3rd Quarter & 9 Mths Results
Unilever PLC
Unilever NV
3 November 2000
UNILEVER RESULTS
Third Quarter 2000 and Interim Dividends
Unilever today announces its unaudited results for the third quarter and
first nine months 2000 as well as interim dividends.
The principal feature of the quarter was the planned acceleration of our Path
to Growth strategy. This brought significant cost savings which has allowed
us to increase marketing investment behind the growth of our leading brands
and post another strong increase in operating profit.
FINANCIAL HIGHLIGHTS
Constant exchange rates (1999 average)
Third Quarter euro Millions Nine Months
2000 2000
10,976 +5 % Turnover 31,587 +3 %
Operating profit - Current
1,557 +10 % before exceptional items and 3,883 +11 % exchange rates
amortisation of
goodwill/intangibles
1,403 +7 % Pre-tax profit 3,287 (3) % Nine Months2000
806 (5)% Net profit 1,979 (8)% 2,089 (2)%
894 - % Net profit - before 2,309 +2 % 2,441 +9 %
exceptional items
Per NV share (Fl.1.12), Euro
0.80 (2)% EPS 1.97 (2)% 2.08 +4 %
0.89 +2 % EPS - before exceptional items 2.30 +9 % 2.44 +16 %
Per PLC share (1.4p),Eurocent*
12.04 (2)% EPS 29.52 (2)% 31.18 +4 %
13.42 +2 % EPS - before exceptional items 34.52 +9 % 36.53 +16 %
Interim dividend:NV ordinary share euro 0.48 +20%,PLC ordinary share 4.40p+12%
KEY FEATURES
* Sales of our leading brands grew 8.1% in the third quarter, including 4.3%
from acquisitions.
* Cash flow from operations at euro4.5 billion for the year to date well
ahead of 1999.
* Strong innovation led sales growth across Home and Personal Care.
* Foods sales held back by a poor European summer season in ice cream and
ready to drink tea.
* Gross margins continue to move ahead allowing us to invest additional funds
in marketing support; operating margin beia now at 14.2%.
* Path to Growth restructuring accelerated to euro304 million for the quarter.
CHAIRMEN'S COMMENT
'Last month the Bestfoods acquisition was completed on schedule. The top
appointments have been made and we are moving ahead rapidly with the
integration of the businesses. The earlier acquisitions of Slim*Fast and Ben
& Jerry's have both made a promising start in their first full quarter under
our ownership with results ahead of plan.
The realignment of the portfolio has continued with the recent sale of our
European Bakery businesses and the agreement to sell much of the Elizabeth
Arden operation. We have also announced our intention to sell the Bestfoods
Baking Company.
Management is now focused on successfully implementing the new divisional
structure, another step toward attaining our Path to Growth objectives'.
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
THIRD QUARTER AND FIRST NINE MONTHS FINANCIAL RESULTS
Operating profit, at constant exchange rates and before exceptional items and
amortisation of goodwill and intangibles, increased by 10% in the quarter and
by 11% for the first nine months.
Amortisation of goodwill and intangibles was euro49 million in the quarter
reflecting the Slim*Fast, Ben & Jerry's, Cressida and Amora Maille
acquisitions. Interest costs were euro18 million higher than last year,
reflecting the cost of increased borrowings offset by a strong cash flow from
operations. Exceptional items in the quarter include a euro304 million charge
for Path to Growth related restructuring. The exceptional profits include
those coming from the disposal of our European Bakery businesses. The
effective tax rate from trading operations in the quarter was 34.7%. Tax on
exceptional items raised this by 3.8 percentage points to 38.5%. In
consequence net profit at constant exchange rates decreased by 5% in the
quarter, and by 8% for the first nine months. Net profit at constant exchange
rates and before exceptional items remained flat in the quarter and increased
by 2% for the first nine months.
At constant exchange rates and taking account of the benefits of the 1999
share consolidation, earnings per share before exceptional items rose 2% in
the quarter and 9% for the first nine months. When expressed in current rates
of exchange, earnings per share in the quarter rose 10% before exceptional
items and 4% after exceptional items. On the same basis, earnings per share
for the first nine months rose 16% before exceptional items and 4% after.
THIRD QUARTER 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: Strong growth in home and personal care offset by poor summer
season in ice cream and ready-to-drink tea.
In Western Europe, sales from the leading brands in our home and personal
care business grew by more than 7%. In laundry, there was continued success
for tablets and the Easy Iron variant of Comfort fabric conditioner. Growth
in skincare was led by Dove and in household cleaning, sales were boosted by
the introduction of easy to use wipes under the Domestos and Jif brands.
Volumes rose in spreads and cooking products due to the launch of Pro.activ,
the cholesterol reducing spread, and the extension of the Bertolli range. In
culinary, there was an excellent performance from Amora Maille where year on
year sales increased by 9%. In frozen foods, volumes were up more than 3%,
reflecting the success of meal solutions under the Quattro Salti in Padella
brand.
A poor summer season meant volumes in our ice cream and ready-to-drink
businesses were down by 10% and 15% respectively, representing a sales
shortfall of euro120 million.
In Central and Eastern Europe, volumes grew 7%, driven by tea, laundry and
household cleaning. There were signs of recovery in Russia led by our
personal care and tea businesses.
NORTH AMERICA: Sales and profits rise reflecting acquisitions and growth in
home and personal care.
Sales rose by 13% of which 10 percentage points come from the acquisition of
Slim*Fast and Ben & Jerry's. Operating margins moved well ahead reflecting
the benefits of restructuring, portfolio changes and buying savings.
In home and personal care, sales were 5% higher, driven by innovations in
hair, fragrances and skin. In the skin category, Dove continues to be a major
success. Laundry volumes were up 6%. In hair, the relaunching of Salon
Selectives, and the Suave line extensions have begun well. Fragrances sales
were up 13%, with launches of Nautica's Latitude/Longitude, Truth by Calvin
Klein, and Cerruti Image for Women.
In foods, ice cream sales were up more than 10%, before the contribution from
Ben & Jerry's, with a strong result from Breyers Parlour. In spreads our
market share has moved ahead, with the contribution from Brummel & Brown
Creamy Fruit Spread and Take Control. There were gains in tea volumes with
Lipton Cold Brew, but the quarter also saw higher promotional pricing in both
this category and culinary. Frozen foods sales declined but we held share in
a rapidly shrinking market.
AFRICA AND MIDDLE EAST: Sales and profits improved despite difficult
business conditions.
Sales were up 5%, notwithstanding the sale of the liquor distribution
business in the Middle East. Volume growth strengthened to 4%, whilst price
increases in home and personal care further enhanced sales growth. Higher
gross margins produced a good increase in operating profit.
Among the country highlights, there were positive home and personal care
performances in Morocco and Ghana, whilst in Egypt and Arabia our Lipton tea
operations did well. In our largest regional business, South Africa, there
were sales gains in most categories, resulting in a good overall performance.
ASIA AND PACIFIC: Double digit sales growth continues in South East Asia
and Japan.
The region recorded another good quarter as sales rose 8% and profits
increased by 15%.
Our businesses in South East Asia and Japan continue to perform well, with
excellent volume growth and firmer pricing resulting in higher operating
profit. In Japan, Dove and Pond's in skin, and Mods and Lux in hair have
again been the principal successes. Growth in South East Asia was broad
based, and in hair, where volumes grew 19%, Vaseline shampoo achieved market
leadership in the Philippines. Sales in Australia however were flat.
In China the laundry and oral care businesses had another good quarter. The
price repositioning of the Omo brand has proved successful and the Zhonghua
brand of toothpaste has benefited from the introduction of new variants. In
the hair category intense competition from both international and local
players slowed growth.
In India, although the Surf brand recorded strong sales growth, there was
increased competition at the lower end of the market, particularly in
personal care and tea. This, coupled with the effect of lower fertiliser
sales, impacted both sales and profits.
LATIN AMERICA: Early signs of recovery led by growth in laundry and
improvement in profitability.
Sales growth in the third quarter was 8%, including 5% from acquisitions.
Operating profits were well ahead of last year, reflecting the firmer prices
and an aggressive cost savings programme.
Volumes in laundry were up 3%, with Brazil contributing most, with the
relaunch of our 'top clean' brands. Our personal care businesses continued to
prosper throughout the region, led by the Dove, Axe and Rexona personal wash
and deodorant brands. In foods, the ice cream business had mixed results with
a good performance in Mexico but disappointment in Brazil. Our Brazilian ice
cream operation is currently being reorganised.
There are clear signs of a recovery beginning in the region, however against
this must be set the continuing difficult trading conditions in Central and
North Latin America.
