Unilever (ULVR) Stock Analysis Review – How Many Unilever Brands Do You Use Without Realising?
Unilever recovered its pre-crisis sales growth target, which did little to inspire investors looking for even more ambition from the company amid strong consumer demand for food and home care products..
In ben & Jerry&# 39; s announced their intention to pinpoint sales growth at the highest level. The company plans to invest in 2021 and 2022 € 1 billion in each of the in-demand areas, including e-commerce retail, herbal food and beauty products..
This would help Unilever meet its long-term baseline target of 3% to 5% sales growth, restoring its previous forecast set in 2020, which had to be pushed back in April due to uncertainty over the coronavirus pandemic..
Unilever shares slipped by about 4% in the past auction.
«Even though we are close to reaching the target range of 3-5% in 2020, this is not enough to satisfy the wishes of investors», – said the CEO of Unilever Alan jope.
Jope also noted that the company will focus on acquisitions in the areas of hygiene, cosmetology, functional nutrition and plant foods..
Rival group P&G last month raised its FY2021 sales growth forecast to a range of 5% to 6%, mainly on the back of a likely successful first half.
The coronavirus pandemic has boosted sales of products from companies such as Unilever, Nestle and Kraft Heinz, as well as a sharp decline in demand for products for beaches, restaurants and other public places..
Chief Financial Officer of Unilever Graham pitketly suggests food service businesses will continue to suffer in Europe, where a surge in new infections has led to repeated lockdowns.
«Looking ahead, the group sees a return to more predictable sales growth as we expect a significant easing of the pandemic by the end of this year.», – said Steve clayton, Hargreaves Lansdown Fund Manager.
«The ongoing restructuring to further position Unilever towards digital commerce will hold back profits in the near term, possibly explaining the lack of enthusiasm among market participants for the company.», – he added.
Unilever posted 1.9% year-on-year sales growth in line with market estimates. Emerging Markets Sales Up 1.2%.
China returned to growth in the second quarter as domestic restrictions were eased in a timely manner while India began to recover in the third quarter.
«The slowdown in emerging markets growth in the fourth quarter is the main reason why our forecasts did not materialize», – by Jefferies analysts. Brokerage firm expected fourth-quarter baseline sales growth of 4.4%.