Unilever PLC 6-K, filed Jul 25, 2024
Unilever PLC (UL)
6-K
2024-07-25
For: 2024-07-25
View Original
Added on
April 09, 2026
About this 6-K
Unilever PLC filed this 6-K on July 25, 2024.
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, 2024
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, 2024
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 2024
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2024
First Half Results
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Exhibit
99
2024 First Half Results
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Innovation
and brand investment driving faster volume growth
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Underlying
performance
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GAAP
measures
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(unaudited)
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2024
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vs 2023
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2024
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vs 2023
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First
Half
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Underlying
sales growth (USG)
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4.1%
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Turnover
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€31.1bn
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2.3%
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Beauty &
Wellbeing
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7.1%
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Beauty &
Wellbeing
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€6.5bn
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5.1%
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Personal
Care
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5.6%
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Personal
Care
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€7.0bn
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0.6%
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Home
Care
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3.3%
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Home
Care
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€6.3bn
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2.0%
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Nutrition
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3.2%
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Nutrition
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€6.7bn
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1.3%
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Ice
Cream
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0.6%
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Ice
Cream
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€4.6bn
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2.8%
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Underlying
operating profit
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€6.1bn
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17.1%
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Operating
profit
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€5.9bn
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7.8%
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Underlying
operating margin
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19.6%
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250bps
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Operating
margin
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19.1%
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100bps
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Underlying
earnings per share
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€1.62
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16.3%
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Diluted earnings
per share
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€1.47
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5.4%
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Free
cash flow
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€2.2bn
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€(0.3)bn
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Net
profit
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€4.0bn
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3.5%
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Second
Quarter
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USG
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3.9%
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Turnover
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€16.1bn
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2.2%
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Quarterly
dividend payable in September 2024
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€0.4396
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per
share(a)
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3.0%
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(a) See
note 9 for more information on dividends
First
half highlights
● Underlying
sales growth of 4.1%, with volumes up 2.6%
● Power
Brands (~75% of turnover) leading growth with 5.7% USG
and volumes up 4.0%
● Turnover
increased 2.3% to €31.1 billion with (1.1)%
impact from currency and (0.7)% from net disposals
● Underlying
operating margin up 250bps to 19.6%, with gross margin up
420bps
● Brand
and marketing investment up 180bps to 15.1%, focused
on Power Brands
● Underlying
EPS increased 16.3%, diluted EPS up 5.4%
● Quarterly
dividend raised by 3%; €1.5bn share buyback
commenced
● Free
cash flow of €2.2 billion, reflecting seasonal
working capital outflow
● Productivity
programme underway and separation of Ice Cream on
track
Chief
Executive Officer statement
"We are
focused on driving high-quality sales growth and gross margin
expansion, led by our Power Brands. Over the first half, we made
progress on those ambitions.
Underlying
sales grew 4.1%, driven by a third consecutive quarter of positive,
improving volume growth, while pricing continued to moderate in
line with our expectations. Strong gross margin progression fuelled
increased investment behind our innovations, and resulted in a
step-up of our profitability.
We
continue to embed the Growth Action Plan, doing fewer things,
better and with greater impact. The implementation of a
comprehensive productivity programme and the separation of Ice
Cream are key to delivering on that commitment and we are
progressing at pace.
There
is much to do, but we remain focused on transforming Unilever into
a consistently higher performing business."
Hein Schumacher
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Outlook
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We
continue to expect underlying sales growth (USG) for 2024 to be
within our multi-year range of 3% to 5%, with the majority of the
growth being driven by volume.
Underlying
operating margin for the full year is expected to be at least 18%,
with increasing investment behind our brands. We expect the
year-on-year margin progression in the second half to be smaller
than in the first half.
Our
very strong gross margin progression in the first half reflects
positive contributions from volume leverage, mix and net
productivity but also factors that will not repeat in the second
half such as, a low prior year comparator affected by high input
costs, and carry-over pricing from a period of higher
inflation.
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First
Half Review: Unilever Group
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Growth
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(unaudited)
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Turnover
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USG
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UVG
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UPG
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A&D
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Currency
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Turnover
change
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First
Half
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€31.1bn
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4.1%
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2.6%
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1.6%
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(0.7)%
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(1.1)%
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2.3%
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Second
Quarter
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€16.1bn
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3.9%
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2.9%
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1.0%
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(0.6)%
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(1.0)%
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2.2%
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Underlying
sales growth in the first half was 4.1%, led by volume of 2.6% and
price of 1.6%. We delivered our third consecutive quarter of
positive, improving volume growth, with UVG up 2.9% in Q2,
increasing from 2.2% in Q1 and 1.8% in Q4 2023. Four of our five
business groups delivered positive volume growth in Q2. As
expected, underlying price growth continued to moderate from 2.8%
in Q4 2023 to 1.0% in Q2.
The
Power Brands performed strongly with 5.7% underlying sales growth,
driven by volume growth of 4.0% in H1. Our other brands also saw a
sequential volume improvement to (1.1)% in Q2, up from (2.0)% in
Q1.
As
expected, our turnover-weighted market share movement*, which
measures our competitive performance within the footprint in which
we operate, remained largely unchanged on a rolling 12 month-basis.
We expect a sequential improvement of the share trend over time
reflecting increasing benefit from the Growth Action
Plan.
Beauty
& Wellbeing grew underlying sales by 7.1%, with volume growth
of 5.5% driven by continued double-digit growth from Health &
Wellbeing and Prestige Beauty combined. In Q2, particularly strong
growth in Health & Wellbeing more than offset softer growth in
Prestige that reflected a slowdown in the US beauty market.
Personal Care grew 5.6% with 2.9% from volume, led by continued
strong sales growth of Deodorants. Home Care underlying sales
increased 3.3%, with 4.6% volume growth more than offsetting the
negative price growth linked to commodity cost deflation in some
emerging markets. Nutrition grew underlying sales by 3.2%, driven
by price with flat volume for the first half. Nutrition returned to
positive volumes in Q2 at 0.4%, up from (0.4)% in Q1. Ice Cream
continued to focus on operational improvements. Underlying sales
growth was 0.6% with volume down (1.0)%, driven by weak sales in
China and a softer start to the summer season in
Europe.
Emerging
markets (59% of Group turnover) grew underlying sales 5.1%, with
3.8% from volume and 1.3% from price. India grew 1.2%, with
stronger volumes partially offset by price. Lower input costs led
to negative price, while volumes in India sequentially improved
throughout the first half, reaching 3.8% in Q2. Latin America grew
8.8%, with continued strong volume growth across the region. Africa
and Turkey delivered broad-based, double-digit growth, driven by
strong volume and price. Growth in South East Asia was adversely
impacted by a sales decline of (5.7)% in Indonesia, where some
consumers avoided the brands of multi-national companies in
response to the geopolitical situation in the Middle East. China
declined mid single-digit, due to market weakness across all
categories apart from food service.
Developed
markets (41% of Group turnover) grew underlying sales 2.8% with
0.8% from volume and 2.0% from price. The return to positive volume
growth reflected a continued resilient performance in North America
and a marked volume improvement in Europe, up 2.2% in Q2. As
expected, price growth continued to moderate from the peak in Q2
2023.
Turnover
was €31.1 billion, up 2.3% versus the prior year, including
(1.1)% from currency and (0.7)% from disposals net of
acquisitions.
*Turnover-weighted
market share movement: global aggregate of Unilever value market
share changes, weighted by the turnover of the category-country
combinations
Profitability
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(unaudited)
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UOP
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UOP
growth
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UOM%
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Change
in UOM
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OP
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OP
growth
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OM%
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Change
in OM
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First
Half
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€6.1bn
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17.1%
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19.6%
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250bps
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€5.9bn
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7.8%
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19.1%
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100bps
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Underlying
operating profit was €6.1 billion, up 17.1% versus the prior
year. Underlying operating margin increased 250bps to
19.6%.
