2nd Qtr & Interim Results etc

Unilever PLC Unilever NV 4 August 2000 1. UNILEVER SECOND QUARTER AND HALF YEAR RESULTS 2000 2. REALIGNMENT OF SENIOR MANAGEMENT STRUCTURE AT UNILEVER UNILEVER RESULTS Second Quarter and Half Year 2000 Unilever today announces its unaudited results for the second quarter and half year 2000. 'The second quarter saw an increase in momentum with improved underlying volume growth, a healthy contribution from acquisitions, and aggressive investment behind our brands. Profitability increased strongly in the first half year. Our Path to Growth strategy continues to drive the business,' the Chairmen commented. FINANCIAL HIGHLIGHTS Constant exchange rates (1999 average) Second Quarter euro Millions Half Year 2000 2000 10,919 +3% Turnover 20,611 +2% Operating profit - Current 1,238 +10% before exceptional 2,326 +12% exchange rates items and amortisation of goodwill/intangibles 928 (14)% Pre-tax profit 1,884 (9)% Half Year 2000 562 (16)% Net profit 1,173 (10)% 1,235 (4)% 734 +3% Net profit - before 1,415 +4% 1,484 +10% exceptional items Per NV share (Fl. 1.12), Euro* 0.56 (10)% EPS 1.17 (1)% 1.23 +5% 0.73 11% EPS - before 1.41 +13% 1.48 +20% exceptional items Per PLC share (1.40p), Eurocent* 8.38 (10)% EPS 17.48 (1)% 18.41 +5% 10.95 11% EPS - before 21.11 +13% 22.18 +20% exceptional items * See note on page 12. KEY FEATURES * Sales of our leading brands grew by 6.0 % in the second quarter, including 2.8% from acquisitions. * Investment in advertising and promotions increased by 120 bps to 15.7% of turnover in the quarter, and by 70 bps to 14.5% of turnover in the half year. * Operating margins before exceptional items and goodwill amortisation moved ahead 70 bps in the quarter and 100 bps for the half year. * Lower pre-tax profit reflects planned restructuring costs, euro200 million more in the second quarter, as part of our Path to Growth strategy. * EPS before exceptional items, at constant exchange rates, increased by 11% in the second quarter and by 13% for the half year. * Cashflow from operating activities rose by nearly 40% for the half year to euro2.9 billion. CHAIRMEN'S COMMENT & OUTLOOK 'We continue to make good progress with our Path to Growth strategy. We are focusing on our leading brands, addressing the underperforming businesses as demonstrated through the forthcoming sale of our European bakery business and our restructuring programme is on target. The most significant event in the quarter was, of course, the agreement to acquire Bestfoods, for which the necessary and regulatory approvals are proceeding according to the timetable, for completion in the fourth quarter.' 'Today we also announced an evolution of our top management structure, creating improved alignment of activities to fulfill our Path to Growth strategy. This stems from the review of Unilever's top organisation announced in February.' 'With regard to the outlook for the remainder of the year we expect the pattern of increasing market investment and underlying revenue growth to continue. Before exceptional items and excluding the effect of recently completed acquisitions, this should result in earnings per share growth at constant exchange rates in the expected range of 8-10% for the year as a whole. Those acquisitions will be dilutive of earnings per share, after amortisation of goodwill.' N W A FitzGerald A Burgmans Chairman, Unilever PLC Chairman, Unilever NV 4th August, 2000 SECOND QUARTER AND HALF YEAR FINANCIAL RESULTS At constant exchange rates operating profit before exceptional items and amortisation of goodwill and intangibles increased by 10% in the quarter and by 12% for the half year. Net profit at constant exchange rates and before exceptional items increased by 3% in the quarter and by 4% for the half year, mainly because of a swing in interest following the payment of the special dividend in June 1999. In the quarter, exceptional items rose as planned as implementation of the Path to Growth programme progressed. As a consequence net profit at constant exchange rates decreased by 16%, and by 10% for the half year. At constant exchange rates and taking account of the benefits of the 1999 share consolidation, earnings per share before exceptional items rose 11% in the quarter and 13% for the half year. When expressed in current rates of exchange, earnings per share in the quarter rose 16% before exceptional items but decreased by 5% after exceptional items. On