Unilever Marches on Despite Impending Headwinds

A strong brand portfolio and expansive global distribution network position Unilever well to operate through what could be a challenging second half

Erin Lash, CFA 8 August, 2011 | 11:24AM
Facebook Twitter LinkedIn

The usual suspects of intense competition and rising raw-material costs took a toll on Unilever (ULVR), but in line with our thinking, a strong brand portfolio and expansive global distribution network position the global consumer product firm well to operate through what could be a challenging second half of the year, as indicated in the second quarter. Our fair value estimate remains in place, as results through the first half of fiscal 2011 are trending in line with our forecast. We expect revenue growth of 4.4% (pro forma for the Alberto-Culver business) and operating margins of 14.4% in fiscal 2011, though we will continue to watch recent macroeconomic trends in North America and Europe for any material changes in consumer demand.

For the entire note and research report, click here.

Morningstar's Equity Analyst Notes and Equity Research Reports contain our independent view on a company's investment case, valuation, financial health and stewardship, and are available to Premium subscribers.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Unilever PLC3,965.55 GBX-0.61Rating

About Author

Erin Lash, CFA  Erin Lash, CFA, is a senior stock analyst with Morningstar.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement