Zacks Investment Research: Unilever (UN)

Touches 52-Week High on Quala Acquisition

Información de publicación: Publicación de blog. Newstex Finance & Accounting Blogs , Chatham:
Newstex. May 16, 2017.

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Unilever NVUN 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 $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 SurpriseUnilever NV Price, Consensus and EPS Surprise | Unilever NV Quote Stock Price
MovementA 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 DriversThe 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 LookOther top-ranked stocks in the food industry include Church
&Dwight Company, Inc. CHD and ConAgra Foods, Inc. CAG, each carrying a Zacks Rank #2 (Buy). You can seethe

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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
PoliciesIf 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
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for
the Next 30 Days. Click to get this free report ConAgra Foods Inc. (CAG): Free Stock Analysis Report Unilever NV
(UN): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report Church &Dwight
Company, Inc. (CHD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment
Research

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DETALLES

Título: Zacks Investment Research: Unilever (UN) Touches 52-Week High on Quala
Acquisition

Título de publicación: Newstex Finance &Accounting Blogs; Chatham

Año de publicación: 2017

Fecha de publicación: May 16, 2017

Lugar y fecha de origen: May 16, 2017

Editorial: Newstex

Lugar de publicación: Chatham

País de publicación: United States, Chatham

Materia de publicación: Business And Economics--Accounting, Business And Economics--Banking And

Finance

Tipo de fuente: Blogs, Podcasts, &Websites

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 Idioma de la publicación: English

Tipo de documento: Blogs

ID del documento de 1899056662

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Copyright: Copyright Newstex May 16, 2017

Última actualización: 2017-05-16

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