26 October 2018Reading time: 2 minutes

Unilever is one of the Europe’s largest consumer goods company with a full range portfolio of food & beverages cleaning agents and personal care products. Very well known brands such as Ben & Jerry’s, Dove and Lipton belong to Unilever’s offering. The company is dual listed in London and Amsterdam and is headquartered in London and Rotterdam.

Unilever made headline recently as the company decided not to move its headquarter after Brexit from London to Rotterdam. Some Investors claimed that the company is not paying enough attention to their concern. How the company will position in a still uncertain post-Brexit situation. The recent unexpected change of mind of the management regarding the headquarter location shakened investor’s confidence and a management change might come sooner than expected.

Despite these concerns, Unilever published on 18th October 2018 a strong Q3, showing that even in a rising commodities price environment, consumers were not disturbed by raising product’s prices. The 4.5 percent growth in sales was above the average consensus of analysts, who forecast a growth of 4.3 percent. Excluding results from Argentina, which is actually in a hyperinflation phase, growth was 3.8 percent. This might be a good opportunity to invest in the stock, however the future development remains to be seen.

The stock price of Unilever’s share is now quoting at EUR 47.65 (October 19th 2018). On August 21th, the stock price peaked at 50,16 EUR. The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

Vontobel products on Unilever are tradable at DEGIRO.

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21/09/2019 03:25:33