Unilever PLC 6-K, filed Jul 25, 2023
Unilever PLC (UL)
6-K
2023-07-25
For: 2023-07-25
View Original
Added on
April 09, 2026
About this 6-K
Unilever PLC filed this 6-K on July 25, 2023.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
Dated July
25, 2023
Commission
File Number: 001-04546
UNILEVER PLC
(Translation
of registrant's name into English)
UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(1):_____
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(7):_____
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No .X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- _______
Exhibit
99 attached hereto is incorporated herein by
reference.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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UNILEVER
PLC
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/S/ M VARSELLONA
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BY M VARSELLONA
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CHIEF LEGAL OFFICER AND GROUP SECRETARY
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Date:
25 July, 2023
EXHIBIT INDEX
------------------------
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EXHIBIT
NUMBER
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EXHIBIT
DESCRIPTION
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99
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Notice
to London Stock Exchange dated 25 July 2023
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Half-year
Report
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Exhibit
99
2023
First Half Results
Solid
first half performance, continued growth across all Business
Groups
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(unaudited)
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2023
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vs 2022
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2023
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vs 2022
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First
Half
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||||
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Underlying
sales growth (USG)
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9.1%
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Turnover
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€30.4bn
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2.7%
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Beauty
& Wellbeing
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9.1%
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Beauty
& Wellbeing
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€6.2bn
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8.6%
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Personal
Care
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10.8%
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Personal
Care
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€6.9bn
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7.3%
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Home
Care
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8.4%
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Home
Care
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€6.2bn
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3.0%
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Nutrition
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10.4%
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Nutrition
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€6.6bn
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(7.1)%
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Ice
Cream
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5.7%
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Ice
Cream
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€4.5bn
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3.9%
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Underlying
operating profit
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€5.2bn
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3.3%
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Operating
profit
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€5.5bn
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22.6%
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Underlying
operating margin
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17.1%
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10bps
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Operating
margin
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18.1%
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290bps
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Underlying
earnings per share
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€1.39
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3.9%
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Diluted
earnings per share
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€1.40
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23.6%
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Free
cash flow
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€2.5bn
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€0.2bn
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Net
profit
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€3.9bn
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20.7%
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Second
Quarter
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|||||
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USG
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7.9%
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Turnover
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€15.7bn
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(0.4)%
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Quarterly
dividend payable in September 2023
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€0.4268 per
share (a)
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|||||
(a)
See note 10 for
more information on dividends
First
half highlights
●
Underlying sales growth of 9.1%, driven
by all Business Groups, with 9.4% price growth and (0.2)%
volume
●
Turnover increased 2.7% to €30.4
billion, with (3.2)% from currency and (2.7)% from disposals
net of acquisitions
●
Underlying operating profit improved 3.3% to
€5.2 billion, with a 10bps margin improvement to
17.1%
●
Underlying earnings per share improved 3.9%,
diluted EPS up 23.6%, boosted by profit on disposals and
lower restructuring spend
●
Completed third €750 million
tranche of our ongoing share buyback programme of up to
€3 billion
●
Brand and marketing investment increased
€0.4 billion in constant exchange rates
●
Our billion+ Euro brands, accounting for
55% of Group turnover, delivered underlying sales growth of 10.8%,
led by strong performances from Rexona, Hellmann’s, OMO, Sunsilk
and Lux
●
Continued portfolio reshaping with the
announced acquisition of the frozen yoghurt brand Yasso and the sale of the Suave brand in North
America
Chief
Executive Officer statement
“Unilever’s
performance in the first half highlights the qualities that
attracted me to the business: an unmatched global footprint, a
portfolio of great brands and a team of talented
people.
My
early immersion in the business has confirmed my belief in
Unilever’s strong fundamentals. The task ahead is to leverage
these core strengths – supported by our simplified operating
model – to drive improved performance and competitiveness.
This is our absolute priority and it will mean bringing greater
focus and sharper execution, with science-backed innovations and
investment behind our brands.
This
opportunity to step up our performance and unlock our full
potential makes it an exciting time to lead Unilever. I look
forward to sharing further details when we report our Q3 results in
October.”
Hein
Schumacher
Outlook
In a
volatile and high-cost environment, we will deliver another year of
strong underlying sales growth in 2023. We expect underlying sales
growth for the full year to be above 5%, ahead of our multi-year
range, with underlying price growth continuing to moderate through
the year.
Our
expectation for net material inflation (NMI) for 2023 is around
€2 billion of which €0.4 billion is anticipated in the
second half. We continue to expect a modest improvement in
underlying operating margin for the full year, reflecting higher
gross margin and increased investment behind our
brands.
First Half Review: Unilever Group
|
(unaudited)
|
Turnover
|
USG
|
UVG
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UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
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First Half
|
€30.4bn
|
9.1%
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(0.2)%
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9.4%
|
(2.7)%
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(3.2)%
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2.7%
|
17.1%
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10bps
|
|
Second Quarter
|
€15.7bn
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7.9%
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(0.3)%
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8.2%
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(2.6)%
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(5.2)%
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(0.4)%
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Performance
Underlying sales
growth in the first half was 9.1%, with 9.4% from price and (0.2)%
from volume. As underlying price growth has sequentially moderated
from 13.3% in the fourth quarter of 2022, volumes were virtually
flat with a step- up in performance in Beauty & Wellbeing and
Personal Care offsetting volume declines elsewhere.
The
percentage of our business winning market share* on a rolling 12
month-basis has reduced to 41%, reflecting the impact of a 17% SKU
reduction, pricing dynamics, and consumer shifts in certain
markets. These included Tea and Laundry value segments in India and
Brazil respectively, and super-premium segments in Personal Care
North America. We continue to focus on the longer-term health and
competitiveness of the business while developing the portfolio into
high-growth spaces and channels.
Beauty
& Wellbeing grew underlying sales by 9.1%. Volume growth of
3.8% was led by continued double-digit growth in Prestige Beauty
and Health & Wellbeing, as well as strong growth in Hair Care.
Personal Care underlying sales were up 10.8%, driven by price and
3.2% volume growth with strong sales of Deodorants. Home Care grew
8.4% with volumes almost flat in emerging markets and down in
Europe. Nutrition grew 10.4% with strong growth of Dressings, while
underlying volumes of (1.9)% reflect a challenging European market.
Ice Cream underlying sales growth was 5.7%, with volumes down 5.2%
due to the in-home segment.
Emerging markets
grew underlying sales by 10.6% with price of 10.0% and a return to
positive volume growth at 0.6%. Latin America delivered 16.3%
underlying sales growth with price moderating and volume up 1.6%.
South Asia grew double-digit through price and some volume, driven
by India. China grew 7.9%, with improved volumes following the
lifting of pandemic-related restrictions. Growth in South East Asia
was muted due to a sales decline in Indonesia, while Turkey
delivered strong volume growth in a continued hyper-inflationary
economy. Developed markets grew underlying sales by 6.9%, with 8.4%
from price and (1.4)% from volume. Volumes held up well in North
America, while underlying price growth remained elevated in Europe
given its higher exposure to categories with significant cost
inflation.
Turnover increased
2.7% to €30.4 billion, which included a currency impact of
(3.2)% and (2.7)% from disposals net of acquisitions. Underlying
operating profit was €5.2 billion, up 3.3% versus the prior
year. Underlying operating margin improved by 10bps to 17.1%. Gross
margin increased by 30bps despite €1.6 billion of net
material inflation and increased production and logistics costs.
The cost increases were fully mitigated by pricing, savings and
improved mix. After several periods of high cost inflation, gross
margin remains 270bps below its level at H1 2019. Brand and
marketing investment stepped up by €0.4 billion in constant
exchange rates, a 30bps increase as a percentage of turnover in
current exchange rates. Overheads improved by 10bps due to growth
leverage while we continued to invest in capabilities and our
Prestige Beauty and Health & Wellbeing businesses.
*Competitiveness %
Business Winning measures the aggregate turnover of the portfolio
components (country/category cells) gaining value market share as a
% of the total turnover measured by market data. As such, it
assesses what percentage of our revenue is being generated in areas
where we are gaining market share
Operating
model and capital allocation
Since 1
July 2022, our simpler, more category-focused operating model for
Unilever has been in place, organised around five Business Groups
and a technology-driven backbone, Unilever Business Operations. We
continue to expect around €600 million of cost savings, with
the majority delivered by the end of 2023.
After
completing two €750 million tranches in 2022 of our ongoing
share buyback programme of up to €3 billion, we completed a
third €750 million tranche on 2 June 2023. The quarterly
interim dividend for the second quarter is maintained at
€0.4268.
We
completed the sale of the Suave brand in North America on 1 May
2023. On 14 June, we announced the acquisition of Yasso Holdings,
Inc., a premium frozen Greek yogurt brand in the United
States.
Conference Call
Following the
release of this trading statement on 25 July 2023 at 7:00 AM (UK
time), there will be a live webcast at 8:00 AM available on the
website www.unilever.com/investor-relations/results-and-presentations/latest-results.
A
replay of the webcast and the slides of the presentation will be
made available after the live meeting.
First Half Review: Business Groups
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First Half 2023
|
Second
Quarter 2023
|
|||||||
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Change in UOM
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Unilever
|
€30.4bn
|
9.1%
|
(0.2)%
|
9.4%
|
10bps
|
€15.7bn
|
7.9%
|
(0.3)%
|
8.2%
|
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Beauty
& Wellbeing
|
€6.2bn
|
9.1%
|
3.8%
|
5.1%
|
0bps
|
€3.1bn
|
8.8%
|
4.9%
|
3.7%
|
|
Personal
Care
|
€6.9bn
|
10.8%
|
3.2%
|
7.3%
|
(10)bps
|
€3.5bn
|
9.0%
|
3.4%
|
5.4%
|
|
Home
Care
|
€6.2bn
|
8.4%
|
(2.5)%
|
11.2%
|
30bps
|
€3.0bn
|
6.7%
|
(2.1)%
|
9.0%
|
|
Nutrition
|
€6.6bn
|
10.4%
|
(1.9)%
|
12.6%
|
80bps
|
€3.3bn
|
8.9%
|
(2.6)%
|
11.8%
|
|
Ice
Cream
|
€4.5bn
|
5.7%
|
(5.2)%
|
11.5%
|
(100)bps
|
€2.8bn
|
5.6%
|
(5.8)%
|
12.1%
|
Beauty
& Wellbeing
20% of
Group turnover
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
|
First Half
|
€6.2bn
|
9.1%
|
3.8%
|
5.1%
|
2.6%
|
(3.0)%
|
8.6%
|
18.9%
|
0bps
|
|
Second
Quarter
|
€3.1bn
|
8.8%
|
4.9%
|
3.7%
|
1.9%
|
(5.5)%
|
4.8%
|
|
|
Beauty
& Wellbeing underlying sales grew 9.1%, with 5.1% from price
and 3.8% from volume.
