Consumer Non-Cyclical Sector Review: Unilever Growth, Kellogg Projections

Central European (NASDAQ:CEDC): Russian Standard Corporation, owner of 9.9% of Central European Distribution’s outstanding shares, disclosed that it sent a letter to CEDC’s board of directors describing a proposed strategic alliance. As part of the initial transaction, RSC would exchange at par value up to approximately $103M of face value of CEC’s 2013 Senior Convertible Notes currently owned by RSC at an exchange price of $7.00 per share resulting in an increase of RSC’s ownership to up to 25% of the company’s common stock. In addition, RSC would be prepared to discuss assisting CEDC in addressing the remaining $207M of face value of its Notes by potentially extending a backstop credit facility.

The shares closed at $5.28, up $0.82, or 18.39%, on the day. Its market capitalization is $384.07 million.

Unilever plc (NYSE:UL) reported Q4 price growth of 6.5% and volume growth of 0.1%.

The shares closed at $31.85, down $1.18, or 3.57%, on the day. Its market capitalization is $90.07 billion.

Kellogg Company (NYSE:K) reaffirmed its guidance for internal net sales growth, which is expected to increase by 4 to 5 percent, greater than long-term annual targets and reflecting both improvement in price/mix and a stronger innovation pipeline. Kellogg expects full-year operating profit to be unchanged or slightly greater as the company continues to invest in future growth. Full-year, currency-neutral earnings per share are anticipated to grow between 2% and 4% including the impact of continued investments in supply chain, an update of the company’s SAP platform, an increase in the level of investment in brand building, and a benefit from the three-year $2.5 billion share repurchase program.

The shares closed at $50.59, up $1.28, or 2.6%, on the day. Its market capitalization is $18.17 billion.

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