We
improved gross margin by 420bps to 45.7%. Accelerating gross margin
is a key focus for the business. We started to rebuild gross margin
in the second half of 2023, with an improvement of 330bps and
continued that momentum into the first half of 2024. The first half
improvement reflects positive contributions from volume leverage,
mix and net productivity but also factors that will not repeat in
the second half such as, a low prior year comparator affected by
high input costs, and carry-over pricing from a period of higher
inflation. Improved gross margin supported a further step-up in
brand and marketing investment behind a strong and focused
innovation programme. Investment was up 180bps to 15.1% of
turnover, an increase of €0.7 billion. Overheads reduced by
10bps, benefiting from a focus on tighter cost
control.
Operating
profit of €5.9 billion increased 7.8% against a prior year
comparator that was boosted by higher profit on
disposal.
Progress
on productivity programme and Ice Cream separation
In
March, we announced the separation of Ice Cream and the launch of a
major productivity programme to strengthen the company and
substantially improve our efficiency and effectiveness. Separation
activity is underway and on track to complete by the end of 2025.
We are working at pace on the legal entity set up, the standalone
operating model and carve-out financials. In July, we communicated
internally on the planned changes to simplify our business and
further evolve our category-focused operating model. We have
started consultations with the respective works
councils.
Capital
allocation
In
February 2024, we announced a share buyback programme of up to
€1.5 billion to be conducted during 2024. The first tranche
of up to €850 million commenced in May.
As a
result of the strong first half performance, the Board increased
the quarterly interim dividend for Q2 by 3.0% to €0.4396, the
first increase since Q4 2020.
We
continued to reshape our portfolio, acquiring K18, a premium biotech hair care brand,
in February, and completing the disposal of Elida Beauty in June.
In July we announced agreements to sell our water purification
businesses Pureit, to A.O. Smith, and stake in Qinyuan Group, to
Yong Chao Venture Capital Co., Ltd. The deals are expected to
complete in the second half of the year.
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Conference
Call
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Following
the release of this trading statement on 25 July 2024 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.
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Upcoming
Events
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Date
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Events
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24
October 2024
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Q3 2024
trading statement
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22
November 2024
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Capital
Markets Day in London
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13
February 2025
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Q4 and
FY 2024 results
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First
Half Review: Business Groups
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First Half 2024
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Second
Quarter 2024
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||||||||
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(unaudited)
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Turnover
|
USG
|
UVG
|
UPG
|
UOM%
|
Change
in
UOM
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Unilever
|
€31.1bn
|
4.1%
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2.6%
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1.6%
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19.6%
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250bps
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€16.1bn
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3.9%
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2.9%
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1.0%
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Beauty
& Wellbeing
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€6.5bn
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7.1%
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5.5%
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1.5%
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20.0%
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110bps
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€3.4bn
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6.8%
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5.4%
|
1.3%
|
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Personal
Care
|
€7.0bn
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5.6%
|
2.9%
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2.6%
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23.0%
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300bps
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€3.5bn
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6.4%
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4.4%
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1.9%
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Home
Care
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€6.3bn
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3.3%
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4.6%
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(1.3)%
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16.3%
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400bps
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€3.1bn
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3.4%
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4.9%
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(1.4)%
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Nutrition
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€6.7bn
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3.2%
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-%
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3.2%
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22.3%
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390bps
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€3.3bn
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2.7%
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0.4%
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2.2%
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Ice
Cream
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€4.6bn
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0.6%
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(1.0)%
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1.6%
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14.6%
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(40)bps
|
€2.8bn
|
(0.5)%
|
(1.1)%
|
0.6%
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Beauty
& Wellbeing (21% of Group turnover)
In Beauty & Wellbeing, we focus on three key priorities that
will drive the unmissable superiority of our brands: elevating our
core Hair Care and Skin Care brands to increase premiumisation;
fuelling the growth of Prestige Beauty and Health & Wellbeing
with selective international expansion; and continuing to
strengthen our beauty and wellbeing capabilities.
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in
UOM
|
|
First
Half
|
€6.5bn
|
7.1%
|
5.5%
|
1.5%
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(0.8)%
|
(1.2)%
|
5.1%
|
20.0%
|
110bps
|
|
Second
Quarter
|
€3.4bn
|
6.8%
|
5.4%
|
1.3%
|
0.2%
|
(0.6)%
|
6.3%
|
|
|
Beauty
& Wellbeing delivered another strong performance, with
underlying sales up 7.1%, driven by volume up 5.5% and price up
1.5%. Power Brands led this growth with underlying sales growth of
11.3%.
Hair
Care delivered mid-single digit growth with positive volume and
price. Our largest hair care brand, Sunsilk grew double-digit supported
by combing cream innovations across Latin America and the continued
success of its 2023 relaunch. Dove grew high-single digit led by
volume growth following the launch of Scalp + Hair Therapy, for
improved scalp health and hair density. Clear and TRESemmé grew well with the
continued expansion of our patented anti-dandruff shampoo and our
new Lamellar Shine range.
Core
Skin Care grew mid-single digit led by strong volume growth in our
top brands. Vaseline grew strong double-digit
supported by its premium ranges, including Radiant X and Gluta Hya,
which continue to be rolled out to new markets. Pond's continued to deliver
high-single digit growth led by volume, following its 2023
relaunch.
Health
& Wellbeing and Prestige Beauty combined delivered double-digit
growth for the 14th consecutive
quarter. This was led by very strong growth in Health &
Wellbeing, while softer growth in Prestige Beauty reflected a
slowdown in the US beauty market. Liquid IV grew strong double-digit
with the continued success of its sugar-free variant, launch of new
flavours supported by prominent social media campaigns, and ongoing
international roll-out. Olly and Nutrafol contributed double-digit
volume growth. In H1, Nutrafol extended into skin care
with a daily supplement designed to address the root causes of acne
and Olly drove
good growth in China supported by its focus on female health
supplements. Tatcha and Hourglass grew double-digit,
while Paula's
Choice was affected by the market
slowdown.
Underlying
operating profit was €1.3 billion, up 11% versus prior year.
Underlying operating margin increased 110bps to 20.0% driven by
gross margin improvement, which supported a step-up in brand and
marketing investment.
Personal
Care (22% of Group turnover)
In Personal Care, we focus on winning with science-led brands that
deliver unmissable superiority to our consumers across Deodorants,
Skin Cleansing, and Oral Care. Our priorities include developing
superior technology and multi-year innovation platforms, leveraging
partnerships with our customers, and expanding into premium areas
and digital channels
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in
UOM
|
|
First
Half
|
€7.0bn
|
5.6%
|
2.9%
|
2.6%
|
(3.4)%
|
(1.4)%
|
0.6%
|
23.0%
|
300bps
|
|
Second
Quarter
|
€3.5bn
|
6.4%
|
4.4%
|
1.9%
|
(4.1)%
|
(1.6)%
|
0.3%
|
|
|
Personal
Care delivered balanced growth with underlying sales up 5.6%, 2.9%
from volume and 2.6% from price. Performance was led by the Power
Brands with 7.0% underlying sales growth.
Deodorants
continued to deliver double-digit growth, with high-single digit
volume growth led by Europe and Latin America. Dove grew double-digit with strong
volumes and expanded into the Whole Body deodorants
market.
Rexona and Axe contributed strong volume
growth with continued momentum from our multi-year innovation
platforms and our Fine Fragrance range.
Skin
Cleansing grew low-single digit with positive volume growth and
price. Growth was tempered by deflation in India and market
challenges in Indonesia. Dove delivered high-single digit
growth with good growth in Dove Men+Care. Europe grew double-digit
with mid-single digit volume supported by Dove's Body Wash relaunch. In the United
States, we launched a premium range of Dove Body Wash infused with skin
care serums including hyaluronic acid, collagen and vitamin
C.
