22H·

KHC - Company split?

$KHC (+2,34 %) - I have just come across an article from the Handelsblatt.

To be honest, I don't quite know what to make of it. It seems to me that every time things aren't going well operationally, someone from the management comes up with the same suggestion: let's split the company up and focus on 'the core brand'. At $ULVR (+0,08 %) has similar considerations with the spin-off of the ice cream division. A few years later, the new management regularly comes along and orders the company to diversify or 'broaden its base' and then things go in the other direction again and new business areas and brands are acquired (see Kelloggs and Ferrero, for example).

A capable management should actually be able to improve its own portfolio and the sales of its products. Selling off parts of the company seems a bit unimaginative to me, even if you might be able to make a little money in the short term.

Here is the link to the article:

Ketchup producer: Kraft Heinz wants to split up https://share.google/LI0N7qKkIImgox9EI

2 Commentaires

Stockcat_@Cat_

22H

I also read the article, but to be honest I'm not sure what to make of it. I wonder what such a split-up would really do for the company - a short-term rise in the share price or real strategic improvement? 🤔 Sure, focusing on core brands sounds logical, but as you say: if the management is capable, you should be able to achieve growth and efficiency without breaking up the company. I'm curious to see how this develops.

Are you invested in $KHC?

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NichtRelevant@NichtRelevant

22H

@Cat_ I have not yet invested, but have had $KHC on my watchlist for some time.

I find/thought it was quite interesting as a potential dividend share, as it is an unexcited and predictable consumer goods stock. However, when the big speculation about possible sales proceeds and the future profitability of the remaining product portfolio starts, the predictability is of course no longer quite so good. An investment at this point in time then becomes more of a bet on a successful split.

I will keep an eye on this. I'm a little undecided

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