theyve got time to do this before the jnj splits come through. its all easily doable.

[careful] 10/2/2022 08:16

solid.
good growth in India China important.
a share for widows and orphans.

[essentialinvestor] 10/2/2022 08:14

Added a small amount at 36.77, under 36 would not be a shock given the last few weeks.

[unastubbs] 10/2/2022 08:13

the only thing I would add to rouguetrader's summary is that they appear to be borrowing money to pay for the buybacks. net debt increased last year... very disappointed.

[roguetraderuk] 10/2/2022 08:12

lap, read my earlier comments. then compare to p&g latest quarter.

[plunger2] 10/2/2022 08:10

No future for Jope.
Burying the margin comment is childish.
He'll be taking a Peltzing in due course.
SP action totally predictable. Someone else could do better with the portfolio.

GLA

[laptop15] 10/2/2022 08:10

Thought results looked OK? Yet its down? Any thoughts to why??

[roguetraderuk] 10/2/2022 08:08

costs are going up so we are raising prices but because our brands have lost value we will lose sales volume. but we will spend money by buying back shares rather than try to invest in the brands to make consumers more aware of them again. in a nut shell.

[essentialinvestor] 10/2/2022 08:02

YUp, it's the margin and volume comment that is the focus.

[nick100] 10/2/2022 08:01

Dividend 36.02p ex dividend 24th Feb payment date 22nd March 2022

[spoole5] 10/2/2022 08:01

And there's your answer! Jope has to go.

[roguetraderuk] 10/2/2022 07:50

margins margins margins. p&g ate their lunch. buyback to try to appease mkts.

[essentialinvestor] 10/2/2022 07:38

Think it's the margin and volume comment the market may choose to focus negatively
on, but who knows and find out very shortly.


Would expect calls for leadership change to ramp up aggressively over the next week.

[nick100] 10/2/2022 07:33

BFW 02/10 06:59 Unilever 4Q Underlying Sales Beats Estimates
RNS 02/10 06:59 Unilever PLC ULVR Final Results
BN 02/10 06:59 *UNILEVER 4Q DIV/SHR EU0.4268
BN 02/10 06:59 *UNILEVER 4Q UNDERLYING SALES +4.9%, EST. +3.56%
BN 02/10 06:59 *UNILEVER 4Q UNDERLYING PRICING +4.9%, EST. +4.9%
BN 02/10 06:59 *UNILEVER FY ADJ. OPER PROFIT EU9.64B, EST. EU9.51B
BN 02/10 06:59 *UNILEVER ANNOUNCING FURTHER €3B PROGRAM FOR 2022-2023
BN 02/10 07:00 *UNILEVER 4Q UNDERLYING SALES +4.9%, EST. +3.56%
BN 02/10 07:00 *UNILEVER: MAJOR CHALLENGE OF '21 DRAMATIC RISE OF INPUT COSTS
BN 02/10 07:00 *UNILEVER ANNOUNCES FURTHER EU3B BUYBACK PROGRAM FOR 2022-2023
BN 02/10 07:01 *UNILEVER: IN 2022, WILL MANAGE SIGNIFICANT INPUT COST INFLATION
BN 02/10 07:02 *UNILEVER: SEE UNDERLYING SALES GROWTH IN 2022 OF 4.5% TO 6.5%
BN 02/10 07:02 *UNILEVER SEE VERY HIGH INPUT COST INFLATION IN 1H OF OVER €2B
BN 02/10 07:05 *UNILEVER SEES VERY HIGH INPUT COST INFLATION IN 1H OF OVER EU2B



Unilever 4Q Underlying Sales +4.9%; To Buyback Further EU3b
2022-02-10 07:08:26.670 GMT


By Sarah Jacob and Bloomberg Automation
(Bloomberg) -- Unilever reported underlying sales for the
fourth quarter that beat the average analyst estimate.
FOURTH QUARTER RESULTS
* Underlying sales +4.9%, estimate +3.56% (Bloomberg Consensus)
* Underlying pricing +4.9%, estimate +4.9%
* Dividend per share EU0.4268

2021 YEAR RESULTS
* Underlying EPS EU2.62, estimate EU2.49 (range EU2.42 to
EU2.56)
* Revenue EU52.44 billion, estimate EU52.03 billion (range
EU51.13 billion to EU52.36 billion)
* Adjusted operating profit EU9.64 billion, estimate EU9.51
billion (range EU9.4 billion to EU9.6 billion)
* Adjusted operating margin 18.4%
* Operating profit EU8.70 billion
* Free cash flow EU6.39 billion

COMMENTARY AND CONTEXT
* Announcing Further €3B Program for 2022-2023
* Major Challenge of ‘21 Dramatic Rise of Input Costs
* In 2022, Will Manage Significant Input Cost Inflation
* See Underlying Sales Growth in 2022 of 4.5% to 6.5%
* See Very High Input Cost Inflation in 1H of Over €2B
* Rules Out Major Acquisitions in Foreseeable Future
* Sees input cost inflation may moderate in the second half to
around €1.5 billion, although there is currently a wide range
for this that reflects market uncertainty on the outlook for
commodity, freight and packaging costs
* 2022 underlying operating margin is expected to be down by
between 140bps and 240bps, so maintained between 16% and 17%,
with the first half impacted more than the second half. We
expect margin to be restored after 2022, with the bulk coming
back in 2023 and the rest in 2024