Hair
Care grew high single-digit with positive volume growth driven by
the Americas. Sunsilk and
TRESemmé delivered
double-digit growth helped by successful relaunches.
Core
Skin Care grew mid-single digit with Vaseline performing strongly, as we
extended the successful Gluta-Hya range into the pro age segment,
offering additional benefits and bringing new consumers to the
brand. In North Asia, sales of AHC declined double-digit as we reset
the cross-border channel.
Prestige Beauty and
Health & Wellbeing delivered another period of volume-led,
double-digit growth. In Prestige, Paula’s Choice, Dermalogica and Hourglass delivered strong growth
supported by new product launches backed by cutting-edge science
and technology such as Dermalogica’s phyto nature oxygen
cream. In Health & Wellbeing, Liquid IV continued to perform well, and
we launched three sugar-free variants of its hydration technology
without compromise on flavour or function.
Underlying
operating margin was flat with an improvement in gross margin
offset by an increase in overheads.
Personal
Care
23% of
Group turnover
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in UOM
|
|
First Half
|
€6.9bn
|
10.8%
|
3.2%
|
7.3%
|
(0.3)%
|
(2.9)%
|
7.3%
|
20.0%
|
(10)bps
|
|
Second
Quarter
|
€3.5bn
|
9.0%
|
3.4%
|
5.4%
|
(0.6)%
|
(5.0)%
|
2.9%
|
|
|
Personal Care
underlying sales grew 10.8% with price growth of 7.3% and volume
growth of 3.2%.
Deodorants
delivered high double-digit growth driven by Europe and the
Americas, where volumes were boosted by a recovery in service
levels and associated pipeline fill. Axe grew double-digit as we rolled out
the Fine Fragrance range, combining odour protection with fine
fragrances. We launched new variants under Rexona which build on our superior
72-hour technology, delivering high double-digit growth for the
brand. The Dove Personal
Care portfolio also grew double-digit.
Skin
Cleansing grew high single-digit with strong growth in Latin
America and South Asia.
Oral
Care grew high single-digit as we relaunched Pepsodent in South East
Asia.
Underlying
operating margin decreased 10bps with an improvement in gross
margin and a reduction in overheads more than offset by a step-up
in brand and marketing investment.
Home
Care
20% of
Group turnover
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in UOM
|
|
First
Half
|
€6.2bn
|
8.4%
|
(2.5)%
|
11.2%
|
–%
|
(5.0)%
|
3.0%
|
12.3%
|
30bps
|
|
Second
Quarter
|
€3.0bn
|
6.7%
|
(2.1)%
|
9.0%
|
–%
|
(7.3)%
|
(1.1)%
|
|
|
Home
Care underlying sales grew 8.4%, with 11.2% from price and (2.5)%
from volume.
Fabric
Cleaning grew double-digit. In Europe, we rolled out OMO capsules with plastic free packaging
to more countries, delivering top cleaning performance with less
plastic and less chemicals and contributing to improved volumes and
double-digit growth for the brand.
Fabric
Enhancers grew mid single-digit driven by price. In China,
Comfort Beads were
relaunched with improved fragrance that lasts longer.
In
Latin America, we introduced the first product range specifically
designed for the Launderette and Hospitality segment, delivering
the perfect white wash, under both the OMO and Comfort brands.
Home
& Hygiene grew mid-single digit while the Air Wellness business
declined.
Underlying
operating margin improved 30bps led by an improvement in gross
margin.
Nutrition
22% of
Group turnover
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
|
First Half
|
€6.6bn
|
10.4%
|
(1.9)%
|
12.6%
|
(13.1)%
|
(3.2)%
|
(7.1)%
|
18.4%
|
80bps
|
|
Second Quarter
|
€3.3bn
|
8.9%
|
(2.6)%
|
11.8%
|
(12.6)%
|
(4.7)%
|
(9.3)%
|
|
|
Nutrition
underlying sales grew 10.4%, with 12.6% from price and (1.9)% from
volume.
Scratch
Cooking Aids grew high single-digit. Growth was price-led with
negative volume, particularly in Europe and North
America.
Dressings continued
to grow double-digit with Hellmann’s driving sales during
the Easter and BBQ season, combining the “make taste, not
waste” campaign with innovation such as spicy mayonnaise in
the United States.
Unilever Food Solutions accelerated its
double-digit growth through the first half with China returning to
double- digit growth in the second quarter.
Underlying
operating margin increased by 80bps, mainly driven by a reduction
in overheads, partially offset by lower gross margin as a result of
continued input cost inflation.
Ice
Cream
15% of
Group turnover
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in UOM
|
|
First
Half
|
€4.5bn
|
5.7%
|
(5.2)%
|
11.5%
|
–%
|
(1.7)%
|
3.9%
|
15.0%
|
(100)bps
|
|
Second
Quarter
|
€2.8bn
|
5.6%
|
(5.8)%
|
12.1%
|
–%
|
(3.3)%
|
2.1%
|
|
|
Ice
Cream underlying sales grew 5.8%, with 11.5% from price and (5.2)%
from volume.
In-home
Ice Cream grew low-single digit as volumes continued to be impacted
by lower consumption due to the discretionary nature of the
category in an inflationary environment.
Out-of-home Ice
Cream grew double-digit with positive price and positive volume. In
Europe, poor weather in April and May was largely offset by good
weather in June.
Magnum grew high single-digit with the
Starchaser and Sunlover limited edition innovation performing well.
In North America, we launched Talenti mini gelato and sorbetto bars,
the perfect indulgent snack to be enjoyed on the go. The
Heart brand grew mid-single
digit, supported by a new plant-based variant under the
Twister range.
Underlying
operating margin declined 100bps due to an input cost driven
reduction in gross margin.
First Half Review: Geographical Areas
|
|
First Half 2023
|
Second Quarter 2023
|
||||||
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Unilever
|
€30.4bn
|
9.1%
|
(0.2)%
|
9.4%
|
€15.7bn
|
7.9%
|
(0.3)%
|
8.2%
|
|
Asia
Pacific Africa
|
€13.4bn
|
9.1%
|
1.1%
|
8.0%
|
€6.7bn
|
8.3%
|
1.8%
|
6.5%
|
|
The
Americas
|
€10.9bn
|
10.6%
|
1.8%
|
8.6%
|
€5.7bn
|
9.5%
|
2.9%
|
6.4%
|
|
Europe
|
€6.1bn
|
6.4%
|
(6.8)%
|
14.2%
|
€3.3bn
|
4.3%
|
(9.7)%
|
15.5%
|
|
|
First Half 2023
|
Second Quarter 2023
|
||||||
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Emerging
markets
|
€17.7bn
|
10.6%
|
0.6%
|
10.0%
|
€9.0bn
|
9.7%
|
1.3%
|
8.3%
|
|
Developed
markets
|
€12.7bn
|
6.9%
|
(1.4)%
|
8.4%
|
€6.7bn
|
5.4%
|
(2.4)%
|
8.0%
|
|
North
America
|
€6.7bn
|
7.4%
|
2.0%
|
5.3%
|
€3.5bn
|
6.7%
|
3.0%
|
3.6%
|
|
Latin
America
|
€4.2bn
|
16.3%
|
1.6%
|
14.5%
|
€2.2bn
|
14.3%
|
2.8%
|
11.1%
|
Asia
Pacific Africa
44% of
Group turnover
Underlying sales
growth was 9.1% with price growth of 8% and volume growth of
1.1%.
India
delivered high single-digit growth through price and volume. China
grew high single-digit as growth recovered in the second quarter
with volume-led, double-digit growth against a softer prior year
comparator which was impacted by lockdowns. In South East Asia,
Indonesia declined mid single-digit as volumes softened and we
adjusted pricing to build back competitiveness. The Philippines,
Thailand and Vietnam all grew with contributions from both price
and volume. Turkey grew double-digit with positive volume and high
double-digit pricing in a difficult and hyperinflationary
environment. Africa grew double-digit led by strong price growth
that was partially offset by volume decline.
The
Americas
36% of
Group turnover
Underlying sales
growth in North America was 7.4% with 5.3% from price and 2% from
volume. Performance was led by double-digit growth in Nutrition and
Beauty & Wellbeing, driven by Dressings, Prestige Beauty and
Health & Wellbeing. Volumes improved in Nutrition, Beauty and
Wellbeing and Personal Care but declined in Ice Cream.
In
Latin America, underlying sales grew 16.3% with 14.5% from price
and 1.6% from volume. Brazil grew double-digit with price growth
slowing through the first half. Despite high price growth and a
difficult environment, Mexico and Argentina delivered positive
volume growth.
Europe
20% of
Group turnover
Underlying sales
growth was 6.4% with price at 14.2% and volume at
(6.8)%.
Pricing
remained elevated due to the high exposure to Nutrition and Ice
Cream which see continued input cost inflation. Beauty &
Wellbeing and Personal Care grew double-digit with positive volume
growth while volumes declined in the other three Business Groups.
Home Care underlying sales were flat, while Nutrition and Ice Cream
grew high and low single-digit respectively.
Growth
was broad-based and price-led across countries, with the United
Kingdom and Spain growing double-digit, driven by Personal
Care.
Additional commentary on the financial statements - First
Half
Finance
costs and tax
Net
finance costs increased by €32 million to €259 million
in 2023. The increase was largely driven by higher cost of debt on
bonds and commercial paper. This was partially offset by higher
interest income and a higher interest credit from pensions. We
continue to expect net finance costs to be in the range of 2.5% to
3.0% on average net debt for 2023.
