Investors advised to ‘buy’ as Unilever’s cost cutting supports revenue growth

As Unilever reports Q1 results, Sheridan Admans investment research manager at The Share Centre, explains what it means for investors.

“Unilever reported Q1 results this morning that beat estimates on revenue growth as it continues its drive to cut costs and invest in brands. The company is also seeing tentative signs of stabilisation in its European operations.
 
“After selling Skippy Peanut Butter, Wish-bone dressings and its European meats business last year, Unilever is continuing its cost cutting by selling its Ragu Pasta sauces and Slimfast businesses. Investors will be pleased to hear this news as management continues to make efforts to turn the business around.
 
“We recommend the stock as a ‘buy’ for investors and would suggest they drip feed on any dips in the share price. We believe the stock has attractions for investors wanting to build a long term position in a quality global provider of home care and personal products.”