UNLYF - Unilever: Upcoming Ice Cream Exit Could Be A Huge Step In The Right Direction

2024-03-25 21:17:04 ET

Summary

• 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.
• These developments seem very promising for the shareholders of Unilever and could eventually make the company's underperformance a distant memory.
• I believe the company has a short-term upside potential of 10%.

Earlier this week, consumer goods giant Unilever ( UL ) announced that it is planning to exit the ice cream business and cut away 7,500 jobs as a result of launching its productivity program . Also, this program would lead to a total of around €800M of cost savings over the next three years, offsetting restructuring costs arising from the exit of the ice cream business....

For further details see: