Unilever PLC

Prestige beauty and functional nutrition, two of Unilever's priority growth sectors, where it has been most acquisitive, reported strong growth in the first quarter of 2021 and contributed over 50 basis points to the group's reported underlying sales growth. The group is undertaking an operational separation of the Tea business and is evaluating various options, such as an IPO, a demerger, a joint venture, or a disposal to create value. The business that will be separated generated revenue of about €2 billion in 2020, and excludes India and Indonesia. Unilever is also in the process of creating a new unit, Elida Beauty, comprising a number of smaller beauty and personal care brands to provide dedicated management focus and look at

...We expect Unilever's underlying sales growth will remain robust, supported by its focus on organic revenue growth. The group targets underlying sales growth of 3%-5%, which is also broadly in line with our expectations for other large globally diversified branded consumer goods competitors. In 2021, we expect Unilever's underlying sales growth will remain around this level, supported by strong demand for in home food and its large exposure to fast-expanding markets. However, the other elements that play a crucial part in Unilever maintaining its organic growth at these healthy levels are its ability to continually offer innovative products that respond to consumers' changing preferences; an increase in its exposure to rapidly expanding channels like e-commerce; and regularly refreshing its product offering to ensure they remain appealing. Unilever has a good track record of evolving its product portfolio to meet its growth objectives. The pandemic has led Unilever to adjust its objectives...

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