the same basis, earnings for the half year rose 20% before exceptional items and 5% after. SECOND QUARTER AND HALF YEAR PERFORMANCE BY REGION The following commentary is based on operating profit before exceptional items and amortisation of goodwill and intangibles, at constant rates of exchange. EUROPE: Operating margins improved strongly but sales revenue was held back by lower vegetable oil prices. Profits moved ahead, driven by continuing strong gross margins in Western Europe and improvement in the underlying profitability in Central and Eastern Europe in the second quarter. A faster attrition of our tail brands and the non-consumer goods businesses has been well managed with profitability being raised. Spreads volumes in Western Europe, although flat in the second quarter, significantly improved over the first quarter, with lower vegetable oil prices leading to strong margins, but reducing sales. The approval of our cholesterol reducing spread by the European authorities will allow its introduction during the second half of the year. The introduction of the new Bertolli range drove growth in olive oil, more than reversing the decline seen in the first quarter. Culinary continued to make good progress with Stir-it-up, Sizzle & Stir, and Five Brothers sauces, and Amora Maille contributed for the first time. Tea based beverages grew strongly driven by Lipton ready-to-drink, PG-tips in the UK and Tchae in France. Volume growth in ice cream was driven by ice cream multipacks, desserts, and the roll out of Solero Shots. Frozen foods volumes grew 2% in the quarter, helped by Quattro Stelle, a new range of quality meals. Sales from our leading brands within home and personal care increased, particularly in fabric conditioners, householdcare, skincare and deodorants. Half year sales from Dove rose 18%. Profitability in Central and Eastern Europe has improved, and the rate of sales decline has slowed compared to the first quarter. Progress has been made in reshaping our portfolio. In Turkey we regained share leadership in the laundry market in the second quarter, but the competitive pressures in Poland remain, in both laundry and spreads. NORTH AMERICA: Acquisitions add to an improved underlying performance in foods. Home and personal care made steady progress. Sales in the quarter rose more than 6%, with a first-time contribution from Slim*Fast and Ben & Jerry's. Investment in advertising and promotions behind our foods business was stepped up significantly. Margins in foods advanced strongly in the quarter and the half year, reflecting the benefits of restructuring, cost effectiveness and lower commodity prices. Ice cream, tea based beverages and culinary products all showed good growth driven by innovation: Breyers Parlour, Popsicle Scribblers and Pokemon novelties in ice cream, Sizzle & Stir, Just2Good in culinary and Lipton Cold Brew in tea drove an underlying volume growth in foods of nearly 3% in the quarter, and over 2% for the half year. In spreads, market shares increased, partly as a result of our leadership in the cholesterol lowering segment. In our home and personal care business sales were flat for the quarter due to competitors activities and trade destocking. In laundry, volume was up but revenue flat as a result of competitive pricing pressure. However, personal wash and deodorants showed excellent growth, where innovations with Dove and Caress are leading to further share gains. In hair, innovations are planned for the third quarter. Fragrances sales were down, but in line with expectations. Most of the innovation is planned for the second half of the year, including activities supporting the new designer ranges. AFRICA AND MIDDLE EAST: Stable sales but lower operating profit reflecting marketing investment and lower vegetable oil prices. Sales were stable despite political and economic difficulties in several countries. Operating profits are lower as a result of increased marketing support in home and personal care. Foods sales were down because of disposals in the previous year, and lower commodity prices. Home and personal care showed good sales growth both in the quarter and the half year, particularly in laundry, skin and oral. ASIA AND PACIFIC: Strong sales growth continued and marketing support increased. Asia and Pacific region showed healthy and broad based sales and profit growth. The investment behind our brands continued at a high level. In India