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Back To Basics!

Unilever is a global consumer goods company that produces laundry and household cleaning products. It aims to make sustainable living common for 100 million Filipinos and has strong growth and expansion into personal care. San Miguel Food and Beverage produces meat and poultry products and is a major employer and economic contributor in the Philippines. Colgate is a leading global consumer products company that produces toothpaste and other oral and personal care products, though its stock growth has lagged the market. Selecta is a major ice cream brand in the Philippines with stable long-term financing for future growth. Del Monte Foods produces canned fruits and vegetables as well as pet foods, and remains undervalued relative to its industry peers based on price-to

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59 views

Back To Basics!

Unilever is a global consumer goods company that produces laundry and household cleaning products. It aims to make sustainable living common for 100 million Filipinos and has strong growth and expansion into personal care. San Miguel Food and Beverage produces meat and poultry products and is a major employer and economic contributor in the Philippines. Colgate is a leading global consumer products company that produces toothpaste and other oral and personal care products, though its stock growth has lagged the market. Selecta is a major ice cream brand in the Philippines with stable long-term financing for future growth. Del Monte Foods produces canned fruits and vegetables as well as pet foods, and remains undervalued relative to its industry peers based on price-to

Uploaded by

Spencer Dennis Domingo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Spencer Dennis M.

Domingo COMT 2- A
OPM201_A Sem 2 21-22 

Back to basics!

Laundry and household cleaning products (Unilever)

1. Unilever - For 90 years, Unilever Philippines has aimed to make sustainable living
commonplace for 100 million Filipinos. The company is a global fast-moving
consumer goods company that strives to create brands with purpose. Additionally,
(NYSE:UL) (NYSE:UN) is one of the world's largest consumer staples companies, with
a strong presence in Emerging Markets. The company is also successfully shifting its
focus to higher-margin personal care and beauty products.

- in terms of investing in this company First and foremost, Unilever experienced


strong growth in 2013. More importantly, its expansion is of high quality. With 4.3
percent underlying sales growth, roughly 55 percent of the company's business was
building share, The core operating margin increased by 40 basis points to 14.1
percent, owing to a 110 basis point increase in gross margin. Second, in order to
combat slow growth in emerging markets, Unilever has prioritized cost-cutting
initiatives. Unilever intends to reduce its marketing headcount by 12% globally, or
more than 800 jobs, Unilever expects to reduce the number of SKUs (stock keeping
units) by 30 percent by the end of 2014 in order to save money on agency and
commercial-production costs.
Meat Product (San Miguel Food and Beverage)

2. San Miguel Food and Beverage - San Miguel Food and Beverage, Inc., formerly
known as San Miguel Pure Foods Company Inc., manufactures feeds and flour
products. Among other things, the company is involved in poultry operations, as well
as the processing and marketing of refrigerated and canned meat products. The
company is divided into three segments: Agro-Industrial, Value-Added Meats, and
Milling. The integrated feeds, poultry, and fresh meats operations comprise the
Company's segment. The Company's segment processes and markets value-added
refrigerated processed meats and canned meat products. Other segments include
dairy-based products, breadfill, desserts, biscuits, and powder mixes, coffee
importation and marketing, and foreign operations.

- in terms of investing in this company I will invest in because San Miguel


Corporation employs over 24,000 people, supports over 150,000 indirect jobs
downstream, and contributes an estimated 5.2 percent of the Philippines' GDP. As a
cornerstone of the Philippine economy, we are committed to a broader public trust,
supporting our country's growth and development.
Tooth paste (Colgate)

3. Colgate - leading global consumer products company with 34,000 employees


dedicated to improving people's and their pets' health and wellness Colgate teams
are developing, producing, distributing, and selling health and hygiene products and
pet nutrition offerings essential to society through brands such as Colgate, Palmolive,
elmex, Tom's of Maine, hello, Sorriso, Speed Stick, Softsoap, Irish Spring, Protex,
Sanex, Filorga, eltaMD, PCA Skin, Ajax, Axion, Fabuloso, Soupline, and Suavitel, as
well

- in terms of investing in this company because the company has a Low-cost index
funds make it simple to achieve market average returns. However, in any well-
diversified stock portfolio, there will be some stocks that fall short of the average.
That is what has happened to the share price of Colgate-Palmolive Company
(NYSE:CL). It has increased by 35% in three years, but this is less than the market
return. The stock has increased by 7.0 percent in the last year.

Ice Cream ( Selecta )

4. Selecta - is an ice cream and milk brand sold in the Philippines, with exports of
local ice cream variants to Filipino communities around the world. The ice cream
business is co-owned by the Philippines' RFM Corporation and the food giant
Unilever through the subsidiary Unilever RFM Ice Cream, Inc.
The company's roots can be traced back to Selecta Ice Cream and Refreshment
Parlor, which was founded in 1948 by Ramon Arce, Sr. and family. RFM Corporation
purchased Selecta from the Arce family in 1990, forming Selecta Dairy Products, Inc.

- in terms of investing in this company .because the company's senior credit and
mezzanine facilities, Selecta issued a high-yield bond (senior secured note) and an
unsecured junior PIK note. The senior secured bond consists of two tranches totaling
550 million euros at a yield of 6.5 percent. Selecta will receive an additional 220
million euros in long-term financing from the investment firm KKR Asset
Management. Selecta is in an excellent position to finance future growth projects as
a result of this stable long-term financing.
"The significant interest in our financing demonstrates the financial markets'
confidence in Selecta's sustainable business model."

Juice Drink ( Del Monte Foods )

5. Del Monte Foods inc. - Del Monte Foods is a major producer and distributor of
canned fruits and vegetables in the United States. Del Monte, Contadina, and College
Inn are among the brands available. Meow Mix, 9Lives, and Milk-Bone are examples
of pet products. The company was founded in 1916 and was purchased by
management from RJR Nabisco in 1990. Texas ,Pacific an investor group, purchased
the company in 1997. The company went public two years later. In March 2011, the
company was acquired for $5.3 billion by a group of private equity investors .

- in terms of investing in this company because According to my price multiple


model, which compares the company's price-to-earnings ratio to the industry
average, Fresh Del Monte Produce is still trading at a relatively low price. Because
there is insufficient information to forecast the stock's cash flows, I've used the
price-to-earnings (PE) ratio in this case. Fresh Del Monte Produce's ratio of 14.19x is
lower than its peer average of 21.52x, indicating that the stock is trading at a lower
price in comparison to the Food industry.

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