Thu, Aug. 11, 7:26 AM| Thu, Aug. 11, 7:26 AM | 6 Comments
Wed, Jul. 20, 8:48 AM
- Unilever (UL, UN) confirms it acquired Dollar Shave Club. The company didn't disclose the transaction price, but earlier reports pegged it at $1B which would make the deal the third largest buyout in the e-commerce space ever after Zulilly and Wayfair. The transaction is also an exclamation point on the disruption that Dollar Shave Club achieved in a consumer products category once considered nearly impenetrable.
- The innovative shaving club sends razors directly to members for as little as $1 per month. Dollar Shave Club is on track to top $200M in turnover this year and has 3.2M members.
- Earlier this week, news broke that Procter & Gamble (NYSE:PG) is increasing its testing of online subscriptions. It's a trend to watch for Colgate-Palmolive (NYSE:CL), Kimberly-Clark (NYSE:KMB), and Edgewell Personal Care (NYSE:EPC).
- Previously: Fortune: Unilever buys Dollar Shave Club for $1B (July 20)
Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
Sun, Jul. 3, 2:50 PM
- via Barclays:
- "Although stocks in the U.S. and Europe have partially bounced back from the sharp selloff sparked by the U.K. referendum result, risks remain prevalent. [Analyst] Keith Parker foresees further equity downside alongside a prolonged market bottoming process, during which positioning is likely to turn much more defensive at active managers.
- "With this in mind, our stock screen this week highlights Overweight-rated stocks that screen defensively based on sector and equity beta but are also expected to generate superior ROE and free cash flows in FY1.
- "Our screen considers the following factors: i) Large-cap (US $5 billion+) stock in the consumer staples, utilities, telecom or healthcare sectors. ii) Adjusted beta less than 1.0. iii) Rated Overweight by Barclays equity research. iv) 15%+ ROE and 4.5%+ FCF yield expected in FY1, based on Barclays estimates."
- The stocks: Aetna (NYSE:AET), BT Group plc (NYSE:BT), Cardinal Health (NYSE:CAH), Coloplast (OTC:CLPBF, OTCPK:CLPBY), CVS (NYSE:CVS), Estee Lauder (NYSE:EL), Express Scripts (NASDAQ:ESRX), Glanbia (OTC:GLAPF, OTCPK:GLAPY), Grifols (NASDAQ:GRFS), Imperial Brands (OTCQX:IMBBY, OTCQX:ITYBF), Johnson & Johnson (NYSE:JNJ), Ahold (OTCQX:AHONY, OTCQX:AHODF, OTCQX:AHOND), LabCorp (NYSE:LH), Perrigo (NYSE:PRGO), Telus (NYSE:TU), Unilever (UL, UN), UnitedHealth Group (NYSE:UNH)
- See full table here.
Fri, Jun. 3, 9:56 AM
- Susquehanna sizes up the Ready-to-Drink tea market after Starbucks (NASDAQ:SBUX) partners up with Anheuser-Busch InBev (NYSE:BUD) to grow the Teavana and Tazo brands.
- On a broad scale, the U.S. RTD market was $5.1B last year and showed 3% growth.
- The main players are Unilever (UN, UL) via Lipton, Arizona Beverage (private), Coca-Cola (NYSE:KO) via Gold Peak, and Dr. Pepper Snapple (NYSE:DPS) via Snapple which as a group account for 70% of sales. Teavana and Tazo have almost no market share with most sales currently coming from Starbucks stores.
- The SBUX-BUD partnership will see Anheuser-Busch InBev produce the tea products at its U.S. breweries and distribute them to about 300K convenience stores and grocery chains in the U.S.
- Analyst Pablo Zuanic provided Seeking Alpha the data.
- Previously: Starbucks finds a tea partner in Anheuser-Busch InBev (June 2)
Sat, May 21, 12:49 PM
- Laslzo Birinyi still sees underlying strength in the stock market, despite the myriad of economic, technical, and political fears holding back investor enthusiasm.
- In particular, the well-known investor has his eyes on AutoZone (NYSE:AZO) and builder NVR (NYSE:NVR) as "special situations" stocks.
- Kraft Heinz (NASDAQ:KHC) also makes the list due to its lack of volatility amid a volatile market which could indicate upside down the road. On that point, a quick screen of other consumer goods stocks like Kraft that have weathered the uneven read on U.S. consumer spending and global demand over the last month may tip off some other value picks.
