Unilever's 3 divisions are expected to bring in $59.78 billion for full-year 2020
(1) Personal Care $25.23 billion (42%),
(2) Foods And Refreshments $22.25 billion (37%), and
(3) Home Care $12.31 billion (21%)
Total Revenue
TAKEAWAY
Unilever's Personal Care division, is expected to contribute $25.23 billion to total revenue in 2020, making up around 42% of Unilever's $59.78 billion revenue estimate.The Foods and Refreshments division comes close behind and is expected to bring in $22.25 billion in 2020, to make up 37% of the total revenue estimate.The Personal Care business will provide $2.74 billion, around 257% of the expected $1.07 billion growth in Unilever's revenue between 2017 and 2021.This strong revenue growth, combined with an expected rise in net margins, has helped drive Unilever's share price by almost 50% since January 2017.Below we discuss Unilever's business model, followed by sections that review past performance and 2021 expectations for Unilever’s revenue, alongside competitive comparisons with Kimberly-Clark and Procter & Gamble.
Unilever's Business Model
What Need Does It Serve?
Catering to the day-to-day needs of consumers: Unilever is a market leader in mass skin care products and deodorants, and one of the largest players in daily hair care products. Unilever is also a global major in savory products and dressings. Unilever is also a leading manufacturer of ice cream and tea beverages.
Unilever's home care business includes laundry products, such as tablets, traditional powders, and liquids for washing clothes.
Has 3 Operating Segments-
1. Personal Care: Unilever's largest division, which includes five global brands with turnover of €1 billion or above, namely Axe, Dove, Lux, Rexona, and Sunsilk, as well as other household names such as TRESemmé, Signal, Lifebuoy, and Vaseline.
2. Foods & Refreshments: includes the foods, ice cream, and beverages categories. This segment is home to five global brands with a turnover of €1 billion or above, namely Knorr, Hellmann’s, Magnum, Lipton, and Heart, as well as other famous global brands including Brooke Bond and Ben & Jerry’s.
3. Home Care: home to 2 global brands with turnover of €1 billion or above, namely Dirt is Good (eg Omo and Persil) and Surf. Other leading brands include Comfort, Domestos, Sunlight, Cif, Seventh Generation as well as air and water purification brands Blueair, Pureit, and Truliva.
What Are The Alternatives?
Personal and Home Care: Unilever primarily competes with the likes of P&G, Kimberly Clark, L'Oreal, and Oxiclean in this segment.
Foods and Refreshments: In this segment, Unilever competes with the likes of Kraft foods, ConAgra, Kelloggs, H.J. Heinz company, and General Mills.
What Is The Basis of Competition?
Customers primarily care about product taste, nutrition content, brand recognition, price, and packaging.
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