ULVR climbs nearly 2% after impressive operating profit and reduced net debt

Traders Union
All News
Financial News
Unilever rises 1.7% today to gbx4694

Highlights

Unilever's free cash flow jumped to €7.1 billion in 2023, primarily driven by higher operating profit and improved working capital.
Net debt declined by €0.8 billion to €23.8 billion, enhancing balance sheet strength and financial flexibility for capital allocation.
Technical outlook shows bullish price action above key support at GBX4,692, with a high probability of trading within the GBX4,539–GBX4,848 range over five days.

Financial flexibility gains as working capital and capex improve

Unilever reported a significant increase in free cash flow to EUR 7.1 billion for 2023, up from EUR 5.2 billion in 2022, credited to higher operating profit, improved working capital, and lower capital expenditure. Underlying operating profit rose to EUR 9.9 billion from EUR 9.7 billion while net debt dropped by EUR 0.8 billion to EUR 23.8 billion by year-end. These results provide Unilever with added financial flexibility for dividends, selective share buybacks, and acquisitions, while also supporting a stronger balance sheet.

Anton Kharitonov, expert at Traders Union, recognizes Unilever’s stronger free cash flow and lower net debt but is cautious. He notes that while bullish momentum is present, the technicals are not fully aligned with a lasting uptrend. The 50-day versus 200-day moving average hints at underlying bearishness. Kharitonov sees mixed signals from momentum indicators, warning of overbought conditions intraday. He concludes, "Despite impressive numbers, I remain defensive — traders should be wary of a sharp pullback if GBX4,692 fails to hold."

Viktoras Karapetjanc, expert at Traders Union, highlights Unilever’s robust financial improvements and sees continued opportunity. He underscores the surge in free cash flow and a stronger balance sheet, giving the company strategic flexibility. Karapetjanc believes the bullish structure remains intact above moving averages, with institutional confidence reinforced by solid earnings. He states, "I expect further growth as Unilever leverages its improved fundamentals — a breakout above GBX4,848 could unlock a new bullish phase."

Parshwa Turakhiya, analyst, sees short-term opportunities as Unilever rides a wave of buying interest. The technicals favor further upside, but diverging momentum signals suggest traders should stay nimble. He focuses on the sideways corridor and intraday volatility as key for tactical setups. Turakhiya adds, "If bulls defend GBX4,692, the risk-reward looks favorable for swift momentum plays toward resistance."

Mixed momentum as bullish price action meets technical divergence

Unilever is trading above its 20-day (GBX4,561), 50-day (GBX4,380), and 200-day (GBX4,619) moving averages, reflecting bullish momentum across short, medium, and long-term trends. The near-term ceiling is at GBX4,848, with immediate support at the near-term floor of GBX4,692, while the longer-term outlook is confirmed bearish by the 50-day versus 200-day moving average alignment. Momentum indicators are mixed: the MACD signals strong buy, while the ADX suggests sellers could still exert pressure. The RSI, Stochastic RSI, and CCI all point to ongoing buy signals without overbought extremes. Bull/Bear Power (BBP) shows buyers dominating intraday momentum with an overbought status. Intraday volatility stands at a contained 0.50%. The session’s tone favors continued strength above the opening range, even as some momentum signals diverge.

In a recent review, analysts highlighted that Unilever's shares were exhibiting strong technical momentum but warned of possible buyer exhaustion and the risk of near-term consolidation. The latest fundamental and technical signals now reinforce the bullish case, with improved financial strength and momentum suggesting that a sustained break above GBX4,848 would be the key trigger for a continued upside move.

Source of Data: ULVR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.