The
underlying effective tax rate for the first half decreased to 24.2%
from 24.4% in the prior year, largely due to changes in profit mix.
The effective rate was 26.9% and includes the adverse impact from
the Suave disposal. This compares with 26.8% in the prior year,
which included tax costs related to the separation of the tea
business.
Joint
ventures, associates and other income from non-current
investments
Net
profit from joint ventures and associates was €118 million,
an increase of €21 million compared to 2022, mainly driven by
the Pepsi-Lipton JVs. Other income from non-current investments was
negative at €(10) million, versus €27 million in the
prior year.
Earnings
per share
Underlying earnings
per share increased by 3.9% to €1.39, including a negative
impact of 5.3% from currency. Constant underlying earnings per
share increased by 9.2%. The increase was mainly driven by the
operational performance. The reduction in the average number of
shares as a result of our share buybacks contributed 1.2%. Diluted
earnings per share increased by 23.6% to €1.40, helped by
profit on disposals and lower restructuring spend.
Free
cash flow
Free
cash flow in the first half of 2023 was €2.5 billion, up from
the €2.2 billion delivered in the first half of 2022. The
increase was driven by higher operating profit, partially offset by
higher working capital.
Net
debt
Closing
net debt was €24.3 billion compared to €23.7 billion as
at 31 December 2022. The increase was driven by dividends paid and
€750 million of the executed share buy back programme during
the first half. The increase was partially offset by free cash flow
delivery and net disposal proceeds.
Pensions
Pension
assets net of liabilities were in surplus of €2.8 billion at
30 June 2023 versus a surplus of €2.6 billion at the end of
2022. The increase was primarily driven by changes in interest
rates reducing liabilities more than assets.
Financial
implications and impairment risk in Russia
Our
Russia business employs approximately 3,000 people in Russia and in
the first six months of 2023 the business represented 1.2% of the
Group’s turnover and 1.5% of the Group’s net profit. As
at 30 June 2023, our Russia business had net assets of around
€800 million, including four factories. In March 2022, we
announced our decision to suspend all imports and exports of
Unilever products into and out of Russia and cease any capital
flows in and out of the country.
We will
continue to review and disclose the financial implications from the
conflict. While the potential impacts remain uncertain, there
remains a risk that our operations in Russia are unable to
continue, leading to loss of turnover, profit and a write-down of
assets.
Share
buyback programme
On 2
June 2023, we completed the third €750 million tranche of our
share buyback programme of up to €3 billion, initiated on 10
February 2022. The total consideration paid for the repurchase of
15,552,684 shares is recorded within other reserves. All shares
purchased are held by Unilever as treasury shares. A total of
112,746,434 ordinary shares held in treasury reflecting the shares
purchased as part of the company’s share buyback programmes
in 2021, 2022 and in the first half of 2023 will be cancelled in Q3
2023.
Finance
and liquidity
In the
first six months of 2023, the following notes matured and were
repaid:
●
February:
€600 million 0.375% fixed rate notes
●
March: $550 million
3.125% fixed rate notes
●
June: €500
million 1.00% fixed rate notes
The
following notes were issued:
●
February:
€500 million 3.25% fixed rate notes maturing in February 2031
and €500 million 3.50% fixed rate notes due February
2035
●
June: €550
million 3.30% fixed rate notes due June 2029 and €700 million
3.40% fixed rate notes due June 2033
On 30
June 2023, Unilever had undrawn revolving 364-day bilateral credit
facilities in aggregate of $5,200 million and €2,600 million
with a 364-day term out.
As
previously disclosed, Unilever is involved in a number of ongoing
investigations by national competition authorities, including those
of France and South Africa. These proceedings and investigations
are at different stages and concern different product markets.
Where appropriate, provisions are made and contingent liabilities
disclosed in relation to such matters.
Ongoing
compliance with competition laws is of key importance to Unilever.
It is Unilever’s policy to co-operate fully with competition
authorities whenever questions or issues arise. At the same time,
we are vigorously defending Unilever when we feel that allegations
are unwarranted. The Group continues to reinforce and enhance its
internal competition law compliance programme on an ongoing
basis.
Non-GAAP
measures
Certain
discussions and analyses set out in this announcement include
measures which are not defined by generally accepted accounting
principles (GAAP) such as IFRS. We believe this information, along
with comparable GAAP measurements, is useful to investors because
it provides a basis for measuring our operating performance,
ability to retire debt and invest in new business opportunities.
Our management uses these financial measures, along with the most
directly comparable GAAP financial measures, in evaluating our
operating performance and value creation.
Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with
GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unilever uses
‘constant rate’, and ‘underlying’ measures
primarily for internal performance analysis and targeting purposes.
We present certain items, percentages and movements, using constant
exchange rates, which exclude the impact of fluctuations in foreign
currency exchange rates. We calculate constant currency values by
translating both the current and the prior period local currency
amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in
hyperinflationary economies. These currencies are translated into
euros using the prior year closing exchange rate before the
application of IAS 29. The table below shows exchange rate
movements in our key markets.
|
|
First half average rate in 2023
|
First
half average rate in 2022
|
|
Brazilian
Real (€1 = BRL)
|
5.493
|
5.538
|
|
Chinese
Yuan (€1 = CNY)
|
7.475
|
7.083
|
|
Indian
Rupee (€1 = INR)
|
88.860
|
83.337
|
|
Indonesia
Rupiah (€1 = IDR)
|
16,277
|
15,798
|
|
Philippine
Peso (€1 = PHP)
|
59.674
|
56.969
|
|
UK
Pound Sterling (€1 = GBP)
|
0.877
|
0.842
|
|
US
Dollar (€1 = US $)
|
1.081
|
1.094
|
Underlying
sales growth (USG)
Underlying sales
growth (USG) refers to the increase in turnover for the period,
excluding any change in turnover resulting from acquisitions,
disposals, changes in currency and price growth in excess of 26% in
hyperinflationary economies. Inflation of 26% per year compounded
over three years is one of the key indicators within IAS 29 to
assess whether an economy is deemed to be hyperinflationary. We
believe this measure provides valuable additional information on
the underlying sales performance of the business and is a key
measure used internally. The impact of acquisitions and disposals
is excluded from USG for a period of 12 calendar months from the
applicable closing date. Turnover from acquired brands that are
launched in countries where they were not previously sold is
included in USG as such turnover is more attributable to our
existing sales and distribution network than the acquisition
itself. The reconciliation of changes in the GAAP measure turnover
to USG is provided in notes 3 and 4.
Underlying
price growth (UPG)
Underlying price
growth (UPG) is part of USG and means, for the applicable period,
the increase in turnover attributable to changes in prices during
the period. UPG therefore excludes the impact to USG due to (i) the
volume of products sold; and (ii) the composition of products sold
during the period. In determining changes in price, we exclude the
impact of price growth in excess of 26% per year in
hyperinflationary economies as explained in USG above. The measures
and the related turnover GAAP measure are set out in notes 3 and
4.
Underlying
volume growth (UVG)
Underlying volume
growth (UVG) is part of USG and means, for the applicable period,
the increase in turnover in such period calculated as the sum of
(i) the increase in turnover attributable to the volume of products
sold; and (ii) the increase in turnover attributable to the
composition of products sold during such period. UVG therefore
excludes any impact on USG due to changes in prices. The measures
and the related turnover GAAP measure are set out in notes 3 and
4.
Non-underlying
items
Several
non-GAAP measures are adjusted to exclude items defined as
non-underlying due to their nature and/or frequency of
occurrence.
●
Non-underlying
items within operating profit are: gains or losses on
business disposals, acquisition and disposal related costs,
restructuring costs, impairments and other items within operating
profit classified here due to their nature and
frequency.
●
Non-underlying
items not in operating profit but within net profit are: net
monetary gain/(loss) arising from hyperinflationary economies and
significant and unusual items in net finance cost, share of
profit/(loss) of joint ventures and associates and
taxation.
●
Non-underlying
items are: both non-underlying items within operating profit
and those non-underlying items not in operating profit but within
net profit.
Underlying
operating profit (UOP) and underlying operating margin
(UOM)
Underlying
operating profit and underlying operating margin mean operating
profit and operating margin before the impact of non-underlying
items within operating profit. Underlying operating profit
represents our measure of segment profit or loss as it is the
primary measure used for making decisions about allocating
resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit
is as follows:
|
€
million
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
|
Operating
profit
|
5,516
|
4,500
|
|
Non-underlying
items within operating profit (see note 2)
|
(308)
|
544
|
|
Underlying
operating profit
|
5,208
|
5,044
|
|
Turnover
|
30,428
|
29,623
|
|
Operating margin
(%)
|
18.1
|
15.2
|
|
Underlying
operating margin (%)
|
17.1
|
17.0
|
Underlying
effective tax rate
The
underlying effective tax rate is calculated by dividing taxation
excluding the tax impact of non-underlying items by profit before
tax excluding the impact of non-underlying items and share of net
(profit)/loss of joint ventures and associates. This measure
reflects the underlying tax rate in relation to profit before tax
excluding non-underlying items before tax and share of net
profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax
on each non-underlying item, based on the applicable country tax
rates and tax treatment. This is shown in the following
table:
|
€
million
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
|
Taxation
|
1,385
|
1,143
|
|
Tax
impact of:
|
|
|
|
Non-underlying
items within operating profit(a)
|
(111)
|
102
|
|
Non-underlying
items not in operating profit but within net profit(a)
|
(80)
|
(63)
|
|
Taxation
before tax impact of non-underlying items
|
1,194
|
1,182
|
|
Profit
before taxation
|
5,267
|
4,359
|
|
Share
of net (profit)/loss of joint ventures and associates
|
(118)
|
(97)
|
|
Profit
before tax excluding share of net profit/(loss) of joint ventures
and associates
|
5,149
|
4,262
|
|
Non-underlying
items within operating profit before tax(a)
|
(308)
|
544
|
|
Non-underlying
items not in operating profit but within net profit before
tax
|
103
|
38
|
|
Profit
before tax excluding non-underlying items before tax and share of
net profit/ (loss) of joint ventures and associates
|
4,944
|
4,844
|
|
Effective
tax rate (%)
|
26.9
|
26.8
|
|
Underlying
effective tax rate (%)
|
24.2
|
24.4
|
(a) See
note 2.
Underlying
earnings per share
Underlying earnings
per share (underlying EPS) is calculated as underlying profit
attributable to shareholders’ equity divided by the diluted
average number of ordinary shares. In calculating underlying profit
attributable to shareholders’ equity, net profit attributable
to shareholders’ equity is adjusted to eliminate the post-tax
impact of non-underlying items. This measure reflects the
underlying earnings for each share unit of the Group. Refer to note
6 for reconciliation of net profit attributable to
shareholders’ equity to underlying profit attributable to
shareholders' equity.
Constant
underlying EPS
Constant underlying
earnings per share (constant underlying EPS) is calculated as
underlying profit attributable to shareholders’ equity at
constant exchange rates and excluding the impact of both
translational hedges and price growth in excess of 26% per year in
hyperinflationary economies divided by the diluted average number
of ordinary shares. This measure reflects the underlying earnings
for each share unit of the Group in constant exchange
rates.
The
reconciliation of underlying profit attributable to
shareholders’ equity to constant underlying earnings
attributable to shareholders’ equity and the calculation of
constant underlying EPS is as follows:
|
€
million
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
|
Underlying profit
attributable to shareholders’ equity (see note
6)
|
3,534
|
3,440
|
|
Impact
of translation from current to constant exchange rates and
translational hedges
|
330
|
–
|
|
Impact
of price growth in excess of 26% per year in hyperinflationary
economies
|
(149)
|
–
|
|
Constant underlying
earnings attributable to shareholders’ equity
|
3,715
|
3,440
|
|
Diluted
average number of share units (millions of units)
|
2,536.8
|
2,566.2
|
|
Constant underlying
EPS (€)
|
1.46
|
1.34
|
Net
debt
Net
debt is a measure that provides valuable additional information on
the summary presentation of the Group’s net financial
liabilities and is a measure in common use elsewhere. Net debt is
defined as the excess of total financial liabilities, excluding
trade payables and other current liabilities, over cash, cash
equivalents and other current financial assets, excluding trade and
other current receivables, and non-current financial asset
derivatives that relate to financial liabilities.
The
reconciliation of total financial liabilities to net debt is as
follows:
|
€ million
|
As at 30 June 2023
|
As at 31 December 2022
|
As at 30 June 2022
|
|
(unaudited)
|
|||
|
Total financial liabilities
|
(30,708)
|
(29,488)
|
(33,961)
|
|
Current
financial liabilities
|
(6,715)
|
(5,775)
|
(9,032)
|
|
Non-current
financial liabilities
|
(23,993)
|
(23,713)
|
(24,929)
|
|
Cash and cash equivalents as per balance sheet
|
4,994
|
4,326
|
5,411
|
|
Cash
and cash equivalents as per cash flow statement
|
4,870
|
4,225
|
5,274
|
|
Add:
bank overdrafts deducted therein
|
124
|
101
|
157
|
|
Less:
cash and cash equivalents held for sale
|
–
|
–
|
(20)
|
|
Other current financial assets
|
1,376
|
1,435
|
1,435
|
|
Non-current financial asset derivatives that relate to financial
liabilities
|
31
|
51
|
60
|
|
Net debt
|
(24,307)
|
(23,676)
|
(27,055)
|
Free
cash flow (FCF)
Within
the Unilever Group, free cash flow (FCF) is defined as cash flow
from operating activities, less income taxes paid, net capital
expenditure and net interest payments. It does not represent
residual cash flows entirely available for discretionary purposes;
for example, the repayment of principal amounts borrowed is not
deducted from FCF. FCF reflects an additional way of viewing our
liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of
dividends, repayment of debt or to fund our strategic initiatives,
including acquisitions, if any.
The
reconciliation of cash flow from operating activities to FCF is as
follows:
|
€
million
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
|
Cash
flow from operating activities
|
4,377
|
4,344
|
|
Income
tax paid
|
(1,011)
|
(1,295)
|
|
Net
capital expenditure
|
(548)
|
(593)
|
|
Net
interest paid
|
(364)
|
(217)
|
|
Free
cash flow
|
2,454
|
2,239
|
|
Net
cash flow (used in)/from investing activities
|
(200)
|
(432)
|
|
Net
cash flow (used in)/from financing activities
|
(2,489)
|
(924)
|
USG,
UVG, UPG, UOP, UOM, underlying EPS, constant underlying EPS,
underlying effective tax rate, FCF and net debt are non-GAAP
measures (see pages 8 to 11)
Other Information
This
document represents Unilever’s half-yearly report for the
purposes of the Disclosure Guidance and Transparency Rules (DTR)
issued by the UK Financial Conduct Authority (DTR 4.2) and the
Dutch Act on Financial Supervision, section 5:25d (8)/(9)
(Half-yearly financial reports). In this context: (i) the condensed
consolidated financial statements can be found on pages 15 to 27;
(ii) pages 2 to 12 comprise the interim management report; and
(iii) the Directors’ responsibility statement can be found on
page 13. This report has been reviewed in accordance with ISRE 2410
by our external auditors. No material related party transactions
have taken place in the first six months of the year. Whilst
Unilever has previously produced a half-yearly report containing
condensed consolidated financial statements, those financial
statements have not previously been subject to a review by an
independent auditor. As a consequence, review procedures in
accordance with ISRE 2410 have not been performed in respect of the
comparative period for the six months ended 30 June
2022.
Principal Risk Factors
On
pages 68 to 75 of our 2022 Annual Report and Accounts we set out
our assessment of the principal risk issues that would face the
business under the headings: brand preference; portfolio
management; climate change; plastic packaging; customer; talent;
supply chain; safe and high quality products; systems and
information; business transformation; economic and political
instability; treasury and tax; ethical; and legal and regulatory.
In our view, the nature and potential impact of such risks remain
essentially unchanged as regards our performance over the second
half of 2023.
Cautionary Statement
This
announcement may contain forward-looking statements, including
‘forward-looking statements’ within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
Words such as ‘will’, ‘aim’,
‘expects’, ‘anticipates’,
‘intends’, ‘looks’, ‘believes’,
‘vision’, or the negative of these terms and other
similar expressions of future performance or results, and their
negatives, are intended to identify such forward-looking
statements. These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and
other factors affecting the Unilever Group (the
‘Group’). They are not historical facts, nor are they
guarantees of future performance or outcomes.
Because
these forward-looking statements involve risks and uncertainties,
there are important factors that could cause actual results to
differ materially from those expressed or implied by these
forward-looking statements. Among other risks and uncertainties,
the material or principal factors which could cause actual results
to differ materially are: Unilever’s global brands not
meeting consumer preferences; Unilever’s ability to innovate
and remain competitive; Unilever’s investment choices in its
portfolio management; the effect of climate change on
Unilever’s business; Unilever's ability to find sustainable
solutions to its plastic packaging; significant changes or
deterioration in customer relationships; the recruitment and
retention of talented employees; disruptions in our supply chain
and distribution; increases or volatility in the cost of raw
materials and commodities; the production of safe and high quality
products; secure and reliable IT infrastructure; execution of
acquisitions, divestitures and business transformation projects;
economic, social and political risks and natural disasters;
financial risks; failure to meet high and ethical standards; and
managing regulatory, tax and legal matters. A number of these risks
have increased as a result of the current war in Ukraine. These
forward-looking statements speak only as of the date of this
document. Except as required by any applicable law or regulation,
the Group expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the
Group’s expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. Further details of potential risks and uncertainties
affecting the Group are described in the Group’s filings with
the London Stock Exchange, Euronext Amsterdam and the US Securities
and Exchange Commission, including in the Annual Report on Form
20-F 2022 and the Unilever Annual Report and Accounts
2022.
Directors’ Responsibility Statement
The
Directors declare that, to the best of their
knowledge:
●
these condensed
consolidated financial statements, which have been prepared in
accordance with IAS 34 ‘Interim Financial Reporting’,
as issued by the International Accounting Standard Board and
endorsed and adopted by the UK and the EU gives a true and fair
view of the assets, liabilities, financial position and profit or
loss of Unilever; and
●
the interim
management report gives a fair review of the information required
pursuant to regulations 4.2.7 and 4.2.8 of the Disclosure Guidance
and Transparency Rules (DTR) issued by the UK Financial Conduct
Authority and section 5:25d (8)/(9) of the Dutch Act on Financial
Supervision (Wet op het financieel toezicht).
Unilever’s
Directors are listed in the Annual Report and Accounts for
2022.
Details
of all current Directors are available on our website at
www.unilever.com
By
order of the Board
|
Hein Schumacher
|
Graeme Pitkethly
|
|
Chief
Executive Officer
|
Chief
Financial Officer
|
|
24 July
2023
|
|
|
Media: Media Relations Team
|
Investors: Investor Relations
Team
|
|
UK +44
78 2527 3767 lucila.zambrano@unilever.com
or +44
77 7999 9683 jonathan.sibun@teneo.com
NL +31
62 375 8385 marlous-den.bieman@unilever.com
or +31
61 500 8293 fleur-van.bruggen@unilever.com
|
investor.relations@unilever.com
|
After
the conference call on 25 July 2023 at 8AM (UK time), the webcast
of the presentation will be available at: www.unilever.com/investor-relations/results-and-presentations/latest-results
Independent Review Report to Unilever PLC
Conclusion
We have
been engaged by Unilever Plc (“the Company”) to review
the condensed consolidated financial statements of Unilever Plc and
its subsidiaries (“the Group”) in the 2023 First Half
Results for the six months ended 30 June 2023 which comprises the
consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in
equity, the consolidated balance sheet, the consolidated cash flow
statement and the related explanatory notes.
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated financial statements in the
2023 First Half Results for the six months ended 30 June 2023 is
not prepared, in all material respects, in accordance with IAS 34
Interim Financial Reporting as adopted for use in the UK and the
Disclosure Guidance and Transparency Rules (“the DTR”)
of the UK’s Financial Conduct Authority (“the UK
FCA”).
Basis
for conclusion
We
conducted our review in accordance with International Standard on
Review Engagements (UK) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity
(“ISRE (UK) 2410”) issued for use in the UK. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. We
read the other information contained in the 2023 First Half Results
and consider whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed
consolidated financial statements.