the consumer business achieved higher sales both in the quarter and the half year, with growth particularly driven by laundry and hair. Our sales in branded staple foods developed rapidly but lower sales in non core businesses held back the overall growth rate in the second quarter. China continued its progress in laundry and oral, but hair sales were weaker as a result of heavy price discounting by the competition. Our distribution network has been further extended and now covers 500 key cities. The performance in South East Asia and Japan was excellent. Strong innovation and increased support levels have driven double digit volume and sales growth in the quarter and the half year, particularly in hair, with Lux and Mods in Japan, Vaseline in the Philippines, Sunsilk in Thailand, and in skin, with Dove and Pond's in Japan. In Australia volume growth improved markedly in the second quarter, driven by innovations in laundry, culinary and ice cream. LATIN AMERICA: Revenues are ahead with good growth in personal care and encouraging progress in laundry shares. Revenue growth in the second quarter was 5%, and 3% for the half year, with price and acquisitions more than offsetting an underlying volume decline. Operating profits were lower for the half year reflecting the increased levels of marketing investment in laundry and personal care. In laundry our shares in the second quarter improved compared to the first quarter. Good revenue growth in personal care was driven by skin, hair and deodorants, predominantly in our Brazilian business. In ice cream, profitability improved following previous restructuring, and sales were particularly strong in Mexico. Revenues in spreads and culinary were maintained. CASH FLOW Cash flow from operations for the half year of euro2.9 billion was euro0.8 billion above the corresponding period last year, driven by strong underlying earnings and lower seasonal working capital outflows. Returns from investment and financing were lower following payment of the special dividend in 1999 and the funding of acquisitions made in the half year. The net acquisition and disposal outflow of euro3.7 billion for the half year includes the consideration for Slim*Fast, Ben & Jerry's, Amora Maille, Cressida and Modern Foods. BALANCE SHEET Net Debt at euro2.8 billion compares to net funds of euro0.7 billion at the end of 1999; net gearing is now 23%. Goodwill and intangibles have increased by euro3.5 billion through the above acquisitions. The acquisitions have also affected debtors, which including the usual seasonal outflow have increased by euro1.5 billion, and provisions for liabilities and charges, which have increased by euro0.6 billion. Capital and reserves increased by euro1.1 billion to euro8.8 billion. This mainly reflects profits for the half year less the value of shares purchased in respect of employee share option plans. EURO REPORTING Information in sterling and US dollars is available as a supplement to this Euro report. CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited) In the profit and loss account given below, the results in both years have been translated at constant exchange rates, being the annual average exchange rates for 1999. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated. Second Quarter euro Millions - constant Half Year 2000 1999 % Incr./ 2000 1999 % Incr (Decr.) /(Decr.) 10,919 10,617 3 % TURNOVER 20,611 20,258 2 % 959 1,056 (9)% OPERATING PROFIT 1,929 1,978 (3)% 1,238 1,126 10 % Operating Profit BEIA* 2,326 2,085 12 % (267) (65) Exceptional items (376) (98) (12) (5) Amortisation of goodwill and (21) (9) intangibles 11 16 Income from fixed investments 23 27 (42) 11 Interest (net) (68) 58 928 1,083 (14)% PROFIT BEFORE TAXATION 1,884 2,063 (9)% (323) (357) Taxation (628) (670) 605 726 (17)% PROFIT AFTER TAXATION 1,256 1,393 (10)% (43) (55) Minority Interests (83) (92) NET PROFIT AT CONSTANT 1999 562 671 (16)% EXCHANGE RATES 1,173 1,301 (10)% 734 713 3 % Net Profit before exceptional 1,415 1,367 4 % items (Constant rates) NET PROFIT AT EXCHANGE RATES 592 673 (12)% CURRENT IN EACH PERIOD 1,235 1,289 (4)% 768 715 7 % Net Profit before exceptional 1,484 1,355 10 % items (current rates) COMBINED EARNINGS PER SHARE**(Current rates) 0.59 0.62 (5)% -per Fl.1.12 ordinary 1.23 1.17 5 % share (Euros) 0.58 0.61 (5)% -per Fl.1.12 ordinary share 1.20 1.15 5 % -diluted (Euros) 8.83 9.34 (5)% -per 1.40p ordinary share 18.41 17.61 5 % (Euro cents) 8.62 9.12 (5)% -per 1.40p ordinary share 17.96 17.18 5 % -diluted (Euro cents) * Operating profit before exceptional items and amortisation of goodwill and intangibles. See note on page 11 on 'Goodwill and intangibles'. ** See note on page 11 on 'Share consolidation'. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) euro Millions Half Year 2000 1999 Net profit 1,235 1,289 Currency retranslation 63 316 Total recognised gains 1,298 1,605 SUMMARY BALANCE SHEET (unaudited) euro Millions As at 1st July As at 31st December 2000 1999 Goodwill and intangibles 4,138 643 Fixed assets 9,282 8,963 Stocks 5,034 5,124 Debtors 9,216 7,685 Cash and current investments 6,064 5,473 Trade & other creditors (10,260) (10,177) 23,474 17,711 Borrowings 8,854 4,789 Provisions for liabilities and 5,178 4,582 charges Minority interests 606 579 Capital and reserves 8,836 7,761 23,474 17,711 CASH FLOW STATEMENT (unaudited) euro Millions Half Year 2000 1999 Cash flow from operating activities 2,914 2,122 Dividends from joint ventures 5 5 Returns on investments and servicing of finance (266) 27 Taxation (698) (632) Capital expenditure and financial investment (692) (778) Acquisitions and disposals (3,739) (162) Dividends paid on ordinary share capital (888) (6,276) CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES AND FINANCING (3,364) (5,694) Management of liquid resources 132 3,920 Financing 4,592 2,766 INCREASE / (DECREASE) IN CASH IN THE PERIOD 1,360 992 RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) NET FUNDS AT 1 JANUARY 684 5,778 INCREASE IN CASH IN THE PERIOD 1,360 992 Cash flow from (increase)/decrease in borrowings (4,601) (2,777) Cash flow from increase/(decrease) in liquid resources (132) (3,920) Change in net funds / (debt) resulting from cash flows (3,373) (5,705) Borrowings within group companies acquired (90) (1) Borrowings within group companies sold - 4 Liquid resources within group companies acquired 8 2 Liquid resources within group companies sold - - Non cash movements 199 (19) Currency retranslation (218) (56) MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD (3,474) (5,775) NET FUNDS / (DEBT) AT HALF YEAR (2,790) 3 GEOGRAPHICAL ANALYSIS Second Quarter euro Millions Half Year % Incr./ % Incr./ 2000 1999 (Decr.) 2000 1999 (Decr.) Turnover 5,043 5,042 - % Europe 9,289 9,441 (2)% 2,386 2,245 6 % North America 4,524 4,330 4 % 584 579 1 % Africa and Middle East 1,115 1,114 - % 1,807 1,700 6 % Asia and Pacific 3,528 3,276 8 % 1,099 1,051 5 % Latin America 2,155 2,097 3 % 10,919 10,617 3 % TURNOVER 20,611 20,258 2 % Operating profit - before exceptional items and amortisation of goodwill and intangibles 700 595 17 % Europe 1,186 1,029 15 % 233 201 16 % North America 423 364 16 % 54 66 (18)% Africa and Middle East 115 133 (14)% 156 164 (5)% Asia and Pacific 395 333 19 % 95 100 (5)% Latin America 207 226 (9)% 1,238 1,126 10 % OPERATING PROFIT BEIA 2,326 2,085 12 % (267) (65) Exceptional Items (376) (98) (12) (5) Amortisation of goodwill (21) (9) and intangibles 959 1,056 (9)% OPERATING PROFIT 1,929 1,978 (3)% Operating margin - before exceptional items and amortisation of goodwill and intangibles 13.9% 11.8% Europe 12.8% 10.9% 9.8% 9.0% North America 9.4% 8.4% 9.2% 11.3% Africa and Middle East 10.3% 11.9% 8.7% 9.7% Asia and Pacific 11.2% 10.2% 8.6% 9.5% Latin America 9.6% 10.8% 11.3% 10.6% OPERATING MARGIN BEIA 11.3% 10.3% 8.8% 9.9% OPERATING MARGIN 9.4% 9.8% OPERATIONAL ANALYSIS Second Quarter euro Millions Half Year % Incr./ % Incr./ 2000 1999 (Decr.) 2000 1999 (Decr.) TURNOVER 5,624 5,485 3 % Foods 10,272 10,292 - % 1,724 1,754 (2)% Oil and dairy based foods 3,351 3,559 (6)% and bakery 2,273 2,152 6 % Ice cream and beverages 3,673 3,499 5 % 1,627 1,579 3 % Culinary and frozen products* 3,248 3,234 - % 2,364 2,323 2 % Home Care and Professional 4,616 4,536 2 % Cleaning 2,733 2,631 4 % Personal Care 5,343 5,069 5 % 198 178 11 % Other Operations * 380 361 6 % 10,919 10,617 3 % TURNOVER 20,611 20,258 2 % OPERATING PROFIT-before exceptional items and amortisation of goodwill and intangibles 754 589 28 % Foods 1,157 928 25 % 223 162 38 % Oil and dairy based foods 425 341 25 % and bakery 344 278 24 % Ice cream and beverages 403 292 38 % 187 149 24 % Culinary and frozen products* 329 295 12 % 166 201 (18)% Home Care and Professional 402 465 (14)% Cleaning 316 313 1 % Personal Care 760 645 18 % 2 23 (92)% Other Operations * 7 47 (86)% 1,238 1,126 10 % OPERATING PROFIT BEIA 2,326 2,085 12 % (267) (65) Exceptional items (376) (98) (12) (5) Amortisation of goodwill (21) (9) and intangibles 959 1,056 (9)% OPERATING PROFIT 1,929 1,978 (3)% OPERATING MARGIN -before exceptional items and amortisation of goodwill and intangibles 13.4% 10.7% Foods 11.3% 9.0% 12.9% 9.2% Oil and dairy based foods 12.7% 9.6% and bakery 15.1% 12.9% Ice cream and beverages 11.0% 8.3% 11.5% 9.5% Culinary and frozen products* 10.1% 9.1% 7.0% 8.7% Home Care and Professional 8.7% 10.2% Cleaning 11.5% 11.9% Personal Care 14.2% 12.7% 0.9% 13.1% Other Operations * 1.8% 13.5% 11.3% 10.6% OPERATING MARGIN BEIA 11.3% 10.3% 8.8% 9.9% OPERATING MARGIN 9.4% 9.8% * Includes a prior year restatement, euro95m of turnover and euro0m of operating profit for the half year, relating to a reclassification of Indian food categories which have been transferred from Culinary and frozen products to Other Operations. NOTES Acquisitions In the first half year 2000 the effect on turnover and operating profit of acquisitions made in the period was euro228 million and euro31 million respectively. Exchange Rates The results for 2000 and the comparative figures for 1999 have been translated at constant average rates of exchange, being the annual average rates for 1999. For our reporting currencies these were euro1 = £0.66 = US $1.07. In addition, the results, earnings per share and cash flow statement have been translated at rates current in each period. For our reporting currencies these were: Second Quarter Half Year 2000 euro1 = £0.61 = US $0.93 euro1 = £0.61 = US$0.96 1999 euro1 = £0.66 = US $1.06 euro1 = £0.65 = US$1.02 The balance sheet figures have been translated at period-end rates of exchange. For our reporting currencies these were euro1 = £0.63 = US $0.96 at the half year (31 December 1999: euro1 = £0.62 = US $1.00). Share consolidation On 10th May 1999 the 1.25p ordinary shares of PLC and the Fl. 1 ordinary shares of NV were consolidated, so that every 112 ordinary shares were replaced by 100 1.40p PLC ordinary shares or 100 Fl. 1.12 NV ordinary shares. This consolidation was associated with the payment on 9th June 1999, of a special dividend of 66.13p per 1.25p share and Fl. 14.50 per Fl. 1 share, so that the economic impact was that of a share buy back at fair value at that date and therefore, in accordance with UK Accounting Standard FRS 14, earnings per share for prior periods have not been restated. Combined earnings per share The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the year, less the average number of shares held to meet options granted under various employee share plans. The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of £1 = Fl. 12, in accordance with the Equalisation Agreement, taking into account the share consolidation. The diluted earnings per share are based on the average number of share units, plus all shares under option, together with certain PLC shares which may be issued in 2038 under the arrangements for the variation of the Leverhulme Trust. The number of shares is reduced, in accordance with FRS 14, by the number of shares that could be purchased at fair value with the expected proceeds from the exercise of options by employees. Goodwill and intangibles In accordance with FRS 10, goodwill and identifiable intangible assets purchased as from 1st January 1998 are capitalised and amortised in operating profit over the period of their expected useful life. To date the amortisation charge in operating profit has been immaterial. Owing to the significance of recent acquisitions the amortisation charge will become a significant element of our operating profit. For the sake of clarity we are now disclosing the charge on the face of the profit and loss account and also show operating profit before exceptional items and the amortisation of goodwill and intangibles. Earnings per share in Euro Shares of Fl. Constant rates Current rates 1.12 Thousands of units COMBINED EPS 2000 1999 2000 1999 Net profit 1,173 1,301 1,235 1,289 less:Preference dividends 19 3 19 3 Net profit attributable to ordinary capital 1,154 1,298 1,216 1,286 Average number of combined share units 990,565 1,097,438 990,565 1,097,438 Combined EPS euro1.17 euro1.18 euro1.23 euro1.17 COMBINED EPS - Before exceptional items Thousands of units 2000 1999 2000 1999 Net profit 1,173 1,301 1,235 1,289 Add back exceptional items net of tax 242 66 249 66 Net profit before exceptional