Core Insights - Oakmark International Fund's fourth-quarter 2025 investor letter highlights a focus on long-term capital appreciation through investments in non-U.S. mid and large-cap companies, with a reported return of 4.83% for the fund, slightly underperforming the MSCI World ex USA Index's gain of 5.20% [1] Fund Performance - The fund's top performance contributors were in the healthcare and financial sectors, while consumer staples were the only detractor [1] - The fund's top five holdings can be reviewed for insights into its best investment picks for 2025 [1] Company Focus: Unilever PLC - Unilever PLC is identified as a key stock in the fund's portfolio, operating in various segments including Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream [2] - As of January 14, 2026, Unilever's stock closed at $65.33, with a one-month return of -0.20% and a 10.00% gain over the last 52 weeks, alongside a market capitalization of $142.546 billion [2] - The fund appreciates Unilever's refreshed management team and their strategic initiatives aimed at improving execution and driving consistent growth, particularly in higher-margin categories [3] - Despite a strong outlook, Unilever trades at a discount compared to peers due to historical underperformance, presenting an investment opportunity in a company with strong brands and improved management [3] Market Sentiment - Morgan Stanley has resumed coverage of Unilever with an overweight view, noting that it is not among the 30 most popular stocks among hedge funds, with 27 hedge fund portfolios holding the stock at the end of the third quarter [4] - While acknowledging Unilever's potential, there is a belief that certain AI stocks may offer greater upside potential and lower downside risk [4]

Core Insights - Unilever's new "influencer-first" strategy aims to work with 20 times more influencers and allocate 50% of its ad budget to social media, up from 30% [1][2] - The company is currently collaborating with approximately 300,000 influencers globally, significantly impacting the influencer marketing landscape [3][6] Industry Impact - Unilever's commitment to expanding its influencer roster has led to increased leverage on the supply side, resulting in price inflation and attracting new entrants to the influencer market [2] - Following Unilever's announcement, many advertisers are reassessing their influencer marketing strategies, with some planning to increase their budgets [9][11] - A survey indicated that 62% of marketers intend to raise their annual influencer budgets by 2026, with US advertiser spending on creators projected to reach $37 billion in 2025, a 26% year-over-year increase [7] Competitive Dynamics - Unilever's strategy has prompted other brands to follow suit, with several major advertisers detailing plans to increase their influencer marketing budgets during recent earnings calls [11] - The competition for top-tier influencers has intensified, leading to higher fees for those appealing to beauty, personal care, and food brands [12][13] Market Trends - The influencer market is maturing, with partnerships often including usage rights and ads across multiple channels [13] - Despite the overall growth, not all creators benefit equally; fee inflation is primarily concentrated among macro creators, while nano creators may not see similar increases [14][19] - The number of user-generated content (UGC) creators surged by 93% year-over-year, leading to a decrease in average brand spend per influencer collaboration [16][17]

Core Insights - Esi Eggleston Bracey is leaving her position as Unilever's chief growth and marketing officer as part of a broader restructuring initiative within the company [1][2] - Leandro Barreto will take over as chief marketing officer for Unilever and the beauty and well-being business group starting January 1, following a transition period [2] - The restructuring aims to enhance Unilever's marketing strategies and consumer engagement amid significant industry changes and a digital revolution [2] Company Changes - The leadership change is part of Unilever's ongoing transformation to improve brand marketing and consumer interaction [2] - Chief Executive Officer Fernando Fernandez acknowledged Eggleston Bracey's significant contributions during her eight years at Unilever, highlighting her role in establishing a foundation for growth in the U.S. market [3] - Eggleston Bracey joined Unilever in 2018 and was instrumental in redefining demand-building strategies globally [3] Marketing Strategy - Leandro Barreto is recognized for his creativity and ability to build culturally relevant brands, positioning him well to lead Unilever's marketing transformation [3] - Unilever has focused on beauty and wellness as key growth drivers, with expectations that these divisions will account for two-thirds of sales in the medium term, up from the current 51% [4]

This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Dive Brief: Unilever’s Chief Growth and Marketing Officer Esi Eggleston Bracey will depart at the end of January as the owner of brands like Dove and Hellmann’s moves its marketing and business groups closer together, according to a press release. Leandro Barreto, current CMO of Unilever beauty and wellbeing, will see his remit expanded to be enterprise-wide ...

