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Here’s Why Unilever Share Price Hit a 1-Month Low Today

Practice Stock Trading
Updated: 23 October 2020

Shares of Unilever PLC (LON: ULVR) trade over 1% in the red today to extend weekly losses to about 4% after the consumer goods giant warned about a gloomy outlook.

Unilever reported higher-than-expected sales growth yesterday for the third quarter. Sales rose 4% on a y-o-y basis, easily beating market consensus of 1.3%.

Higher sales were driven by strong performance in the emerging markets, where sales jumped by 5.3%, compared to 3.1% in the developed markets. Sales in the United States, the company’s biggest market by revenue, jumped by 9.1%.

“The shift of consumption towards in-home seems to be providing a strong tailwind to the sector and is outweighing any exposure to the out-of-home market,” analysts at Bernstein said in a note.

However, the company’s CEO issued a warning about the future outlook and questioned hopes of a quick recovery.

“We’ve moved from response mode to now living with COVID-19, but the environment that we’re operating in remains highly unpredictable and we believe, an economic downturn is inevitable,” CEO Alan Jope.

Unilever share price falls on dovish outlook October 2020

Unilever share price currently trades at 4685p, or -0.76% on the day. Today’s low of 4660p represents the lowest the ULVR stock traded since September 22. Shares are down around 4% since Monday, just a week after printing the 1-year high at 4944p.

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