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Although the overall results hit the mark, the disappointing performance in volume-mix and Business Winning MAT leaves much to be desired. Unilever’s ambitious drive for growth and profitability is appreciated, yet the latest update from the new CEO didn’t quite dazzle.
Companies: Unilever PLC
AlphaValue
The Q2 performance beat has been welcomed by the market with the stock up by 5.10% over the day. The driving forces behind this exceptional performance were the strong pricing power and better-than-anticipated volume resilience, particularly evident in the Beauty & Wellbeing and Personal Care segments, which constitute 43% of the group’s turnover. The FY outlook has been revised upward.
Above our expectations, Unilever’s pricing drove Q1 growth, while volume remains under pressure (Nutrition and Ice Cream). Unilever remains confident in its ability to deliver at the upper end of its guidance.
Unilever had a decent performance in 2022. It achieved underlying sales growth of 9.2% and a fair level of operating margin aligned with expectations despite the volatile period. It surpassed the revenue expectations of Wall Street in the last quarter. Prestige Beauty delivered outstanding double-digit growth with a strong performance by Paula's Choice. Hourglass, Tatcha, and Living Proof also had a strong quarter. Health & Wellbeing maintained double-digit growth, while the skin care segment ha
Companies: Unilever PLC Sponsored ADR
Baptista Research
We welcome the transparency by the group, which has laid out the scenario we already had in mind: volumes still at risk and margin pressure. Nothing new, but the warning is all the clearer when it comes from a food giant.
The FY sales guidance was upgraded but we are not convinced as we expect the difficulties to be felt very soon. We continue to expect Food players to be the most impacted by lower consumer disposable incomes.
This is our first report on global consumer goods giant, Unilever. The company had a decent performance in 2021 and its growth continues to build in its first-half performance. Due to the company’s prompt pricing in reaction to severe commodity inflation, it has been able to keep investing in its brands. More than 80% of their revenue comes from brands whose power is consistent or increasing, demonstrating the strength of their brands. Unilever also uses its extensive market experience to deal w
Reassuring update, given still low elasticities, and FY sales guidance increased. However, we continue to keep a cautious eye on the company for the next half given consumers’ changing habits which should become tougher in the coming weeks.
A Q1 beat but we note above all that volumes are under pressure and that the FY guidance has been revised downwards. We remain cautious for the moment.
“Dramatic costs inflation” led the company to expect the FY22 margin to be down by between 140bp and 240bp. What a surprise, when the consensus was expecting -10bp, and us -30bp. The guidance obviously brings negative sentiment to other FMCG players.
Unilever’s bid for GSK’s Consumer HealthCare division is causing a stir, as it seems totally unreasonable. The group was asked to move on portfolio rotation, but definitely not to be so ambitious at the risk of penalising shareholders.
Mixed feelings following the Q3 results: the maintained FY margin guidance reassured in the current inflationary environment, but the Q3 volume decline raises questions about the trade-off between pricing and volumes.
Q2 results were roughly in line with expectations. With little surprise, the FY21 margin outlook was cut given the price uncertainties of the raw materials. This is the first bad signal for the sector.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Unilever PLC. We currently have 0 research reports from 11 professional analysts.
Companies: CML FDEV NRR SSPG RMV AO/ ZIN
Shore Capital
Companies: CPH2 ITM CNA AFC DRX IKA CWR CHAR IES AT/ HE1 ATOM
Liberum
Solid State’s trading update affirms the sustained strength in demand throughout H224, resulting in record FY24 revenue and adjusted PBT ahead of prior consensus of £155m and £12.5m, respectively. This is attributable to the earlier-than-expected delivery of a NATO contract. As a result, consensus FY24 revenue and adjusted PBT estimates have been raised by c 6% and c 20%, with respective FY25 estimates declining commensurately.
Companies: Solid State plc
Edison
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
Zeus Capital
Gooch has issued a positive update for H1. Trading has started to recover with stocking levels normalising at industrial and medical devices customers. The outlook is positive with growth returning, and management has confirmed our full year estimates (adjusted for the disposal of EM4). The order book and order flow appear healthy, and net debt is comfortable. Gooch clearly still has plenty to do to lift operating margins from a lacklustre 8.1%, but the transformation plan appears to be back on
Companies: Gooch & Housego PLC
Surface has issued a brief Q1 update. Production will ramp-up this year as final new equipment is installed, and manufacturing teething problems recede.
Companies: Surface Transforms PLC
We note the regulatory announcement this morning from Surface Transforms and withdraw our estimates and valuation, pending conversations with management.
Spectra Systems (SPSY) has an excellent record in growing profits through its highly regarded technology and relationships with key clients, which include a prominent global central bank. Now, the company is ready for the next stage, and we see the acquisition of Cartor Security Printers as a game-changer in enhancing its ability to continue, and potentially accelerate, this momentum, even as it continues to benefit from a near-term, multi-million-dollar sensor refresh programme with a long-term
Companies: Spectra Systems Corporation
WHIreland
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Cavendish
Surface Transforms has issued new revenue guidance for FY24, with the company now expecting revenues in the range £17.5-22m. We are withdrawing our previous forecasts for FY24 and withdrawing our price target while we review the impact of the new guidance.
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