The Lemon Fool

Third quarter highlights

· Underlying sales growth 3.8% with volume 2.4% and price 1.4%

· Price growth in Argentina is excluded from Q3 USG due to hyperinflationary status. Reported growth would otherwise have been 4.5%

· Growth was high quality with an improvement in all three Divisions and strong volume growth in Asia AMET RUB

· Turnover was impacted by an adverse translational currency impact of 5.2%

· The net impact of acquisitions and disposals, which included the spreads disposal, reduced turnover by 3.3%


Paul Polman: Chief Executive Officer statement


"Growth accelerated in the third quarter across all Divisions. We were able to increase prices whilst still maintaining good volume growth which reflects the strength of our brands and quality of our innovation programme. Our focus s building our business for the long-term continues to deliver high quality growth.

We are progressively reaping the benefits of our Connected for Growth programme, which is now well embedded throughout the organisation, making us simpler, faster and better connected with our consumers. It is helping us accelerate growth in Asia AMET RUB, manage through the economic volatility in Latin America and shift our portfolio into faster growing segments and channels in all of our markets. Our innovation pipeline continues to strengthen and in the third quarter alone we have launched four new brands. We have now successfully completed the disposal of our spreads business and continue the acceleration of our efficiency programmes.

We continue to expect underlying sales growth in the 3% - 5% range, an improvement in underlying operating margin and strong cash flow. We remain on track for our 2020 goals."

Dod101 wrote:Sounds good. They should stick to the knitting and forget corporate restructuring.

Dod

ADrunkenMarcus wrote:Dividend up 9.5% in Sterling terms for the 2018 calendar year. Nice.

11.5% CAGR since 1980.

richfool wrote:I'm not clear on what the market thinks, unless it was the reference to ULVR having put up prices, but its down 2.00% currently, though that still doesn't bring the yield into HYP territory. I may top up if it keeps falling.

idpickering wrote:HYP is an income strategy, and that's where our focus should be.

pyad wrote:Key point on the Q3 dividend not mentioned in the thread:

xd 01 Nov
pd 05 Dec

38.72 eurocents, sterling value 33.93p.

Historically their payout pattern is four equal divs per accounting year in euros, so the sterling values will vary.

idpickering wrote:I very nearly bought back into Unilever yesterday, but that would've meant me selling something else, so changed my mind. The bottom line is that they are a quality outfit. Just wished the yield on offer was more tempting though maybe?

moorfield wrote:

idpickering wrote:I very nearly bought back into Unilever yesterday, but that would've meant me selling something else, so changed my mind. The bottom line is that they are a quality outfit. Just wished the yield on offer was more tempting though maybe?

<pantomime>
Tut tut Ian, you should know better.
</pantomime>

Those who dare to buy ULVR now, or buy despite their overall portfolio yield remaining high, may be dissed/modded here.

Perhaps you should have held after all?

(And what made you sell in the first place, out of curiosity?)

idpickering wrote:Yeah I get you moorfield. Regarding selling out, I couldn't be doing with all the uncertainty regarding the company's move. I should've known better, you're right. To be honest, it's unlikely I will buy back into ULVR. There are better yields out there.

Ian.

Arborbridge wrote:

idpickering wrote:Yeah I get you moorfield. Regarding selling out, I couldn't be doing with all the uncertainty regarding the company's move. I should've known better, you're right. To be honest, it's unlikely I will buy back into ULVR. There are better yields out there.

Ian.

I empathise! Been there, done that - though I confess being mildly surprised that the stoic pyadic admirer in you did not trump the other half of your brain.

As regards buying back: there will always be better yields out there, that's the problem with ULVR (and RB). I've contented myself with buying on the rare occasion when the yield is "as good as it gets" for ULVR, and I daresay you will have a similar chance. However, the question will remain, "why buy on a barely acceptable yield when others offer more bang for the buck?".
Each must rationalise his own reason for doing so, and for continuing to hold.


Arb.

Arborbridge wrote:
As regards buying back: there will always be better yields out there, that's the problem with ULVR (and RB). I've contented myself with buying on the rare occasion when the yield is "as good as it gets" for ULVR, and I daresay you will have a similar chance. However, the question will remain, "why buy on a barely acceptable yield when others offer more bang for the buck?".

moorfield wrote:

Arborbridge wrote:
As regards buying back: there will always be better yields out there, that's the problem with ULVR (and RB). I've contented myself with buying on the rare occasion when the yield is "as good as it gets" for ULVR, and I daresay you will have a similar chance. However, the question will remain, "why buy on a barely acceptable yield when others offer more bang for the buck?".

And the question that follows, "why hold on a barely acceptable yield when others offer more bang for the buck?".

idpickering wrote:
Thanks for that Arb. I’m not saying I will never buy back in though.

Ian