Oral
Care continued to grow mid-single digit with positive volume and
price. Close
Up grew high-single digit with positive
volume.
Underlying
operating profit was €1.6 billion, up 16% versus prior year.
Underlying operating margin increased 300bps driven by gross margin
recovery, supporting a step-up in marketing investment. This
investment includes strategic sponsorships such as our official
partnership with UEFA EURO 2024™ and CONMEBOL Copa
América USA 2024™.
Home
Care (20% of Group turnover)
In Home Care, we focus on delivering for consumers who want
superior products that are sustainable and great value. We drive
growth through unmissable superiority in our biggest brands, in our
key markets and across channels. We have a resilient business that
spans price points and grows the market by premiumising and trading
consumers up to additional benefits.
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in
UOM
|
|
First
Half
|
€6.3bn
|
3.3%
|
4.6%
|
(1.3)%
|
-%
|
(1.3)%
|
2.0%
|
16.3%
|
400bps
|
|
Second
Quarter
|
€3.1bn
|
3.4%
|
4.9%
|
(1.4)%
|
-%
|
(1.5)%
|
1.8%
|
|
|
Home
Care delivered underlying sales growth of 3.3%, with continued good
volume growth of 4.6%, partially offset by (1.3)% price, driven
primarily by emerging markets. Underlying sales growth of the Power
Brands was up 3.7%.
Fabric
Cleaning grew low-single digit with low-single digit volume and
negative price. Growth was supported by the launch
of Persil Wonder
Wash, with our patented Pro-S technology, the first ever detergent
designed for short cycle washes. This significant innovation has
now been introduced in the UK, France and China and is on track to
be rolled out to other key markets over the next 18 months. Europe
grew double-digit with strong volumes. India and Brazil grew volume
while price declined reflecting commodity deflation, notably in our
powders portfolio.
Home
& Hygiene grew high-single digit with mid-single digit volume
and slightly positive price. Cif and Domestos grew double-digit with
double-digit volume. In H1, we expanded Domestos Power Foam to new markets
and extended the range to include specialist solutions with
long-lasting fragrance and limescale removal. Cif was supported by strong
performances across Latin America in its cream and sprays
portfolio.
Fabric
Enhancers grew high-single digit led by volume, slightly offset by
negative price. Comfort grew high-single digit
supported by the launch of our new, Botanicals and Elixir ranges,
with our patented CrystalFresh technology, delivering 10 times more
fragrance.
Underlying
operating profit was €1.0 billion, up 35% versus prior year.
Underlying operating margin increased 400bps as commodity deflation
supported a strong gross margin recovery, funding an increase in
brand and marketing investment.
Nutrition (22%
of Group turnover)
In Nutrition, our strategy is to deliver consistent, competitive
growth by offering unmissably superior products through our biggest
brands. We do this by reaching more consumers and focusing on top
dishes and high consumption seasons to satisfy consumer's
preferences on taste, health and sustainability; while delivering
productivity and resilience in our supply chain.
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in
UOM
|
|
First
Half
|
€6.7bn
|
3.2%
|
-%
|
3.2%
|
(0.4)%
|
(1.4)%
|
1.3%
|
22.3%
|
390bps
|
|
Second
Quarter
|
€3.3bn
|
2.7%
|
0.4%
|
2.2%
|
(0.3)%
|
(1.5)%
|
0.9%
|
|
|
Nutrition
underlying sales grew 3.2% in the first half, driven by price with
flat volumes. Volume growth turned positive in Q2, up 0.4%. Power
Brands, including Knorr and Hellmann's, which represented nearly 65%
of Nutrition turnover, grew 5.2%. This performance was partially
offset by volume declines of our smaller brands.
Scratch
Cooking Aids grew mid-single digit with positive volume and price,
led by Knorr. Growth was supported by
double-digit performance in Latin America where Knorr's innovation and marketing focus
on local top dishes continues to drive growth across the
portfolio.
Dressings
delivered low-single digit growth with positive volume and
price. Hellmann's grew mid-single digit
with the continued strong performance of flavoured mayo that
launched in additional markets and added new variants in North
America and Europe. Brazil grew double-digit which was enhanced by
strategic partnerships, including our second year as a sponsor of
the National Basketball Association in Brazil.
Unilever Food Solutions grew high-single digit with
mid-single digit volume, led by double-digit growth in China.
Growth was driven by the latest edition of our Future Menu's Trend
report, sparking inspiration and sales in professional kitchens,
and continued gains from our digital selling
programme.
Underlying
operating profit was €1.5 billion, up 23% versus prior year.
Underlying operating margin increased 390bps with a strong recovery
in gross margin driven by normalising commodity costs and SKU
optimisation. Gross margin improvement supported an increase in
brand and marketing investment.
Ice
Cream (15% of Group turnover)
In Ice Cream, our immediate strategic priority is to expand
operating profit and global market share. We will do this by
building the unmissable superiority of our brands, accelerating
market development in emerging markets, continuing to lead the
industry on innovation and premiumisation, and by stepping up our
performance and productivity. In March, we announced the planned
separation of Ice Cream which we expect to be completed by the end
of 2025. The separation will create a world-leading business,
operating in a highly attractive category with five of the top 10
selling global ice cream brands.
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change
in
UOM
|
|
First
Half
|
€4.6bn
|
0.6%
|
(1.0)%
|
1.6%
|
1.9%
|
0.3%
|
2.8%
|
14.6%
|
(40)bps
|
|
Second
Quarter
|
€2.8bn
|
(0.5)%
|
(1.1)%
|
0.6%
|
1.9%
|
0.5%
|
2.0%
|
|
|
Ice
Cream had a disappointing start to its key season, with underlying
sales up 0.6%. 1.6% underlying price growth was partially offset by
negative volume of (1.0)%.
Performance
remains below our ambition, having been impacted by a soft start to
the European key season and challenging market dynamics in China.
In-home Ice Cream delivered flat price and volume, while
out-of-home Ice Cream grew low-single digit driven by
price.
Wall's grew mid-single digit with positive volume and
price, Ben &
Jerry's was slightly up, while sales
of Cornetto were
adversely affected by the decline in China. Magnum launched its new 'Pleasure
Express' range with 3 variants: Euphoria, Wonder and
Chill.
Ice
Cream continues to focus on operational improvements, including
service and optimising promotions, while continuing to drive
investment behind our brands and innovations.
Underlying
operating profit was €0.7 billion, flat versus prior year.
Underlying operating margin declined (40)bps as gross margin
improvement was offset by an increase in brand and marketing
investment. Cost inflation of key commodities continued, driven by
cocoa and sugar.
|
First
Half Review: Geographical Areas
|
|
|
First
Half 2024
|
Second
Quarter 2024
|
||||||
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Unilever
|
€31.1bn
|
4.1%
|
2.6%
|
1.6%
|
€16.1bn
|
3.9%
|
2.9%
|
1.0%
|
|
Asia Pacific
Africa
|
€13.4bn
|
3.5%
|
2.4%
|
1.0%
|
€6.7bn
|
3.4%
|
2.4%
|
0.9%
|
|
The
Americas
|
€11.4bn
|
5.4%
|
3.9%
|
1.5%
|
€5.9bn
|
5.0%
|
3.8%
|
1.1%
|
|
Europe
|
€6.3bn
|
3.5%
|
0.5%
|
2.9%
|
€3.5bn
|
3.0%
|
2.2%
|
0.8%
|
|
|
First
Half 2024
|
Second
Quarter 2024
|
||||||
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
Emerging
markets
|
€18.2bn
|
5.1%
|
3.8%
|
1.3%
|
€9.2bn
|
4.8%
|
3.7%
|
1.1%
|
|
Developed
markets
|
€12.9bn
|
2.8%
|
0.8%
|
2.0%
|
€6.9bn
|
2.6%
|
1.8%
|
0.8%
|
|
North
America
|
€6.7bn
|
3.4%
|
2.0%
|
1.4%
|
€3.5bn
|
3.2%
|
2.5%
|
0.7%
|
|
Latin
America
|
€4.7bn
|
8.8%
|
7.0%
|
1.6%
|
€2.4bn
|
8.0%
|
6.0%
|
1.9%
|
Asia
Pacific Africa (43% of Group turnover)
Underlying
sales growth was 3.5% with 2.4% from volume and 1.0% from
price.
