We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Unilever (UN) Touches 52-Week High on Quala Acquisition
Read MoreHide Full Article
Unilever NV is reportedly planning to buy the personal-care and home-care brands from Latin American company, Quala. The acquisition will include haircare brands Savital, eGo and Bio-Expert as well as Fortident toothpaste and Aromatel fabric softener. Following the news, the company’s shares scaled a new 52-week high of $54.27 on May 15.
Though the deal price has not been disclosed, these businesses together have an annual turnover of $400 million in Latin American countries, including Colombia, Ecuador and Mexico. The acquisition of Quala’s brands will help the company to expand its footprint in Latin America. These brands are also expected to strengthen its position in shampoos, toothpaste, men’s grooming and fabric conditioners in South America.
As per the Financial Times, the Anglo-Dutch company rejected Kraft Heinz Co.’s (KHC - Free Report) $143 billion surprise offer in Feb 2017, following which the company undertook a comprehensive review to return more cash to shareholders and medium-sized acquisitions as well as indulge in more aggressive cost cuts.The maker of Dove products and Ben & Jerry’s seeks to evaluate options regarding its portfolio, organization, cost structures, balance sheet and use of cash.
Apart from Quala brands, Unilever purchased Sir Kensington’s, a New York producer of organic ketchups and condiments in Apr 2017 to complement the Maille mustard brand, after a failed takeover bid by Kraft Heinz in February.
Earlier this month, the company agreed on a joint venture with a local consumer goods rival Europe & Asia Commercial Company (EAC) Ltd. in Myanmar to increase its exposure to the rapidly expanding country.
Alongside acquisitions, Unilever is divesting its underperforming businesses, as per the comprehensive review discussed above. Last month, Unilever has reportedly decided to sell its shrinking spreads business, including brands like Flora and Stork butter. Furthermore, the company announced that it would buy back shares, hike dividends, raise cost savings target as well as combine foods and refreshments businesses.
A glimpse of Unilever’s stock performance shows that its shares have been rallying on a year-to-date basis. Shares have rallied 32.2% year to date, outperforming the Zacks categorized Soap & Cleaning Materials industry’s gain of 11.6%. Notably, the industry is part of the top 4% of the Zacks Classified industries (11 out of the 265). The broader Consumer Staples sector is placed at the top 50% of the Zacks Classified sectors (8 out of 16).
Growth Drivers
The company has been trending higher on the back of its recent strategic business reviews, aiming to deliver profits and boost shareholder value amid sluggish growth and increasing competition in the global packaged goods industry.
Unilever has also undertaken a program called Connected 4 Growth to reduce costs, under which individual expenses are reviewed during each accounting period rather than rolled over. Meanwhile, the company continues to struggle with declining volumes in Brazil and a soft economy in Russia. Further, it is witnessing softness in the developed markets in North America and Europe with little signs of recovery. Nevertheless, the company is consistently focusing on product improvement through innovation. Moreover, Unilever has inked several deals to strengthen its position in home care and personal care products. These acquisitions will strengthen its portfolio and generate substantial revenues.
While Church & Dwight has a long-term earnings growth rate of 9.17%, ConAgra Foods has a growth rate of 8.00%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Unilever (UN) Touches 52-Week High on Quala Acquisition
Unilever NV is reportedly planning to buy the personal-care and home-care brands from Latin American company, Quala. The acquisition will include haircare brands Savital, eGo and Bio-Expert as well as Fortident toothpaste and Aromatel fabric softener. Following the news, the company’s shares scaled a new 52-week high of $54.27 on May 15.
Though the deal price has not been disclosed, these businesses together have an annual turnover of $400 million in Latin American countries, including Colombia, Ecuador and Mexico. The acquisition of Quala’s brands will help the company to expand its footprint in Latin America. These brands are also expected to strengthen its position in shampoos, toothpaste, men’s grooming and fabric conditioners in South America.
As per the Financial Times, the Anglo-Dutch company rejected Kraft Heinz Co.’s (KHC - Free Report) $143 billion surprise offer in Feb 2017, following which the company undertook a comprehensive review to return more cash to shareholders and medium-sized acquisitions as well as indulge in more aggressive cost cuts.The maker of Dove products and Ben & Jerry’s seeks to evaluate options regarding its portfolio, organization, cost structures, balance sheet and use of cash.
Apart from Quala brands, Unilever purchased Sir Kensington’s, a New York producer of organic ketchups and condiments in Apr 2017 to complement the Maille mustard brand, after a failed takeover bid by Kraft Heinz in February.
Earlier this month, the company agreed on a joint venture with a local consumer goods rival Europe & Asia Commercial Company (EAC) Ltd. in Myanmar to increase its exposure to the rapidly expanding country.
Alongside acquisitions, Unilever is divesting its underperforming businesses, as per the comprehensive review discussed above. Last month, Unilever has reportedly decided to sell its shrinking spreads business, including brands like Flora and Stork butter. Furthermore, the company announced that it would buy back shares, hike dividends, raise cost savings target as well as combine foods and refreshments businesses.
Unilever NV Price, Consensus and EPS Surprise
Unilever NV Price, Consensus and EPS Surprise | Unilever NV Quote
Stock Price Movement
A glimpse of Unilever’s stock performance shows that its shares have been rallying on a year-to-date basis. Shares have rallied 32.2% year to date, outperforming the Zacks categorized Soap & Cleaning Materials industry’s gain of 11.6%. Notably, the industry is part of the top 4% of the Zacks Classified industries (11 out of the 265). The broader Consumer Staples sector is placed at the top 50% of the Zacks Classified sectors (8 out of 16).
Growth Drivers
The company has been trending higher on the back of its recent strategic business reviews, aiming to deliver profits and boost shareholder value amid sluggish growth and increasing competition in the global packaged goods industry.
Unilever has also undertaken a program called Connected 4 Growth to reduce costs, under which individual expenses are reviewed during each accounting period rather than rolled over. Meanwhile, the company continues to struggle with declining volumes in Brazil and a soft economy in Russia. Further, it is witnessing softness in the developed markets in North America and Europe with little signs of recovery. Nevertheless, the company is consistently focusing on product improvement through innovation. Moreover, Unilever has inked several deals to strengthen its position in home care and personal care products. These acquisitions will strengthen its portfolio and generate substantial revenues.
Unilever currently carries a Zacks Rank #2 (Buy).
Other Stocks that Warrant a Look
Other top-ranked stocks in the food industry include Church & Dwight Company, Inc. (CHD - Free Report) and ConAgra Foods, Inc. (CAG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Church & Dwight has a long-term earnings growth rate of 9.17%, ConAgra Foods has a growth rate of 8.00%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>