scrumpyjack wrote:Some interesting comments on Unilever in the FT.
They point out the poor performance since 2019 when Alan Jope became CEO and for the two years before that. They say investor confidence has been eroded because of the focus on ‘stakeholders’ not shareholders. Exane BNP Paribas told its clients Unilever “is too good an asset to be left to continue to flounder”. Its stake in Hindustan Unilever, its separately quoted Indian subsidiary is worth nearly half Unilever’s market value, and Barclays reckons Unilever's sum of the parts discount has widened to about 25%. Exane thinks if Unilever were valued in line with its peers the price would be £78.10, twice its current price.
In spite of all this they seem to think shareholder activism (eg Elliott etc) is not going to get anywhere.
So perhaps best to be patient and hang on?
Who do they mean by 'stakeholders'? They certainly haven't done much for shareholders recently. I'll continue to hold what is for me a large holding but I'm losing on the last top up and don't feel inclined to add. Something needs shaking up. I'm not impressed by the latest laundry and dishwashing encapsulated products; change for the sake of but not so good as predecessors i.m.o. With prices rising so much, I think many will buy supermarkets' own versions instead. Perhaps there isn't so much choice in India.