Unilever (NYSE:UL)(GB:ULVR) announced the acquisition of Yasso Holdings, a company offering premium frozen snacks, including Greek yogurt, in the U.S. While the financial terms of the deal were not disclosed, the move will likely strengthen its Ice Cream Business Group. Unilever expects the transaction to close in the third quarter of 2023.
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It’s worth highlighting that the world’s leading consumer goods company focuses on the premiumization strategy for its Ice Cream Business Group. Yasso, with its premium and convenient frozen snack offerings, fits the segment well. Unilever’s Ice Cream Business holds premium brands like Magnum, Ben & Jerry’s, and Talenti in its portfolio.
Its Ice Cream segment’s top line increased by 6% in the first quarter, led by strength in the out-of-home channels. However, inflationary pressure on consumer spending continued to be a drag. By brands, Magnum and Cornetto marked solid growth driven by limited edition variants.
The company continues to reshape its portfolio to accelerate growth. Earlier, it announced the sale of its Suave brand in North America. However, the company will continue to own Suave outside the US and Canada.
Overall, Unilever witnessed sequential improvement in volumes in Q1 and benefitted from underlying price growth, which drove its revenue higher. Further, the company’s management remains upbeat and expects to deliver strong underlying sales in 2023, reflecting higher pricing and improved volumes compared to 2022.
Is Unilever Stock a Buy, Sell, or Hold?
Unilever stock has five Buy, four Hold, and three Sell recommendations, translating into a Hold consensus rating. Further, analysts’ average price target of 4,365.81p implies 8.7% upside potential.