A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
Conclusions
relating to going concern
Based
on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for conclusion
section of this report, nothing has come to our attention that
causes us to believe that the directors have inappropriately
adopted the going concern basis of accounting, or that the
directors have identified material uncertainties relating to going
concern that have not been appropriately disclosed.
This
conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410. However, future events or
conditions may cause the Group to cease to continue as a going
concern, and the above conclusions are not a guarantee that the
Group will continue in operation.
Directors’
responsibilities
The
2023 First Half Results is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the 2023 First Half Results in accordance with the DTR of
the UK FCA.
As
disclosed in note 1, the annual financial statements of the Group
are prepared in accordance with international financial reporting
standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and UK- adopted international accounting
standards.
The
directors are responsible for preparing the condensed consolidated
financial statements included in the 2023 First Half Results in
accordance with IAS 34 as adopted for use in the UK.
In
preparing the condensed consolidated financial statements, the
directors are responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but
to do so.
Our
responsibility
Our
responsibility is to express to the Company a conclusion on the
condensed consolidated financial statements in the 2023 First Half
Results based on our review. Our conclusion, including our
conclusions relating to going concern, are based on procedures that
are less extensive than audit procedures, as described in the Basis
for conclusion section of this report.
The
purpose of our review work and to whom we owe our
responsibilities
This
report is made solely to the Company in accordance with the terms
of our engagement to assist the Company in meeting the requirements
of the DTR of the UK FCA. Our review has been undertaken so that we
might state to the Company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Jonathan
Mills
for
and on behalf of KPMG LLP
Chartered Accountants
15
Canada Square
London, E14
5GL
24 July
2023
Consolidated income statement
|
€
million
|
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
Change
|
|
Turnover
|
30,428
|
29,623
|
2.7%
|
|
Operating
profit
|
5,516
|
4,500
|
22.6%
|
|
Net
finance costs
|
(259)
|
(227)
|
|
|
Pensions and
similar obligations
|
50
|
22
|
|
|
Finance
income
|
208
|
105
|
|
|
Finance
costs
|
(517)
|
(354)
|
|
|
Net
monetary gain/(loss) arising from hyperinflationary
economies
|
(98)
|
(38)
|
|
|
Share
of net profit/(loss) of joint ventures and associates
|
118
|
97
|
|
|
Other
income/(loss) from non-current investments and
associates
|
(10)
|
27
|
|
|
Profit
before taxation
|
5,267
|
4,359
|
20.8%
|
|
Taxation
|
(1,385)
|
(1,143)
|
|
|
Net
profit
|
3,882
|
3,216
|
20.7%
|
|
Attributable
to:
|
|
|
|
|
Non-controlling
interests
|
334
|
311
|
|
|
Shareholders’
equity
|
3,548
|
2,905
|
22.1%
|
Earnings
per share
|
Basic
earnings per share (euros)
|
1.41
|
1.14 23.7%
|
|
Diluted
earnings per share (euros)
|
1.40
|
1.13 23.6%
|
Consolidated
statement of comprehensive income
|
€
million
|
First Half
|
|
|
(unaudited)
|
2023
|
2022
|
|
Net
profit
|
3,882
|
3,216
|
|
Other
comprehensive income
|
|
|
|
Items
that will not be reclassified to profit or loss, net of
tax:
|
|
|
|
Gains/(losses) on
equity instruments measured at fair value through other
comprehensive income
|
(34)
|
52
|
|
Remeasurement of
defined benefit pension plans
|
(47)
|
1,463
|
|
Items
that may be reclassified subsequently to profit or loss, net of
tax:
|
|
|
|
Gains/(losses) on
cash flow hedges
|
(22)
|
51
|
|
Currency
retranslation gains/(losses)
|
(555)
|
1,309
|
|
Total
comprehensive income
|
3,224
|
6,091
|
|
Attributable
to:
|
|
|
|
Non-controlling
interests
|
284
|
384
|
|
Shareholders’
equity
|
2,940
|
5,707
|
Consolidated
statement of changes in equity
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
€ million
|
Called
up share
capital
|
Share
premium
account
|
Unification
reserve
|
Other
reserves
|
Retained
profit
|
Total
|
Non-
controlling
interest
|
Total
equity
|
|
First half - 2023
|
|
|
|
|
|
|
|
|
|
01 January 2023
|
92
|
52,844
|
(73,364)
|
(10,804)
|
50,253
|
19,021
|
2,680
|
21,701
|
|
Profit
or loss for the period
|
–
|
–
|
–
|
–
|
3,548
|
3,548
|
334
|
3,882
|
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
Gains/(losses)
on:
|
|
|
|
|
|
|
|
|
|
Equity
instruments
|
–
|
–
|
–
|
(33)
|
–
|
(33)
|
(1)
|
(34)
|
|
Cash
flow hedges
|
–
|
–
|
–
|
(22)
|
–
|
(22)
|
–
|
(22)
|
|
Remeasurements
of defined benefit pension plans
|
–
|
–
|
–
|
–
|
(48)
|
(48)
|
1
|
(47)
|
|
Currency
retranslation gains/(losses)(e)
|
–
|
–
|
–
|
(736)
|
231
|
(505)
|
(50)
|
(555)
|
|
Total
comprehensive income
|
–
|
–
|
–
|
(791)
|
3,731
|
2,940
|
284
|
3,224
|
|
Dividends
on ordinary capital
|
–
|
–
|
–
|
–
|
(2,172)
|
(2,172)
|
–
|
(2,172)
|
|
Repurchase
of shares(a)
|
–
|
–
|
–
|
(753)
|
–
|
-753
|
–
|
(753)
|
|
Movements
in treasury shares(b)
|
–
|
–
|
–
|
69
|
(68)
|
1
|
–
|
1
|
|
Share-based
payment credit(c)
|
–
|
–
|
–
|
–
|
159
|
159
|
–
|
159
|
|
Dividends
paid to non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
(276)
|
(276)
|
|
Hedging
gain/(loss) transferred to non-financial assets
|
–
|
–
|
–
|
78
|
–
|
78
|
–
|
78
|
|
Other
movements in equity
|
–
|
–
|
–
|
5
|
(22)
|
(17)
|
(24)
|
(41)
|
|
30 June 2023
|
92
|
52,844
|
(73,364)
|
(12,196)
|
51,881
|
19,257
|
2,664
|
21,921
|
|
First half - 2022
|
|
|
|
|
|
|
|
|
|
1 January 2022
|
92
|
52,844
|
-73,364
|
-9,210
|
46,745
|
17,107
|
2,639
|
19,746
|
|
Profit
or loss for the period
|
–
|
–
|
–
|
–
|
2,905
|
2,905
|
311
|
3,216
|
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
Gains/(losses)
on:
|
|
|
|
|
|
|
|
|
|
Equity
instruments
|
–
|
–
|
–
|
44
|
–
|
44
|
8
|
52
|
|
Cash
flow hedges
|
–
|
–
|
–
|
48
|
–
|
48
|
3
|
51
|
|
Remeasurements
of defined benefit pension plans
|
–
|
–
|
–
|
–
|
1,462
|
1,462
|
1
|
1,463
|
|
Currency
retranslation gains/(losses)
|
–
|
–
|
–
|
1,240
|
8
|
1,248
|
61
|
1,309
|
|
Total
comprehensive income
|
–
|
–
|
–
|
1,332
|
4,375
|
5,707
|
384
|
6,091
|
|
Dividends
on ordinary capital
|
–
|
–
|
–
|
–
|
(2,195)
|
(2,195)
|
–
|
(2,195)
|
|
Repurchase
of shares(a)
|
–
|
–
|
–
|
(648)
|
–
|
(648)
|
–
|
(648)
|
|
Movements
in treasury shares(b)
|
–
|
–
|
–
|
99
|
(107)
|
(8)
|
–
|
(8)
|
|
Share-based
payment credit(c)
|
–
|
–
|
–
|
–
|
93
|
93
|
–
|
93
|
|
Dividends
paid to non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
(309)
|
(309)
|
|
Hedging
gain/(loss) transferred to non-financial assets
|
–
|
–
|
–
|
(133)
|
–
|
(133)
|
(3)
|
(136)
|
|
Other
movements in equity(d)
|
–
|
–
|
–
|
2
|
216
|
218
|
14
|
232
|
|
30 June 2022
|
92
|
52,844
|
(73,364)
|
(8,558)
|
49,127
|
20,141
|
2,725
|
22,866
|
(a)
Repurchase of
shares reflects the cost of acquiring ordinary shares as part of
the share buyback program announced on 10 February
2022.
(b)
Includes purchases
and sales of treasury shares, other than the share buyback
programme and the transfer from treasury shares to retained profit
of share-settled schemes arising from prior years and differences
between purchase and grant price of share awards.
(c)
The share-based
payment credit relates to the non-cash charge recorded against
operating profit in respect of the fair value of share options and
awards granted to employees.
(d)
Includes a
hyperinflation adjustment of €235 million in relation to
Argentina.
(e)
Includes a
hyperinflation adjustment of €247 million in relation to
Argentina and Turkey.