India
grew 1.2% as volume sequentially improved in Q2 to 3.8%. Volume was
partially offset by negative price linked to lower commodity costs
in several categories. China declined reflecting weaker market
growth in most of our categories and low consumer confidence.
Despite the overall market dynamic, Unilever Food Solutions delivered
double-digit growth in China, building on its double-digit growth
in H1 2023. Underlying sales declined (5.7)% in
Indonesia, with negative price and volume. This largely reflects
the ongoing impact of some Indonesian consumers avoiding
multinational brands and the need for operational
improvements.
Africa
grew double-digit with positive price and volume. Turkey delivered
strong double-digit volume growth in a hyperinflationary
environment.
The
Americas (37% of Group turnover)
Underlying
sales grew 3.4% in North America with 2.0% from volume and 1.4%
from price. Beauty & Wellbeing delivered volume-led high-single
digit growth, driven by a strong performance in Health &
Wellbeing. Personal Care grew low-single digit driven by price as
we lapped a particularly strong prior year comparator in
Deodorants. Nutrition grew low-single digit with positive volume
and price, led by continued growth in Dressings. Ice Cream was flat
with positive volume and negative price as we optimised
promotions.
Underlying
sales in Latin America grew 8.8% with 7.0% volume and 1.6% price.
Growth was broad-based with all Business Groups. Personal Care and
Beauty & Wellbeing grew double-digit with strong volumes and
positive price. Home Care contributed high-single digit volume
growth, which was largely offset by negative price. Nutrition grew
high-single digit with positive price and volume led
by Knorr and Hellmann's. Brazil grew high-single
digit led by volume, with strong volume growth in Deodorants,
Dressings, and Home Care categories. Price was negative largely due
to commodity deflation in Home Care. Mexico grew double-digit with
all Business Groups growing volume and price. Argentina performed
well in a challenging environment, delivering double-digit volume
growth despite hyperinflationary pricing.
Europe (20%
of Group turnover)
Underlying
sales grew 3.5% with 2.9% price and 0.5% volume growth. Helped by
strong innovations and a step-up in brand support, Europe delivered
2.2% volume growth in Q2. It was the first positive UVG since Q2
2021 despite a soft start of the key ice cream season. Home Care
and Personal Care grew double-digit led by volume growth, which was
supported by strong innovations across Domestos, Persil, and Dove. Nutrition declined low-single
digit but returned to growth in Q2 with positive volume. Ice Cream
declined low-single digit impacted by poor weather. The United
Kingdom, Germany and Eastern Europe grew well with positive
volumes.
|
Additional
commentary on the financial statements - First Half
|
Finance
costs and tax
Net
finance costs increased by €99 million to €358 million
in 2024. This was largely driven by the higher cost of debt on
bonds, a lower interest credit from pensions, partially offset by a
slightly higher interest income. As a result, net finance costs
were 2.9% on average net debt. For full year 2024, we now expect
net finance costs of around 3% on average net debt.
The
underlying effective tax rate for the first half increased to 26.0%
from 24.2% in the prior year, due to a number of factors including
lower benefits from tax settlements and other one-off items. For
full year 2024, we raise our guidance for the underlying effective
tax rate to around 26%, from around 25% previously. The effective
tax rate was 28.6%, up from 26.9% in the prior year.
Joint
ventures, associates and other income from non-current
investments
Net
profit from joint ventures and associates was €138 million,
an increase of €20 million compared to 2023, mainly driven by
the Pepsi-Lipton JVs. Other income from non-current investments was
negative at €(5) million, versus €(10) million in the
prior year.
Earnings
per share
Underlying
earnings per share increased 16.3% to €1.62, including (1.0)%
of adverse currency. The increase primarily reflects a strong
operational performance and a reduction in the average number of
shares as a result of the share buyback programme, which
contributed 1.0%. These were partially offset by higher tax and net
finance costs. Diluted earnings per share of €1.47 increased
by 5.4% versus the prior year that was boosted by profits on
disposal.
Restructuring
costs
Restructuring
costs were €248 million in the first half, up from €184
million in the prior year. For full year 2024, we anticipate
restructuring costs of around 1.2% of Group turnover, with the
step-up in the second half driven by cost related to the
implementation of the productivity programme.
Free
cash flow
Free
cash flow in the first half of 2024 was €2.2 billion versus
€2.5 billion delivered in the first half of 2023. The
increase in operating profit was more than offset by a higher
seasonal outflow in working capital, a step-up in capital
expenditure, and higher income tax paid.
Net
debt
Closing
net debt was €25.2 billion compared to €23.7 billion as
at 31 December 2023. This translated into a net debt / Underlying
EBITDA ratio of 2.0x. The increase in net debt was driven by
dividends paid, €375 million of the share buyback programme
executed during the first half, partially offset by free cash flow
delivery.
Pensions
Pension
assets net of liabilities were in surplus of €2.7 billion at
30 June 2024 versus a surplus of €2.4 billion at the end of
2023. The increase was primarily driven by strong investment
returns in the first half.
Financial
implications and impairment risk in Russia
Our
Russia business employs approximately 3,000 people in Russia and in
the first six months of 2024 the business represented around 1% of
the Group's turnover and net profit. As at 30 June 2024, our Russia
business had net assets of around €600 million, including
four factories. We continually review our position and still
conclude that the containment actions we put in place at the
beginning of the war minimise our economic contribution to the
Russian state.
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 8
February 2024, we announced a share buyback programme of up to
€1.5 billion to be completed over 2024. The first tranche of
up to €850 million commenced on 17 May. In the first half of
2024, we repurchased 7,315,036 ordinary shares which are held by
Unilever as treasury shares. Consideration paid for the repurchase
of shares including transaction costs was €375 million which
is recorded within other reserves. The first tranche is expected to
complete on or before 30 August 2024.
Finance
and liquidity
In the
first six months of 2024, the following notes matured and were
repaid:
●
March: $500 million 3.25% fixed rate notes
●
April: €500 million 0.50% fixed rate notes
●
May: $1,000 million 2.60% fixed rate notes
The
following notes were issued:
● February:
€600 million 3.25% fixed rate notes due 15 February 2032 and
€600 million 3.50% fixed rate notes due
15
February 2037
● March:
€100 million 3.25% fixed rate notes to be consolidated and
form a single series with the €600 million 3.25% fixed rate
notes issued in February and due 15 February 2032
● June:
$170 million 4.75% fixed rate notes due 27 June 2031
On 30
June 2024, 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.
|
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.
|
|
Half
year average
rate in 2024
|
Half
year average
rate
in 2023
|
|
Brazilian
Real (€1 = BRL)
|
5.478
|
5.493
|
|
Chinese
Yuan (€1 = CNY)
|
7.732
|
7.475
|
|
Indian
Rupee (€1 = INR)
|
90.004
|
88.860
|
|
Indonesia
Rupiah (€1 = IDR)
|
17,180
|
16,277
|
|
Philippine
Peso (€1 = PHP)
|
61.459
|
59.674
|
|
UK
Pound Sterling (€1 = GBP)
|
0.855
|
0.877
|
|
US
Dollar (€1 = US $)
|
1.082
|
1.081
|
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 of turnover to USG is
as follows:
|
(unaudited)
|
Beauty
&
Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
|
Second
Quarter (%)
|
|
|
|
|
|
|
|
Turnover
growth
|
6.3
|
0.3
|
1.8
|
0.9
|
2.0
|
2.2
|
|
Effect
of acquisitions
|
1.0
|
-
|
-
|
-
|
1.9
|
0.5
|
|
Effect
of disposals
|
(0.8)
|
(4.1)
|
-
|
(0.3)
|
-
|
(1.1)
|
|
Effect
of currency-related items, of which:
|
(0.6)
|
(1.6)
|
(1.5)
|
(1.5)
|
0.5
|
(1.0)
|
|
Exchange rates changes
|
(2.3)
|
(3.2)
|
(4.9)
|
(3.3)
|
(1.5)
|
(3.1)
|
|
Extreme price growth in hyperinflationary markets*
|
1.7
|
1.6
|
3.5
|
1.9
|
2.1
|
2.1
|
|
Underlying
sales growth
|
6.8
|
6.4
|
3.4
|
2.7
|
(0.5)
|
3.9
|
|
First
Half (%)
|
|
|
|
|
|
|
|
Turnover
growth
|
5.1
|
0.6
|
2.0
|
1.3
|
2.8
|
2.3
|
|
Effect
of acquisitions
|
0.9
|
-
|
-
|
-
|
1.9
|
0.5
|
|
Effect
of disposals
|
(1.6)
|
(3.4)
|
-
|
(0.4)
|
-
|
(1.2)
|
|
Effect
of currency-related items, of which:
|
(1.2)
|
(1.4)
|
(1.3)
|
(1.4)
|
0.3
|
(1.1)
|
|
Exchange rates changes
|
(2.7)
|
(3.2)
|
(4.5)
|
(3.1)
|
(1.6)
|
(3.1)
|
|
Extreme price growth in hyperinflationary markets*
|
1.6
|
1.9
|
3.4
|
1.7
|
2.0
|
2.1
|
|
Underlying
sales growth
|
7.1
|
5.6
|
3.3
|
3.2
|
0.6
|
4.1
|
*Underlying
price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales
growth in the tables above, and an equal and opposite amount is
shown as extreme price growth in hyperinflationary
markets.
|
(unaudited)
|
Asia
Pacific
Africa
|
The
Americas
|
Europe
|
Total
|
|
Second
Quarter (%)
|
|
|
|
|
|
Turnover
growth
|
0.5
|
3.9
|
2.9
|
2.2
|
|
Effect
of acquisitions
|
-
|
1.5
|
-
|
0.5
|
|
Effect
of disposals
|
(0.2)
|
(2.5)
|
(0.7)
|
(1.1)
|
|
Effect
of currency-related items, of which:
|
(2.6)
|
-
|
0.5
|
(1.0)
|
|
Exchange rates changes
|
(4.2)
|
(3.8)
|
0.5
|
(3.1)
|
|
Extreme price growth in hyperinflationary markets*
|
1.8
|
3.9
|
-
|
2.1
|
|
Underlying
sales growth
|
3.4
|
5.0
|
3.0
|
3.9
|
|
First
Half (%)
|
|
|
|
|
|
Turnover
growth
|
(0.4)
|
4.6
|
3.8
|
2.3
|
|
Effect
of acquisitions
|
-
|
1.3
|
-
|
0.5
|
|
Effect
of disposals
|
(0.2)
|
(2.8)
|
(0.4)
|
(1.2)
|
|
Effect
of currency-related items, of which:
|
(3.5)
|
0.9
|
0.7
|
(1.1)
|
|
Exchange rates changes
|
(4.9)
|
(3.0)
|
0.7
|
(3.1)
|
|
Extreme price growth in hyperinflationary markets*
|
1.5
|
4.1
|
-
|
2.1
|
|
Underlying
sales growth
|
3.5
|
5.4
|
3.5
|
4.1
|
*Underlying
price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales
growth in the tables above, and an equal and opposite amount is
shown as extreme price growth in hyperinflationary
markets.
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.
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.
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.
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.
The
breakdown of non-underlying items is shown below:
|
€
million
|
First
Half
|
|
|
(unaudited)
|
2024
|
2023
|
|
Non-underlying
items within operating profit before tax
|
(152)
|
308
|
|
Acquisition
and disposal-related costs(a)
|
(58)
|
(52)
|
|
Gain on
disposal of group companies(b)
|
155
|
528
|
|
Restructuring
costs(c)
|
(248)
|
(184)
|
|
Impairments(d)
|
-
|
(1)
|
|
Other
|
(1)
|
17
|
|
Tax on
non-underlying items within operating profit
|
(51)
|
(111)
|
|
Non-underlying
items within operating profit after tax
|
(203)
|
197
|
|
Non-underlying
items not in operating profit but within net profit before
tax
|
(160)
|
(103)
|
|
Interest
related to the UK tax audit of intangible income and centralised
services
|
(3)
|
(5)
|
|
Net
monetary loss arising from hyperinflationary economies
|
(157)
|
(98)
|
|
Tax
impact of non-underlying items not in operating profit but within
net profit:
|
(4)
|
(80)
|
|
Taxes
related to the separation of the Tea business
|
4
|
(6)
|
|
Taxes
related to the UK tax audit of intangible income and centralised
services
|
1
|
1
|
|
Hyperinflation
adjustment for Argentina and Turkey deferred tax
|
(9)
|
(75)
|
|
Non-underlying
items not in operating profit but within net profit after
tax
|
(164)
|
(183)
|
|
Non-underlying
items after tax(e)
|
(367)
|
14
|
|
Attributable
to:
|
|
|
|
Non-controlling
interests
|
(1)
|
-
|
|
Shareholders'
equity
|
(366)
|
14
|
(a)
2024 includes a charge of €36 million relating to the
acquisition of Yasso, €11 million relating to the disposal of
Elida Beauty, €6 million (2023: €4 million)
relating to the disposal of the Tea business and other acquisition
and disposal activities.
(b)
2024 includes a gain of €151 million related to the
disposal of Elida Beauty. 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)
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.
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)
|
2024
|
2023
|
|
Operating
profit
|
5,948
|
5,516
|
|
Non-underlying
items within operating profit
|
152
|
(308)
|
|
Underlying
operating profit
|
6,100
|
5,208
|
|
Turnover
|
31,117
|
30,428
|
|
Operating
margin (%)
|
19.1
|
18.1
|
|
Underlying
operating margin (%)
|
19.6
|
17.1
|
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)
|
2024
|
2023
|
|
Taxation
|
1,550
|
1,385
|
|
Tax
impact of:
|
|
|
|
Non-underlying
items within operating profit(a)
|
(51)
|
(111)
|
|
Non-underlying
items not in operating profit but within net profit(a)
|
(4)
|
(80)
|
|
Taxation
before tax impact of non-underlying items
|
1,495
|
1,194
|
|
Profit
before taxation
|
5,566
|
5,267
|
|
Share
of net (profit)/loss of joint ventures and associates
|
(138)
|
(118)
|
|
Profit
before tax excluding share of net profit/(loss) of joint ventures
and associates
|
5,428
|
5,149
|
|
Non-underlying
items within operating profit before tax(a)
|
152
|
(308)
|
|
Non-underlying
items not in operating profit but within net profit before
tax
|
160
|
103
|
|
Profit
before tax excluding non-underlying items before tax and share of
net profit/(loss) of joint ventures and associates
|
5,740
|
4,944
|
|
Effective
tax rate (%)
|
28.6
|
26.9
|
|
Underlying
effective tax rate (%)
|
26.0
|
24.2
|
(a) See
page 12.
