Shares of Unilever PLC (GB:ULVR) rose nearly 3% at the time of writing following the news of a new €1.5 billion share buyback plan set to commence in Q2 FY24. Also, the British multinational fast-moving consumer goods company’s underlying sales grew 4.7% to €14.2 billion in Q4 FY23. The solid sales growth was attributed to higher prices and a 1.8% volume growth in the quarter.
Unilever is an FTSE 100-listed company with several verticals and boasts many renowned brands such as Hellmann’s mayonnaise, Ben & Jerry’s ice cream, Magnum, Lux and Dove soaps, etc. ULVR shares have lost nearly 2% of their value in the past year.
Further Details About Unilever’s Results
Unilever posted a 7% jump in its underlying sales for the full year Fiscal 2023, while underlying operating profit was up 2.6%. CEO Hein Schumacher acknowledged the need to do more to improve the company’s overall performance. Meanwhile, the company maintained its fourth-quarter dividend at €0.4268 per share.
Most of Unilever’s segments delivered a high-single-digit underlying sales growth for the full year except the Ice Cream segment, which posted only a 2.3% increase. Notably, Unilever’s 30 Power Brands, which contribute 75% of total revenues, were accretive to growth and margin, with their underlying sales up 8.6%.
Looking ahead, Unilever projects 2024 underlying sales growth to be within 3% to 5%. It expects to achieve this target by maintaining a healthy balance between volume and price. Further, Unilever expects a marginal improvement in underlying operating profit margin in 2024. The company’s underlying prices have decelerated steadily through the year from 10.7% in Q1 FY23 to 2.8% in Q4 FY23, aided by lower material inflation.
Is Unilever a Buy, Sell, or Hold?
Following the Q4 print, Jefferies analyst David Hayes reiterated a Sell rating on ULVR stock with a price target of 3,300p (18.2% downside).
Overall, with two Buys, three Holds, and four Sell ratings, ULVR stock has a Hold consensus rating on TipRanks. The Unilever plc share price target of 4,001.25p implies that shares are almost fully valued at current levels.
