Unilever PLC (ULVR) is one of the world’s largest consumer goods companies, with deep roots dating back to 1929. It owns over 400 brands, including Dove, Ben & Jerry’s, Knorr, Hellmann’s, Lifebuoy, Magnum, Vaseline, Surf, and Rexona, reaching around 3.4 billion consumers daily across 190+ countries.
-
Business Segments:
-
Beauty & Wellbeing
-
Personal Care
-
Home Care
-
Nutrition
-
Ice Cream (set to spin off via separate listing in 2025)
-
-
2024 Financials:
-
Revenue: €60.8 b (+4.2% underlying)
-
Underlying Operating Margin: 18.4% (+170 bp)
-
Free Cash Flow: €6.9 b
-
ROIC: 18.1%
-
Net Debt / EBITDA: ~1.9×
-
-
Leadership & Strategy:
-
New CEO Fernando Fernandez (ex-CFO, Beauty & Wellbeing head) took over March 2025, ushering in a refocused Growth Action Plan (GAP) and divestiture of non-core assets.
-
Productivity program expected to save £550 m by end‑2025; ice cream division spin-off underway.
-
📈 Investment Pitch
1. Investment Thesis
Unilever is transitioning into a streamlined, high-performance CPG powerhouse, driving premium brand momentum, cost savings, and ESG excellence while resetting its portfolio.
2. Market Position & Brands
-
Prestige in everyday essential categories, from personal care to nutrition and wellness.
-
Power brands—which represent 75%+ of turnover—continue to drive volume growth (+5.3% underlying; Q4 2024).
-
Diversified, global footprint: ~50% sales in emerging markets, ~50% in developed.
3. Financial Performance
-
2024 underlying sales growth: +4.2%, with 2.9% volume increase and improved pricing.
-
Operating profit +12.6%.
-
Strong cash flow: €6.9 b FCF, with ROIC at 18.1% investing.com+4unilever.com+4foodnavigator.com+4.
-
Net debt stable at ~1.9× EBITDA; €1.5 b ongoing buyback .
4. Strategic Momentum
-
Leadership refresh under Fernandez boosting agility, priorities include media shift to social and divesting €1 b non-core food.
-
Portfolio remapping: ice cream divestiture, trimming underperforming local food brands.
-
Cost & productivity: £550 m targeted savings, restructuring underway.
5. Risks & Mitigations
| Risk | Mitigation |
|---|---|
| Soft consumer demand in key markets (e.g., India, China) | Premium positioning, price elasticity data, emerging markets growth |
| Macroeconomic & tariff headwinds | Focus on essential brands; tariffs have limited direct impact |
| Management transition | Fernandez brings CFO discipline and brand growth experience |
-
FCF yield: ~11% (6.9 b/€60 b).
-
Dividend growth (6.1% Q4 increase) and buybacks show shareholder commitment.
-
Trading at mid‑teens P/E; well below premium cosmetic peers.
7. Investment Recommendation
Moderate Buy / Core CPG Holding
Why Invest:
-
Strong, resilient brands in essential consumer categories.
-
Value unlocked via leadership focus, divestitures & productivity push.
-
High FCF and shareholder returns support total return.
Entry Strategy:
-
Build a core position now.
-
Add on temporary pullbacks (e.g. soft EM sales or macro shocks).
8. Key Catalysts to Monitor
-
Q2–Q3 2025 sales/volume data (esp. emerging market segments).
-
Progress on ice cream spin-off and office streamlining.
-
Productivity savings updates (mid/late 2025).