Unilever Azione Forum

Meal together!

I had to hand over this nice part of my portfolio with a teary eye.

I held Unilever for about 3-4 years. I'm a big fan of dividends, but you can guess what would have happened to the amount in Msci.

I decided to significantly rethink my strategy. I therefore shifted heavily into the Msci.

What does that bring me? Definitely peace of mind.

In future, I will reduce my portfolio by further positions. However, I won't give up grinning when the dividend arrives.

What do we learn from this? Sometimes the easiest way is also the most successful.

To beat the market, you usually need a fair amount of luck 🤓

Unilever Q3 2024 $ULVR (-0,75%)

Financial performance: Unilever reported Q3 2024 sales growth of 4.5% year-on-year, driven by volume growth of 3.6%. This is the fourth consecutive quarter of positive and improved volume growth, with all business units contributing to this growth. In particular, power brands such as Dove and Magnum achieved a strong sales increase of 5.4%.

Balance sheet analysis: Unilevers emphasizes its efforts to maintain a solid balance sheet through strategic divestments and acquisitions. The sale of the Russian subsidiary and the stake in the Qinyuan Group are examples of such strategic measures aimed at strengthening the financial position.

Income statement: Unilever's sales amounted to EUR 15.2 billion in the third quarter of 2024, remaining at the previous year's level. Although the underlying sales increase was positive, sales were impacted by a negative currency effect of 2.8% and a net effect from disposals of 1.5%. Unilever nevertheless confirmed its forecast for an underlying operating margin of at least 18% for the full year.

Cash flow analysis: Unilever demonstrates a proactive approach to cash flow and capital allocation through better strategic focus on acquisitions, divestments and an ongoing share buyback program.

Key drivers and profitability: Unilever expects an operating margin of at least 18% for the full year, with increasing investment in its key brands. In addition, the company plans to maintain the net debt to EBITDA ratio at around 2x to ensure a stable financial position.

Segment analysis:

• Beauty & Wellbeing: Recorded strong sales growth of 6.7%, driven by volume growth of 5.7%.
• Ice cream: Reported impressive sales growth of 9.8%, with 6.7% attributable to volume.
• Home Care: Reported moderate sales growth of 1.9%, with volume growth of 3.3%.
• Nutrition: Grew by 1.5%, with low volume growth of just 0.4%.

Competitive analysis: Unilever's strategic focus on its Power Brands and continuous innovation have helped the company maintain a competitive advantage. However, challenges in emerging markets, particularly in Indonesia and China, are areas where the company needs to further strengthen its competitive position.

Forecasts and management comments: Management is confident of achieving its targets for the year, with an expected sales increase of between 3% and 5% and an operating margin of at least 18%. The company is focusing on implementing its growth action plan and overcoming the challenges in key markets such as Indonesia.

Risks and opportunities:

• Risks: Currency fluctuations, geopolitical tensions and operational challenges in emerging markets pose significant risks.
• Opportunities: Unilever's continued focus on innovation, brand superiority and strategic divestitures provides good opportunities for growth.

Summary and strategic implications: Unilever's strategic focus on Power Brands and continuous operational improvements have resulted in positive volume growth across all businesses. However, challenges in emerging markets, particularly in Indonesia, require decisive action. The company's commitment to innovation and strategic divestments positions it well for future growth, although currency and geopolitical risks need to be carefully managed. The planned spin-off of the ice cream business and ongoing productivity programs are expected to improve operational efficiency and increase shareholder value in the long term. So it remains to be seen how it all pans out but Unilever is well on the way to improving.

Positive statements:

• Unilever reported its fourth consecutive quarter of positive and improved volume growth, with all divisions delivering higher volumes year-on-year. Underlying sales increased by 4.5%, driven by Power Brands, with particularly strong performances from Dove, Liquid I.V., Comfort and Magnum.
• Beauty & Wellbeing delivered a strong performance with sales growth of 6.7%, driven by volume growth of 5.7% and price growth of 0.9%.
• The ice cream segment grew by 9.8%, with 6.7% attributable to volume and 2.9% to price adjustments. This reflects continued operational improvements and successful innovation.
• In developed markets, underlying sales increased by 6.9%, almost entirely driven by volume growth of 6.8%, reflecting strong growth in Beauty & Wellbeing in North America and Home Care in Europe.
• Unilever's Power Brands recorded strong sales growth of 5.4%, supported by volume growth of 4.3%.

