Unilever Share Discussion Threads

[acsatix] 10/2/2022 10:23

those that think the way forward is to reduce the number of brands and products on the distribution platform are out of their mind. the opposite is necessary...

the profitability of this kind of businesses improves as more products are sold to customers, not the opposite. So since I am sure magnum, walls, dove etc. are here to stay, they can certainly keep these and add more lines of products along these... to increase share of the same market or other not yet covered markets... and of course geographic coverage expansion in markets where it make sense (not certainly in places that cannot afford or like their products) is key. I also guess that they can find local brands that are leading in some countries and take them global (like SAB miller did with Peroni etc).


the opportunities are infinite, with good management.

[roguetraderuk] 10/2/2022 10:13

not at that money and look at the miserable growth they were buying. gsk might regret not selling. better a bird in the hand...
ulvr needs to concentrate on itself. sell off low margin low growth areas and slim down. then either they or someone else (bid) will improve performance at the remaining divisions. as it is the saving grace for the management is its too big a bite for anyone to swallow whole.

[spoole5] 10/2/2022 10:12

At least they've achieved a lower price to buyback those shares!

[careful] 10/2/2022 10:08

I suppose the big bid for Glaxo consumer was made to exploit Unilever's complex infrastructure, logistics distribution World Wide.

The synergies would have been huge.
The bid was not as crazy as it seemed.

[careful] 10/2/2022 09:59

This company is enormous.
A 50bn euro turnover operating world wide.
The distribution and logistics must be of mind blowing scale.
But then they have a potential market of 7 billion customers.

Our glib armchair solutions to its problems fail to comprehend the scale of the operation.
This is not a corner shop.

the company is going very well.
As always effort to improve and modify such a giant.

I am optimistic that after the recent shambles, minds will be focussed.

[roguetraderuk] 10/2/2022 09:45

yes about 17 and a half times. present management appears to have too much on its plate. too many brands for them. sell lower margin and merge the rest with another group. thats the way forward but clear management would then be out of a job.

[porsche1945] 10/2/2022 09:38

Terminal, another ftse 100 company in perma decline, tired brands, evaporating margin and poor management. Shows the problem of trying to find a bit of yield then losing capital. Pensioner stocks. Sell this and buy Google, this will go nowhere over 12 months Goog will be 3900 by end of year, 4 pc yield in poorly managed dross or over 30pc capital return with usd protection ( sterling in perma decline ). Only hope for this is Nelson brings in outside takeover interest. Break it up and sell it off. Jope is pitiful even by dog index of the world management standard ftse 100.

[essentialinvestor] 10/2/2022 09:29

Forward PE i higher than 14 x.


ULVR report in Euro, need to convert to GBP calculating the multiple.

[careful] 10/2/2022 09:25

Yield 4% forward pe about 13.
share buy back and still growing.

We should manage our expectations properly.
This is a great safe place to park our cash.

Compare to a 10 year gilt.
Ignore market sentiment.

[acsatix] 10/2/2022 09:16

The good part of this business is the food and ice cream. Just cut the costs and this will go up. But they have just scratched the surface here. Portfolio is ok… no need to dispose. Just add more.

[acsatix] 10/2/2022 09:16

The good part of this business is the food and ice cream. Just cut the costs and this will go up. But they have just scratched the surface here. Portfolio is ok… no need to dispose. Just add more.

[npp62] 10/2/2022 08:58

Others in this sector have shown Unilever a clean pair of heels and are starting to leave them behind a little. If you miss earnings the market doesn't like it at all... Management need to get their shizzle together! See you at the 34 GBP club.

[holts] 10/2/2022 08:56

Buybacks , waste of money , more concerned about their bonus , given the market has a low opinion the money is better directly in shareholders pocket.

[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.