INTERIM DIVIDEND
In accordance with the interim dividend policy, the interim dividend has been
set at 35% of last year's total dividend, based on the stronger of the two
reporting currencies of our Parent companies, Euro and Sterling, over the
first nine months, which for this period was Sterling. The interim dividend,
to be paid on 18 December 2000, is therefore fixed at 4.40p per 1.4p ordinary
share of Unilever PLC, an increase of 12% from last year. The interim
dividend per Fl. 1.12 ordinary share of Unilever N.V. is set at euro0.48, an
increase of 20% from last year. The Unilever PLC shares will go ex-dividend
on 13 November 2000, and the Unilever N.V. shares will go ex-dividend on 6
November 2000.
CASH FLOW
Cash flow from operations for the first nine months was euro4.5 billion
compared with euro3.8 billion in the corresponding period last year. This is
the result of strong underlying earnings and improved management of working
capital.
Cash flow from operations would have been even stronger were it not for the
euro0.7 billion in debtors relating to the disposal consideration for our
European Bakery businesses, subsequently settled on 2 October 2000.
The purchase of Slim*Fast, Amora Maille, Ben & Jerry's, Cressida and other
acquisitions impacted cash flow by some euro4 billion.
Returns from investment and financing were lower following payment of the
special dividend in 1999 and the funding of acquisitions made in the first
nine months of 2000.
BALANCE SHEET
Net debt at euro1.8 billion compares to net funds of euro0.7 billion at the
end of 1999.
Net gearing is 15%.
Goodwill and intangibles have increased by euro3.8 billion through the above
acquisitions.
The acquisitions have also affected debtors, which increased by euro2.2
billion. Debtors also includes the outstanding sale consideration for the
European Bakery businesses.
Provisions for liabilities and charges have increased by euro0.9 billion.
This is also mainly due to the effect of the acquisitions and a cash refund
from the Netherlands pension fund. This cash refund represents deferred
income which will be recognised in the profit and loss account over
approximately 14 years.
Borrowings and cash and current investments were both significantly higher in
preparation for settlement of the consideration due in respect of the
Bestfoods acquisition.
Capital and reserves increased by euro2.0 billion to euro9.8 billion. This
mainly reflects profits for the first nine months, together with favourable
currency retranslations, less the accrued interim dividend and 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.
Third Quarter euro Millions - constant Nine Months
2000 1999 %Incr./ 2000 1999 %Incr.
Decr.) /(Decr.)
10,976 10,491 5 % TURNOVER 31,587 30,749 3 %
1,456 1,341 9 % OPERATING PROFIT 3,385 3,319 2 %
1,557 1,418 10 % Operating Profit BEIA* 3,883 3,503 11 %
(52) (71) Exceptional items (428) (169)
(49) (6) Amortisation of goodwill (70) (15)
and intangibles
8 13 Income from fixed investments 31 40
(61) (43) Interest (129) 15
1,403 1,311 7 % PROFIT BEFORE TAXATION 3,287 3,374 (3)%
(540) (411) Taxation (1,168) (1,081)
863 900 (4)% PROFIT AFTER TAXATION 2,119 2,293 (8)%
(57) (56) Minority Interests (140) (148)
NET PROFIT AT CONSTANT
806 844 (5)% 1999 EXCHANGE RATES 1,979 2,145 (8)%
894 892 0 % Net Profit before 2,309 2,259 2 %
exceptional items(Constant rates)
NET PROFIT AT EXCHANGE RATES
854 846 1 % CURRENT IN EACH PERIOD 2,089 2,135 (2)%
957 893 7 % Net Profit before exceptional 2,441 2,248 9 %
items (Current rates)
COMBINED EARNINGS PER SHARE
**(Current rates)
0.85 0.83 4 % -per Fl.1.12 ordinary share(Euros) 2.08 2.00 4 %
0.83 0.80 4 % -per Fl.1.12 ordinary share- 2.03 1.95 4 %
diluted (Euros)
12.77 12.32 4 % -per 1.4p ordinary share) 31.18 29.93 4 %
(Eurocents)
12.45 12.00 4 % -per 1.4p ordinary share - 30.41 29.18 4 %
diluted (Eurocents)
* Operating profit before exceptional items and amortisation of goodwill and
intangibles. See note on page 10 on 'Goodwill and intangibles'.
