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ULVR will likely be extremely cautious prior to engaging in any notable M&A activity, especially post the fiasco of GSK/HLN bid attempts by the previous ULVR CEO Alan Jope which probably cost him his job!
In general this is good news, they are doubling down on the strongest and hopefully most profitable brands, and getting rid of some of the excess or less well performing ones. The key is these disposals will impact revenue, but if we get some cash for them and can deploy the cash in better places then great. Now it will be interesting to see when the cash hits the balance sheet where it might go, capex? other m&a? buyback? debt pay down?
"Consumer goods giant Unilever (ULVR.L) on Monday said it would sell Elida Beauty, its non-core beauty and personal care division, to U.S. private equity firm Yellow Wood Partners.The financial terms of the deal, expected to be completed in mid-2024, were not disclosed. Elida's portfolio comprises of more than 20 beauty and personal care brands including Q-Tips, Brut, Caress, Timotei and Tigi and the business generated about 800 million pounds ($1.02 billion) in revenues in 2022."
https://www.reuters.com/markets/deals/unilever-sell-elida-beauty-yellow-wood-2023-12-18/
Anyones thoughts on this and how this will change the business/share price
During the crazy period with Jope the dope, Unilever went on a spree of acquisition of minor brands with the short sighted hope to turn them into multibillion established brands. Crazy how they forked out 1 billion pounds for Dollar Shave Club, which turned into a failure and the fresh management had to clean up the mess by selling it off at a loss.
I trust the new management, no more purpose to brands, no more woke culture, no more crazy acquisitions of small brands, most of which belong to oblivion.
I expect Ben and Jerry's to be sold off in due time, the Ben and Jerry's independent management has only given ice-cream headaches to the parent company. Overpriced products, despite the recipe may be considered good, customers can't digest it due to the politics packaged in it.
Schumacher starting to implement his plan to concentrate on key areas. Seems he is happy that there are better places to have the companies investment.
Unilever in advanced talks to sell Elida Beauty to Yellow Wood-sources
https://www.reuters.com/markets/deals/unilever-advanced-talks-sell-elida-beauty-yellow-wood-sources-2023-12-14/
In City AM, Nick Train said he has recently added more ULVR shares as he thinks they look underpriced
Shares were trading at 50 pounds per share in 2019, how did the market get that sort of valuation back then? maybe lack of opportunities in the market. In 2022 pretax profit were 25% higher and the share price is now 25% lower.
New ULVR Chairman to start on 1 Dec, hopefully along with the recently appointed CEO, we may start to see some green shoots here from next year.
Taken 200 shares here this morning - Vastly underrated IMO.
Q4 sales year on year are forecast to show an increase in excess of 5% for this present trading year.
Looking at the dividend cover/PE ratio a Q4 Dividend of around 40p a share is easily payable however my remark was "hoping for" that amount and not " expecting"..
At the end of the day with a new CEO in place we do not know what his strategy is regarding dividends.
GLA
Not that much of a breaking news, but published as one, I guess.
Note: The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
https://www.reuters.com/breakingviews/brandings-corporate-titans-face-moment-truth-2023-11-22/
Is it the end of brands for food, beauty, consumer goods in general?
I don't like ice creams in general that is why I cannot really tell the difference.
I am under the impression this is going to get much cheaper. Till the next set of results in February
To be fair to Unilever, most of the other Magnum type ice cream lollies pale in comparison, and therefore should be far cheaper.
Unilever is starting to look like a buy as the share price drops below 3800p
The people in Unilever are the same, what changed is the top management and the reshuffle in the management.
I cant wait to see what the strategy will bring about. I am not surprised Unilever suffered from volume declines in Europe, the price hikes were brutal. A pack of 4 magnums sells for £1.60 more than the supermarkets own labels
It all depends on the new Unilever team and of course status of the global consumer!
What does suggest that it may be 40p per share in Feb24?
Trading x div today. Another 37.15p per share on the pot.
Final results Feb 2024 should be interesting.
Hoping for Q4 dividend of 40p per share.
Happy days
GLA
ULVR needs fresh blood, Alan Jope's tenure did nothing for the share price, new CEO now probably needs a year or more and if he fails to make major constructive impacts here then it'll be downhill for while, time will tell.
Unilever is one of the few dogs that have not benefitted from yesterday's stock market uplift. It will take at least a 2 to 3 quarters to see results, if any, from the changing strategy in Unilever.
I hope the share price can reach £60 in the next few years. The share price has gone no where for way too long.
It goes ex-dividend every three months and nothing ever happens to the share price
Hi,
Goes xd this week. Hoping for a good run from here into the New Year.
GLA
Thanks Trojan
"Things might not get better quickly but Barclays feels confident that there is urgency and clarity in the new CEO’s plans, even if the content of the plan was not new."
How slowly will things get better is the question. Barclays forecast £46 as a share price. That would be a good start for a 1-year target.