Just read about their bid of GSK worth $55 billion which some might say signifies its growth and profitability, so why the downsizing?
Shares in consumer goods giant Unilever have fallen after it defended its £50bn takeover approach for the consumer healthcare arm of GlaxoSmithKline (GSK), describing the business as a "strong strategic fit".
The group, whose products range from Domestos bleach and Dove soap to Marmite and Hellman's mayonnaise, said the GSK deal would help it beef up its presence in key sectors as it seeks to refocus on stronger growth areas.
GSK disclosed over the weekend that it had spurned a series of offers from Unilever towards the end of last year for the arm of its business that includes Aquafresh toothpaste and Panadol"
It said the offers "fundamentally undervalued" the business - in which US drugs giant Pfizer holds a 32% stake - and its prospects.
But reports suggest Unilever could try to sweeten the deal and in a statement to investors it showed little sign that its enthusiasm for the takeover had waned.
It said a deal would add GSK's brands in oral care and vitamins, minerals and supplements to its own presence in those sectors and "create scale and a growth platform for the combined portfolio in the US, China and India, with further opportunities in other emerging markets".
Investors were unimpressed, sending Unilever's shares 6% lower in early trading on Monday, while GSK added 5%.
Victoria Scholar, head of investment at Interactive Investor, said: "It looks as ugh a deal is very much still on the cards despite GSK rejecting three offers including the latest £50bn offer"
"Unilever will have to raise its bid to somewhere around £55bn and move fast in order to avoid a bidding war from rival private equity buyers who are likely to be eyeing up counter offers."
Unilever has been targeting a refocused strategy after a corporate makeover which ended its Anglo-Dutch dual structure in 2020, making it a single London-based group, Unilever plc.
That concluded that it should expand its presence in health, beauty and hygiene, which offer higher rates of growth, while spinning off lower growth businesses.
It has already agreed deals to sell its tea business, including PG Tips and Brooke Bond, and its spreads brands including Flora.
In its update on the GSK approach, Unilever said that it was preparing to announce "a major initiative to enhance our performance" later this month.
"After a comprehensive review of our organisation structure, we intend to move away from our existing matrix to an operating model that will drive greater agility, improve category foc
... keep reading on reddit ➡4.3% div
29 cents away from their 52 week low
Damn, I wish I had some spare cash
Hello, This is my first stock analysis, so please be gentle :) . I’ve invested in stocks for a few years now, mostly in ETFs, and last year I also bought stocks, but I did so without doing a valuation on any of them. One of these was Unilever. In the meantime I decided to learn more about stock picking and value investing, so I decided to go with Unilever and try to value the business.
Business Overview Looking at their numbers, their revenue has been stagnating for the past 10 years, around the 20B mark. Their operating income and free cash flow has been slowly growing, but their net profit has been stagnating. They have fairly high ROE and ROIC, I calculated the ROE for the TTM as 31% and After-tax ROIC 18%. This is on par, or at times better, than competitors like P&G or Nestle. On the other hand, looking at the past 5 years, these ratios have slowly been going down, mostly due to an increase in debt: compare to 5 years ago, they have more than doubled their debt, to 27B. Considering the low interest rates currently on the market, I don’t see a problem with them taking on more debt, but with the rates being so low, they can only go up, which would pose problems for Unilever in the future. Right now, my calculated Debt to Equity ratio is 1.78 (on Morningstar it’s 1.47), compared to Nestle at 0.61 or P&G’s 0.52.
Strategy I’m not that good at going through an annual report and separating the BS from the useful stuff. But their main strategy seems to be a desire to expand in complementary product lines mostly through acquisitions. They recently came into the headlights with their failed acquisition of GSK’s Consumer Health division, which would’ve added some strong brands to their portfolio: toothpaste (Sensodyne, Aquafresh etc), OTC medicine and vitamins (Panadol, Voltaren, Centrum etc). From what I can tell, most of the above would’ve been complementary for their product line (apart from vitamins I guess, which they already do). My understanding is that the marked reacted negatively to their acquisition attempt because they would’ve paid 50B for that division, while they have a market cap of ~100B and a not-so-great balance sheet. More than 50% of their revenue comes from 13 brands, so I understand why they’d want to concentrate on acquiring well-known brands instead of growing their own.