**See note on page 10 on 'Share consolidation'.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
euro Millions Nine Months
2000 1999
Net profit 2,089 2,135
Currency retranslation 437 95
Total recognised gains 2,526 2,230
SUMMARY BALANCE SHEET (unaudited)
euro Millions As at 30th As at 31st
September December
2000 1999
Goodwill and intangibles 4,452 643
Fixed assets 9,289 8,963
Stocks 5,230 5,124
Debtors 9,869 7,685
Cash and current investments 20,981 5,473
Trade & other creditors (11,027) (10,177)
38,794 17,711
Borrowings 22,806 4,789
Provisions for liabilities and charges 5,538 4,582
Minority interests 665 579
Capital and reserves 9,785 7,761
38,794 17,711
CASH FLOW STATEMENT (unaudited)
euro Millions Nine Months
2000 1999
Cash flow from operating activities 4,468 3,831
Dividends from joint ventures 19 18
Returns on investments and servicing of finance (238) (134)
Taxation (1,116) (862)
Capital expenditure and financial investment (849) (1,021)
Acquisitions and disposals (3,327) (289)
Dividends paid on ordinary share capital (877) (6,816)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING (1,920) (5,273)
Management of liquid resources (13,273) 4,647
Financing 17,406 866
INCREASE / (DECREASE) IN CASH IN THE PERIOD 2,213 240
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) (unaudited)
NET FUNDS AT 1 JANUARY 684 5,778
INCREASE / (DECREASE) IN CASH IN THE PERIOD 2,213 240
Cash flow from (increase) / decrease in borrowings (17,425) (859)
Cash flow from increase / (decrease) in liquid resources 13,273 (4,647)
Change in net funds / (debt) resulting from cash flows (1,939) (5,266)
Borrowings within group companies acquired (92) (1)
Borrowings within group companies sold - -
Liquid resources within group companies acquired 8 2
Liquid resources within group companies sold - -
Non cash movements (145) (1)
Currency retranslation (341) 52
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD (2,509) (5,214)
NET FUNDS / (DEBT) AT PERIOD END (1,825) 564
GEOGRAPHICAL ANALYSIS (unaudited)
Third Quarter euro Millions Nine Months
%Incr./ %Incr./
2000 1999 (Decr.) 2000 1999 (Decr.)
Turnover
4,852 4,917 (1)% Europe 14,141 14,358 (2)%
2,572 2,270 13 % North America 7,096 6,600 8 %
607 578 5 % Africa and Middle East 1,722 1,692 2 %
1,800 1,669 8 % Asia and Pacific 5,328 4,945 8 %
1,145 1,057 8 % Latin America 3,300 3,154 5 %
10,976 10,491 5 % TURNOVER 31,587 30,749 3 %
Operating profit - before
exceptional items and amortisation
of goodwill and intangibles
748 810 (8)% Europe 1,934 1,839 5 %
401 278 44 % North America 824 642 28 %
75 69 9 % Africa and Middle East 190 202 (6)%
227 198 15 % Asia and Pacific 622 531 17 %
106 63 69 % Latin America 313 289 8 %
1,557 1,418 10 % OPERATING PROFIT BEIA 3,883 3,503 11 %
(52) (71) Exceptional Items (428) (169)
(49) (6) Amortisation of goodwill and (70) (15)
intangibles
1,456 1,341 9 % OPERATING PROFIT 3,385 3,319 2 %
Operating margin-before exceptional
items and amortisation of goodwill
and intangibles
15.4% 16.5% Europe 13.7% 12.8%
15.6% 12.3% North America 11.6% 9.7%
12.5% 12.0% Africa and Middle East 11.1% 11.9%
12.6% 11.8% Asia and Pacific 11.7% 10.7%
9.3% 6.0% Latin America 9.5% 9.2%
14.2% 13.5% OPERATING MARGIN BEIA 12.3% 11.4%
13.3% 12.8% OPERATING MARGIN 10.7% 10.8%
OPERATIONAL ANALYSIS (unaudited)
Third Quarter euro Millions Nine Months
%Incr./ %Incr./
2000 1999 (Decr.) 2000 1999 (Decr.)
