Russ Mould, investment director at AJ Bell, said: “Any concern or disquiet about a delay to Unilever’s ice cream spin-off will have been eased by the company’s latest update.
“Underlying sales growth came in ahead of expectations although there may be some disappointment that the company has left full-year guidance unchanged despite better-than-expected third-quarter trading.
“A strong showing from its personal care and beauty product roster helped Unilever put its best face on. There was also evidence of pricing power and improved demand in North America.
“Under recently appointed CEO Fernando Fernandez the company is focusing on reducing its cost base and bolstering its margins.
“The ice cream demerger is not the only evidence of streamlining under Fernandez with the company also offloading brands like The Vegetarian Butcher.
“Exiting ice cream should boost profitability so investors will hope the demerger delay resulting from the US government shutdown isn’t prolonged.
“The seasonal nature of ice cream and the higher storage and logistics costs associated with it mean Unilever no longer sees these products as a good fit for the wider group.
“Unilever is still saying the process will be completed before the end of the year but like a toddler whose ice cream scoop is teetering out of its cone, it’s not something over which it has much control.”
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