items 1,415 1,367 1,484 1,355 less: Preference dividends 19 3 19 3 Net profit attributable before 1,396 1,364 1,465 1,352 exceptional items Average number of combined share units 990,565 1,097,438 990,565 1,097,438 Combined EPS before exceptional items euro1.41 euro1.24 euro1.48 euro1.23 COMBINED EPS - Diluted Thousands of units 2000 1999 2000 1999 Net profit attributable to 1,154 1,298 1,216 1,286 ordinary capital Adjusted averagecombined share units 1,015,621 1,124,898 1,015,621 1,124,898 Combined diluted EPS euro1.14 euro1.15 euro1.20 euro1.15 Shares of 1.40p Constant rates Current rates Thousands of units COMBINED EPS 2000 1999 2000 1999 Net profit 1,173 1,301 1,235 1,289 less:Preference dividends 19 3 19 3 Net profit attributable to ordinary 1,154 1,298 1,216 1,286 capital Average number of combined 6,603,765 7,316,254 6,603,765 7,316,254 share units Combined EPS Cents17.48Cents17.74 Cents18.41 Cents17.61 COMBINED EPS - Before exceptional items Thousands of units 2000 1999 2000 1999 Net profit 1,173 1,301 1,235 1,289 Add back exceptional items net of tax 242 66 249 66 Net profit before exceptional items 1,415 1,367 1,484 1,355 less: Preference dividends 19 3 19 3 Net profit attributable before 1,396 1,364 1,465 1,352 exceptional items Average number of combined share 6,603,765 7,316,254 6,603,765 7,316,254 units Combined EPS before Cents21.11 Cents18.63 Cents22.18 Cents18.51 exceptional items COMBINED EPS - Diluted Thousands of units 2000 1999 2000 1999 Net profit attributable to 1,154 1,298 1,216 1,286 ordinary capital Adjusted average combined share 6,770,805 7,499,317 6,770,805 7,499,317 units Combined diluted EPS Cents17.04 Cents17.31 Cents17.96 Cents17.18 Dates The results for the third quarter and announcement of interim dividends will be published on Friday 3 November, 2000. ENQUIRIES: UNILEVER PRESS OFFICE 020 7822 6805 4 August 2000 Internet: http://www.unilever.com E-mail: press-office.london@unilever.com CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited) In the profit and loss account given below, the results in both years have been translated at constant exchange rates, being the annual average exchange rates for 1999. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated. Second Quarter £ Millions -constant Half Year 2000 1999 % Incr./ 2000 1999 % Incr. (Decr.) /(Decr.) 7,193 6,994 3 % TURNOVER 13,578 13,345 2 % 632 696 (9)% OPERATING PROFIT 1,271 1,304 (3)% 815 741 10 % Operating Profit BEIA * 1,532 1,374 12 % (176) (42) Exceptional items (248) (64) (7) (3) Amortisation of goodwill (13) (6) and intangibles 7 10 Income from fixed investments 15 17 (28) 7 Interest (net) (45) 38 611 713 (14)% PROFIT BEFORE TAXATION 1,241 1,359 (9)% (212) (235) Taxation (413) (441) 399 478 (17)% PROFIT AFTER TAXATION 828 918 (10)% (29) (36) Minority Interests (55) (61) NET PROFIT AT CONSTANT 1999 370 442 (16)% EXCHANGE RATES 773 857 (10)% 482 469 3 % Net Profit beforeexceptional 931 900 4 % items (Constant rates) NET PROFIT AT EXCHANGE RATES CURRENT 362 444 (18)% IN EACH PERIOD 756 866 (13)% 469 472 (1)% Net Profit before exceptional 908 910 - % items (Current rates) COMBINED EARNINGS PER SHARE **(Current rates) 5.39p 6.15p (12)% -per 1.40p ordinary share 11.26p 11.81p (5)% 5.26p 6.00p (12)% -per 1.40p ordinary 10.99p 11.52p (5)% share - diluted * Operating profit before exceptional items and amortisation of goodwill and intangibles. See note on page 11 on 'Goodwill and intangibles'. ** See note on page 11 on 'Share consolidation'. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) £ Millions Half Year 2000 1999 Net profit 756 866 Currency retranslation 140 (98) Total recognised gains 896 768 SUMMARY BALANCE SHEET (unaudited) £ Millions As at 1st July As at 31st December 2000 1999 Goodwill and intangibles 2,620 400 Fixed assets 5,875 5,572 Stocks 3,187 3,185 Debtors 5,834 4,777 Cash and current investments 3,838 3,402 Trade & other creditors (6,495) (6,326) 14,859 11,010 Borrowings 5,604 2,977 Provisions for liabilities and charges 3,278 2,848 Minority interests 384 360 Capital and reserves 5,593 4,825 14,859 11,010 CASH FLOW STATEMENT (unaudited) £ Millions Half Year 2000 1999 Cash flow from operating activities 1,784 1,423 Dividends from joint ventures 3 4 Returns on investments and servicing of finance (162) 17 Taxation (427) (424) Capital expenditure and financial investment (423) (521) Acquisitions and disposals (2,287) (108) Dividends paid on ordinary