Unilever, the household goods giant responsible for Pot Noodle and Lynx aftershave, could struggle to deliver margin progression in 2010, worries Nomura.
The Japanese broker says the competitive and consumer environment is getting no easier, input cost pressures are returning and there's a need to further increase advertising and promotional (A&P) support to sustain volume growth.
Cost savings and input cost benefits for the fourth quarter were 830 basis points (bps), but Nomura thinks this falls to 115 bps by the end of 2010.
It keeps its 'reduce' stance on the Anglo-Dutch group.
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Broker snap: Margins a worry for Unilever
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