Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders. The events of the last week have highlighted the need to capture more quickly the value we see in Unilever.
We expect the review to be completed by early April, after which we will communicate further.
The management of Unilever now expects Core Operating Margin improvement for 2017 to be at the upper end of its 40-80 basis points guidance.
It appears that they are, therefore, taking action to protect their future as an independent company. The shares closed up 5.7 percent at 3791p, taking the forward dividend yield (estimated for 2018) down to 3.25 percent. The forward price to earnings ratio is 20.3, which is not cheap but hardly strikes me as outrageous - given Lindsell Train's research showing that Unilever could have traded on a PE of up to 46 in 1996 and still matched the market's returns over the next twenty years.
Best wishes
Mark.