TURNOVER
5,426 5,284 3 % Foods 15,698 15,576 1 %
1,874 1,796 4 % Oil and dairy based foods and bakery 5,225 5,355 (2)%
1,962 2,012 (2)% Ice cream and beverages 5,635 5,511 2 %
1,590 1,476 8 % Culinary and frozen products * 4,838 4,710 3 %
2,422 2,277 6 % Home Care and Professional Cleaning 7,038 6,813 3 %
2,938 2,751 7 % Personal Care 8,281 7,820 6 %
190 179 5 % Other Operations * 570 540 5 %
10,976 10,491 5 % TURNOVER 31,587 30,749 3 %
OPERATING PROFIT-before exceptional
items and amortisation of goodwill and
intangibles
749 691 8 % Foods 1,906 1,619 18 %
266 193 38 % Oil and dairy based foods and bakery 691 534 29 %
295 331 (11)% Ice cream and beverages 698 623 12 %
188 167 12 % Culinary and frozen products * 517 462 12 %
260 208 25 % Home Care and Professional Cleaning 662 673 (2)%
541 501 8 % Personal Care 1,301 1,146 14 %
7 18 (53)% Other Operations * 14 65 (78)%
1,557 1,418 10 % OPERATING PROFIT BEIA 3,883 3,503 11 %
(52) (71) Exceptional items (428) (169)
(49) (6) Amortisation of goodwill (70) (15)
and intangibles
1,456 1,341 9 % OPERATING PROFIT 3,385 3,319 2 %
OPERATING MARGIN -before exceptional
items and amortisation of goodwill and
intangibles
13.8% 13.1% Foods 12.1% 10.4%
14.2% 10.7% Oil and dairy based foods and bakery 13.2% 10.0%
15.0% 16.4% Ice cream and beverages 12.4% 11.3%
11.9% 11.4% Culinary and frozen products * 10.7% 9.8%
10.8% 9.2% Home Care and Professional Cleaning 9.4% 9.9%
18.4% 18.2% Personal Care 15.7% 14.7%
4.0% 9.0% Other Operations * 2.5% 12.0%
14.2% 13.5% OPERATING MARGIN BEIA 12.3% 11.4%
13.3% 12.8% OPERATING MARGIN 10.7% 10.8%
* Includes a prior year restatement, euro130m of turnover and euro0m of
operating profit for the first nine months, 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 nine months of 2000 the effect on turnover and operating profit
of acquisitions made in the period was euro622 million and euro41 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:
Third Quarter Nine Months
2000 euro1 = £0.61 = US $0.91 euro1 = £0.61 = US$0.94
1999 euro1 = £0.65 = US $1.05 euro1 = £0.66 = US$1.07
The balance sheet figures have been translated at period-end rates of
exchange. For our reporting currencies these were euro1 = £0.60 = US $0.88 at
the end of the first nine months (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 1.4p 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.
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.
Sale of Elizabeth Arden
On 31st October 2000 Unilever announced the signing of a definitive agreement
to sell its Elizabeth Arden business, brands and certain assets to FFI
Fragrances based in Miami Lakes, Florida, USA, for a consideration of
approximately $225 million (euro268 million approx.). The transaction,
subject to customary conditions including regulatory approvals, is expected
to be completed around the year end.
The cash inflow, after tax, on disposal will be $160 million (euro190 million
approx.). As a result of the write-back of $830 million (euro988 million
approx.) of goodwill which was charged direct to shareholders funds on the
acquisition of the business in 1989, the loss on disposal, after tax, will be
$790 million (euro940 million approx.). The impact on the balance sheet will
be to increase overall capital and reserves by some $40 million (euro48
million approx.).
This transaction will be included in Unilever's fourth quarter results and
falls within the restructuring charges of euro5 billion announced in February
as part of Unilever's Path to Growth strategy.
Interim dividends
The Boards today declared interim dividends in respect of 2000 on the
ordinary shares at the following rates which are equivalent in value at the
rate of exchange applied under the terms of the Equalisation Agreement
between the two companies:
N.V.
Per ordinary share euro0.48 (1999: euro0.40 (Fl. 0.88))
PLC
Per ordinary share 4.40p (1999: 3.93p)
The N.V. interim dividend will be payable as from December 18, 2000, to
shareholders registered at close of business on November 3, 2000.
The PLC interim dividend will be paid on December 18, 2000, to shareholders
registered at close of business on November 17, 2000.
Dividend on New York shares of N.V.
The N.V. interim dividend, when converted at the Euro/Dollar European Central
Bank rate of exchange on November 2, 2000, represents US $0.415008 per New
York Share of Fl. 1.12 (1999: US $0.415624) before deduction of Netherlands
withholding tax. US dollar checks for the interim dividend, after deduction
of Netherlands withholding tax at the appropriate rate, will be mailed on
December 17, 2000, to holders of record of New York shares at the close of
business on November 10, 2000.