Fair Value Since this is a learning experience for me, I decided to use both a multiples valuation and a DCF valuation. Using multiples, I calculated the P/E,
... keep reading on reddit ➡$UL – Unilever Stock Analysis:
*To see the financial models I used and how they work, read my original analysis (images at the bottom) posted here*
Company Overview:
$UL – Unilever Inc. is a global, diversified technology company that operates in the following businesses: Safety/Industrial, Transportation/Electronics, Health Care, and Consumer. Unilever develops their products in -house, and thus has an unusually high product development, and research and development costs.
Unilever operates in 3 main business segments: Beauty & Personal Care, Foods & Refreshments, and Home Care.
Investment Information:
Unilever’s 5 Step Growth Strategy:
Unilever has developed their own 5 step strategy for future growth:
- Purposeful Brands: this includes developing their brands in high growth industries such as hygiene, skin care, prestige beauty, nutrition, and plant-based foods.
- Improved Penetration: in which Unilever plans to make their brands progressive in the context of social issues, this includes improving the health of the planet (decrease emissions), improve peoples health/confidence/wellbeing, contribute too a more socially inclusive workspace/world, and use differentiated science/technology to outperform their competitors.
- Impactful Innovation: in which they are aiming to accelerate their business in key growth markets like USA, India, China, and other emerging markets.
- Design for Channels: in which Unilever plans to develop the channels necessary to keep up with the quickly changing business landscape. This includes accelerating pure-play (focusing on one product/industry for each of their brands), further develop their omni-channel eCommerce strategy, develop eB2B (electronic Business to Business) platforms, and drive leadership/innovation through customer insight.
- Fuel for Growth: which involves Unilever’s capacity for agility and digital transformation, and being a leader/example in diversity, inclusion & values-based leadership
Recent News:
On December 13th 2021, Unilever announced the departure of their Chief HR Officer Leena Nair. Who is set to leave the company sometime this month (January 2022) as she will be assuming t
... keep reading on reddit ➡Ik heb een paar maanden terug mijn Unilever aandelen van de hand gedaan. Dividend was wel mooi, maar voor de rest gebeurde er niet zo veel.
Inmiddels is het aandeel deze week -10% gegaan op het voorstel om GlaxoSmithKline te kopen. Sinds de coronacrisis dit aandeel niet meer zo goedkoop geweest, terwijl het nu meer dan 4% dividend uitkeert en vaak ook iets aan aandeleninkoop doet. Het grootste risico is de schuld en dat er mogelijk aandeelverwatering plaatsvindt doordat het bedrijf GSK in aandelen gaat kopen. Ik verwacht niet dat het dividend in gevaar komt, volgens mij is Unilever ook dividend aristocrat, hoogstens de groei van dat dividend. Een paar jaar aan aandeleninkoop wordt wellicht wel teniet gedaan.
Toch weten we uit het langjarig gemiddelde dat Unilever een erg mooi bedrijf is en maak je d.m.v. het dividend toch minstens 4% rendement. De meeste analisten en zakenbanken hebben Unilever ook op 'buy' / 'strong buy' staan met een hoger koersdoel dan de huidige koers. Verder loopt Unilever al jaren erg achter op soortgenoten als Nestle en Proctor & Gamble wat betekent dat er nog zeker upside in het vat zit.
Ik zie het aandeel daarom als redelijk koopwaardig en overweeg bij een koers van 40 het aandeel te kopen voor een percentage van 2% in mijn portefeuille.
Wat denken jullie?
Hi, I applied to these schools in round 2, and while my GPA/GRE may look under indexed, I had glowing LORs/story (First generation grad from an unstable country etc). Just wanna check if i have a chance here, or should i start looking at T-50 schools.
