Unilever share price: Group builds inventory in case of no-deal Brexit

Unilever (LON:ULVR) is stockpiling Magnum ice-cream in the UK and deodorants on the other side of the Channel in the case of a no-deal Brexit, the Guardian reports. The news follows the consumer goods giant’s results yesterday when the company warned that sales growth this year was likely to be at the lower end of its multi-year guidance. 

Unilever’s share price has jumped in London in today’s session, having gained 1.92 percent to 4,061.00p as of 09:56 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.63 percent higher at 4,061.00 points.

Unilever builds inventory

The Guardian reported yesterday that Unilever’s chief executive Alan Jope had said that the company had taken the decision to import extra supplies of Magnum ice-cream, which is produced in mainland Europe, in the UK. He also gave the example of its deodorant brands, which are made in Leeds and include Sure, Lynx and Dove, for which extra stock is being held on the other side of the Channel.

“We have built inventory on either side of the Channel,” Jope pointed out, as quoted by the newspaper, adding that it was “weeks of inventory – not months or days”.

He noted that the overall cost involved in storing the additional stock, along with changing the artwork on products to ensure they still complied with relevant regulations, was not material to the company.

Analysts on blue-chip group

Berenberg Bank, which rates Unilever as a ‘buy,’ set a price target of 4,700p on the shares today, while JPMorgan Chase & Co, which is bearish on the company with a ‘sell’ rating, set a valuation of 3,860p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 4,321.50p.

As of 10:20 GMT, Friday, 01 February, Unilever plc share price is 4,061.00p.