Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move
Speaker 1: today in Europe. I'm Stephen Carrol but Caroline Hepger and
Speaker 1: we're joined by Bloomberg reporter Chloe Mele. Chloe, good morning.
Speaker 1: Let's start this morning with Unilever pondering whether to put
Speaker 1: its portfolio on a diet. Yes, absolutely so.
Speaker 3: Unilva is as said to be considering the separation of
Speaker 3: its food assets, and so that includes some very well
Speaker 3: known names like the like nor Stock Cubes, a Mami,
Speaker 3: Talman's mayonnaise. And this potential separation of those food assets
Speaker 3: fits really well within the strategy under the new CEO,
Speaker 3: which has really been about moving away from food and
Speaker 3: really refocusing on beauty and personal care instead. And so
Speaker 3: the reasoning behind this is that people are still very
Speaker 3: much struggling with the cost of living, and they're moving
Speaker 3: more and more away from those household names and those
Speaker 3: household brands and moving more towards a cheaper store brands,
Speaker 3: for example. And then there's also have caused a GLP
Speaker 3: one a side of this where we have got more
Speaker 3: and more people on those OBC shots maybe eating less,
Speaker 3: eating less calorie dense stuff. And then on the other hand,
Speaker 3: we've got beauty, which is where there's potentially more opportunities.
Speaker 3: We've got you know, things like multi step skincare routines.
Speaker 3: The older population is also a key demographic needed maybe
Speaker 3: more anti aging stuff. So there's a lot of opportunities
Speaker 3: there for the beauty space. And so within this context,
Speaker 3: you know, Leva started really moving away from food. It's
Speaker 3: already sold a bunch of brands recently. It's also we
Speaker 3: have the spinoff of, of course, of the Magnum ice cream,
Speaker 3: a brand last year. But what some analyists are saying
Speaker 3: is that there's actually really little appetite right now for
Speaker 3: such a big transformation, and of quiz so quickly after
Speaker 3: the spinoff of Magnum, given the uncertainty it could create
Speaker 3: internally potentially, So maybe that explains was shares a little
Speaker 3: bit down this morning as investors try and really digest
Speaker 3: what this means for Unileva.
Speaker 4: Okay, that's interesting, you live on all of the various
Speaker 4: beauty permutations, right Let's also talk about Hello Fresh shares
Speaker 4: plunging to a record low after the meal kits talked
Speaker 4: about sales. What have they been saying?
Speaker 3: Yeah, HelloFresh is actually really struggling to kind of get
Speaker 3: back to the glory days of the pandemic when everyone
Speaker 3: was ordering those meal kits from them. It had already
Speaker 3: released some disappointing numbers for twenty twenty five with sales declining,
Speaker 3: and then today it also issued some disappointing twenty twenty
Speaker 3: six guidance, So it said that sales will be declining
Speaker 3: as much as six percent this year, which was worse
Speaker 3: than what analysts had expected, and it blamed two things
Speaker 3: for that in particular. So the meal kit category is
Speaker 3: actually showing some improvement, but where there's real weakness is
Speaker 3: actually the ready to eat a segment, and so there
Speaker 3: had been some operational issues of perditional bottlenegs there and
Speaker 3: those got resolved, but it really had a long term
Speaker 3: impact on customer attention, and so that will be really
Speaker 3: weighing on the performance of that segment this year. And
Speaker 3: then the other big thing is something that it had
Speaker 3: already flagged previously, which is that there were really bad
Speaker 3: snowstorms in the US in particular in the first quarter,
Speaker 3: and so that had led to canceled deliveries, some customer
Speaker 3: refunds as well, and then also higher production costs and
Speaker 3: HelloFresh said that it would use those snowstorm would would
Speaker 3: impact the first quarter performance are quite a bit. So
Speaker 3: for investors, this was really disappointing and shares, as you mentioned,
Speaker 3: hit a record low, and some analysts are saying now
Speaker 3: that the company is essentially facing a decrease in customer
Speaker 3: base and so that means that a turnaround is going
Speaker 3: to be kind of less and less likely.
Speaker 1: And the next STOC is one Chloe that sent me
Speaker 1: running straight to the DS function on the terminal diploma.
Speaker 1: PRC had to look up what they do. They distribute
Speaker 1: to manufacturer, building components and special c Their share is
Speaker 1: the best performing company on the FORTS one hundred this century.
Speaker 1: What's driving them higher today?
Speaker 3: Yeah, so it's one of those companies that are just
Speaker 3: maybe not as exciting, but that really do very well. So,
Speaker 3: as you mentioned, they manufacture seals and wires and things
Speaker 3: like that for the energy, life sciences, and aerospace industries,
Speaker 3: and that seems to be a great business to be in,
Speaker 3: given that they just boosted guidance quite significantly today, which
Speaker 3: has been driving those shares this morning. So it seems
Speaker 3: that the aerospace and defense segment in particular is driving
Speaker 3: that performance. There's also some good contributions from nuclear power customers.
Speaker 3: The life sciences segment is a little bit weaker, but
Speaker 3: the rest is really offsetting that. Diploma also makes a
Speaker 3: lot of acquisitions of smaller companies, and it said the
Speaker 3: pipeline was quite positive, so that explains how well it
Speaker 3: has been performing, and they'll probably just keep going in
Speaker 3: that trajectory.
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