Unilever Is Cutting Back On Ice Cream To Revive Its Business
Portfolio Pulse from Upwallstreet
Unilever PLC (NYSE:UL) announced plans to spin off its ice-cream business, including Ben & Jerry's, cutting 7,500 jobs as part of a cost-savings program, aiming to complete by end of 2025. The move is part of CEO Hein Schumacher's strategy to focus on 30 key brands, aiming for mid-single-digit sales growth and improved margins. Unilever's Q4 results showed a need for further improvement. Meanwhile, competitor Procter & Gamble (NYSE:PG) reported mixed results with volume drops in several segments.
March 26, 2024 | 1:24 pm
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Procter & Gamble reported mixed results with volume drops in several segments, indicating potential challenges ahead.
The reported volume drops across several of P&G's segments, including the decision to narrow its full-year outlook and lower unadjusted earnings forecasts, suggest potential short-term challenges for the stock. The market may react negatively to these indicators of weakened demand.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Unilever plans to spin off its ice-cream business, aiming for cost savings and focusing on core brands for growth.
Spinning off the ice-cream business could lead to a more focused and potentially more profitable Unilever. The job cuts and cost savings are likely to improve margins, which could positively impact the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100