Unilever Pricing Move May Explain 'Muted' Response To Share Buyback Scheme: Analyst
Unilever's decision to focus more on volume growth at the expense of pricing may explain the 'lacklustre response' to the group's recently launched €6 billion share buyback scheme, according to stockbroking and pensions firm AJ Bell.
“At first glance Unilever’s first-quarter update reads well with underlying sales growth of 3.4% and the launch of a new €6 billion share buy back scheme,” commented Russ Mould, AJ Bell Investment Director.
“However, the shares are largely shrugging off the news and may instead be focusing on how Unilever is exchanging pricing power for volume growth, in a move which may suggest that 18 months after the fact, we are now finding out who was the winner in the spat between Tesco and Unilever over the price of Marmite – and it may not be Unilever."
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