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.
The
reconciliation of net profit attributable to shareholders' equity
to underlying profit attributable to shareholders' equity is as
follows:
|
€
million
|
First
Half
|
|
|
(unaudited)
|
2024
|
2023
|
|
Net
profit
|
4,016
|
3,882
|
|
Non-controlling
interest
|
(315)
|
(334)
|
|
Net
profit attributable to shareholders' equity - used for basic and
diluted earnings per share
|
3,701
|
3,548
|
|
Post-tax
impact of non-underlying items attributable to shareholders'
equity
|
366
|
(14)
|
|
Underlying
profit attributable to shareholders' equity - used for basic and
diluted earnings per share
|
4,067
|
3,534
|
|
Adjusted
average number of shares (millions of share units)
|
2,511.0
|
2,536.8
|
|
Diluted
EPS (€)
|
1.47
|
1.40
|
|
Underlying
EPS - diluted (€)
|
1.62
|
1.39
|
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)
|
2024
|
2023
|
|
Underlying
profit attributable to shareholders' equity
|
4,067
|
3,534
|
|
Impact
of translation from current to constant exchange rates and
translational hedges
|
75
|
(104)
|
|
Impact
of price growth in excess of 26% per year in hyperinflationary
economies
|
(159)
|
-
|
|
Constant
underlying earnings attributable to shareholders'
equity
|
3,983
|
3,430
|
|
Diluted
average number of share units (millions of units)
|
2,511.0
|
2,536.8
|
|
Constant
underlying EPS (€)
|
1.59
|
1.35
|
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 2024
|
As at
31 December 2023
|
As at
30 June 2023
|
|
(unaudited)
|
|||
|
Total
financial liabilities
|
(31,654)
|
(29,622)
|
(30,708)
|
|
Current
financial liabilities
|
(7,643)
|
(5,087)
|
(6,715)
|
|
Non-current
financial liabilities
|
(24,011)
|
(24,535)
|
(23,993)
|
|
Cash
and cash equivalents as per balance sheet
|
4,970
|
4,159
|
4,994
|
|
Cash
and cash equivalents as per cash flow statement
|
4,854
|
4,045
|
4,870
|
|
Add:
bank overdrafts deducted therein
|
116
|
116
|
124
|
|
Less:
cash and cash equivalents held for sale
|
-
|
(2)
|
-
|
|
Other
current financial assets
|
1,445
|
1,731
|
1,376
|
|
Non-current
financial asset derivatives that relate to financial
liabilities
|
39
|
75
|
31
|
|
Net
debt
|
(25,200)
|
(23,657)
|
(24,307)
|
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)
|
2024
|
2023
|
|
Cash
flow from operating activities
|
4,679
|
4,377
|
|
Income
tax paid
|
(1,315)
|
(1,011)
|
|
Net
capital expenditure
|
(710)
|
(548)
|
|
Net
interest paid
|
(502)
|
(364)
|
|
Free
cash flow
|
2,152
|
2,454
|
|
Net
cash flow (used in)/from investing activities
|
(392)
|
(200)
|
|
Net
cash flow (used in)/from financing activities
|
(2,154)
|
(2,489)
|
|
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 19 to 28; (ii)
pages 2 to 15 comprise the interim management
report; and (iii) the Directors' responsibility statement can be
found on page 17. 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.
|
Principal
Risk Factors
|
On
pages 71 to 78 of our 2023 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 2024.
|
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, concerning
the financial condition, results of operations and businesses of
the Unilever Group (the 'Group'). All statements other than
statements of historical fact are, or may be deemed to be,
forward-looking statements. Words and terminology such as 'will',
'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes',
'vision', 'ambition', 'target', 'goal', 'plan', 'potential', 'work
towards', 'may', 'milestone', 'objectives', 'outlook', 'probably',
'project', 'risk', 'seek', 'continue', 'projected', 'estimate',
'achieve' or the negative of these terms, and other similar
expressions of future performance, results, actions or events, and
their negatives, are intended to identify such forward-looking
statements. Forward-looking statements also include, but are not
limited to, statements and information regarding Unilever's
acceleration of its Growth Action Plan, Unilever's portfolio
optimisation towards global or scalable brands, the capabilities
and potential of such brands, the various aspects of the separation
of Ice Cream and its future operational model, strategy, growth
potential, performance and returns, Unilever's productivity
programme, its impacts and cost savings over the next three years
and operation dis-synergies from the separation of Ice Cream, the
Group's emissions reduction targets and other climate change
related matters (including actions, potential impacts and risks
associated therewith). Forward-looking statements can be made in
writing but also may be made verbally by directors, officers and
employees of the Group (including during management presentations)
in connection with this announcement. These forward-looking
statements are based upon current beliefs, expectations and
assumptions regarding anticipated developments and other factors
affecting the Group. They are not historical facts, nor are they
guarantees of future performance or outcomes. All forward-looking
statements contained in this announcement are expressly qualified
in their entirety by the cautionary statements contained or
referred to in this section. Readers should not place undue
reliance on forward-looking statements.
Because
these forward-looking statements involve known and unknown risks
and uncertainties, a number of which may be beyond the Group's
control, 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 from the forward-looking
statements expressed in this announcement are: Unilever's ability
to successfully separate Ice Cream and realise the anticipated
benefits of the separation; Unilever's ability to successfully
execute and consummate its productivity programme in line with
expected costs to achieve expected savings; 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 Unilever's 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.
The
forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or
regulation, the Group expressly disclaims any intention, 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. New risks and uncertainties arise over time, and it is not
possible for us to predict those events or how they may affect us.
In addition, we cannot assess the impact of each factor on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
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 2023 and
the Unilever Annual Report and Accounts 2023.
|
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
2023.
Details
of all current Directors are available on our website at
www.unilever.com
By
order of the Board
Hein
Schumacher
Fernando Fernandez
Chief
Executive Officer
Chief Financial Officer
25 July
2024
|
Enquiries
|
|
Media:
Media Relations Team
|
Investors: Investor
Relations Team
|
|||
|
UK
|
+44 78
2527 3767
|
lucila.zambrano@unilever.com
|
investor.relations@unilever.com
|
|
|
or
|
+44 77
7999 9683
|
jonathan.sibun@teneo.com
|
|
|
|
NL
|
+31 62
191 3705
|
kiran.hofker@unilever.com
|
|
|
|
or
|
+31 61
500 8293
|
fleur-van.bruggen@unilever.com
|
|
|
After
the conference call on 25 July 2024 at 8:00 AM (UK time), the
webcast of the presentation will be available at: www.unilever.com/investor-relations/results-and-presentations/latest-results.
