We use our own and third-party cookies to optimize your experience on this site, including to maintain user sessions. Without these cookies our site will not function well. If you continue browsing our site we take that to mean that you understand and accept how we use the cookies. If you wish to decline our cookies we will redirect you to Google.
Already have an account? Sign in.

 Remember Me | Forgot Your Password?

Unilever's Premium Skincare Play Could Improve Margins And Valuation

January 5, 2017: 12:00 AM EST
Industry analysts Trefis believes that Unilever’s move into premium skincare, through a number of acquisitions, will help the company improve its EBITDA margins from a relatively low 18 percent to something closer to those generated by industry rivals. Trefis says that Unilever’s margins have been held down by relatively high marketing costs as a percentage of revenues; a reliance on mass, low-margin products; and increasing costs of raw materials, exacerbated by the impact of Brexit on sterling. A higher-margin, more premium-oriented portfolio will help address some of the pressures, supported by expected growth in the premium skin care segment and Unilever’s attack on costs from adoption of Zero Based Budgeting. Trefis believes Unilever could push up EBITDA margins to around 25 percent within a few years and the company’s valuation could improve by over 20 percent.
"Unilever’s Valuation Could Increase By 20% If Its Margins Rise Up to 25%", Trefis, January 05, 2017, © Insight Guru Inc.
Market News
Market Segments
Products & Pricing
Skin Care
United Kingdom
Comment & Opinion
Companies, Organizations
Deals, M&A, JVs, Licensing
Market News
Developed by Yuri Ingultsov Software Lab.