A Look at Unilever’s Stock Value by Product Line
Unilever (NYSE:UL) is one of the leading global fast moving consumer goods (FMCG) companies, primarily competing with other household and personal care companies like Proctor and Gamble (NYSE:PG), Colgate Palmolive (NYSE:CL), and Reckitt Benckiser.
We currently maintain a price estimate for Unilever at $37.89, roughly 23% ahead of the company’s market value.
Unilever recently received regulatory approval from the European Union to acquire Sara Lee’s (NYSE:SLE) global personal care and european laundry business. [1] Given Unilever’s move to build its product portfolio, we examine the relative contribution of the company’s product lines below.
Which of these segments do you think generates the greatest contribution to Unilever Group’s stock value?
Make a selection below to see the answer
A. Skin & Hair Care (Dove, Lux etc)
B. Savoury Spreads & Dressings (Becel, BlueBand, Knorr etc)
C. Ice Creams (Walls, Algida, Ben&Jerry’s etc)
D. Fabric care (Surf, Omo etc)
Unilever’s acquisition of Sara Lee’s global personal care and european laundry business is contingent upon the divestment of Sara Lee’s Sanex brand, which markets bath, shower, and deodorant products. [2] The move to acquire Sara Lee strengthens Unilever’s market share in key European markets such as Britain, Germany, France, Spain, Italy, Denmark and the Netherlands.
Unilever operates a variety of product lines across the grocery and personal care business. The Sara Lee acquisition strengthens Unilver’s market presence, where it is already a leader in skin care and deodorants, including brands like Dove, Lux, and Rexona (which includes both Sure and Degree). Sara Lee’s laundry business will also add to Unilever’s fabric care portfolio that includes brands such as Omo and Surf.
Unilever distributes its products to a variety of chain, wholesale, co-operative and independent grocery accounts, food service distributors and institutions. Products are physically distributed through a network of distribution centres, satellite warehouses, storage facilities, and depots. Unilever buys approximately 12% of the world’s black tea, 6% of its tomatoes and 3% of its palm oil. Roughly 50% of the raw materials that the company uses for its products come from agriculture and forestry.
See our complete analysis for Unilever here
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