Dividend on American shares of PLC
Each American share of PLC represents four 1.4p ordinary shares of PLC. The
PLC interim dividend will therefore be 17.60p per American share. If
converted at the noon sterling/dollar rate of exchange in London on November
2, 2000, the interim dividend for holders resident in the US would therefore
be US $0.2558 per American Share. (1999: US $0.2515).
US dollar checks for the interim dividend converted at the sterling/dollar
rate of exchange current in London on December 18, 2000 will be mailed on
December 22, 2000 to holders of record of American shares at the close of
business on November 17, 2000.
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.
Earnings per share in Euro for the first nine months
Constant rates Current rates
2000 1999 2000 1999
Thousands of units
Average number of combined share 989,573 1,063,020 989,573 1,063,020
units of Fl. 1.12
Average number of combined share 6,597,155 7,086,800 6,597,155 7,086,800
units of 1.4p
COMBINED EPS
Net profit 1,979 2,145 2,089 2,135
less: Preference dividends 31 14 32 14
Net profit attributable to ordinary 1,948 2,131 2,057 2,121
capital
Combined EPS per Fl. 1.12 (Euros) 1.97 2.00 2.08 2.00
Combined EPS per 1.4p (Eurocents) 29.52 30.06 31.18 29.93
COMBINED EPS - Before exceptional items
Net profit 1,979 2,145 2,089 2,135
Add back exceptional items net of tax 330 114 352 113
Net profit before exceptional items 2,309 2,259 2,441 2,248
less: Preference dividends 31 14 32 14
Net profit attributable before
exceptional items l2,278 2,245 2,409 2,234
Combined EPS before exceptional items 2.30 2.11 2.44 2.10
per Fl. 1.12 (Euros)
Combined EPS before exceptional items 34.52 31.68 36.53 31.51
per 1.4p (Eurocents)
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined share 1,014,722 1,090,414 1,014,722 1,090,414
units of Fl. 1.12
Adjusted average combined share 6,764,814 7,269,425 6,764,814 7,269,425
units of 1.4p
Net profit attributable to 1,948 2,131 2,057 2,121
ordinary capital
Combined diluted EPS per Fl.1.12 (Euros) 1.92 1.95 2.03 1.95
Combined diluted EPS 28.79 29.30 30.41 29.18
per 1.4p (Eurocents)
Dates
The provisional results for the fourth quarter and for the year 2000 and the
proposed final dividends for 2000 will be published on Thursday, 8th
February, 2001.
ENQUIRIES: UNILEVER PRESS OFFICE 020 7822 6805
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.
Third Quarter £ Millions - constant Nine Months
2000 1999 % Incr./ 2000 1999 % Incr.
(Decr.) /(Decr.)
7,230 6,911 5 % TURNOVER 20,808 20,256 3 %
959 883 9 % OPERATING PROFIT 2,230 2,187 2 %
1,026 934 10 % Operating Profit BEIA* 2,558 2,308 11 %
(34) (47) Exceptional items (282) (111)
(33) (4) Amortisation of goodwill (46) (10)
and intangibles
6 9 Income from fixed investments 21 26
(40) (28) Interest (85) 10
925 864 7 % PROFIT BEFORE TAXATION 2,166 2,223 (3)%
(357) (271) Taxation (770) (712)
568 593 (4)% PROFIT AFTER TAXATION 1,396 1,511 (8)%
(37) (37) Minority Interests (92) (98)
NET PROFIT AT CONSTANT 1999
531 556 (5)% EXCHANGE RATES 1,304 1,413 (8)%
590 588 0 % Net Profit before exceptional 1,521 1,488 2 %
items (Constant rates)
NET PROFIT AT EXCHANGE RATES CURRENT IN
522 554 (6)% EACH PERIOD 1,278 1,420 (10)%
585 585 0 % Net Profit before exceptional 1,493 1,495 0 %
items (Current rates)
COMBINED EARNINGS PER SHARE **(Current rates)
7.81p 8.09p (3)% -per 1.4p ordinary share 19.07p 19.90p (4)%
7.61p 7.89p (3)% -per 1.4p ordinary share - 18.60p 19.40p (4)%
diluted
* Operating profit before exceptional items and amortisation of goodwill and
intangibles. See note on page 10 on 'Goodwill and intangibles'.
