If you are worried that you missed out on Unilever
While reported revenue was up about 9% this quarter, underlying sales were up just less than 3%, with only a modest contribution from higher prices. That, apparently, disappointed some folks -- though I'm not sure why anyone would think there wouldn't be a few bumps along the turnaround trail. Sales were strongest in emerging areas like Africa and Asia, while Europe continues to be a tough market.
Unilever didn't blow the doors down on the profits side of the ledger, either. Operating income was flat (on a constant currency basis), and margins shrank a bit. That said, Unilever continues to reap the best margins from its European operations, while ad expenses in Africa/Asia are keeping those margins down a bit.
The good news/bad news here is that this is a slow-developing story. Unilever continues to battle it out with Kraft
As I said in the intro, this is a stock that would interest me a lot more at $40. That's not to say that it's overpriced today, but if I'm going to buy a hulking behemoth like Unilever, I want a cheapskate discount first. And given the vagaries of turnarounds (and investor patience with the same), I just may get that chance again.
For more Foolish food for thought:
Unilever, Kraft, and Sara Lee are Motley Fool Income Investor recommendations. To discover more promising stocks with dynamic dividends, sign up today for a free30-day guest pass.
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).