I am still up, but will happily add if it shows a little more weakness. Good, steady and profitable company with good ethics and a pro investor track record.
Donāt worry I havenāt yoloād into random risky stocks lol. I am diversified across many sectors I am bullish on and solid companies
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I am interested in your point about āgood ethicsā. Could you expand?
Unilever look goof as a Div stock reslly with some growth potential.
Need a stock that does Household Items in my Portfolio
I understand the earnings report this week werent glowing, but nothing that rang alarm bells to me, dividend still strong and growing. At ~4000p looks an absolute bargain surely?
I am wondering how do you value UL to give current price a good buy?
When I look at future growth, historical PE / AFFOs I personally donāt see bargain, it is trading in standard range for last 3Y/5Y/10Y.
It has a good balance sheet however. A+ rating and low LT debt/Capital at 28%.
Rather sluggish growth in the last 10 years, apart from 2017.
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Well absolute bargain maybe is over stating it 
. However its PE is less than most companies that compete with it in various spaces I am including PG/PEP/CG so whilst PE for me isnāt everything its certainly not at a premium.
When looking through their presentations an figures this week I thought it generally sounded positive, things that pleased were:
- Embracing/increasing e-commerce
- Free cash flow good
- Investing more in things like prestige beauty (can get great margins if done well) and plant based foods (global shift towards this, could see them buy up some emerging brands)
- Restructuring is short term pain but nothing too big IMO
- Emerging markets look to be growing nicely (India/China are two I look at and they are focusing on)
In short, I am not saying if someone looking for high growth to go with ULVR, for me they are one of my āsaferā plays I own and part of my dividend paying selection. I am confident they will grow solidly, get a big boost from reopening too, and their strong cash flow supports their ever increasing dividend (3.7% based on about 148p annual, 4000p buy price).
I think comparing company based on others in sector should be bonus part, not a relevant factor in decision making. They are not of same quality and historical premium.
I stick to historical valuation for the company at hand.
In the sector KMB seems to be ābestā bargain at current price vs history. But I donāt touch the sector currently.
Yeah agreed thats why I donāt use PE much, just a quick look stat. I may well be wrong with ULVR, but its not a big portion, I wouldnāt put a large chunk of portfolio as it wouldnāt be enough growth for my age, but equally I am not embracing risk to the point where go for pure massive growth plays. As an example my higher conviction to ULVR plays are things like BABA, SBUX, MSFT, NEE, JNJ, AMZN, NVDA.
To be honest part of ULVR conviction for me is gut feeling on strong brands, I feel they have some great brands that are popular in west as well as China (where I have experience knowledge of market) which some of the other big brands dont have as much.
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Big jump down today for ULVR, It is probably mostly about earnings being not ideal (large part to FX impact/inflation) but also some amount through the political issue with Ben and Jerries.
Whilst some less then ideal things in earnings I am not worried, still a solid company if you want a reliable dividend payer/grower that has great portfolio of strong brands. Highlights for me were increase in ecommerce in emerging markets like India and China, also prestige (one of their core focuses) great sales growth and also for the nutritional side of things too.
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Nice to see them accelerating the buybacks when price is depressed. Recently been 100k-300k shares a day range, last two days been about 1 million a day.
Has anyone btw seen any updates on the Vegetarian Butchers numbers since Unilver took over, couldnāt find it but might have been looking into the wrong places
Sadly no, I can never really find any precise breakdown of Unilevers products, their reports usually just breakdown by large categories like āPrestigeā or āIn Homeā etc. Based on previous news like below article they are aiming for all their Non meat/dairy business to get to 1bn EUROS by 2025 or 2027.
In a very non precise way I know they supply Burger King with several products for their vegetarian/vegan offerings, so not sure if Burger King would ever break out the sales of those products and you could have a look at once aspect of growth but no real way to see.
Overall it is good that Unilever is doing vegetarian and dairy free stuff including popular ice cream brands like Magnum and B&J so that they can continue their strong brands into any cultural diet shifts. One would hope that Unilever can also use its scale to be competitive on price with other meat alternatives as a big barrier for meat eaters (like myself) is price, for example Beyond Burger (not Unilever product of course) are like Ā£5 for 2 in supermarkets but real burgers event the high quality ones are more like Ā£2-3 for 2.
Solid Q3 trading update from Unilever, highlights for me:
- Underlying sales growth of 2.5%, with 4.1% price and (1.5)% volume
- Turnover increased 4.0% (on call it mention margins staying flat, so profit should be up with turnover next earnings release Q4)
- ecommerce grew 38% and is now 12% of our sales
- our high-growth newbusinesses, Prestige Beauty and Functional Nutrition, each grew double digit
- China grew high single digit led by volume with broad based growth across divisions. India grew double digit as the country continued to recover from Covid-19 related impacts.
"We completed the operational separation of our tea business on 1 October 2021. We are focused on the next stage for this business which is expected to be either an IPO, sale or partnership."
Q4 earnings will be interesting to see how the pricing power they exhibit vs inflationary costs of their production/materials plays out, also how the buybacks and high growth segments help their EPS.
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Interesting read for fellow Unilever investors, also mentions Unilever foray into the metaverse 
About time Unilever woke up and start pushing the right buttons.
Oh and GSK missing out on covid vaccine 
New lows reached, i wonder if warren will make another bid on ULVR
Yep, I personally donāt want them to do this GSK deal as it seems the price and risk too high for Unilever size. Right now they have great FCF and already pivoting into higher growth with smaller acquisitions. To do this deal they will need to take on large debt, and I worry how that will weigh on rest of business.
Contrarian view, deal doesnāt go ahead and you can buy Unilever for a discount right now yielding over 4% (high than BP at current prices/div amounts), and buyback stock.
Hi there. I, sort of agree with you. What do you think would happen to Unileverās share prise if the offer GSK 60bn which they accept. Would it go down, or up?
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Unilever would go down as they are taking on a tremendous amount of debt, most likely. Just look at the response today and the deal hasnāt even happened.
GSK price would increase then drop when/if the consumer division is finally sold.
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