** See note on page 10 on 'Share consolidation'.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
£ Millions Nine Months
2000 1999
Net profit 1,278 1,420
Currency retranslation 91 (255)
Total recognised gains 1,369 1,165
SUMMARY BALANCE SHEET (unaudited)
£ Millions As at 30th As at 31st
September December
2000 1999
Goodwill and intangibles 2,667 400
Fixed assets 5,565 5,572
Stocks 3,133 3,185
Debtors 5,913 4,777
Cash and current investments 12,570 3,402
Trade & other creditors (6,606) (6,326)
23,242 11,010
Borrowings 13,663 2,977
Provisions fand charges or liabilities 3,318 2,848
Minority interests 399 360
Capital and reserves 5,862 4,825
23,242 11,010
CASH FLOW STATEMENT (unaudited)
£ Millions Nine Months
2000 1999
Cash flow from operating activities 2,734 2,547
Dividends from joint ventures 11 12
Returns on investments and servicing of finance (145) (90)
Taxation (683) (573)
Capital expenditure and financial investment (520) (680)
Acquisitions and disposals (2,034) (191)
Dividends paid on ordinary share capital (536) (4,532)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING (1,173) (3,507)
Management of liquid resources (8,119) 3,090
Financing 10,647 576
INCREASE / (DECREASE) IN CASH IN THE PERIOD 1,355 159
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) (unaudited)
NET FUNDS AT 1 JANUARY 425 4,079
INCREASE / (DECREASE) IN CASH IN THE PERIOD 1,355 159
Cash flow from (increase) / decrease in borrowings (10,659) (571)
Cash flow from increase / (decrease) in liquid resources 8,119 (3,090)
Change in net funds / (debt) resulting from cash flows (1,185) (3,502)
Borrowings within group companies acquired (56) (1)
Borrowings within group companies sold - -
Liquid resources within group companies acquired 5 1
Liquid resources within group companies sold - -
Non cash movements (89) (2)
Currency retranslation (193) (212)
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD (1,518) (3,716)
NET FUNDS / (DEBT) AT PERIOD END (1,093) 363
GEOGRAPHICAL ANALYSIS (unaudited)
Third Quarter £ Millions Nine Months
%Incr./ %Incr./
2000 1999 (Decr.) 2000 1999 (Decr.)
Turnover
3,196 3,238 (1)% Europe 9,315 9,458 (2)%
1,695 1,495 13 % North America 4,675 4,348 8 %
399 382 5 % Africa and Middle East 1,134 1,115 2 %
1,186 1,100 8 % Asia and Pacific 3,510 3,258 8 %
754 696 8 % Latin America 2,174 2,077 5 %
7,230 6,911 5 % TURNOVER 20,808 20,256 3 %
Operating profit - before
exceptional items and amortisation
of goodwill and intangibles
493 533 (8)% Europe 1,274 1,211 5 %
264 184 44 % North America 543 423 28 %
49 45 9 % Africa and Middle East 125 133 (6)%
150 130 15 % Asia and Pacific 410 350 17 %
70 42 69 % Latin America 206 191 8 %
1,026 934 10 % OPERATING PROFIT BEIA 2,558 2,308 11 %
(34) (47) Exceptional Items (282) (111)
(33) (4) Amortisation of goodwill (46) (10)
and intangibles
959 883 9 % OPERATING PROFIT 2,230 2,187 2 %
Operating margin - before
exceptional items and amortisation
of goodwill and intangibles
15.4% 16.5% Europe 13.7% 12.8%
15.6% 12.3% North America 11.6% 9.7%
12.5% 12.0% Africa and Middle East 11.1% 11.9%
12.6% 11.8% Asia and Pacific 11.7% 10.7%
9.3% 6.0% Latin America 9.5% 9.2%
14.2% 13.5% OPERATING MARGIN BEIA 12.3% 11.4%
13.3% 12.8% OPERATING MARGIN 10.7% 10.8%
OPERATIONAL ANALYSIS (unaudited)
Third Quarter £ Millions Nine Months
% Incr./ % Incr./
2000 1999 (Decr.) 2000 1999 (Decr.)
