Unilever could increase its valuation by up to 20 percent should its premiumization and zero budgeting strategies pay off, according to a report published by Trefis.

The Anglo-Dutch FMCG giant has an average EBITDA margin of around 18 percent, considerably below the 25 percent standard at rival Procter & Gamble, and 24 percent at Colgate-Palmolive, according to Trefis.

The analyst attributed Unilever’s lower margins to high raw material and marketing costs, and a portfolio skewed towards the mass market.

Unilever is taking steps to increase margins, with a zero-based budgeting edict ushered in last year designed to reduce marketing costs and a rapidly growing premium beauty portfolio.