Unilever ADR

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 had mid-single-digit growth. Carver’s performance was not up to the mark due to reduced Chinese consumer demand and difficulties in cross-border trading. Magnum and Cornetto are also in excellent condition with double-digit growth. Unilever continues to be quite positive about the future and potential of its ice cream company. Among other updates, the company has stopped selling tea internationally. Besides that, Unilever announced its intention to join the International Collaboration on Cosmetics Safety. This alliance will promote innovation in cosmetics, personal care products, and chemicals made without using any animal products. Overall, they entered 2023 with strong business performance. We give Unilever a ‘Hold’ rating with a revised target price.