Is Unilever on a downward slope?

By: Miguel A. Rodriguez

09:45, 14 September 2020

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Unilever is under pressure due to the pandemic.

The current global situation is not doing Unilever any favors. The pandemic influences the overall revenue of Unilever, as the company provides both essential and non-essential items. The general sentiment is a positive one for the Personal and Home sector, but for the Food and Refreshments, a drop in revenue is in sight. For the past couple of years, it dropped from $25.2 billion to $21.6 billion.

Since 2017 the revenue kept on dropping, and the pandemic does nothing more than to add to the general feeling.  Analysts expect the total revenue to drop to $57.42 billion in 2021, from $58.22 billion recorded in 2019. For the current year, the consensus points to a negative outcome – a loss of 3.5%.

The most crucial part of the revenue game is played by the Personal Care segment, which provides approximately 42% of the total profit. The segment includes brands valued at over $1 billion or more, such as Dove, Axe, Rexona. By 2021 the division is expected to have a return of $25.2 billion.

Other companies seem to take advantage of Unilever’s situation, GSK being the first to spring to mind. Yesterday, the pharma giant sold its stake in Hindustan Unilever for $3.35 billion. It is the most significant block trade ever recorded in India. According to GSK's statement, the money will be used to develop experimental cancer treatments, as well as future cell and gene therapies.

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Sources: forbes.com, economictimes.indiatimes.com

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