Revenue of both P&G and Unilever has declined over the observation period due to a lot of internal reshuffling.

1. Comparative Analysis between
P&G and Unilever
Manish Chandra Singh
19200980
2009-2018
MSc Marketing

2. Table of Contents Executive Summary
• Executive Summary………………………….…01
• Revenue & Gross Margins……………………..02
• Operating & Net Margins………………………02
• Net Sales by Geographic Region…..……..….03
• Net Sales by Business Segment……………..03
• Stock Price Comparison & Forecast…………04
• Business Forecast & Projections…………..…05
Profit Margin & Stock Price
Industry & Product(s) Type
Beauty Grooming, Health Care, Baby & Family
Care, and have similar business models
Revenue
Revenue of both P&G and Unilever has declined over the
observation period due to a lot of internal reshuffling
There was sharp decline in net profit margin & stock
price(s) also remained low for both P&G (NYSE: PG)
and Unilever (NYSE: UL) from 2014-15, due to the
demand slowdown in the developing markets
Forecast
They are hopeful catering to the fundamental needs of the
people in both developed and developing nations and
forecasted net profit margin for both is expected to be stable
01

3. Revenue & Gross Margins Operating & Net Margins
55.72
57.5
65.0
66.7
64.7
63.0
58.6 58.0 59.1
61.2
76.6
78.9
70.5
73.1 73.9 74.4
70.7
65.3 65.1
66.8
0
10
20
30
40
50
60
70
80
09 10 11 12 13 14 15 16 17 18
Uniliver P&G Uniliver P&G
Unilever and P&G both have seen a recovery after the great recession till 2011,
after that both the companies are cutting costs in order to drive growth earnings.
Both companies have seen an overall drop in revenue from 2011-2018, with a 1%
average annual drop in revenue for Unilever and around 0.75% for P&G.
0%
5%
10%
15%
20%
25%
09 10 11 12 13 14 15 16 17 18
Operating Margin (UL) Net Margin (UL)
Operating Margin (PG) Net Margin (PG)
On comparing the P&G's and Unilever's strategies, it can clearly be seen that
they're different means to the same end - reviving top line growth and bolstering
margins. About 80 of P&G's 200 brands account for 86% of its total sales and
over 95% of its net profit.
P&G is focusing on 'brand consolidation' and category-leading brands with the
best growth potential and relatively high margins.
All figures are in $ billion
02
Gross Margin Gross Margin

4. 0
10
20
30
40
50
60
70
80
90
100
13 14 15 16 17 18
Europe
North & South
America
Asia
0
10
20
30
40
50
60
70
80
90
100
13 14 15 16 17 18
Latin America
IMEA
Greater China
Asia Pacific
Europe
North America
Revenue from P&G's Fabric & Home Care segment has remained
roughly flat. Personal products (Beauty, Grooming & Health Care)
fell from $29.6 billion in 2011 to $27.4 billion in 2018.
Unilever’s Home Care Segment has seen a little growth over the same period,
from 17.6% in 2011 to 19.9% in 2018. This is largely due to Unilever’s
reduced focus on its Food & Refreshments segments, increasing focus
toward Home Care and Personal Care. Personal care segment has seen
growth from 33.3% ($21.5 billion) in 2011 to 40.4% ($24.4 billion) in 2018.
Net Sales
by Geographic Region
Unilever is increasing its net sale in Asian markets,
from 40% in 2013 to 43% in 2018. On the other
hand, European net sales % has decreased from
27% in 2013 to 24% in 2018. American market is
somewhat consistent.
P&G's major net sales (around 40%) comes
from North America, with a steady growth rate
over the years. Whereas, P&G's second-
largest region - Europe's net sales have been
falling over the years. Around 32% of net sales
comes from outside Europe & North America.
Graph showing net sales as a % of region from 2013-18
Net Sales
by Business Segment
31.0%
31.0%
30.9%
31.0%
31.0%
32.0%
32.0%
32.0%
11.2%
11.2%
11.2%
10.6%
11.0%
11.0%
12.0%
12.0%
12.8%
12.8%
12.8%
12.4%
11.0%
11.0%
10.0%
10.0%
18.0%
19.0%
18.0%
18.0%
18.0%
18.0%
18.0%
19.0%
27.0%
26.0%
27.0%
28.0%
29.0%
28.0%
28.0%
26.9%
11
12
13
14
15
16
17
18
Fabric & Home Care
Health Care
Grooming
Beauty
Baby Care & Family 17.6%
17.6%
18.0%
18.9%
19.0%
19.0%
19.7%
19.9%
33.3%
35.3%
36.3%
36.7%
37.7%
38.3%
38.5%
40.4%
49.1%
47.1%
45.8%
44.4%
43.3%
42.7%
41.8%
39.7%
11
12
13
14
15
16
17
18
Home Care
Personal Care
Food& Refreshment
Unilever scaling down on its
Food & Refreshment
business and instead
focusing more on Personal
Care. Similarly, P&G has
been scaling back on
grooming products, while
increasing focus equally on
all other segments of
revenue.
03

5. 2009
PG: $55.51
UL: $26.35
2018
PG: $78.06
UL: $55.28
2019
PG: $122.83
UL: $60.63
Apr Apr
Sept
12-month
Forecast
Increase in stock prices
since 2009
Increase in stock prices
since 2009
Stock Price Forecast
HIGH
MEDIAN
LOW
$69.42
+14.8%
$64.61
+6.6%
$55.7
+7.9%
156.9%
136.5%
Stock Price Comparison & Forecast
HIGH
MEDIAN
LOW
$139
+10.7%
$129
+5.0%
$105
+14.5%
Unilever
P&G
137.5%Unilever
P&G 52.5%
1-year stock performance
13.2% -7.8%
UnileverP&G
This spike came because, Kraft Heinz, with the
backing of Warren Buffett, offered to buy the
company. Later, Unilever rejected the deal.
Historically, Unilever has performed better, but Brexit has had a much bigger impact on
Unilever. Despite cost-cutting measures and contrary to what many investors believe, P&G is
looking to grow via new product innovations. On the other hand, Unilever has been more
focused on expanding its portfolio by M&A rather than shrinking it as P&G has done.
Source: CNN BusinessSource: Yahoo Finance
Oct 2020
04

6. Forecast & Business Projections
19.7%
20.6% 21.8%
23.0% 24.3%
14.4%
15.3% 16.4%
17.6% 18.7%
0%
5%
10%
15%
20%
25%
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Operating Margin (UL) Net Margin (UL)
19.4%19.5%
19.8%
20.8%
21.3%
16.3%
16.8%17.3%
18.0%18.4%
0%
5%
10%
15%
20%
25%
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Operating Margin (PG) Net Margin (PG)
Operating & Net Margins
59.3 58.8 56.8 56.0 55.7
64.0 62.6 61.9
59.7 57.8
0
10
20
30
40
50
60
70
19 20 21 22 23
Uniliver P&G Uniliver P&G
Revenue & Gross Margin Forecast
2019-2023 All figures are in $ billion
Historical Forecast
ForecastHistorical
P&G is cutting costs at a rapid rate and hopes to save $10 billion over the next five
years. However, both companies to remain focused on innovation, diversifying and
shuffling categories, increasing prices and cost reduction initiatives.
05 Gross Margin Gross Margin