Financial Analysis of Unilever Company

BUSINESS RESEARCH
&
ANALYSIS

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
Business model and segment information.......................................................................................4
Gartner data analytics maturity model stages through ratio analysis..............................................5
Descriptive Stage:........................................................................................................................6
1. Profitability and return ratios...............................................................................................6
2. Liquidity ratios.....................................................................................................................7
3. Efficiency ratio....................................................................................................................9
4. Capital structure ratios:......................................................................................................10
5. Investors KPI.....................................................................................................................11
Diagnostic stage.........................................................................................................................12
Predictive...................................................................................................................................13
Prescriptive................................................................................................................................13
Main limitation of financial statement analysis.............................................................................13
Company integrated reporting practices........................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

EXECUTIVE SUMMARY
This project report consists of assessment of Unilever Company through evaluating segment
information of the firm. Financial statement analysis of Unilever consists of evaluation of
various ratios for two consecutive years such as profitability, liquidity, efficiency, capital
structure and investors KPI ratios. Four stages of data analytics maturity of garner will show
relationship between value and difficulty in performance. Integrated reporting practices with
context of Unilever have been discussed to analyze main capitals of company reports. All the
findings and solutions to the problem have been discussed in conclusion and recommendation
section of the report. Unilever is one of the leading FMCG (fast moving cosmetic goods)
company in UK; it has achieved 19.1% operating margin in 2019 and its turnover also get
increase by 2% to £52 billion.

INTRODUCTION
Unilever is a British-Dutch international consumer goods company headquartered in London,
United Kingdom and Rotterdam, Netherlands. Its products include food and beverages, cleaning
products, and personal care products. In 2016, it was the world's largest consumer goods
company, measured by revenue. Unilever today has more than 400 brands, with a total turnover
of 52.7 billion Euros in 2016 and 53.7 billion Euros in 2017.
It was not long before Unilever was formed that their raw materials decreased from 30% to 40%.
Unilever Company Products: Lipton & Brook Bond Tea, Wall Ice Cream, Farmer Gem, Surf
Washing Powder, Ponds Cream, Vaseline, Rexona, Lux, Dove, and Lifebuoy Soap, Pepsodent
Toothpaste, Sunsilk Shampoo and many more products. The reason for selected this company is
its size of firm’s operations. It is old company and able to manipulate market; it is one of the
second leading company in FTSE 100 London stock exchange list and globalized its business all
over the world.
Business model and segment information
Business model:
Unilever made some changes to the compensation plan in which company removed the entry fee
and renewal fee for its members or sales representatives to make it easier for their business.
Unilever has been at the forefront of operating the direct selling business model in a responsible
and transparent manner (Unilever Annual Report and Accounts 2019, 2020). At the same time,
according to all laws, the same work will continue. Below is the business model of Unilever:
Customer segments Value Propositions Channels Customer
Relationships
 Massive market
 All age and genders
 Segmented portfolio
of products
 To make sustainable
living commonplace
 To meet the specific
needs of consumers
 Great products from
a range of 400
brands
 USLP central to
 Mass media
 Point of sales
 Social media
 Social networks
 Brand awareness
 Quality
 Customer loyalty
 Ubiquity
 Tradition
 Recommendation
 Promotions and
campaigns