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 with inflation. Maintaining competitive brand support levels will be a top priority as they proceed through the second half and into 2023. The portfolio must be moved towards areas with stronger growth rates, which is their second strategy pillar. During the quarter, Unilever acquired Nutrafol, a top brand for hair growth that dermatologists suggest in the U.S., supported by very strong clinical data and free from the troublesome side effects of some of the competing products on the market. The majority of sales are direct to consumers, with practically all transactions taking place online. We can expect steady growth in the company given the refocusing on the management’s strategic priorities. We initiate coverage on the stock of Unilever with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
Want unlimited access to our reports? Purchase our $99 annual subscription!