Consolidated
balance sheet
|
(unaudited)
|
|
|
|
|
€ million
|
As at 30 June 2023
|
As at 31 December 2022
|
As at 30 June 2022
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
21,299
|
21,609
|
21,571
|
|
Intangible assets
|
18,664
|
18,880
|
18,935
|
|
Property, plant and equipment
|
10,590
|
10,770
|
10,733
|
|
Pension asset for funded schemes in surplus
|
4,244
|
4,260
|
6,581
|
|
Deferred tax assets
|
1,084
|
1,049
|
1,559
|
|
Financial assets
|
1,220
|
1,154
|
1,286
|
|
Other non-current assets
|
952
|
942
|
1,023
|
|
|
58,053
|
58,664
|
61,688
|
|
Current assets
|
|
|
|
|
Inventories
|
5,668
|
5,931
|
5,893
|
|
Trade and other current receivables
|
8,046
|
7,056
|
7,309
|
|
Current tax assets
|
254
|
381
|
324
|
|
Cash and cash equivalents
|
4,994
|
4,326
|
5,411
|
|
Other financial assets
|
1,376
|
1,435
|
1,435
|
|
Assets held for sale
|
18
|
28
|
2,832
|
|
|
20,356
|
19,157
|
23,204
|
|
|
|
|
|
|
Total assets
|
78,409
|
77,821
|
84,892
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Financial liabilities
|
6,715
|
5,775
|
9,032
|
|
Trade payables and other current liabilities
|
17,367
|
18,023
|
17,151
|
|
Current tax liabilities
|
891
|
877
|
1,327
|
|
Provisions
|
634
|
748
|
640
|
|
Liabilities held for sale
|
–
|
4
|
788
|
|
|
25,607
|
25,427
|
28,938
|
|
Non-current liabilities
|
|
|
|
|
Financial liabilities
|
23,993
|
23,713
|
24,929
|
|
Non-current tax liabilities
|
280
|
94
|
163
|
|
Pensions and post-retirement healthcare liabilities:
|
|
|
|
|
Funded
schemes in deficit
|
431
|
613
|
362
|
|
Unfunded
schemes
|
1,040
|
1,078
|
1,189
|
|
Provisions
|
547
|
550
|
621
|
|
Deferred tax liabilities
|
4,410
|
4,375
|
5,523
|
|
Other non-current liabilities
|
180
|
270
|
301
|
|
|
30,881
|
30,693
|
33,088
|
|
|
|
|
|
|
Total liabilities
|
56,488
|
56,120
|
62,026
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Shareholders’ equity
|
19,257
|
19,021
|
20,141
|
|
Non-controlling interests
|
2,664
|
2,680
|
2,725
|
|
Total equity
|
21,921
|
21,701
|
22,866
|
|
|
|
|
|
|
Total liabilities and equity
|
78,409
|
77,821
|
84,892
|
Consolidated
cash flow statement
|
(unaudited)
|
First Half
|
|
|
€ million
|
2023
|
2022
|
|
Net profit
|
3,882
|
3,216
|
|
Taxation
|
1,385
|
1,143
|
|
Share of net (profit)/loss of joint ventures/associates and other
(income)/loss from non-current investments and
associates
|
(108)
|
(124)
|
|
Net monetary (gain)/loss arising from hyperinflationary
economies
|
98
|
38
|
|
Net finance costs
|
259
|
227
|
|
Operating profit
|
5,516
|
4,500
|
|
|
|
|
|
Depreciation, amortisation and impairment
|
754
|
842
|
|
Changes in working capital
|
(1,331)
|
(1,116)
|
|
Pensions and similar obligations less payments
|
(103)
|
(49)
|
|
Provisions less payments
|
(122)
|
135
|
|
Elimination of (profits)/losses on disposals
|
(507)
|
(28)
|
|
Non-cash charge for share-based compensation
|
159
|
93
|
|
Other adjustments
|
11
|
(33)
|
|
Cash flow from operating activities
|
4,377
|
4,344
|
|
Income tax paid
|
(1,011)
|
(1,295)
|
|
Net cash flow from operating activities
|
3,366
|
3,049
|
|
|
|
|
|
Interest received
|
139
|
106
|
|
Net capital expenditure
|
(548)
|
(593)
|
|
Acquisitions and disposals
|
352
|
2
|
|
Other investing activities
|
(143)
|
53
|
|
|
|
|
|
Net cash flow (used in)/from investing activities
|
(200)
|
(432)
|
|
|
|
|
|
Dividends paid on ordinary share capital
|
(2,202)
|
(2,176)
|
|
Interest paid
|
(503)
|
(323)
|
|
Change in financial liabilities
|
1,230
|
2,500
|
|
Repurchase of shares
|
(753)
|
(648)
|
|
Other financing activities
|
(261)
|
(277)
|
|
|
|
|
|
Net cash flow (used in)/from financing activities
|
(2,489)
|
(924)
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
677
|
1,693
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the
period
|
4,225
|
3,387
|
|
|
|
|
|
Effect of foreign exchange rate changes
|
(32)
|
194
|
|
|
|
|
|
Cash and cash equivalents at the end of the period
|
4,870
|
5,274
|
Notes
to the condensed consolidated financial statements
(unaudited)
1.
Accounting
information and policies
These
condensed consolidated financial statements are prepared in
accordance with IAS 34 'Interim Financial Reporting' as issued by
the International Accounting Standards Board (IASB) and as adopted
for use in the UK.
As
required by the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority, the condensed consolidated financial
statements have been prepared applying the accounting policies and
presentation that were applied in the preparation of the
Group’s published consolidated financial statements for the
year ended 31 December 2022. In preparing these condensed
consolidated financial statements, judgements and estimates that
affect the application of accounting policies used by management
have remained consistent with those applied in the consolidated
financial statements for the year ended 31 December
2022.
These
condensed consolidated financial statements have been reviewed by
our independent auditor KPMG LLP. The comparative information
presented in the condensed consolidated financial statements have
not previously been subject to a review by an independent
auditor.
Management have
produced forecasts which have been modelled for different plausible
scenarios. These scenarios confirm the Group is able to generate
profits and cash in the year ended 31 December 2023 and beyond. As
a result, the Directors have a reasonable expectation that the
Group has adequate resources to meet its obligations as they fall
due for a period of at least 12 months from the date of signing
these condensed consolidated financial statements. Accordingly,
they continue to adopt the going concern basis in preparing the
half year condensed consolidated financial statements.
The
condensed consolidated financial statements are shown at current
exchange rates with year-on-year changes shown to facilitate
comparison. The consolidated income statement on page 15, the
consolidated statement of comprehensive income on page 15, the
consolidated statement of changes in equity on page 16 and the
consolidated cash flow statement on page 18 are translated at
exchange rates current in each period. The consolidated balance
sheet on page 17 is translated at period-end rates of
exchange.
The
condensed consolidated financial statements attached do not
constitute the full financial statements within the meaning of
section 434 of the UK Companies Act 2006. The comparative figures
for the financial year ended 31 December 2022 are not Unilever
PLC’s statutory accounts for that financial year. The annual
financial statements of the Group are prepared in accordance with
international financial reporting standards (IFRS) as issued by the
International Accounting Standards Board (IASB) and UK adopted
international accounting standards and in accordance with the
requirements of the UK Companies Act 2006. Those accounts for the
year ended 31 December 2022 have been reported on by the
Group’s auditor and delivered to the Registrar of Companies.
The report of the auditor on these accounts was (i) unqualified,
(ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their
report, and (iii) did not contain a statement under section 498 (2)
or (3) of the UK Companies Act 2006.
New
accounting standards
As of 1
January 2023, IFRS 17 ‘Insurance Contracts’ has been
adopted by the Group. The standard introduces a new model for
accounting for insurance contracts. We have reviewed existing
arrangements and concluded that IFRS 17 does not impact the
condensed consolidated financial statements.
As of
23 May 2023, amendments to IAS 12 'Income Taxes' came into effect
relating to International Tax Reform – Pillar Two Model
Rules, which were endorsed by the UK Endorsement Board on 19 July,
whereby an entity shall disclose qualitative and quantitative
information about its exposure to Pillar Two income taxes at the
end of the reporting period. The amendments provide a temporary
mandatory exemption from deferred tax accounting for the top-up
tax, which is effective immediately. The expected impact of this
amendment will be disclosed within the 2023 Annual
Report.
All
other new standards or amendments issued by the IASB and UK
Endorsement Board that are effective or not yet effective, are
either not applicable or not material to the Group.
(unaudited)
2.
Significant
items within the income statement
Non-underlying
items
These
include non-underlying items within operating profit and
non-underlying items not in operating profit but within net
profit:
●
Non-underlying
items within operating profit are gains or losses on
business disposals, acquisition and disposal related costs,
restructuring costs, impairments and other items within operating
profit classified here due to their nature and
frequency.
●
Non-underlying
items not in operating profit but within net profit are net
monetary gain/(loss) arising from hyperinflationary economies and
significant and unusual items in net finance cost, share of
profit/(loss) of joint ventures and associates and
taxation.
Restructuring costs
are charges associated with activities planned by management that
significantly change either the scope of the business or the manner
in which it is conducted.
|
€ million
|
First Half
|
|
|
|
2023
|
2022
|
|
Acquisition and
disposal-related credits/(costs) (a)
|
(52)
|
(87)
|
|
Gain/(loss) on
disposal of group companies(b)
|
528
|
21
|
|
Restructuring
costs(c)
|
(184)
|
(359)
|
|
Impairments(d)
|
(1)
|
(4)
|
|
Other(e)
|
17
|
(115)
|
|
Non-underlying
items within operating profit before tax
|
308
|
(544)
|
|
Tax on
non-underlying items within operating profit
|
(111)
|
102
|
|
Non-underlying
items within operating profit after tax
|
197
|
(442)
|
|
Interest related to
the UK tax audit of intangible income and centralised
services
|
(5)
|
–
|
|
Net
monetary gain/(loss) arising from hyperinflationary
economies
|
(98)
|
(38)
|
|
Non-underlying
items not in operating profit but within net profit before
tax
|
(103)
|
(38)
|
|
Tax
impact of non-underlying items not in operating profit but within
net profit:
|
|
|
|
Taxes
related to separation of Ekaterra
|
(6)
|
(39)
|
|
Taxes
related to the UK tax audit of intangible income and centralised
services
|
1
|
–
|
|
Hyperinflation
adjustment for Argentina and Turkey deferred tax
|
(75)
|
(24)
|
|
Non-underlying
items not in operating profit but within net profit after
tax
|
(183)
|
(101)
|
|
Non-underlying
items after tax(f)
|
14
|
(543)
|
Attributable
to:
|
Non-controlling
interests
|
–
|
(8)
|
|
Shareholders’
equity
|
14
|
(535)
|
(a)
2023 includes a
charge of €4 million (2022: €56 million) relating to
the disposal of ekaterra and other acquisition and disposal
activities.
(b)
2023 includes a
gain of €497 million related to the disposal of Suave
business in North America.
(c)
Restructuring costs
are comprised of organisational change programmes including Compass
and various technology and supply chain optimisation
projects.
(d)
Impairments include
write downs of leased land and building assets.
(e)
2022 comprised of
€40 million of asset write-downs relating to our businesses
in Russia and Ukraine and €75 million relating to legal
provisions for ongoing competition investigations.