TURNOVER
3,575 3,480 3 % Foods 10,342 10,261 1 %
1,235 1,183 4 % Oil and dairy based foods and bakery 3,443 3,528 (2)%
1,292 1,326 (2)% Ice cream and beverages 3,712 3,630 2 %
1,048 971 8 % Culinary and frozen products * 3,187 3,103 3 %
1,595 1,500 6 % Home Care and Professional Cleaning 4,636 4,488 3 %
1,935 1,813 7 % Personal Care 5,455 5,151 6 %
125 118 5 % Other Operations * 375 356 5 %
7,230 6,911 5 % TURNOVER 20,808 20,256 3 %
OPERATING PROFIT -before exceptional
items and amortisation of goodwill and intangibles
494 455 8 % Foods 1,256 1,067 18 %
175 128 38 % Oil and dairy based foods and bakery 455 352 29 %
195 217 (11)% Ice cream and beverages 460 410 12 %
124 110 12 % Culinary and frozen products * 341 305 12 %
171 138 25 % Home Care and Professional Cleaning 436 444 (2)%
356 330 8 % Personal Care 857 755 14 %
5 11 (53)% Other Operations * 9 42 (78)%
1,026 934 10 % OPERATING PROFIT BEIA 2,558 2,308 11%
(34) (47) Exceptional items (282) (111)
(33) (4) Amortisation of goodwill (46) (10)
and intangibles
959 883 9 % OPERATING PROFIT 2,230 2,187 2%
OPERATING MARGIN - before exceptional
items and amortisation of goodwill and
intangibles
13.8% 13.1% Foods 12.1% 10.4%
14.2% 10.7% Oil and dairy based foods 13.2% 10.0%
and bakery
15.0% 16.4% Ice cream and beverages 12.4% 11.3%
11.9% 11.4% Culinary and frozen products * 10.7% 9.8%
10.8% 9.2% Home Care and Professional Cleaning 9.4% 9.9%
18.4% 18.2% Personal Care 15.7% 14.7%
4.0% 9.0% Other Operations * 2.5% 12.0%
14.2% 13.5% OPERATING MARGIN BEIA 12.3% 11.4%
13.3% 12.8% OPERATING MARGIN 10.7% 10.8%
* Includes a prior year restatement, £86m of turnover and £0m of operating
profit for the first nine months, 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 for the first nine months
Shares of 1.4p Constant rates Current rates
2000 1999 2000 1999
Thousands of units
Average number of combined share 6,597,155 7,086,800 6,597,155 7,086,800
units of 1.4p
COMBINED EPS
Net profit 1,304 1,413 1,278 1,420
less: Preference dividends 21 10 20 10
Net profit attributable to
ordinary capital 1,283 1,403 1,258 1,410
Combined EPS per 1.4p 19.45p 19.80p 19.07p 19.90p
COMBINED EPS - Before exceptional items
Net profit 1,304 1,413 1,278 1,420
Add back exceptional items net of tax 217 75 215 75
Net profit before exceptional items 1,521 1,488 1,493 1,495
less: Preference dividends 21 10 20 10
Net profit attributable before 1,500 1,478 1,473 1,485
exceptional items
Combined EPS before exceptional items 22.74p 20.86p 22.34p 20.96p
per 1.4p
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined
share units of 1.4p 6,764,814 7,269,425 6,764,814 7,269,425
Net profit attributable to 1,283 1,403 1,258 1,410
ordinary capital
Combined diluted EPS per 1.4p 18.97p 19.30p 18.60p
19.40p
---------------------------------------------------------
---------------------------------------------------------
UNILEVER PLC
NOTICE is hereby given that 17 November 2000 is the RECORD DATE for the
interim ORDINARY DIVIDEND payable on 18 December 2000.
S G Williams
Secretary
Port Sunlight
Wirral
Merseyside CH62 4UJ
In accordance with the current procedure of The London Stock Exchange, the
1.4p Ordinary Shares in Unilever PLC will be quoted ex-dividend on 13
November 2000.
American Shares each representing
Four 1.4p Ordinary Shares in Unilever PLC
The arrangements between Morgan Guaranty Trust Company of New York ('Morgan')
and Unilever PLC for the issue by Morgan in New York of Depositary Receipts
for American Shares against the deposit with Morgan in London of 1.4p
Ordinary Shares in Unilever PLC provide that acceptance of ex-dividend shares
tendered to Morgan in London for deposit on or before the record date fixed
in New York for payment of a dividend on the American Shares, shall be
deferred until after such record date.
The record date fixed for the interim dividend for 2000 on the American
Shares is November 17, 2000.
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