COVID-19 Impact on Unilever
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"Coronavirus (COVID-19) Company Impact: Unilever" reports key findings as of March 26, 2020 based on market analysis and brand diversification by industry and geography.
While all companies in the consumer goods sector will see a major upheaval as a result of the disease, Unilever has a product and regional diversity in its brand sales that leaves it relatively well positioned to ride out the crisis. Some categories could well benefit but in food, in particular, updated strategies will likely be required to minimize loss of brand sales. In addition, while Unilever's brand prices are rising, it is showing a clear commitment to helping its most vulnerable customers and business partners at this time. Overall the company has many key strengths that leave it well placed to perform as well as any other major consumer goods multinational, based upon the latest information available.
Scope
– Unilever's diversification offers some level of relative resilience against COVID-19's effects on brand sales.
– The impact of COVID-19 is inevitable, but Unilever's strong cosmetic and toiletries business should help to mitigate losses.
– The lack of diversification in Unilever's food business means that it should focus heavily on defensive strategies in its core areas.
Reasons to Buy
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