(f)
Non-underlying
items after tax is calculated as non-underlying items within
operating profit after tax plus non-underlying items not in
operating profit but within net profit after tax.
(unaudited)
3.
Segment
information – Business Groups
|
Second Quarter
|
Beauty & Wellbeing
|
Personal Care
|
Home Care
|
Nutrition
|
Ice Cream
|
Total
|
|
Turnover (€ million)
|
|
|
|
|
|
|
|
2022
|
2,999
|
3,420
|
3,092
|
3,596
|
2,703
|
15,810
|
|
2023
|
3,143
|
3,519
|
3,057
|
3,260
|
2,760
|
15,739
|
|
Change (%)
|
4.8
|
2.9
|
(1.1)
|
(9.3)
|
2.1
|
(0.4)
|
|
Impact of:
|
|
|
|
|
|
|
|
Acquisitions
(%)
|
3.7
|
–
|
–
|
–
|
–
|
0.7
|
|
Disposals
(%)
|
(1.7)
|
(0.6)
|
–
|
(12.6)
|
–
|
(3.3)
|
|
Currency-related
items (%), of which:
|
(5.5)
|
(5)
|
(7.3)
|
(4.7)
|
(3.3)
|
(5.2)
|
|
Exchange
rates changes (%)
|
(6.7)
|
(6.6)
|
(9.9)
|
(6.1)
|
(5.8)
|
(7)
|
|
Extreme price growth in hyperinflationary markets* (%)
|
1.4
|
1.7
|
2.8
|
1.4
|
2.7
|
2
|
|
Underlying sales growth (%)
|
8.8
|
9.0
|
6.7
|
8.9
|
5.6
|
7.9
|
|
Price* (%)
|
3.7
|
5.4
|
9.0
|
11.8
|
12.1
|
8.2
|
|
Volume (%)
|
4.9
|
3.4
|
(2.1)
|
(2.6)
|
(5.8)
|
(0.3)
|
|
First Half
|
Beauty & Wellbeing
|
Personal Care
|
Home Care
|
Nutrition
|
Ice Cream
|
Total
|
|
Turnover (€ million)
|
|
|
|
|
|
|
|
2022
|
5,731
|
6,445
|
6,024
|
7,107
|
4,316
|
29,623
|
|
2023
|
6,225
|
6,911
|
6,205
|
6,601
|
4,486
|
30,428
|
|
Change (%)
|
8.6
|
7.3
|
3
|
(7.1)
|
3.9
|
2.7
|
|
Impact of:
|
|
|
|
|
|
|
|
Acquisitions
(%)
|
3.6
|
–
|
–
|
–
|
–
|
0.7
|
|
Disposals
(%)
|
(1)
|
(0.3)
|
–
|
(13.1)
|
–
|
(3.4)
|
|
Currency-related
items (%), of which:
|
(3)
|
(2.9)
|
(5)
|
(3.2)
|
(1.7)
|
(3.2)
|
|
Exchange
rates changes (%)
|
(4.3)
|
(4.5)
|
(7.7)
|
(4.5)
|
(4)
|
(5)
|
|
Extreme price growth in hyperinflationary markets* (%)
|
1.3
|
1.7
|
2.9
|
1.3
|
2.4
|
1.9
|
|
Underlying sales growth (%)
|
9.1
|
10.8
|
8.4
|
10.4
|
5.7
|
9.1
|
|
Price* (%)
|
5.1
|
7.3
|
11.2
|
12.6
|
11.5
|
9.4
|
|
Volume (%)
|
3.8
|
3.2
|
(2.5)
|
(1.9)
|
(5.2)
|
(0.2)
|
|
Operating profit (€ million)
|
|
|
|
|
|
|
|
2022
|
995
|
1,174
|
609
|
1,124
|
598
|
4,500
|
|
2023
|
1,237
|
1,691
|
731
|
1,213
|
644
|
5,516
|
|
Underlying operating profit (€ million)
|
|
|
|
|
|
|
|
2022
|
1,083
|
1,295
|
723
|
1,253
|
690
|
5,044
|
|
2023
|
1,179
|
1,381
|
763
|
1,214
|
671
|
5,208
|
|
Operating margin (%)
|
|
|
|
|
|
|
|
2022
|
17.4
|
18.2
|
10.1
|
15.8
|
13.9
|
15.2
|
|
2023
|
19.9
|
24.5
|
11.8
|
18.4
|
14.4
|
18.1
|
|
Underlying operating margin (%)
|
|
|
|
|
|
|
|
2022
|
18.9
|
20.1
|
12.0
|
17.6
|
16.0
|
17.0
|
|
2023
|
18.9
|
20.0
|
12.3
|
18.4
|
15.0
|
17.1
|
*Underlying price
growth in excess of 26% per year in hyperinflationary economies has
been excluded when calculating the price growth in the tables
above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
Turnover growth is made up of distinct individual
growth components namely underlying sales, currency impact,
acquisitions and disposals. Turnover growth is arrived at by
multiplying these individual components on a compounded
basis as there is a currency impact on
each of the other components. Accordingly, turnover growth is more
than just the sum of the individual components.
Underlying operating profit represents our measure
of segment profit or loss as it is the primary measure used for the
purpose of making decisions
about allocating resources and assessing performance of segments.
Underlying operating margin is calculated as underlying operating
profit divided by turnover.
(unaudited)
4.
Segment
information – Geographical area
|
Second Quarter
|
Asia Pacific Africa
|
The Americas
|
Europe
|
Total
|
|
Turnover (€ million)
|
|
|
|
|
|
2022
|
7,061
|
5,414
|
3,335
|
15,810
|
|
2023
|
6,699
|
5,700
|
3,340
|
15,739
|
|
Change (%)
|
(5.1)
|
5.3
|
0.1
|
(0.4)
|
|
Impact of:
|
|
|
|
|
|
Acquisitions
(%)
|
–
|
2.0
|
–
|
0.7
|
|
Disposals
(%)
|
(3.3)
|
(3.4)
|
(3.1)
|
(3.3)
|
|
Currency-related
items (%), of which:
|
(9.4)
|
(2.4)
|
(0.9)
|
(5.2)
|
|
Exchange rate changes (%)
|
(11.2)
|
(5.4)
|
(0.9)
|
(7.0)
|
|
Extreme price growth in hyperinflationary markets* (%)
|
1.9
|
3.2
|
–
|
2.0
|
|
Underlying sales growth (%)
|
8.3
|
9.5
|
4.3
|
7.9
|
|
Price* (%)
|
6.5
|
6.4
|
15.5
|
8.2
|
|
Volume (%)
|
1.8
|
2.9
|
(9.7)
|
(0.3)
|
|
First Half
|
Asia Pacific Africa
|
The Americas
|
Europe
|
Total
|
|
Turnover (€ million)
|
|
|
|
|
|
2022
|
13,701
|
9,941
|
5,982
|
29,623
|
|
2023
|
13,421
|
10,956
|
6,051
|
30,428
|
|
Change (%)
|
(2.0)
|
10.2
|
1.2
|
2.7
|
|
Impact of:
|
|
|
|
|
|
Acquisitions
(%)
|
–
|
2.0
|
–
|
0.7
|
|
Disposals
(%)
|
(3.6)
|
(2.9)
|
(3.7)
|
(3.4)
|
|
Currency-related
items (%), of which
|
(6.9)
|
0.5
|
(1.3)
|
(3.2)
|
|
Exchange rate changes (%)
|
(8.6)
|
(2.3)
|
(1.3)
|
(5.0)
|
|
Extreme price growth in hyperinflationary markets* (%)
|
1.9
|
2.9
|
–
|
1.9
|
|
Underlying sales growth (%)
|
9.1
|
10.6
|
6.4
|
9.1
|
|
Price* (%)
|
8.0
|
8.6
|
14.2
|
9.4
|
|
Volume (%)
|
1.1
|
1.8
|
(6.8)
|
(0.2)
|
*Underlying price
growth in excess of 26% per year in hyperinflationary economies has
been excluded when calculating the price growth in the tables
above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
(unaudited)
5.
Taxation
The
effective tax rate for the first half is 26.9% compared with 26.8%
in 2022. The tax rate is calculated by dividing the tax charge by
pre-tax profit excluding the contribution of joint ventures and
associates.
Tax
effects of components of other comprehensive income were as
follows:
|
|
First half
|
|||||
|
|
2023
|
2022
|
||||
|
€ million
|
Before tax
|
Tax (charge)/credit
|
After tax
|
Before tax
|
Tax (charge)/credit
|
After tax
|
|
Gains/(losses) on:
|
|
|
|
|
|
|
|
Equity
instruments at fair value through other comprehensive
income
|
(34)
|
–
|
(34)
|
49
|
3
|
52
|
|
Cash
flow hedges
|
(20)
|
(2)
|
(22)
|
26
|
25
|
51
|
|
Remeasurements of defined benefit pension plans
|
(90)
|
43
|
(47)
|
2,037
|
(574)
|
1,463
|
|
Currency retranslation gains/(losses)
|
(535)
|
(20)
|
(555)
|
1,317
|
(8)
|
1,309
|
|
Other comprehensive income
|
(679)
|
21
|
(658)
|
3,429
|
(554)
|
2,875
|
6.
Earnings
per share
The
earnings per share calculations are based on the average number of
share units representing the ordinary shares of PLC in issue during
the period, less the average number of shares held as treasury
shares.
In
calculating diluted earnings per share and underlying earnings per
share, a number of adjustments are made to the number of shares,
principally the exercise of share plans by employees.
Earnings per share
for total operations for the twelve months were calculated as
follows:
|
|
First Half
|
|
|
|
2023
|
2022
|
|
EPS - Basic
|
||
|
Net
profit attributable to shareholders’ equity (€
million)
|
3,548
|
2,905
|
|
Average
number of shares (millions of share units)
|
2,523.9
|
2,557.3
|
|
EPS
– basic (€)
|
1.41
|
1.14
|
|
EPS - Diluted
|
||
|
Net
profit attributable to shareholders’ equity (€
million)
|
3,548
|
2,905
|
|
Adjusted average
number of shares (millions of share units)
|
2,536.8
|
2,566.2
|
|
EPS
– diluted (€)
|
1.40
|
1.13
|
Underlying
EPS
|
Net
profit attributable to shareholders’ equity (€
million)
|
3,548
|
2,905
|
|
Post-tax impact of
non-underlying items attributable to shareholders’ equity
(see note 2)
|
(14)
|
535
|
|
Underlying profit
attributable to shareholders’ equity
|
3,534
|
3,440
|
|
Adjusted average
number of shares (millions of share units)
|
2,536.8
|
2,566.2
|
|
Underlying EPS
– diluted (€)
|
1.39
|
1.34
|
In
calculating underlying earnings per share, net profit attributable
to shareholders’ equity is adjusted to eliminate the post-tax
impact of non-underlying items.
