The Unilever (LSE: ULVR) share price has underperformed the market over the past 12 months. Including dividends, the stock has returned just 8%, compared to 22% for the broader index.
The stock has printed this lacklustre performance even though growth has exceeded expectations. In the first quarter, the company reported year-on-year organic revenue growth of 5.7%.
Most impressive of all, higher sales volumes accounted for the bulk of this growth, implying the company isn’t just relying on price hikes to boost revenues. In its most important division — food and refreshment — sales grew 9.8% overall, 7.3% of which was volume growth.
I think the divergence between the company’s underlying fundamentals and the Unilever share price presents an opportunity.
Growth and income
Unilever isn’t the market’s most exciting company but, in my opinion, it’s one of the FTSE 100‘s most tried-and-tested businesses.
Over the past decade, it’s … Read more