UNILEVER : Oddo BHF remains Outperform on the stock
March 19, 2024 at 08:23 am EDT
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Unilever announced this morning the separation of its Ice Cream activities into one entity via a demerger with a structure comparable to listed companies.
The group also announced a productivity program which should bring restructuring costs to 1.2% of group sales (compared with 1%) and generate annual cost savings of 800 ME over the next 3 years.
The Group has taken note of the impact of this decision and has announced an increase in its medium-term objectives. The organic growth target is now mid-single digit over the medium term (vs. 3% to 5% ate), with the objective of modest growth in operating margin maintained", says Oddo BHF.
We believe that Unilever can become a pure player in Consumer Care (care of the body, the inside of the body and the body's immediate environment) by refocusing on Personal Care, Consumer Health and Home Care," says the research firm.
Oddo BHF confirms its Outperform opinion on the stock and its target price of E58.
' This announcement should be very well received and lend credibility to a refocusing scenario, which is an obvious factor for better operating performance, greater consistency and, above all, rerating in terms of PE ' says Oddo BHF.
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Unilever PLC (Unilever) is one of the world's leading suppliers of Beauty & Personal Care, Home Care, and Foods & Refreshment products with sales in over 190 countries and reaching 3.4 billion consumers a day. Over half of the company's footprint is in developing and emerging markets. Unilever has over 400 brands found in homes all over the world, including Dove, Knorr, Dirt Is Good, Rexona, Hellmann's, Lipton, Wall's, Lux, Magnum, Axe, Sunsilk and Surf. Unilever's Sustainable Living Plan (USLP) underpins the company's strategy. The USLP creates value by driving growth and trust, eliminating costs and reducing risks. Since 2010 the company has been taking action through the Unilever Sustainable Living Plan to help more than a billion people improve their health and well-being, halve its environmental footprint and enhance the livelihoods of millions of people as it grows its business. Unilever has already made significant progress and continues to expand its ambition - most recently committing to ensure 100% of its plastic packaging is fully reusable, recyclable or compostable by 2025.
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