Negative statements:

• Indonesia saw a significant decline in sales of 18%, mainly due to long-term operational issues.
• The Nutrition division recorded sales growth of just 1.5%, with only a slight volume increase of 0.4% amid moderate prices and a general market slowdown.
• In emerging markets, underlying sales grew by just 2.9%, with volume contributing only 1.4%. This indicates slower growth compared to the developed markets.
• In China, sales declined slightly due to continued weak consumer sentiment and Unilever is currently reviewing its market access strategy.
• Home Care recorded moderate sales growth of 1.9%, with volume up 3.3%, partially offset by a price decline of 1.4% due to falling raw material costs.

Earnings summary this morning 👇🏼

$ULVR (-0,75%) | Unilever Q3 2024 Earnings

Rev €15.25B (est €15.398B)

DIV/SHR €O.4396

Underlying Volume 3.6% (est 3.1%)

Underlying Sales 4.5%, (est 4.25%)

Still Sees FY Underlying Sales To 5% (est 4.2%)

Still Sees FY Underlying Oper. Margin At Least 18%

2024 FY Outlook Unchanged

$BARC (-1,52%) | Barclays Q3 2024 Earnings

Pretax Profit £2.23B (est £1.96B)

Net Interest Income £3.31B (est £3.11B)

Investment Banking £594M (est £552.3M)

FICC Rev. £1.18B (est £1.13B)

Sees FY Cost To Income Ratio About

Sees FY UK Net Interest Income About £6.5B

$AAL (-4,11%) | Anglo American Q3 2024 Earnings

Diamond Prod 5.6M Carats (est 5.6M)

Copper Output 181,000 tons (est 181,334)

American Sees Fy Diamond Prod 23M to 26M Carats

De Beers To Continue To Assess Options To Lower Output

PGMS Demerger Is On Track To Complete By Mid 2025

$RMS (-3,03%) | Hermes International Q3 2024 Earnings

Rev €3.70B (est €3.68B)

Sales At Constant FX 11.3% (est 10.5%)

Leather Goods Sales At Constant FX 14% (est 12.8%)

CFO: Sees No Change In Global Trends Early Q4

CFO: China Higher Basket Spend Made Up For Lower Traffic

$005380 | Hyundai reports a 6.5% drop in profits in the third quarter despite an increase in sales, leading to a fall in the Seoul share price of almost 5%. Operating profit falls to 3.6 trillion won, while the operating margin drops to 8.3%.

$BN (-1,28%) | Danone increases its turnover in the third quarter by 4.2% to 6.9 billion euros, exceeding analysts' expectations. Demand is particularly high in North America and Asia.

$RNO (+0,69%) | Renault increases sales by 1.8% to 10.7 billion euros in the third quarter, but falls short of analysts' expectations. Exchange rate effects have a dampening effect on the result, without which a 5% increase in sales would have been possible.

$SY1 (-1,94%) | Symrise raises its forecast for organic growth in 2024 to around 7 % after strong sales growth in the first nine months. Sales rose by 6 % to 3.8 billion euros, driven by petcare and fragrance products.

$WAF (+0%) | Siltronic raises 2024 EBITDA margin guidance to 24-26% as acceptance of new Singapore factory is delayed. Third-quarter sales rise 2.3% to EUR 357m, exceeding expectations, while profit falls to EUR 19m.

$BEI (-0,48%) | Beiersdorf records organic sales growth of 6.5% to 7.5 billion euros, but falls short of analysts' expectations. Sales of the luxury brand La Prairie fall by over 7% in China, while the annual targets for 2024 are confirmed.

Hello dear getquin community,

I am currently looking for a few good dividend stocks to add to my portfolio.

So far I have $BATS (-0,23%) , $MMM (-1,01%) and $O (-0,83%) in my portfolio.

My watchlist currently includes $PEP (+0,08%) , $MCD (-0,74%) and $ULVR (-0,75%) as I am convinced by them and also like to consume the products in my everyday life.

I would be very grateful if you could give me a few more suggestions and would be happy to discuss them with you!

Unilever or Mondelez

$ULVR (-0,75%) 🥊 $MDLZ (+0,98%)

🍽️ Giants at the dinner table: Nestlé, Unilever & Co. - Who serves up the biggest success?

For the development (company figures), a better view and more, check out the free blog: https://topicswithhead.beehiiv.com/p/giganten-am-esstisch-nestl-unilever-co-wer-serviert-den-gr-ten-erfolg

Company presentation

Nestlé, founded in Switzerland in 1866, is today the world's largest food company, with products ranging from baby food to coffee and pet food. Unilever was created in 1929 through the merger of a Dutch margarine manufacturer and a British soap producer and is now a global giant in the consumer goods sector. Coca-Cola, founded in Atlanta in 1886, is the world's leading beverage producer. PepsiCo, founded in 1965, is not only Coca-Cola's biggest competitor in the beverage market, but also a major player in the snack segment. Mondelez was founded in 2012 following the split-up of Kraft Foods and focuses on snacks and confectionery.

