Hargreaves Lansdown argues that Unilever’s (LON:ULVR) latest results highlight the pros and cons of the group’s emerging market exposure, Citywire reports. The comments came as the Anglo-Dutch consumer goods giant updated investors on its performance, shortly after scrapping a plan to abandon its dual-headed structure and relocate to the Netherlands.
Unilever’s share price came under pressure yesterday following the results. The stock has climbed higher this morning, having gained 0.69 percent to 4,014.00p as of 08:10 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.30 percent higher at 7,048.36 points.
HL weighs in on Unilever’s results
Citywire quoted Hargreaves Lansdown’s analyst George Salmon commenting yesterday that Unilever’s latest results highlighted the pros and cons of the consumer giant’s ‘significant emerging markets exposure’. The Anglo-Dutch group updated investors on its third-quarter performance yesterday, posting a rise in sales while disclosing that its turnover was weighed down by an adverse translational currency impact of 5.2 percent.
“Depreciating currencies across the developing nations have impacted results... Still rising population and wealth should bring long-run tailwinds, and investors will be pleased to see strong growth in Asia, the Middle East, and Africa this time,” he pointed out, adding that while sales were moving in the right direction and the results were “solid enough, they’re not quite the stellar showing investors would have been looking for”.
Other analysts on Anglo-Dutch group
Reuters meanwhile quoted UBS analysts as saying that Unilever would need to deliver at least 3.1 percent sales growth in the fourth quarter in order to meet the lower end of its full-year guidance.
“We think this is achievable, but it heightens the risk of a guidance miss if market conditions deteriorate,” they wrote.