In this article, we look at Unilever’s improved performance marked by a 25% ytd stock return and a return to positive volume growth owing to the strategies of the new CEO. Unilever PLC (UL) is a strong player in fast-moving consumer goods, headquartered in London. The company has a diverse portfolio including baby food, bottled water, breakfast cereals, dairy products, beauty products, cleaning agents, healthcare and hygiene products, instant coffee, ice cream, pet food, soft drinks, pharmaceuticals, toothpaste, and tea.
Unilever boasts that 3.4 billion people across 190 countries use their brands every day. The company has organized itself into 5 business groups namely: Beauty & Wellbeing, Home Care, Personal Care, Ice Cream, and Nutrition.
The division allows the company to better assess the performance of each division and profitable brands. Unilever has always given tough competition to competitors like Nestle and Procter & Gamble (PG) but a series of missteps by the previous CEO seemed to have eroded investor’s trust in the company’s shares. However, the new CEO Hein Schumacher, is proving to be a blooming light for the company’s overall performance as the sales grew for a third consecutive quarter.
Strong gross margin improvements fueled investments resulting in increased profitability for the business and an increase in its share value. Unilever is focusing on increasing volumes and generating shareholder returns as its shares are relatively undervalued compare.