Historical development

$NESN (-1,69%)

has developed into a diversified group over the decades through strategic acquisitions such as Maggi (1947) and Purina (2001). $ULVR (-0,75%) It also grew through significant acquisitions, such as Bestfoods (2000), but also had to shed business areas such as the frozen food segment (2006). $KO (+0,08%) and $PEP (+0,08%) have been competing intensively for decades and have increasingly expanded their portfolios. $MDLZ (+0,98%) has only been operating as an independent company since 2012, but benefits from its long tradition and experience. $KHC (-1,21%) .

Business model and core competencies

Nestlé relies on an extremely broad brand portfolio and a global presence, with a particular focus on powdered and liquid beverages, especially coffee. Unilever has a strong position in personal care, household cleaners and food. Coca-Cola and PepsiCo dominate the global beverage market, with PepsiCo additionally diversified through a strong snacks business. Mondelez, on the other hand, focuses on snacks and confectionery, with globally recognized brands such as Oreo.

Future prospects and strategic initiatives

All five companies are placing greater emphasis on healthier and more sustainable product offerings. Nestlé is increasingly investing in personalized nutrition and health services. Unilever is driving sustainability initiatives and focusing on high-growth areas. Coca-Cola and PepsiCo are expanding their portfolios to include sugar-free and functional beverages. Mondelez is focusing primarily on growth in emerging markets and the expansion of e-commerce.

Market position and competition

| Nestlé | Global | Broad portfolio, strong brand awareness | Growing demand for healthier products |

| Unilever | Global | Strong presence in emerging markets | Competitive pressure in mature markets |

| Coca-Cola | Global, USA | Market leadership in the beverage segment | Declining soft drink consumption |

| PepsiCo | Global, USA | Strong snack business | Dependence on a few key brands |

| Mondelez | Global | Leader in snacks and confectionery | Low product diversification |

Total Addressable Market (TAM)

The global market for packaged food and beverages, in which all five companies operate, is estimated at over USD 3 trillion. Driven by population growth and rising incomes in emerging markets, a significant increase is expected to continue.

For the development (company figures), a better view and more, check out the free blog: https://topicswithhead.beehiiv.com/p/giganten-am-esstisch-nestl-unilever-co-wer-serviert-den-gr-ten-erfolg

Conclusion

Since all companies operate in the same industry but have different focuses, it can make sense to include several of them in the portfolio. If you compare Coca-Cola and PepsiCo directly, Coca-Cola looks like the stronger company. The situation is similar with Unilever and Nestlé, where Nestle looks stronger. Nestlé's stake in L'Oréal means that it also has the care products sector in its portfolio, which makes Nestlé appear to be an even more attractive company.

So if you opt for Nestlé and Coca-Cola, you already cover a considerable part of the industry and have two strong companies in your portfolio.

If you are looking for a company that offers the broadest coverage, the choice clearly falls on Nestlé. Overall, these are companies with attractive capital efficiency and solid fundamentals, some of which have been delivering consistently strong figures for years.

My personal choice is only Nestlé, mainly because of its broad diversification and long-term high capital efficiency, which has been above 10% for almost ten years. With the new management, there is also hope for improved share performance.

I am keeping an eye on Unilever, especially now that the management has embarked on a strategic change of course. However, I am still holding back at the moment as the company has missed many opportunities in recent years. I would first like to see whether the current team is able to implement the necessary changes. However, the spin-off of the ice cream business could make Unilever more attractive again.

As for Coca-Cola, I hardly see how the company could justify its current valuation, which is why I am out. However, its stake in Monster is a positive aspect, which keeps the margin attractive.

I find Pepsi Co and Mondelēz completely unattractive at the moment despite solid numbers, but who knows what the future holds.

no one died from profit taking😅

I wanted to reduce my base consumption range anyway

the money will of course be reinvested

Would you take profits on $ULVR (-0,75%) currently? am 30% up

Hello,

I would like to minimize my consumer staples allocation.

What would you remove or reallocate?

$MNST (+0,87%)

$RKT (-1,81%)

$NESNE (adr :()

$ULVR (-0,75%)

$ADM (-1,96%)

$PEP (+0,08%)

$MMM (-1,01%)

Thank you!

$NESN (-1,69%) or $ULVR (-0,75%) ?

Which of the two food giants is currently the better choice for the portfolio?

In recent months, Unilever has performed significantly better than Nestlé, but the latter is an absolute giant that has historically always been reliable, while Unilever has often disappointed?

Withholding tax on dividends does not apply to Unilever, as it is based in the UK. Withholding tax on dividends at Nestlé is 35% (Switzerland), but at least for me (from Switzerland) this can be claimed on my tax return and is therefore not a disadvantage.

What are your thoughts?