-Tepper, Cornell (Ambitious)
-McDonough, Kelley (Realistic)
-Rutgers (safe).
TIA
1.The market overview
U.S. markets will be closed on Monday. This week's US API and EIA crude oil inventory data will be released at 05:30 On Thursday, January 20th and 00:00 on Friday, January 21st, Beijing time respectively.
The U.S. Treasury Department has taken key steps in the past year to address chronic economic injustice faced by people of color in the United States, but there is still "more work to do" to close the racial wealth gap, Treasury Secretary Janet Yellen said Monday.
White households, who make up 60 percent of the POPULATION, held 85.5 percent of the nation's wealth in 2019, compared with 4.2 percent for black households and 3.1 percent for Latinos, according to Federal Reserve data. Those numbers are virtually unchanged from 30 years ago, according to the nonpartisan nonprofit USAFacts.org.
Before today's trading, the three major futures of the US stock market fell collectively, $Dow Jones Main Link (2203)(YMmain.us)$down 0.66%, $NASDAQ 100 main link (2203)(Nqmain.us)$down 1.65%, The s&p 500 main link (2203)(ESmain.us) fell 1.04%.
2.Chinese stocks
Most of the popular Chinese stocks fall, Beili Beili, DDT down over 3%
Most of the popular Chinese stocks are down, with $BiliBili(BILI.US)$, $Drip(DIDI.US)$, $Pindo(PDD.US)$, $Jingdong(JD.US)$, $TSM.US)$ down over 3%, $Welai(NIO.US)$, $IQ.US)$, $Baidu(BIDU.US)$ down over 2%.
On the news, in March last year, Shanghai lawyer Liu Yuhang then participated in the "cut price free take" activity of Poundland, after inviting more than one person to cut price, always difference "0.9%". Pindo said, because the page display percentage digit is limited, so they put a percentage with at least 6 digits or more after the decimal point, omitted to show as 0.9%, the 0.9% shown on the bargain page is not 0.9%, but 0.9996427%. For the lawyer invited more than one person to chop but the chopping progress bar did not change, Tang Jiangrong, senior director of Poundland's legal department, explained: "Because some of the free chopped goods amount is large, pulling a small number of users to chop off the amount is not enough to make the percentage change, it will make consumers think that the chopping price has not changed.
Azure's U.S. subsidiary is reported to have recent
... keep reading on reddit ➡Artikel hier, hier oder auch hier.
GSK möchte dieses Jahr das "Consumer Health" Geschäft dieses Jahr an die Börse bringen oder verkaufen. Das sind hauptsächlich Apotheken Produkte die man ohne Rezept bekommt.
Dieses Geschäft soll laut Guidance 4-6% wachsen, das ist nicht schlecht.
Insgesamt gab es 3 Angebote, Unilever hat 50bn GPB geboten, dies war aber GSK nicht hoch genug. Angeblich versucht Unilever nun ein höheres Angebot vorzubereiten.
Das Geschäft würde wahrscheinlich gut in das Unilever Portfolio passen, aber eigentlich hat die Firma genug Probleme (niedriges Wachstum Inflation, etc), um die sich das Management aktuell kümmern sollte. Daher ist die Unilever Aktie auch unter Druck.
Bewertung des aktuellen Angebots (50bn GBP) ist bei ca. 18x EBITDA 2022, das ist auch sportlich, vergleichbare Firmen (PG, Colgate, Reckitt, etc) handeln auf dem Level oder sind billiger. Ein höheres Angebot könnte dann schon bei 20x liegen.
Was meint ihr?
https://preview.redd.it/ucy5xfp4y7c81.png?width=1342&format=png&auto=webp&s=5a9737b2f48a20840868c38d8f2dfa7a0496fe2f
Aktuell haben wir eine Unilever Position von 3.3% im Community Depot
Die alte These findet ihr hier.
Was sich seitdem verändert hat, ist sicherlich die Kosteninflation & dass das Management (mehr) an teuren Transaktionen interessiert ist. Die Kosteninflation trifft die ganze Branche, aber viel Geld für Übernahmen auszugeben ist ein Warnzeichen.
