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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 10 professional analysts.
AFC has made strong progress with products and its manufacturing strategy. Despite heavy investment, the cash position, at £27.4m, was slightly better than our estimate for £26.9m, demonstrating good discipline. The monthly cash burn rate (at c. £1.3m) is tracking in-line with our expectations. Generally, we maintain our estimates for significantly increased sales in FY24e and FY25e, with the cash position unchanged. Recent news on commercial progress has been positive. The 30kW H-Power Generato
Companies: AFC Energy plc
Zeus Capital
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
The group’s year-end update flags trading ahead of expectations, achieved by strong growth in its Systems division, with the earlier than expected delivery of a NATO contract just prior to the year-end that pulls forward profit into FY24 making it a record year. Components continue to see a normalisation of orders and slower demand as previously flagged. Order cover is strong and further opportunities in the defence/security sector are leading to investment in Integrated Systems capabilities. Re
Companies: Solid State plc
Cavendish
Today’s trading update confirms FY24E profitability above the top end of previously guided range, with positive trading momentum building into FY25.
Companies: Revolution Beauty Group plc
2023 was a challenging year for Tandem, with cost-of-living pressures impacting demand for many of the group’s products. This led us to downgrade our forecasts several times during the year (including in December), and today’s results are largely in line with those revised projections – revenue -17% YoY to £22.2m and an adj. LAT of -£1.0m (our forecast of -£0.9m). FY24E looks more positive, however: economic pressures are easing for consumers (inflation is falling, interest rate cuts are expecte
Companies: Tandem Group plc
Solid State is a specialist value added component supplier and design-in manufacturer of computing, power and communications products. This morning, the group has provided a trading update for the year ended 31 March 2024, reporting the earlier than expected delivery of specific contracts within its Systems division and resulting in the group's FY 2024E revenue and PBT outturn anticipated ahead of our forecasts, with a commensurate decrease in our FY 2025E estimates. The delivery of these contr
Companies: FOG TND BVXP ACC HDD
Encouraging FY23 results from SPSY this morning show profits and cash a touch ahead of expectation and position the company well for a year of strong growth in FY24E. SPSY leads the market in machine-readable high speed banknote authentication, brand protection technologies and gaming security software. The company grew the business robustly in FY23 (PBTA +6%, EPS pared by increased tax payments, progressive DPS), building on a decade of double digit CAGR; and closed the year with the transfor
Liberum
Companies: LPA SOLI NANO QTX
Finals from the leader in machine-readable high-speed bank note authentication, brand protection technologies, security printing, and gaming software, in line. FY23’s stand-out feature was December’s acquisition of Cartor Holdings, the security printing business. As discussed at the time, this has moved Spectra’s Fusion polymer substrate proposition substantially forward, strengthens its competitive position and provides access to state of the art manufacturing facilities. Extending up the suppl
Allenby Capital
While revenue fell short of expectations due mainly to self-tan weakness, progress on margins, cost synergies and efficiency enabled BAR to deliver a reduction in H1 losses. While growth and profitability in other high margin brands has progressed, Skinny Tan trading is not expected to improve until next year. With synergy benefits having mostly annualised, lower sales forecasts impact the timing of the inflection to profit. We now assume losses both this and next year, albeit net cash is mostly
Companies: Brand Architekts Group plc
Singer Capital Markets
Companies: Portmeirion Group PLC
Shore Capital
Dowlais Group’s first set of results were ahead of our expectations, with positive cash generation a highlight despite restructuring and demerger costs. Softer automotive markets will limit margin progress in FY24 towards the double-digit target. Despite this, margins of c 6.5% are still ahead of automotive peers, although the shares trade at a significant discount to our implied generic peer-based valuation.
Companies: Dowlais Group PLC
Edison
Companies: IG Design Group plc
Canaccord Genuity
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