ulvr27 Oct 2012 00:06
Unilever yesterday announced that it is cutting costs. But it is not the only one, The Financial Times Lex column explains. Colgate Palmolive also said that it planned to cut 6 per cent of its workforce as part of an effort to save 40m dollars a year. Investors have warmed to Unilever of late, despite difficulties in its food business in Europe, where it got the price of its spreads wrong. The shares are up 11 per cent in the past year and have closed the traditional valuation discount with Procetr&Gamble. Both now trade on 18 times forecast earnings, which will be enough to put some shoppers off. But disappointments are growing in the consumer goods sector, and Unilever is one of the few companies to avoid them, so it is well worth putting some in the basket