Unilever’s plan A was to make a huge acquisition; plan B is not to make one, or at least not “for the foreseeable future”. Boardroom U-turns do not come much more screeching. Chief executive Alan Jope referenced a “strong message” from shareholders about their opposition to a £50bn tilt at GlaxoSmithKline’s consumer products division, but could equally have described the corporate equivalent of a riot in the ranks. Boards are expected to know when the investors have zero appetite for a “transformational” deal.
Drawing a line under the GSK misadventure won’t be easy, and will require more than a peace offering in the form of a two-year €3bn share buyback. At least the numbers for 2021 were a reminder of the basic solidity that comes with owning an international portfolio of big brands. At 4.5%, Unilever’s rate of underlying sales growth was the fastest for nine years, even if 2021 was a recovery year (especially in China and India) and many peers will be doing better.
