Unilever, IMI: Should you hold these stocks as UK factory output growth slows?

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Unilever, IMI: Should you hold these stocks as UK factory output growth slows?

 Unilever, IMI: Should you hold these stocks as UK factory output growth slows?
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Highlights

  • A recent survey has revealed that the British manufacturing sector expanded at its slowest in 13 months in March 2021 after hitting a three-month high in February.
  • The S&P Global/CIPS UK Manufacturing Purchasing Mangers’ Index has fallen to 55.2 in March, down from 58.0 in February.

A recent survey has revealed that the manufacturing sector expanded at the weakest pace in 13 months in March after hitting a three-month high in February, mainly due to the impact of Brexit, lower exports, soaring cost of living, supply shortage, and the Russia and Ukraine crisis.

The S&P Global/CIPS UK Manufacturing Purchasing Mangers’ Index, which indicates that anything above the 50.0 mark is considered growth, has fallen to 55.2 in March, down from 58.0 in February. The survey found that manufacturers were hit on several fronts, indicated towards more challenges ahead for the country’s economy and households and businesses.

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The UK inflation jumped to 6.2% in February from 5.5% and the government’s budget watchdog has predicted that inflation may hit around 9% this year, contributing to the biggest fall in living standards since the 1950s.

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Let us look at 3 FTSE-listed manufacturing stocks that may get impacted by the recent development. 

Unilever Plc (LON: ULVR)

Unilever Plc is one of the world’s leading manufacturers and suppliers of fast-moving consumer goods and has products in three main segments that include Home Care, Beauty & Personal Care, and Foods & refreshments.  The company is an FTSE100 constituent and has reported an increase in its operating profit by 4.8% to €8.7 billion, while its net profit increased by 9.0% to €6.6 billion in FY2021. 

The Lifebuoy producer’s market cap stands at £90,653.57 million and its share value has depreciated by -13.26% over the last one year as of 6 April 2022.

Unilever Plc’s shares were trading at GBX 3,489.00, down by 1.34%, at 3 PM (GMT) on 6 April 2022.

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IMI Plc (LON: IMI)

FTSE 250-listed IMI Plc is engaged in designing and manufacturing engineering products. The company has reported an increase in its adjusted revenue by 2% to £1,866 million in FY2021, as compared to £1,825 million in FY2020. While its profit before tax recorded an increase by 12% to £307 million, from £274 million in FY2020.

The company’s market cap stands at £3,553.07 million and its one-year return stands at -1.39% as of 6 April 2022.

IMI Plc’s shares were trading at GBX 1,305.00, down by 2.25%, at 3 PM (GMT) on 6 April 2022.

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Rolls-Royce Holdings Plc (LON: RR.)

The FTSE 100-listed multinational aerospace and defence company is engaged in designing and manufacturing power systems for aviation and other industries. The company has reported an underlying operating profit of £414 million in FY2021, up from the loss of £2,008 million in FY2020. Its profit for the year stood at £10 million, from the loss of £4,039 million in FY2020.

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The company’s market cap stands at £ 8,255.47 million and its share value has depreciated by -12.40% over the last one year as of 6 April 2022.

Rolls-Royce Holdings Plc’s shares were trading at GBX 95.43, down by 3.27%, at 3:00 PM (GMT) on 6 April 2022.

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Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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