Can Unilever's new operating model help it fix its problems?
However, the new operating model should lead to a more enterprising managerial culture that could help to fix Unilever's category-specific issues. The shares trade at an average valuation, but the company offers above-average quality and the new enterprise model promises significant long-term improvements.
How does Unilever differ from other companies?
The two companies in question differ slightly in that Unilever also reports proceeds from the sale of property, plant and equipment, which I have netted against capital expenditures. Capital expenditures are part of the second major section of a cash flow statement-cash flows from investing activities.
What's going on with Unilever's CEO Alan Jope?
So far, under current CEO Alan Jope, who was appointed in January 2019, Unilever's operating profit was flat, free cash flow grew at a CAGR of just 2. 4%, and net debt increased by 23%. The company's free cash flow margin for 2019-2021 is also far behind that of P&G, at around 13%. In addition, Jope's heavy emphasis on ESG and political issues.
Is Unilever more vulnerable to rising interest rates than Procter & Gamble?
While Unilever's net debt increased from 2. 2 times free cash flow in 2014 to 4. 0 times in 2021, Procter & Gamble's net debt decreased from 2. 5 times free cash flow to 1. 8 times in the last nine years. As a result, Unilever is in principle more vulnerable to rising interest rates.