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
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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.

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Securities Mentioned in Article

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

About Author

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

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