FY 2024 Results Hein Schumacher & Fernando Fernandez 13 February 2025 Safe harbour statement This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning the financial condition, results of operations and businesses of the Unilever Group (the 'Group'). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words and ...

Core Insights - Unilever reported slightly weaker-than-expected sales growth for the fourth quarter and anticipates a subdued start to 2025, with expectations of recovery in the second half of the year [1][4]. Financial Performance - The company posted a 4% rise in fourth-quarter underlying sales, missing the forecast of 4.1% [2]. - Full-year underlying sales grew by 4.2%, slightly below the analyst consensus of 4.3%, while underlying operating margins were reported at 18.4%, in line with estimates [3]. - The company expects full-year sales growth for 2025 to align with its multi-year range of 3% to 5% and anticipates a modest improvement in underlying operating margin in the latter half of the year [4]. Strategic Developments - Unilever is planning to spin off its ice cream business, which includes brands like Ben & Jerry's and Magnum, through a triple listing on the Amsterdam, London, and New York exchanges [2][6]. - The demerger is on track to be completed by the end of 2025 [6]. - The company is also looking to sell several food lines with combined sales of approximately 1 billion euros ($1.04 billion) [5].

Core Viewpoint - Ben & Jerry's has filed a lawsuit against its parent company Unilever, claiming that Unilever has censored its ability to express political views, particularly regarding support for Palestinians and criticism of Donald Trump [1][2][8]. Group 1: Legal Action and Allegations - Ben & Jerry's initiated legal proceedings against Unilever in November, alleging that the company blocked it from making statements supporting Palestinians, which it claims violates a settlement agreement [1][2]. - The complaint states that Unilever has threatened to dismantle Ben & Jerry's Independent Board and intimidate its personnel, thereby undermining the company's social mission and brand integrity [3][10]. - The lawsuit was amended to include references to Donald Trump, Elon Musk, and Nelson Peltz, highlighting the influence of these figures on Unilever's decisions [4][6]. Group 2: Censorship Claims - Ben & Jerry's asserts that Unilever censored a planned statement on Inauguration Day that addressed various social issues, including minimum wage and climate change, due to its mention of Donald Trump [5][11]. - The complaint indicates that Unilever's decision to block the post was influenced by Peltz's position on the board and his public support for Trump [9][10]. - The company argues that Unilever's actions reflect a broader pattern of undermining its authority and social mission, which has historically included progressive activism [10][11]. Group 3: Company Identity and Values - Ben & Jerry's emphasizes that its identity is rooted in social justice, equality, and free speech, and it views Unilever's actions as a threat to these core values [11][12]. - The company expresses disappointment in Unilever's inability to understand its unique brand identity and the principles that have contributed to its popularity over the past four decades [12].

Group 1 - Unilever is considered a better investment option compared to Procter & Gamble at the current time [1] - Procter & Gamble is viewed as a stock that can be held comfortably under various market conditions [1]

Stock Performance Comparison - UL stock has seen little change, moving slightly from $55 in early January 2021 to around $60 now, while PG stock increased by about 45% from $125 to $180 over the same period [2] - UL stock returns were -8% in 2021, -3% in 2022, and 0% in 2023, while PG stock returns were 21%, -5%, and -1% respectively [3] - Both UL and PG underperformed the S&P 500, which rose 60% over the same period [2][3] Revenue Growth Analysis - Unilever's revenue grew at an average annual rate of 0.9% from $62.4 billion in 2020 to $63.9 billion in 2023, while P&G's sales rose at a 3.4% average rate from $76.2 billion in fiscal 2021 to $84.0 billion in fiscal 2024 [5] - Unilever's sales were up 4.3% for the nine-month period ending Sep 2024, led by a 2.9% rise in volumes and 1.3% pricing gains [6] - P&G reported a 4% rise in total organic sales in fiscal 2024, driven by a 4% growth in pricing, while volume/mix remained flat [8] Segment Performance - Unilever's revenue is divided into Personal Care, Food & Refreshments, and Home Care, with personal and home care sales trending well, while food and refreshment sales saw slower growth [6] - P&G's largest segment, Fabric & Home Care, contributes around 35% of the company's revenues and has driven overall sales growth, while Beauty and Baby Care segments have seen tepid growth [8] - P&G's Beauty sales fell 5% in the previous quarter, with Skin Care products plunging 20% due to lower volume and unfavorable mix [9][10] Profitability and Financial Position - Unilever's adjusted net margin rose from 8.6% in 2020 to 10.4% in 2023, while P&G's net income margin remained stable at 19.4% in fiscal 2024 [11] - P&G's debt increased from $32.8 billion in fiscal 2021 to $36.2 billion now, while Unilever's debt declined from $33.6 billion in 2020 to $31.8 billion in 2023 [12] - P&G's cash increased from $10.3 billion to $12.2 billion in the last three years, while Unilever's cash declined from $6.8 billion to $4.5 billion over the same period [13] Valuation and Prospects - UL stock trades at 19x forward earnings, versus 26x for PG stock, with both trading at multiples higher than their historical averages [1][16] - Unilever is expected to see robust volume growth across categories, while P&G faces headwinds in its Beauty and Baby Care segments [15] - Unilever's largest segment, Home Care, is performing well with mid-single-digit volume growth this year [15]

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Ice cream brand Ben & Jerry’s said in a lawsuit filed Wednesday that parent company Unilever has silenced its attempts to express support for Palestinian refugees and threatened to dismantle its board and sue its members over the issue.The lawsuit is the latest sign of the long-simmering tensions between Ben & Jerry’s and consumer products maker Unilever. A rift erupted between the two in 2021 after Ben & Jerry’s said it would stop selling its products in the Israeli-occupied West Bank because it was incons ...

It's been a while since I wrote about one of the turnarounds in my own portfolio. I reviewed Unilever PLC (NYSE: UL ) on March 23 and since then, the stock has risen more than 15%, which is slightlyI am a Dutch manual therapist (MSc) and a passionate retail investor. My investment journey started in 2021 and from that point my love for investing has begun. Nearly from the start i had a strong preference for dividend growth investing.My investment goal is to retire early with the dividend growth strategy, co ...

Hi there, welcome to my profile. My name is Eugenio Catone, I live in Italy and I am 26 years old. In 2023 I graduated in Business Administration and I am completing my studies. My interest in financial markets started about 5 years ago when I accidentally came across a video about trading. That was the spark that introduced me to a new world, but over time I realized that it was not my path: too many charts, lines, and not very concrete concepts for a pragmatic person like me. I needed something different ...

Vladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. Analyst's Disclosure: I/we have a beneficial long position in the shares of UL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (ot ...