The renewed emphasis on higher-margin areas of the business at Unilever (ULVR) is a strategy that makes sense. But the proof will be in the pudding in terms of how its new baking unit is progressing and whether the reinvigoration of its personal care brands is scrubbing up.
Chief executive Paul Polman needs these parts of the business to pull their weight more because, in spite of sales growth at the halfway mark, pre-tax profit fell 14 per cent. Investors will be looking at Tuesday's full-year figures to see how well the 'prestige personal care' business - formed of four recent acquisitions, including skincare brand Dermalogica - has performed in recent months and whether the early success of initiatives such as the rolling out of Baby Dove in Brazil has maintained its early momentum.
Shareholders should also look for updates on how well its e-commerce business is going in China and how it views demand in emerging markets generally given that it is well geared into developing economies.
