Unilever PLC (LSE:ULVR) will be posting its half-year and second-quarter results tomorrow as it looks to put behind what has been a choppy few months.
The FTSE 100 company has been at the centre of some less than favourable headlines, including the sale of Ben & Jerry’s Israeli business which led to the ice cream company suing them, and a salmonella outbreak that led to some factory shutdowns.
For the second half of the year, the group warned in April that costs will be higher than previously expected due to the impact of the war in Ukraine, leading to increases in the price of raw materials and commodities.
Consequentially, it will be forced to raise prices to mitigate the higher input costs, with inflation at €2.7bn, which will likely hit sales.
Despite this, underlying sales growth for the year is expected to be at the top end of the previous guidance range of 4.5%-6.5%, although margins are forecasted to be at the lower end, closer to 16% rather than 17%.
Investors will be keeping an eye out for both metrics in tomorrow’s results as a sign the company is on track to hit its targets.
A broker note from Credit Suisse at the start of June said the company behind brands such as Bovril and Comfort is a ‘dividend aristocrat’ and any update on dividends is something shareholders will be looking for in tomorrow’s release.
Credit Suisse defined a dividend aristocrat as a firm that has a long record of dividend increases, so investors can expect some information on a pay-out even if the costs are expected to rise and sales will be hit.
Investors will look out for any material changes to how the company will look to operate or has been operating since billionaire activist Nelson Peltz was given a seat on the board.
Peltz built a stake in Unilever through his activist vehicle, Trian Partners, with the corporate raider and company restructurer likely to start suggesting changes.
Chair of Unilever Nils Andersen said Peltz would take a non-executive role at the Anglo-Dutch giant after "extensive and constructive discussions" were held with him and the Trian team.
Andersen added that the board believes his "experience in the global consumer goods industry will be of value to Unilever as we continue to drive the performance of our business.”
The American has previous when it comes to shaking up big consumer brands, targeting Cadburys in 2007, pushing for its merger with PepsiCo (NASDAQ:PEP), for example.