SHARE OF THE WEEK

THE past year has not been kind to Unilever.

Shares have fallen by over a fifth during that time, despite the FTSE 100 itself advancing by around the same amount.

Investors may be ignoring the consumer goods giant, which is seen by many as a defensive stock, in favour of companies they see as more likely to stage rapid recoveries in the postpandemic economy.

However, the latest slump means the shares are valued below the attempted takeover bid for the Dove and Cornetto owner by Kraft-Heinz in 2017, which was priced at around £40 per share.

As a result, Unilever’s thirdquarter results next Thursday will be eyed for any signs that the company could be picking up the pace, although it is battling a slowdown in sales in its emerging markets as well as rising costs due to inflation.

All of this is pumping the brakes on the plans of boss Alan Jope, who has previously aimed for the company to grow its sales by 3pc to 5pc each year in the medium term.

The slow progress is also fuelling speculation that Unilever could soon see the arrival of an activist investor to try to shake up the company, possibly through a demerger of its food business.

In terms of the quarterly numbers, analysts will be looking to see if Unilever’s sales growth can beat the 5pc figure delivered in the second quarter of the year, as well as how the end-of-lockdown measures in many of its markets has helped increase sales of items such as make-up and ice-cream.