Beauty buys to brighten Unilever as markets lack shine

by:YdbY     2020-08-25
LONDON (Reuters)-Unilever (ULVR. L)(UNc. AS)
It is expected that the recent series of beauty deals will bring extra luster to its performance, while consumer demand for staple food remains weak from soup to soap. The Anglo-
Dutch Knoll soup, Lipton tea and Ben Jerry ice cream makers have been looking for better places in the past few years to move from food to personal care, with better margins and growth prospects.
On Thursday, Unilever reported that the wisdom of transformation is obvious --than-Expected second
Quarterly sales increased by 3. 3% and 5.
Its personal care and home care businesses were 9%, respectively.
In contrast, the recent divestiture includes Slim-
Pasta sauce.
Some analysts believe Unilever may also sell its margarine after setting up a booth
The only unit of the troubled business this month.
Executives at Unilever reiterated their expectations.
Sales growth this year is likely to be at the high end of the previously set target of 2 to 4%.
This reflects the current low
Key nature of major markets.
\"Emerging markets continue to slump, while growth in Europe and North America is negligible,\" Unilever said in a statement . \".
Its share price rose by 1.
Greenwich Time 7% 1430 kilometers in London.
Four beauty brands were acquired this year.
Turnover of REN Skincare, Kate Sommerville Skincare, Dermalogica and Murad is approximately EUR 0. 4 billion
Sales, profits and profits should be increased immediately.
Although they are small, they will give Unilever chief executive Paul Polman what they call \"critical mass\" in a high-end beauty product market worth about $70 billion\"44.
88 billion)
With people\'s personal grooming and-aging.
He stressed that Unilever is not eager to get involved in the competitive business, but focuses on developed markets such as the United States and Japan, and is subject to fashion trends to a certain extent.
\"We are learning how to get into this area in a very cautious way,\" Polman said . \" He added that he will consider these acquisitions as further acquisitions emerge, but for now, \"We have enough capacity to integrate these brands and let them serve us \".
Unilever is not the only food manufacturer looking to enrich its performance with creams and wrinkle treatments. Nestle NESN.
Last year, after taking over a joint venture with L\'Oreal, VX set up a Skin Health Department (OREP. PA).
Overall, sales of packaged food and beverage manufacturers have slowed down, largely due to economic weakness, but also due to increasing health awareness, which will not harm other household products
\"There is a limit on how much food, alcohol and tobacco smoke you can push inside the human body without having very terrible consequences,, there is no limit on the number of home and personal care products that people can have, \"said Chris Wickham, an analyst at Whitman Howard.
While food must always cater to local tastes, soap, deodorant and creams can often be sold on the market.
On average, shares of individual and family product companies like ColgatePalmolive (CL. N)
And Byron Seedorf (BEIG. DE)
Compared with 20 times that of food companies, their expected earnings are about 22 times.
Unilever has recently been re-classified as a personal care company by various stock market groups, not a food company, reflecting that personal care is now its largest business, accounting for 37% of its turnover.
The new beauty business will be run by the independent \"prestige\" division led by Vasiliki Petrou, who joined Unilever in 2012 after more than 16 years of work at P & G (PG. N)
She recently ran Max Factor cosmetics.
Max Factor is part of P & G\'s sales to Coty (COTY. N)
Acknowledging its failure in the high-end market, in addition to bland items such as detergent and diapers, it also sells designer perfumes and salon hair products.
Although Unilever\'s mass market products such as Dove soap and Axe deodorant are sold in supermarkets and pharmacies, prestige beauty brands are sold in stores such as salons, department stores, LVMH (LVMH. PA)
Sephora and Urta (ULTA. O)
Duty-free shop or online shop.
Analysts say Unilever will do a better job of maintaining the mystique needed by luxury brands as it has managed high-end brands
End Maille mustard brand and T2 tea shop.
\"I think it\'s great that they definitely recognize that they need to be slightly different from other personal care businesses,\" said Helena stertel, an analyst at Bernstein . \".
\"We have confidence in them.
Previously acquired personal care products by Unilever included TIGI Hair Care acquired in 2009, Sara Lee personal care brand acquired in 2010, and Alberto Culver, the largest brand acquired in 2011.
Since paying $3.
The hair stylist has sales of 7 billion euros, and sales of its TRESemme brand have more than doubled to 0. 7 billion euros.
Custom message
Chat Online
Chat Online
Chat Online inputting...