Unilever (NYSE:UL) news about an update to its sales growth guidance has UL stock taking a beating on Tuesday.
This is due to a Unilever news release warning that its sales growth won’t match up to the company’s estimates. It is predicting that sales growth for 2019 is going to come in below the lower half of its 3% to 5% multi-year range.
According to the Unilever news release, this is due to struggles in certain parts of the world. That includes a slowing economy in South Asia. There are also still troubles from its business in West Africa. It’s also expecting a recovery in North America, but it’s slow.
Alan Jope, Chief Executive Officer of Unilever, says this about the UL stock news.
“Due to challenges in certain markets, we expect a slight miss to our full year underlying sales growth delivery. Looking ahead to 2020, growth will be second-half weighted.
While we expect improvement in H1 2020 versus this quarter, we expect that first half growth will be below 3%. Our full year underlying sales growth is expected to be in the lower half of the multi-year range.
Growth remains our top priority and we are confident we have the right strategy and investment in place to step up our performance.”
The Unilever news release notes that it doesn’t expect this change to affect its earnings, margin, and cash.
UL stock was down 9.10% as of Tuesday afternoon. The stock is up 18.77% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.