Unilever PLC (LSE:ULVR) should post a solid set of full and fourth-quarter results next week, according to Barclays.
Analysts at the bank said the consumer goods giant’s portfolio, which ranges from Persil to Hellmans, is better than in previous years.
Despite this, sales volumes for the fourth quarter are expected to be down 2.8%, compared to 1.6% for the prior months.
Looking ahead at the results, analysts at the bank said they will be keeping an eye out for comments on innovation.
Unilever’s approach has changed in recent years, with the number of new development projects 40% lower than in 2019.
However, project sizes have doubled and turnover from the projects doubled to €1bn from 2020 to 2021.
Evidence the new approach is working is seen in the percentage of consumers viewing Unilever’s products as superior rising from 51% in 2019 to 71% in 2021.
“We think this is significant and usually is a good lead indicator of a great intention to buy Unilever’s brands over those of a competitor,” said Barclays.
One area where investors had been concerned was with the uncertainty surrounding the new chief executive.
But, after Alan Jope confirmed his intention to step down this summer, the FTSE 100 company named current Royal FrieslandCampina boss, Hein Schumacher, as its new CEO earlier this week.
Schumacher will take the reins on 1 July 2023 following a one-month handover period.