This
Results Presentation has been submitted to the FCA National Storage
Mechanism and is available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
|
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 ("Group") in the 2024 First Half Results for the six
months ended 30 June 2024 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
2024 First Half Results for the six months ended 30 June 2024 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 2024
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
2024 First Half Results is the responsibility of, and has been
approved by, the directors. The directors are responsible for
preparing the 2024 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 2024 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 2024 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
25
July 2024
|
Consolidated
income statement
|
|
€
million
|
First
Half
|
||
|
(unaudited)
|
2024
|
2023
|
Change
|
|
Turnover
|
31,117
|
30,428
|
2.3%
|
|
Operating
profit
|
5,948
|
5,516
|
7.8%
|
|
Net
finance costs
|
(358)
|
(259)
|
|
|
Pensions
and similar obligations
|
35
|
50
|
|
|
Finance
income
|
217
|
208
|
|
|
Finance
costs
|
(610)
|
(517)
|
|
|
Net
monetary gain/(loss) arising from hyperinflationary
economies
|
(157)
|
(98)
|
|
|
Share
of net profit/(loss) of joint ventures and associates
|
138
|
118
|
|
|
Other
income/(loss) from non-current investments and
associates
|
(5)
|
(10)
|
|
|
Profit
before taxation
|
5,566
|
5,267
|
5.7%
|
|
Taxation
|
(1,550)
|
(1,385)
|
|
|
Net
profit
|
4,016
|
3,882
|
3.5%
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
Non-controlling
interests
|
315
|
334
|
|
|
Shareholders'
equity
|
3,701
|
3,548
|
4.3%
|
|
Earnings
per share
|
|
|
|
|
Basic
earnings per share (euros)
|
1.48
|
1.41
|
5.3%
|
|
Diluted
earnings per share (euros)
|
1.47
|
1.40
|
5.4%
|
|
Consolidated
statement of comprehensive income
|
|
€
million
|
First
Half
|
|
|
(unaudited)
|
2024
|
2023
|
|
Net
profit
|
4,016
|
3,882
|
|
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
|
31
|
(34)
|
|
Remeasurement
of defined benefit pension plans
|
201
|
(47)
|
|
Items
that may be reclassified subsequently to profit or loss, net of
tax:
|
|
|
|
Gains/(losses)
on cash flow hedges
|
58
|
(22)
|
|
Currency
retranslation gains/(losses)
|
756
|
(555)
|
|
Total
comprehensive income
|
5,062
|
3,224
|
|
|
|
|
|
Attributable
to:
|
|
|
|
Non-controlling
interests
|
379
|
284
|
|
Shareholders'
equity
|
4,683
|
2,940
|
|
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 - 2024
|
|
|
|
|
|
|
|
|
|
1
January 2024
|
88
|
52,844
|
(73,364)
|
(8,518)
|
47,052
|
18,102
|
2,662
|
20,764
|
|
Profit
or loss for the period
|
-
|
-
|
-
|
-
|
3,701
|
3,701
|
315
|
4,016
|
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
Gains/(losses)
on:
|
|
|
|
|
|
|
|
|
|
Equity
instruments
|
-
|
-
|
-
|
31
|
-
|
31
|
-
|
31
|
|
Cash
flow hedges
|
-
|
-
|
-
|
58
|
-
|
58
|
-
|
58
|
|
Remeasurements
of defined benefit pension plans
|
-
|
-
|
-
|
-
|
200
|
200
|
1
|
201
|
|
Currency
retranslation gains/(losses)(d)
|
-
|
-
|
-
|
10
|
683
|
693
|
63
|
756
|
|
Total
comprehensive income
|
-
|
-
|
-
|
99
|
4,584
|
4,683
|
379
|
5,062
|
|
Dividends
on ordinary capital
|
-
|
-
|
-
|
-
|
(2,136)
|
(2,136)
|
-
|
(2,136)
|
|
Repurchase
of shares(a)
|
-
|
-
|
-
|
(375)
|
-
|
(375)
|
-
|
(375)
|
|
Movements
in treasury shares(b)
|
-
|
-
|
-
|
25
|
(100)
|
(75)
|
-
|
(75)
|
|
Share-based
payment credit(c)
|
-
|
-
|
-
|
-
|
164
|
164
|
-
|
164
|
|
Dividends
paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(354)
|
(354)
|
|
Hedging
gain/(loss) transferred to non-financial assets
|
-
|
-
|
-
|
1
|
-
|
1
|
-
|
1
|
|
Other
movements in equity(e)
|
-
|
-
|
-
|
(59)
|
3
|
(56)
|
28
|
(28)
|
|
30 June
2024
|
88
|
52,844
|
(73,364)
|
(8,827)
|
49,567
|
20,308
|
2,715
|
23,023
|
|
|
|
|
|
|
|
|
|
|
|
First
half - 2023
|
|
|
|
|
|
|
|
|
|
1
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)(d)
|
-
|
-
|
-
|
(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
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
|
(a)
Repurchase of shares reflects the cost of acquiring ordinary shares
as part of the share buyback program announced on 10 February 2022
and 8 February 2024.
(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)
2024 includes a hyperinflation adjustment of
€680 million (2023: €247 million) in relation
to Argentina and Turkey.
(e)
Includes the following items related to the acquisition of K18:
€(59) million non-controlling interest purchase option
in other reserves and €28 million non-controlling
interest recognised on acquisition.
|
Consolidated
balance sheet
|
|
(unaudited)
|
|
|
|
|
€
million
|
As at 30
June
2024
|
As at
31
December 2023
|
As at 30
June
2023
|
|
Non-current
assets
|
|
|
|
|
Goodwill
|
22,009
|
21,109
|
21,299
|
|
Intangible
assets
|
19,092
|
18,357
|
18,664
|
|
Property,
plant and equipment
|
11,098
|
10,707
|
10,590
|
|
Pension
asset for funded schemes in surplus
|
3,837
|
3,781
|
4,244
|
|
Deferred
tax assets
|
1,055
|
1,113
|
1,084
|
|
Financial
assets
|
1,506
|
1,386
|
1,220
|
|
Other
non-current assets
|
1,014
|
911
|
952
|
|
|
59,611
|
57,364
|
58,053
|
|
Current
assets
|
|
|
|
|
Inventories
|
5,621
|
5,119
|
5,668
|
|
Trade
and other current receivables
|
7,999
|
5,775
|
8,046
|
|
Current
tax assets
|
168
|
427
|
254
|
|
Cash
and cash equivalents
|
4,970
|
4,159
|
4,994
|
|
Other
financial assets
|
1,445
|
1,731
|
1,376
|
|
Assets
held for sale
|
18
|
691
|
18
|
|
|
20,221
|
17,902
|
20,356
|
|
|
|
|
|
|
Total
assets
|
79,832
|
75,266
|
78,409
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Financial
liabilities
|
7,643
|
5,087
|
6,715
|
|
Trade
payables and other current liabilities
|
17,209
|
16,857
|
17,367
|
|
Current
tax liabilities
|
721
|
851
|
891
|
|
Provisions
|
557
|
537
|
634
|
|
Liabilities
held for sale
|
-
|
175
|
-
|
|
|
26,130
|
23,507
|
25,607
|
|
Non-current
liabilities
|
|
|
|
|
Financial
liabilities
|
24,011
|
24,535
|
23,993
|
|
Non-current
tax liabilities
|
494
|
384
|
280
|
|
Pensions
and post-retirement healthcare liabilities:
|
|
|
|
|
Funded
schemes in deficit
|
144
|
351
|
431
|
|
Unfunded
schemes
|
1,002
|
1,029
|
1,040
|
|
Provisions
|
581
|
563
|
547
|
|
Deferred
tax liabilities
|
4,263
|
3,995
|
4,410
|
|
Other
non-current liabilities
|
184
|
138
|
180
|
|
|
30,679
|
30,995
|
30,881
|
|
|
|
|
|
|
Total
liabilities
|
56,809
|
54,502
|
56,488
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Shareholders'
equity
|
20,308
|
18,102
|
19,257
|
|
Non-controlling
interests
|
2,715
|
2,662
|
2,664
|
|
Total
equity
|
23,023
|
20,764
|
21,921
|
|
|
|
|
|
|
Total
liabilities and equity
|
79,832
|
75,266
|
78,409
|
|
Consolidated
cash flow statement
|
|
(unaudited)
|
First
Half
|
|
|
€
million
|
2024
|
2023
|
|
