Unilever, the UK-listed consumer goods giant, is reportedly considering selling off non-core beauty brands in Europe and the US. Sources familiar with the matter have disclosed that the company is working with Credit Suisse Group on the potential sale, which could be worth around $600 million. Although the specific brands have not been identified, it is unlikely that well-known names such as Dove will be included. Unilever has been focused on growing its prestige brands, which are expected to be unaffected by the sell-off.

The motivation behind this strategic move is said to be the decline in Unilever’s skincare and deodorant operations. By divesting non-core brands, Unilever aims to cut costs and concentrate its efforts on its core brands. This decision aligns with the company’s ongoing efforts to optimize its business, improve performance, and enhance profitability.

Unilever’s beauty and personal care segment is a significant part of its business, with a reported turnover of €5.3 billion in the last quarter. Selling off non-core brands would enable Unilever to streamline its portfolio and focus on its most profitable and impactful products.

The involvement of Credit Suisse Group in the potential disposal indicates that Unilever is seeking professional advice and expertise to navigate this process. This collaboration suggests a strategic approach to maximize value and ensure a smooth transition for the brands being sold.

Given the evolving beauty industry and changing consumer preferences, it is not uncommon for companies to reassess their brand portfolio and make strategic divestments. Unilever’s focus on core brands and growth areas reflects its commitment to adapt to market dynamics and deliver long-term value to shareholders.

As Unilever prepares to announce its Q4 results this week, more information about its plans regarding the sale of non-core beauty brands may be disclosed. However, it is important to note that Unilever has not yet confirmed the Bloomberg report, so additional details cannot be guaranteed at this time.

Useful links:
Unilever Official Website
Credit Suisse Group Official Website