share capital (543) (4,207) CASH INFLOW/(OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES AND FINANCING (2,055) (3,816) Management of liquid resources 81 2,628 Financing 2,808 1,855 INCREASE/(DECREASE) IN CASH IN THE PERIOD 834 667 RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS / (DEBT) NET FUNDS AT 1 JANUARY 425 4,079 INCREASE IN CASH IN THE PERIOD 834 667 Cash flow from (increase)/decrease in borrowings (2,814) (1,862) Cash flow from increase/(decrease) in liquid resources (81) (2,628) Change in net funds / (debt) resulting from cash flows (2,061) (3,823) Borrowings within group companies acquired (55) (1) Borrowings within group companies sold - 3 Liquid resources within group companies acquired 5 1 Liquid resources within group companies sold - - Non cash movements 122 (13) Currency retranslation (202) (244) MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD (2,191) (4,077) NET FUNDS / (DEBT) AT HALF YEAR (1,766) 2 GEOGRAPHICAL ANALYSIS Second Quarter £ Millions Half Year % Incr./ % Incr./ 2000 1999 (Decr.) 2000 1999 (Decr.) Turnover 3,322 3,322 - % Europe 6,119 6,220 (2)% 1,572 1,479 6 % North America 2,980 2,853 4 % 385 381 1 % Africa and Middle East 735 733 - % 1,190 1,120 6 % Asia and Pacific 2,324 2,158 8 % 724 692 5 % Latin America 1,420 1,381 3 % 7,193 6,994 3 % TURNOVER 13,578 13,345 2 % Operating profit - before exceptional items and amortisation of goodwill and intangibles 460 392 17 % Europe 781 678 15 % 154 132 16 % North America 279 239 16 % 36 43 (18)% Africa and Middle East 76 88 (14)% 103 108 (5)% Asia and Pacific 260 220 19 % 62 66 (5)% Latin America 136 149 (9)% 815 741 10 % OPERATING PROFIT BEIA 1,532 1,374 12 % (176) (42) Exceptional Items (248) (64) (7) (3) Amortisation of goodwill (13) (6) and intangibles 632 696 (9)% OPERATING PROFIT 1,271 1,304 (3)% Operating margin - before exceptional items and amortisation of goodwill and intangibles 13.9% 11.8% Europe 12.8% 10.9% 9.8% 9.0% North America 9.4% 8.4% 9.2% 11.3% Africa and Middle East 10.3% 11.9% 8.7% 9.7% Asia and Pacific 11.2% 10.2% 8.6% 9.5% Latin America 9.6% 10.8% 11.3% 10.6% OPERATING MARGIN BEIA 11.3% 10.3% 8.8% 9.9% OPERATING MARGIN 9.4% 9.8% OPERATIONAL ANALYSIS Second Quarter £ Millions Half Year % Incr. % Incr. 2000 1999 /(Decr.) 2000 1999 /(Decr.) TURNOVER 3,705 3,613 3 % Foods 6,767 6,781 - % 1,136 1,156 (2)% Oil and dairy based foods 2,208 2,345 (6)% and bakery 1,498 1,417 6 % Ice cream and beverages 2,420 2,304 5 % 1,071 1,040 3 % Culinary and frozen products* 2,139 2,132 - % 1,557 1,530 2 % Home Care and Professional 3,041 2,988 2 % Cleaning 1,801 1,733 4 % Personal Care 3,520 3,338 5 % 130 118 11 % Other Operations * 250 238 6 % 7,193 6,994 3 % TURNOVER 13,578 13,345 2 % OPERATING PROFIT -before exceptional items and amortisation of goodwill and intangibles 497 388 28 % Foods 762 612 25 % 147 106 38 % Oil and dairy based foods 280 224 25 % and bakery 226 183 24 % Ice cream and beverages 265 193 38 % 124 99 24 % Culinary and frozen products * 217 195 12 % 109 132 (18)% Home Care and Professional 265 306 (14)% Cleaning 208 206 1 % Personal Care 501 425 18 % 1 15 (92)% Other Operations * 4 31 (86)% 815 741 10 % OPERATING PROFIT BEIA 1,532 1,374 12 % (176) (42) Exceptional items (248) (64) (7) (3) Amortisation of goodwill (13) (6) and intangibles 632 696 (9)% OPERATING PROFIT 1,271 1,304 (3)% OPERATING MARGIN -before exceptional items and amortisation of goodwill and intangibles 13.4% 10.7% Foods 11.3% 9.0% 12.9% 9.2% Oil and dairy based foods 12.7% 9.6% and bakery 15.1% 12.9% Ice cream and beverages 11.0% 8.3% 11.5% 9.5% Culinary and frozen products * 10.1% 9.1% 7.0% 8.7% Home Care and Professional 8.7% 10.2% Cleaning 11.5% 11.9% Personal Care 14.2% 12.7% 0.9% 13.1% Other Operations * 1.8% 13.5% 11.3% 10.6% OPERATING MARGIN BEIA 11.3% 10.3% 8.8% 9.9% OPERATING MARGIN 9.4% 9.8% * Includes a prior year restatement, £62m of turnover and £0m of operating profit for the half year, relating to a reclassification of Indian food categories which have been transferred from Culinary and frozen products to Other Operations. Earnings per share in sterling Shares of 1.40p Constant rates Current rates Thousands of units COMBINED EPS 2000 1999 2000 1999 Net profit 773 857 756 866 less:Preference dividends 13 2 12 2 Net profit attributable to ordinary 760 855 744 864 capital Average number of combined 6,603,765 7,316,254 6,603,765 7,316,254 share units Combined EPS 11.51p 11.69p 