Consumer goods giant Unilever is betting that cutting off food assets and focusing instead on beauty, personal care and home products would close a valuation gap with more focused rivals.
The challenge is convincing investors that a simpler company can deliver higher returns.
The maker of products such as Dove soap, Axe deodorant and Cif cleaning products trades at 11.5 times enterprise value to core earnings, according to LSEG data. That compares with 14.8 for Procter & Gamble (P&G), 17.5 for L'Oreal and 22.7 for Coca-Cola.
Those multiples suggest investors place a premium on more focused consumer goods companies.
But investors have two main concerns.
