- Q3 was again driven by COVID-related factors, impacting different categories differently; regional sales growth varied due to mix.
- Inflation increased in Q3, and more price hikes were implemented as a partial offset; full-year EBIT margin is expected to be "around flat"
- There are tentative signs of improving competitiveness, including in the U.S.; sales growth continued to be strong in India and China.
- The Tea business was sold for €4.5bn, with proceeds likely to be used to fund buybacks worth 3%+ of the current market capitalization.
- With shares at 3,900p, we expect annualized returns to be in the 12-17% range, an attractive risk/reward. The Dividend Yield is 3.7%. Buy.
For further details see:
Unilever: Q3 Still Distorted By COVID; Be Patient With 3.7% Dividend Yield