Core Insights - Investors are navigating a complex environment characterized by elevated inflation and central banks cutting rates to support softening labor markets [1][4] - The article emphasizes the importance of diversifying portfolios to mitigate risks associated with inflation and interest rate changes [2][21] Impact of Inflation and Rate Cuts on Stocks - Inflation affects all sectors, but companies with sufficient pricing power, particularly in essential goods and services, can maintain shareholder value [3][5] - The Federal Reserve's rate cuts on September 17, 2025, are aimed at addressing labor market weaknesses, creating opportunities for rate-sensitive sectors like property and technology [4][10] Defensive Sectors and Companies - Essential services and goods are considered "recession-proof," making them attractive during economic downturns [5][6] - Companies like Sheng Siong and Nestlé can pass rising costs to consumers, protecting profit margins during inflation [6][7] - The healthcare sector, exemplified by Johnson & Johnson, can also manage rising costs effectively due to non-discretionary demand [8] Opportunities in Low Interest Rates - Low interest rates stimulate borrowing, benefiting property developers and REITs, which can access cheaper financing [9][10] - City Developments Limited (CDL) is highlighted for its diversified assets and strong demand for residential properties, recently divesting a stake for S$834.2 million [11][12] - Growth stocks, particularly in technology, are well-positioned to leverage low interest rates for expansion [13][14] Blue-Chip Stocks as Stability - Blue-chip companies like DBS Group and Unilever provide stability and potential for capital appreciation, even in bearish markets [15][16][17] - DBS Group's strong fundamentals and regional presence have sustained investor confidence, with shares surpassing S$50 [16] Building a Balanced Portfolio - Diversification is crucial, combining inflation-resistant sectors (consumer staples, utilities, healthcare) with rate-sensitive opportunities (tech stocks, REITs, property developers) [19][22] - A multi-scenario approach allows investors to be prepared for varying economic conditions, ensuring no single shock derails the portfolio [20][21]

Core Insights - Procter & Gamble (PG) exceeded Wall Street expectations for first-quarter revenue and profit, driven by strong demand for beauty and hair-care products despite economic uncertainties [1][5] - The company reduced its annual tariff cost estimate to approximately $400 million after tax, down from $800 million, following Canada lifting retaliatory tariffs on U.S. goods [1] Financial Performance - PG's quarterly revenue increased by 3% to $22.39 billion, surpassing estimates of 2% growth to $22.17 billion [5] - Core earnings per share reached $1.99, beating estimates by 9 cents, as higher prices helped mitigate tariff pressures [5] Market Trends - Sales volumes in the beauty segment rose by 4% in the three months ending September, compared to a 1% increase in the previous quarter [3] - Overall volumes across PG remained flat, although there was an increase in China [2][3] Competitive Landscape - PG's results are consistent with those of competitors like Unilever, which reported double-digit sales growth from beauty brands in the U.S. [2]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][6][18] - Turnover for Q3 was EUR 14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [18][19] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [19] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [22][10] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volumes up 1.7% for the total group [6][7] - Home Care underlying sales grew 3.1%, driven by strong performances from CIF and Domestos [15] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by Personal Care and Wellbeing brands [7][8] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][9] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [9][10] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [22][60] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][17] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products, aiming for a higher market share in key categories [22][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year outlook despite some market softness, particularly in Latin America [21][22] - The company anticipates volume growth in Q4 to be at least in line with Q3, with an expected improvement in underlying operating margin for the full year [21][68] - Management highlighted the importance of learning from challenges in Latin America to avoid similar issues in other regions [32][75] Other Important Information - The company has made significant investments in premium innovations and brand execution, which are expected to drive future growth [22][23] - The acquisition of Dr. Squatch is expected to enhance Unilever's presence in the premium male grooming segment [14] Q&A Session Summary Question: Clarification on volume growth expectations into 2026 - Management confirmed expectations of 2% volume growth into 2026, reflecting confidence in long-term market performance [25][28] Question: Growth of Wellbeing and Prestige in North America - Management noted strong double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [28][29] Question: Challenges in Latin America - Management acknowledged self-inflicted issues in Brazil, particularly in laundry and deodorants, and outlined corrective actions being taken [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, wage inflation and currency devaluation are factors to consider for future pricing strategies [38][39] Question: Performance in China and Indonesia - Management reported positive growth in both markets, with significant improvements in Indonesia attributed to a reset in business fundamentals [71][72]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][18] - Turnover for Q3 was €14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [17][18] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [18] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [20][11] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volumes up 1.7% [5][6] - Home Care underlying sales grew 3.1%, driven by strong performances from CIF and Domestos [12][14] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by strong performance in Personal Care and Wellbeing [6][19] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][8] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [8][9] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][20] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][16] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets despite some softness in certain regions, particularly Latin America [19][21] - The outlook for the remainder of the year remains unchanged, with expectations for underlying sales growth within the 3% to 5% range [19][21] - Management highlighted the importance of premium innovations and digital commerce in driving future growth [20][21] Other Important Information - The company has seen significant improvements in its operational execution and brand performance, particularly in developed markets [2][6] - The acquisition of Dr. Squatch has expanded Unilever's presence in the premium male grooming segment [12][18] Q&A Session Summary Question: Clarification on volume growth into 2026 - Management confirmed a 2% volume growth expectation into 2026, highlighting strong performance in North America and challenges in Latin America [24][26] Question: Growth of wellbeing and prestige brands in North America - Management noted double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [27][28] Question: Actions taken in Latin America regarding pricing - Management acknowledged that pricing strategies in Brazil were too aggressive, leading to corrective actions and expected improvements in competitiveness [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, there are inflationary pressures in certain categories, and pricing adjustments will be made sensibly [33][36] Question: Performance in Mexico - Management reported soft market conditions in Mexico due to external factors but emphasized strong competitiveness in their portfolio [64][66] Question: Performance in Indonesia and China - Management expressed satisfaction with the growth in Indonesia and noted improvements in China due to strategic changes in the business model [70][72]

1 Safe harbour statement This presentation may contain forward-looking statements within the meaning of the securities laws of certain jurisdictions, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words and terminology such as 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', 'ambiti ...

Core Insights - Unilever reported a total revenue of €30.1 billion for the first half of 2025, a decline of 3.2% year-on-year, impacted by unfavorable exchange rates (-4%) and net asset disposals (-2.5%) [1] - Net profit decreased by 5.1% to €3.8 billion [1] - The ice cream business, which is set to be spun off, was the only segment to show revenue growth, reaching €4.6 billion, up 0.2% year-on-year [1] Revenue Breakdown - Beauty and Wellness: Revenue of €6.5 billion, down 0.8% [1] - Personal Care: Revenue of €6.5 billion, down 5.9% [1] - Home Care: Revenue of €5.9 billion, down 6.7% [1] - Food: Revenue of €6.6 billion, down 1.8% [1] Sales Performance - Underlying sales growth (USG) for the first half was 3.4%, with volume growth of 1.5% and price contribution of 1.9% [3] - Beauty and Wellness segment saw a USG of 3.7%, with volume contributing 1.7% and price contributing 2% [3] - Personal Care segment achieved a USG of 4.8%, with volume contributing 1.4% and price contributing 3.3% [4] Profitability - Operating profit for Beauty and Wellness was €1.3 billion, down 3.7% year-on-year [3] - Operating profit for Personal Care was €1.4 billion, down 9.8% year-on-year [4] - Overall gross margin reached 45.7%, with a basic operating profit margin of 19.3%, down 30 basis points from the previous year [8] Future Outlook - Unilever expects full-year underlying sales growth to be in the range of 3% to 5%, with second-half growth anticipated to exceed that of the first half [8] - The company is focusing on enhancing its Beauty and Wellness and Personal Care segments, with increased investments in the U.S. and Indian markets [7] - The ice cream business is expected to complete its spin-off by mid-November 2025, transitioning into an independent operating company [7]