Der Reihe nach
- 16.1.2022: Es wird bekannt, dass das Unilever Management das GSK Geschäft mit Apotheken-Produkte für 50 Milliarden Pfund kaufen möcht; bitte die Kommentare von u/mejustyou und u/basic_configuration lesen - lohnt sich! GSK kommuniziert, dass das Angebot zu niedrig ist und Unilever arbeitet angeblich an einem höheren Angebot.
- 17.1.2022: Der Unilever Kurs bricht um 7% ein, im Chart unten seht ihr, dass die Aktie sich schon seit einiger Zeit schlechter entwickelt, als die 2 grossen Peers. Beide Firmen haben auch Phasen mit schlechter Performance hinter sich. Ein Activist konnte aber sowohl Nestle, als auch P&G wieder wach küssen 😘
- 20.1.2022: Unilever gibt bekannt, dass man nicht plant das Angebot zu erhöhen. Das ist eine kleine Erleichterung und der Kurs kommt ein wenig zurück.
- 23.1.2022: Der Activist Trian, der auch P&G zu alter Stärke zurück geholfen hat, hat eine Unilver Aktien-Position aufgebaut. Trian weiss wie man Conusumer Aktien wieder auf Spur bringt.
https://preview.redd.it/3ay4e3dyphd81.png?width=612&format=png&auto=webp&s=0368e336429b0a5c1a02c0dad92e345d85531530
Was machen wir mit der Unilever Position?
Pro
- Activist (Trian) wird dem Management klar machen, dass es sich auf das Kerngeschäft konzentrieren soll & nicht mit teuren Übernahmen
- Unilever hat immer noch ein gut
hey guys whats goodie, i am really happy i passed the previous games yet nervous and confused on what questions i might face under the HR program! what best practises i should be considering before jumping off the cliff.
side note: i have been rejected many times applying to unilever. last time i did not pass the second game. now i am bit happy i got this far
any tips are much appreciatted
They could call them “Q tips”
Nair holds the distinction of being "the first female, first Asian, youngest ever" chief human resources officer (CHRO) of Unilever. She is also a member of the Unilever Leadership Executive (ULE).
Leena Nair, a top Unilever executive, was on December 14 announced as the new global chief executive of French luxury group Chanel.
In a statement, Chanel said Nair would join the group in January, adding that the recent appointments would ensure its "long-term success as a private company."
With this appointment, Nair becomes the latest to join the list of Indians who have over the past few years taken up challenging roles at the helm of a global company.
Who is Leena Nair, the new Chanel boss?
Nair, 52, holds the distinction of being "the first female, first Asian, youngest ever" chief human resources officer (CHRO) of Unilever. She is also a member of the Unilever Leadership Executive (ULE).
Nair's professional career currently spans for around 30 years. She had joined the Hindustan Unilever Ltd (HUL) as a management trainee, back in 1992, after obtaining a gold medal from the Xavier School of Management - one of the top B-schools of India.
She was among the rare female employees at the time who opted for factory roles, and was appointed as the factory personnel manager of Lipton (India) Ltd in 1993.
In the early years of her career, she began working at different factories of HUL in West Bengal's Kolkata, Tamil Nadu's Ambattur and Maharashtra's Taloja
In 1996, she was was appointed as Employee Relations Manager by HUL, and elevated as HR manager of Hindustan Lever India by 2000.
In 2004, Nair was appointed as general manager HR of 'home and personal care India' by the company, and was further elevated as general manager HR in 2006.
A year later, she assumed the charge of executive director HR of HUL, and in 2013, she was elevated as Unilever's senior vice president, HR, responsible for leadership and organisational development, and also took over as the the global head of diversity in the same year.
Nair joined the Unilever Leadership Executive, based in London, in 2016 and became the youngest, first woman and first Asian to be elevated as the CHRO.