11.26p 11.81p COMBINED EPS - Before exceptional items Thousands of units 2000 1999 2000 1999 Net profit 773 857 756 866 Add back exceptional items net of tax 158 43 152 44 Net profit before 931 900 908 910 exceptional items less: Preference dividends 13 2 12 2 Net profit attributable before 918 898 896 908 exceptional items Average number of 6,603,765 7,316,254 6,603,765 7,316,254 combined share units Combined EPS before 13.91p 12.27p 13.57p 12.40p exceptional items COMBINED EPS - Diluted Thousands of units 2000 1999 2000 1999 Net profit attributable to 760 855 744 864 ordinary capital Adjusted average 6,770,805 7,499,317 6,770,805 7,499,317 combined share units Combined diluted EPS 11.23p 11.39p 10.99p 11.52p --------------------------------------------------------------------- REALIGNMENT OF SENIOR MANAGEMENT STRUCTURE AT UNILEVER Unilever today announced an evolution of its top management structure, creating improved alignment to fulfil its Path to Growth strategy. This stems from the review of Unilever's top organisation announced in February. The main changes are the formation of two global divisions - one for Foods and one for Home and Personal Care (HPC) - and a strengthening of the Group's global innovation capabilities. The key benefits arising from the changes are: * Improved focus on Foods and HPC activities regionally and globally; * Acceleration of decision making and execution through tighter alignment of brand strategy with operations; * Strengthening innovation capability through more effective integration of research into the divisional structure and the creation of global innovation centres. Unilever's local companies will remain as the key interface with customers and consumers, responding directly to local market needs. The drive for increased global synergies will continue. Two Division Directors will be appointed with executive authority and profit responsibility for worldwide operations. Each will head an Executive for their respective divisions. The following changes in Board member responsibilities will take place: Patrick Cescau, currently Financial Director, will become Foods Director, responsible for Unilever's Foods business worldwide, with effect from January 1, 2001. Until that time he will lead the planning of the integration with Bestfoods and take immediate responsibility for Unilever's North American foods operations. Alexander Kemner, currently Foods Category Director, will support the integration process until his planned retirement in May 2001. Keki Dadiseth will become Home & Personal Care Director with responsibility for HPC worldwide including DiverseyLever, effective January 1, 2001. Until that time he will focus on preparing plans for the implementation of the new structure. Rudy Markham, currently Strategy and Technology Director, has become Financial Director with immediate effect while retaining responsibility for Information Technology. Clive Butler, currently HPC Category Director, will become Corporate Development Director, effective January 1, 2001, embracing Corporate Strategy and Research and Corporate Relations. The role of the Executive Committee remains unchanged, it is responsible for the overall results and performance of Unilever. Similarly, the responsibilities of Andre van Heemstra, Charles Strauss and Roy Brown are unaffected. Unilever Chairman, Niall FitzGerald/Antony Burgmans, said: 'Our 1996 reorganisation released much energy in Unilever but the business has continued to evolve making this review of our structures timely. These changes have been specifically designed to ensure effective execution of our Path to Growth strategy.' * The introduction of Division Directors will align brand strategy with operations. Regional Presidents will remain responsible for profitability in their respective regions and will become members of either the Foods Executive or the HPC Executive. * Most research and innovation will be integrated into the divisional structure. A small number of Global Innovation Centres will be progressively developed and will inter-link with Research and the worldwide brand innovation network. * In developing and emerging markets some of the boundaries between the Business Groups will be re-drawn. Ice cream and Frozen Foods activities will be formed into a discrete global business unit within the Foods Division.

Companies

Unilever (ULVR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today