25 April 2024
If you are covering Unilever's latest results, please see the following comment from Chris Beckett, head of equity research at Quilter Cheviot:
“Unilever is on the cusp of a turnaround following a good set of results. The new management has come in and is following the playbook set out by Proctor & Gamble – that is focus on large ‘power brands’ which can help drive growth. It’s early days but so far the strategy is working, and should this trend continue, then Unilever is on course for a re-rating by the market.
“All its categories and regions are doing well, but specifically beauty and personal care are sectors which are seeing long-term structural growth. Unilever is making the correct decision to move away from the commodity like food and nutrition industry, although it should be noted that these products did well despite declining volumes.
“Unilever has had a lot of false dawns previously, but this time it feels there is more coherence behind the strategy. Expectations are low and easily clearable, so should we see this continue for a couple more quarters, momentum will begin to get behind the company once again.”