On her being announced as the new global chief executive of Chanel, Unilever CEO Alan Jope said he was thankful to her for the outstanding contribution to the company ov
... keep reading on reddit ➡Shares in consumer goods giant Unilever have fallen after it defended its £50bn takeover approach for the consumer healthcare arm of GlaxoSmithKline (GSK), describing the business as a "strong strategic fit".
The group, whose products range from Domestos bleach and Dove soap to Marmite and Hellman's mayonnaise, said the GSK deal would help it beef up its presence in key sectors as it seeks to refocus on stronger growth areas.
GSK disclosed over the weekend that it had spurned a series of offers from Unilever towards the end of last year for the arm of its business that includes Aquafresh toothpaste and Panadol"
It said the offers "fundamentally undervalued" the business - in which US drugs giant Pfizer holds a 32% stake - and its prospects.
But reports suggest Unilever could try to sweeten the deal and in a statement to investors it showed little sign that its enthusiasm for the takeover had waned.
It said a deal would add GSK's brands in oral care and vitamins, minerals and supplements to its own presence in those sectors and "create scale and a growth platform for the combined portfolio in the US, China and India, with further opportunities in other emerging markets".
Investors were unimpressed, sending Unilever's shares 6% lower in early trading on Monday, while GSK added 5%.
Victoria Scholar, head of investment at Interactive Investor, said: "It looks as ugh a deal is very much still on the cards despite GSK rejecting three offers including the latest £50bn offer"
"Unilever will have to raise its bid to somewhere around £55bn and move fast in order to avoid a bidding war from rival private equity buyers who are likely to be eyeing up counter offers."
Unilever has been targeting a refocused strategy after a corporate makeover which ended its Anglo-Dutch dual structure in 2020, making it a single London-based group, Unilever plc.
That concluded that it should expand its presence in health, beauty and hygiene, which offer higher rates of growth, while spinning off lower growth businesses.
It has already agreed deals to sell its tea business, including PG Tips and Brooke Bond, and its spreads brands including Flora.
In its update on the GSK approach, Unilever said that it was preparing to announce "a major initiative to enhance our performance" later this month.
"After a comprehensive review of our organisation structure, we intend to move away from our existing matrix to an operating model that will drive greater agility, improve category foc
... keep reading on reddit ➡$UL – Unilever Stock Analysis:
*To see the financial models I used and how they work, read my original analysis (images at the bottom) posted here*
Company Overview:
$UL – Unilever Inc. is a global, diversified technology company that operates in the following businesses: Safety/Industrial, Transportation/Electronics, Health Care, and Consumer. Unilever develops their products in -house, and thus has an unusually high product development, and research and development costs.
Unilever operates in 3 main business segments: Beauty & Personal Care, Foods & Refreshments, and Home Care.
Investment Information:
Unilever’s 5 Step Growth Strategy:
Unilever has developed their own 5 step strategy for future growth:
-
Purposeful Brands: this includes developing their brands in high growth industries such as hygiene, skin care, prestige beauty, nutrition, and plant-based foods.
-
Improved Penetration: in which Unilever plans to make their brands progressive in the context of social issues, this includes improving the health of the planet (decrease emissions), improve peoples health/confidence/wellbeing, contribute too a more socially inclusive workspace/world, and use differentiated science/technology to outperform their competitors.
-
Impactful Innovation: in which they are aiming to accelerate their business in key growth markets like USA, India, China, and other emerging markets.
-
Design for Channels: in which Unilever plans to develop the channels necessary to keep up with the quickly changing business landscape. This includes accelerating pure-play (focusing on one product/industry for each of their brands), further develop their omni-channel eCommerce strategy, develop eB2B (electronic Business to Business) platforms, and drive leadership/innovation through customer insight.
-
Fuel for Growth: which involves Unilever’s capacity for agility and digital transformation, and being a leader/example in diversity, inclusion & values-based leadership
Recent News:
On December 13th 2021, Unilever announced the departure of their Chief HR Officer Leena Nair. Who is set to leave the company sometime this month (January 2022) as she will be ass
... keep reading on reddit ➡