During
the period the following movements in shares have taken
place:
|
|
Millions
|
|
Number
of shares at 31 December 2022 (net of treasury shares)
|
2,529.0
|
|
Net
movements in shares under incentive schemes
|
1.5
|
|
Shares
repurchased under the share buyback programme
|
(15.5)
|
|
Number
of shares at 30 June 2023
|
2,515.0
|
7.
Acquisitions
and disposals
In the
first half of 2023, the Group completed the following business
acquisitions and disposals:
|
Deal completion date
|
Acquired/disposed business
|
|
10 January 2023
|
Acquired
51% of Zywie Ventures Private
Limited (“OZiva”), a leading plant-based, and
clean-label consumer wellness brand focused on the need spaces such
as Lifestyle Protein, Hair & Beauty Supplements and
Women’s health.
|
|
1 May 2023
|
Sold Suave brand in North America to Yellow Wood Partners LLC. The
Suave beauty and personal care brand includes hair care, skin care,
skin cleansing and deodorant products.
|
On 1
May 2023, Unilever sold the North America Suave business to Yellow
Wood Partners LLC for €592 million consideration. Profit on
this disposal was €497 million, recognised as a
non-underlying item (see note 2).
In
addition to the completed transactions above, on 14 June 2023 the
Group announced it had signed an agreement to acquire Yasso, a
premium frozen Greek yogurt brand in the United States. The
transaction is expected to be completed in Q3 2023.
8.
Share
buy-back
On 10
February 2022, we announced a share buyback programme of up to
€3 billion to be completed over 2022 and 2023. During the
first half of 2023, the Group repurchased 15,552,684 ordinary
shares which are held by Unilever as treasury shares. Consideration
paid for the repurchase of shares including transaction costs was
€753 million which is recorded within other
reserves.
(unaudited)
9.
Financial
instruments
The
Group’s Treasury function aims to protect the Group’s
financial investments, while maximising returns. The fair value of
financial assets is the same as the carrying amount for 2023 and
2022. The Group’s cash resources and other financial assets
are shown below.
|
|
30 June 2023
|
31 December 2022
|
30 June 2022
|
||||||
|
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
Cash
at bank and in hand
|
2,790
|
–
|
2,790
|
2,553
|
–
|
2,553
|
2,730
|
–
|
2,730
|
|
Short-term
deposits(a)
|
1,804
|
–
|
1,804
|
1,743
|
–
|
1,743
|
2,481
|
–
|
2,481
|
|
Other
cash equivalents(b)
|
400
|
–
|
400
|
30
|
–
|
30
|
200
|
–
|
200
|
|
|
4,994
|
–
|
4,994
|
4,326
|
–
|
4,326
|
5,411
|
–
|
5,411
|
|
Other financial assets
|
|
|
|
|
|
|
|
|
|
|
Financial assets at
amortised cost(c)
|
727
|
352
|
1,079
|
772
|
232
|
1,004
|
756
|
220
|
976
|
|
Financial assets at
fair value through other comprehensive income(d)
|
–
|
438
|
438
|
–
|
407
|
407
|
–
|
547
|
547
|
|
Financial
assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
36
|
31
|
67
|
238
|
51
|
289
|
264
|
60
|
324
|
|
Other(e)
|
613
|
399
|
1,012
|
425
|
464
|
889
|
415
|
459
|
874
|
|
|
1,376
|
1,220
|
2,596
|
1,435
|
1,154
|
2,589
|
1,435
|
1,286
|
2,721
|
|
Total
financial assets(f)
|
6,370
|
1,220
|
7,590
|
5,761
|
1,154
|
6,915
|
6,846
|
1,286
|
8,132
|
(a)
Short-term deposits
typically have maturity of up to 3 months.
(b)
Other cash
equivalents include investments in overnight funds and treasury
bills.
(c)
Current financial
assets at amortised cost include short term deposits with banks
with maturities longer than three months excluding deposits which
are part of a recognised cash management process and loans to joint
venture entities. Non-current financial assets at amortised cost
include judicial deposits of €228 million (31 December 2022:
€199 million; 30 June 2022: €195 million).
(d)
Included within
non-current financial assets at fair value through other
comprehensive income are equity investments.
(e)
Other financial
assets at fair value through profit or loss include money market
funds, marketable securities, other capital market instruments and
investments in companies and financial institutions in North
America, North Asia, South Asia and Europe.
(f)
Financial assets
exclude trade and other current receivables.
The
Group is exposed to the risks of changes in fair value of its
financial assets and liabilities. The following tables summarise
the fair values and carrying amounts of financial instruments and
the fair value calculations by category.
|
€ million
|
Fair value
|
Carrying amount
|
||||
|
|
As at 30 June 2023
|
As at 31 December 2022
|
As at 30 June 2022
|
As at 30 June 2023
|
As at 31 December 2022
|
As at 30 June 2022
|
|
Financial assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
4,994
|
4,326
|
5,411
|
4,994
|
4,326
|
5,411
|
|
Financial assets at amortised cost
|
1,079
|
1,004
|
976
|
1,079
|
1,004
|
976
|
|
Financial assets at fair value through other comprehensive
income
|
438
|
407
|
547
|
438
|
407
|
547
|
|
Financial assets at fair value through profit and
loss:
|
|
|
|
|
|
|
|
Derivatives
|
67
|
289
|
324
|
67
|
289
|
324
|
|
Other
|
1,012
|
889
|
874
|
1,012
|
889
|
874
|
|
|
7,590
|
6,915
|
8,132
|
7,590
|
6,915
|
8,132
|
|
Financial liabilities
|
|
|
|
|
|
|
|
Bank loans and overdrafts
|
(606)
|
(519)
|
(540)
|
(606)
|
(519)
|
(540)
|
|
Bonds and other loans
|
(26,265)
|
(25,136)
|
(30,089)
|
(27,599)
|
(26,512)
|
(31,007)
|
|
Lease liabilities
|
(1,428)
|
(1,408)
|
(1,585)
|
(1,428)
|
(1,408)
|
(1,585)
|
|
Derivatives
|
(618)
|
(631)
|
(548)
|
(618)
|
(631)
|
(548)
|
|
Other financial liabilities
|
(457)
|
(418)
|
(281)
|
(457)
|
(418)
|
(281)
|
|
|
(29,374)
|
(28,112)
|
(33,043)
|
(30,708)
|
(29,488)
|
(33,961)
|
|
€
million
|
As at 30 June 2023
|
As at 31 December 2022
|
As at 30 June 2022
|
||||||
|
|
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
|
Assets at fair value
|
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value through other comprehensive
income
|
14
|
3
|
421
|
5
|
3
|
399
|
11
|
3
|
533
|
|
Financial assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
|
|
|
Derivatives(a)
|
–
|
142
|
–
|
–
|
378
|
–
|
–
|
505
|
–
|
|
Other
|
613
|
–
|
399
|
428
|
–
|
461
|
420
|
–
|
454
|
|
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
|
Derivatives(b)
|
–
|
(718)
|
–
|
–
|
(784)
|
–
|
–
|
(729)
|
–
|
|
Contingent
consideration
|
–
|
–
|
(123)
|
–
|
–
|
(164)
|
–
|
–
|
(175)
|
(a)
Includes €75 million (31 December 2022: €89 million; 30
June 2022: €181 million) derivatives, reported within trade
receivables, that hedge trading activities.
(b)
Includes €(100) million (31 December 2022: €(153)
million; 30 June 2022: €(181) million) derivatives, reported
within trade creditors, that hedge trading activities.
There were no significant changes in classification of fair value
of financial assets and financial liabilities since 31 December
2022. There were also no significant movements between the fair
value hierarchy classifications since 31 December
2022.
The fair value of trade receivables and payables
is considered to be equal to the carrying amount of these items due
to their short-term nature. The
fair value of financial assets and financial liabilities (excluding
listed bonds) is considered to be same as the carrying amount for
2023 and 2022.
Calculation
of fair values
The fair values of the financial assets and
liabilities are defined as the price that would be received to sell
an asset or paid to transfer a
liability in an orderly transaction between market participants at
the measurement date. Methods and assumptions used to estimate the
fair values are consistent with those used in the year ended 31
December 2022.
10.
Dividends
The
Board has declared a quarterly interim dividend for Q2 2023 of £0.3700 per Unilever PLC
ordinary share or
€0.4268 per
Unilever PLC ordinary share at
the applicable exchange rate issued by WM/Reuters on 21 July 2023.
The following amounts will be paid in respect of this quarterly
interim dividend on the relevant payment date:
|
Per Unilever PLC ordinary share (traded on the London Stock
Exchange):
|
£0.3700
|
|
Per Unilever PLC ordinary share (traded on Euronext in
Amsterdam):
|
€0.4268
|
|
Per Unilever PLC American Depositary Receipt:
|
US$0.4746
|
The
euro and US dollar amounts above have been determined using the
applicable exchange rates issued by WM/ Reuters on 21 July
2023.
US
dollar cheques for the quarterly interim dividend will be mailed on
31 August 2023 to holders of record at the close of business on 4
August 2023.
The
quarterly dividend calendar for the remainder of 2023 will be as
follows:
|
|
Announcement date
|
Ex-Dividend Date
|
Record Date
|
Payment Date
|
|
Q2
2023 Dividend
|
25 July
2023
|
03
August 2023
|
04
August 2023
|
31
August 2023
|
|
Q3
2023 Dividend
|
26
October 2023
|
16
November 2023
|
17
November 2023
|
08
December 2023
|
(unaudited)
11.
Events
after the balance sheet date
There
are no material post balance sheet events other than those
mentioned elsewhere in this report.