UL Stock Recent News

Most of Unilever's sales come from emerging markets, providing a long growth runway. The planned separation of its ice cream unit creates a simplified, higher-margin business.

Unilever recently launched its productivity program, which includes splitting off its ice cream division. This division, although a sizeable part of the company, has been relatively underperforming over the years and is more capital-intensive. It seems that Unilever's restructuring plans are switching into higher gears, and the ice cream exit could be the first step of many improvements.

London may miss out on the float of Unilever PLC's (LSE:ULVR) €17 billion (£14.5bn) ice cream scoop-out, with Amsterdam seeming to be front-runner for the initial public offer destination.  The Anglo-Dutch giant said last week that it plans to spin off its ice cream unit, including Ben & Jerry's, Magnum and Walls.

Unilever's performance has been underwhelming compared to its peers in the consumer staples sector; however, this could change in the future. The company still has a high-quality product portfolio with sufficient growth prospects in emerging markets. Management is working on a turnaround and is shifting towards higher-margin segments and streamlining its portfolio, with a spin-off of its ice cream division planned.

This week's big strategic update from Unilever PLC (LSE:ULVR) appears to raise risks for advertising agencies that it uses, said UBS, reiterating its 'sell' rating on WPP PLC's (LSE:WPP).  Alongside scooping out its ice cream division, Unilever's announcement of an acceleration of its growth action plan also includes the launch of a €800 million productivity program, with various cost savings.

Unilever PLC (LSE:ULVR)'s decision to divest itself of its ice cream business - which makes freezer staples such as Ben & Jerry's and Wall's - is being viewed favourably by analysts as they digest the news. The food and household goods conglomerate, which is looking to complete the demerger by the end of next year, unveiled the plans as part of a streamlining process that will see it do 'fewer things better'.

Unilever PLC (LSE:ULVR) is considering disposing of the majority stake in Chinese water purification company Qinyuan Group it bought in 2014, according to a Bloomberg report. Sources said the sale could value Qinyuan at around $300 million (£236 million), though Unilever has not disclosed the size of its stake Qinyan was Unilever's largest Chinese acquisition at the time, doubling the British FMCG conglomerate's exposure to the water purification market.

Unilever is exiting the ice cream business and doubling down on cost cuts. Investors should watch the upcoming earnings report for more details on its 2024 growth prospects.

Unilever PLC (LSE:ULVR) has left the door open to a Dutch listing of its ice cream division after announcing the separation of the business on Tuesday. “Where eventually the listing will take place as well as its head office, that's something that we're going to have to determine in the next 18 months,” Bloomberg quoted Unilever's chief executive Hein Schumacher as saying.

Its ice cream business was struggling and enjoys less overlap with the rest of the consumer giant.