- Here's ten consumer good stocks with a low recent volatility measurement, below average forward P/E ratio, and +2% dividend yield: DEO, UN, UL, CAJ, RMCF, KO, PEP, BUD, PM, PG, TM.
- Related ETFs: IYK, UGE, SZK.
Mon, Apr. 25, 2:21 PM
- Unilever (UN, UL) sold €1.5B ($1.7B) in bonds at rock-bottom coupon rates.
- €500M in 8-year bonds were sold with a 0.7% coupon, while €700M of 12-year bonds were priced at 1.21%. The remaining €300M in four-year notes were almost at a zero-percent rate with only a token 0.08% coupon attached.
- The ECB recently opened up its stimulus program to corporate bond buying.
- Unilever is using the funds for general corporate purposes.
- Now read Unilever: Just Keep Doing What You're Doing After Strong Q1 2016 Results
Thu, Mar. 10, 7:58 AM
- Unilever (UN, UL) will compensate workers impacted by a mercury poisoning at a facility in Southern India over ten years ago. The settlement covers 591 workers.
- The workers will drop a lawsuit against the company as part of the settlement.
- Though the high-profile case has been going on for years, a recent song by an Indian rapper brought it back to the forefront with the general public.
Tue, Jan. 19, 12:32 PM
- Unilever (UN, UL) should consider unloading its spreads business due to lagging performance, observes Bloomberg.
- The company's Flora and I Can't Believe It's Not Butter brands have had a hard time keeping up with other Unilever properties given an innovation boost.
- The top spreads executive at Unilever stepped down last month after just a year on the job, according to The Wall Street Journal.
- Previously: Unilever posts revenue rise, warns of 'tougher' 2016 (Jan. 19 2016)
Oct. 2, 2015, 11:19 AM
Oct. 2, 2015, 9:26 AM
- Amazon (NASDAQ:AMZN) will be the number two player in non-food consumables by 2018, according to a new report from Cowen & Company.
- The company is leveraging its powerful Prime platform to gain market share in the highly-competitive field by highlighting to consumers its advantages on pricing and delivery.
- Amazon's gains could come at the expense of store traffic for Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and Walgreens (NASDAQ:WBA), notes Cowen.
- The Amazon Effect could also impact pricing in the personal care, household, pet, and baby products sectors - a wide swath of the consumer goods industry that impacts companies such as Procter & Gamble (NYSE:PG), Avon Products (NYSE:AVP), Revlon (NYSE:REV), Kimberly-Clark (NYSE:KMB), Carter's (NYSE:CRI), Colgate-Palmolive (NYSE:CL), Ulta Salon (NASDAQ:ULTA), Unilever (UN, UL), and Church & Dwight (NYSE:CHD) as they negotiate deals.
- Related ETFs: IYK, UGE, SZK
Jul. 23, 2015, 2:31 AM
- Unilever (NYSE:UL): 1H15 EPS of €0.91 up 16% due to underlying sales growth, 8% positive currency impact, improved core operating margin, and impact from purchasing the estate shares.
- Revenue up 12% to €27B driven by 10% positive currency impact, volume up by 1.1% and price up by 1.7%.
Jul. 20, 2015, 3:05 AM
- Alibaba (NYSE:BABA) has signed a strategic partnership agreement with Unilever (NYSE:UL) to help reach more Chinese shoppers, after the latter's sales in the country fell 20% in the final three months of 2014.
- The partnership will allow Unilever to widen its distribution channels to reach rural consumers in China and use data from Alibaba's online marketing unit, Alimama, and its cloud business to advance its digital advertising strategy.
Jul. 13, 2015, 8:59 AM
Jul. 10, 2015, 9:12 AM
Jul. 10, 2015, 7:43 AM
- Unilever (UN, UL) is upgraded by Jefferies to a Hold rating after being slotted previously at Underperform.
- The bear call on Unilever didn't work out as planned for Jefferies as the consumer products company outperformed P&G and Kimberly Clark this year.
- UL +4.32% premarket to $44.87, while the Netherlands-listed UN +5.68% to $44.10.
Unilever NV engages in the production and marketing of consumer goods in the nutrition, hygiene, and personal care categories. It operates through the following segments: Personal Care, Foods, Refreshment and Home Care. The Personal Care segment covers the sales of skin and hair care products,... More
Sector: Consumer Goods
Industry: Personal Products