Net
profit
|
4,016
|
3,882
|
|
Taxation
|
1,550
|
1,385
|
|
Share
of net (profit)/loss of joint ventures/associates and other
(income)/loss from non-current investments and
associates
|
(133)
|
(108)
|
|
Net
monetary (gain)/loss arising from hyperinflationary
economies
|
157
|
98
|
|
Net
finance costs
|
358
|
259
|
|
Operating
profit
|
5,948
|
5,516
|
|
|
|
|
|
Depreciation,
amortisation and impairment
|
794
|
754
|
|
Changes
in working capital
|
(2,127)
|
(1,331)
|
|
Inventories
|
(435)
|
100
|
|
Trade
and other receivables
|
(2,159)
|
(1,229)
|
|
Trade
payables and other liabilities
|
467
|
(202)
|
|
Pensions
and similar obligations less payments
|
36
|
(103)
|
|
Provisions
less payments
|
35
|
(122)
|
|
Elimination
of (profits)/losses on disposals
|
(135)
|
(507)
|
|
Non-cash
charge for share-based compensation
|
164
|
159
|
|
Other
adjustments
|
(36)
|
11
|
|
Cash
flow from operating activities
|
4,679
|
4,377
|
|
Income
tax paid
|
(1,315)
|
(1,011)
|
|
Net
cash flow from operating activities
|
3,364
|
3,366
|
|
|
|
|
|
Interest
received
|
189
|
139
|
|
Purchase
of intangible assets
|
(98)
|
(92)
|
|
Purchase
of property, plant and equipment
|
(617)
|
(478)
|
|
Disposal
of property, plant and equipment
|
5
|
22
|
|
Acquisition
of businesses and investments in joint ventures and
associates
|
(797)
|
(67)
|
|
Disposal
of businesses, joint ventures and associates
|
489
|
419
|
|
Acquisition
of other non-current investments
|
(108)
|
(202)
|
|
Disposal
of other non-current investments
|
47
|
37
|
|
Dividends
from joint ventures, associates and other non-current
investments
|
94
|
98
|
|
(Purchase)/sale
of financial assets
|
404
|
(76)
|
|
Net
cash flow (used in)/from investing activities
|
(392)
|
(200)
|
|
|
|
|
|
Dividends
paid on ordinary share capital
|
(2,136)
|
(2,202)
|
|
Interest
paid
|
(691)
|
(503)
|
|
Net
change in short-term borrowings
|
850
|
158
|
|
Additional
financial liabilities
|
3,016
|
3,511
|
|
Repayment
of financial liabilities
|
(2,297)
|
(2,242)
|
|
Capital
element of lease rental payments
|
(191)
|
(197)
|
|
Repurchase
of shares
|
(375)
|
(753)
|
|
Other
financing activities
|
(330)
|
(261)
|
|
Net
cash flow (used in)/from financing activities
|
(2,154)
|
(2,489)
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
818
|
677
|
|
|
|
|
|
Cash
and cash equivalents at the beginning of the period
|
4,045
|
4,225
|
|
|
|
|
|
Effect
of foreign exchange rate changes
|
(9)
|
(32)
|
|
|
|
|
|
Cash
and cash equivalents at the end of the period
|
4,854
|
4,870
|
|
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 2023. 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 2023.
These
condensed consolidated financial statements have been reviewed by
our independent auditor KPMG LLP.
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 2024 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 19, the
consolidated statement of comprehensive income on page 19, the
consolidated statement of changes in equity on
page 20 and the consolidated cash flow statement on
page 22 are translated at exchange rates current in each
period. The consolidated balance sheet on page 21 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 2023 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 2023 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.
Recent
accounting developments adopted by the Group
The
Group adopted the amendments to IAS 7 and IFRS 7 "Supplier Finance
Arrangements" from reporting period beginning 1 January 2024. The
amendments introduce additional disclosure requirements for
companies that enter supplier finance arrangements. The company
will apply these amendments in the 2024 Annual Report.
All
other standards or amendments to the standards that have been
issued by the IASB and were effective 1 January 2024 were not
applicable or material to Unilever.
|
2.
Segment information - Business Groups
|
|
Second
Quarter
|
Beauty
&
Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
|
Turnover
(€ million)
|
|
|
|
|
|
|
|
2023
|
3,143
|
3,519
|
3,057
|
3,260
|
2,760
|
15,739
|
|
2024
|
3,343
|
3,531
|
3,113
|
3,289
|
2,815
|
16,091
|
|
Change
(%)
|
6.3
|
0.3
|
1.8
|
0.9
|
2.0
|
2.2
|
|
First
Half
|
Beauty
&
Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
|
Turnover
(€ million)
|
|
|
|
|
|
|
|
2023
|
6,225
|
6,911
|
6,205
|
6,601
|
4,486
|
30,428
|
|
2024
|
6,539
|
6,953
|
6,328
|
6,687
|
4,610
|
31,117
|
|
Change
(%)
|
5.1
|
0.6
|
2.0
|
1.3
|
2.8
|
2.3
|
|
|
|
|
|
|
|
|
|
Operating
profit (€ million)
|
|
|
|
|
|
|
|
2023
|
1,237
|
1,691
|
731
|
1,213
|
644
|
5,516
|
|
2024
|
1,269
|
1,696
|
963
|
1,423
|
597
|
5,948
|
|
Underlying
operating profit (€ million)
|
|
|
|
|
|
|
|
2023
|
1,179
|
1,381
|
763
|
1,214
|
671
|
5,208
|
|
2024
|
1,305
|
1,601
|
1,031
|
1,491
|
672
|
6,100
|
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.
|
3.
Segment information - Geographical area
|
|
Second
Quarter
|
Asia
Pacific
Africa
|
The
Americas
|
Europe
|
Total
|
|
Turnover
(€ million)
|
|
|
|
|
|
2023
|
6,699
|
5,700
|
3,340
|
15,739
|
|
2024
|
6,732
|
5,924
|
3,435
|
16,091
|
|
Change
(%)
|
0.5
|
3.9
|
2.9
|
2.2
|
|
First
Half
|
Asia
Pacific
Africa
|
The
Americas
|
Europe
|
Total
|
|
Turnover
(€ million)
|
|
|
|
|
|
2023
|
13,421
|
10,956
|
6,051
|
30,428
|
|
2024
|
13,370
|
11,463
|
6,284
|
31,117
|
|
Change
(%)
|
(0.4)
|
4.6
|
3.8
|
2.3
|
|
4.
Taxation
|
The
effective tax rate for the first half is 28.6% compared with 26.9%
in 2023. 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
|
|||||
|
|
2024
|
2023
|
||||
|
€
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
|
31
|
-
|
31
|
(34)
|
-
|
(34)
|
|
Cash
flow hedges
|
63
|
(5)
|
58
|
(20)
|
(2)
|
(22)
|
|
Remeasurements
of defined benefit pension plans
|
242
|
(41)
|
201
|
(90)
|
43
|
(47)
|
|
Currency
retranslation gains/(losses)
|
772
|
(16)
|
756
|
(535)
|
(20)
|
(555)
|
|
Other
comprehensive income
|
1,108
|
(62)
|
1,046
|
(679)
|
21
|
(658)
|
|
5.
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, 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 six months were calculated
as follows:
|
|
First
Half
|
|
|
|
2024
|
2023
|
|
EPS -
Basic
|
|
|
|
Net
profit attributable to shareholders' equity (€
million)
|
3,701
|
3,548
|
|
Average
number of shares (millions of share units)
|
2,499.9
|
2,523.9
|
|
EPS -
basic (€)
|
1.48
|
1.41
|
|
|
|
|
|
EPS -
Diluted
|
|
|
|
Net
profit attributable to shareholders' equity (€
million)
|
3,701
|
3,548
|
|
Adjusted
average number of shares (millions of share units)
|
2,511.0
|
2,536.8
|
|
EPS -
diluted (€)
|
1.47
|
1.40
|
During
the period the following movements in shares have taken
place:
|
|
Millions
|
|
Number
of shares at 31 December 2023 (net of treasury shares)
|
2,499.0
|
|
Shares
repurchased under the share buyback programme
|
(7.3)
|
|
Net
movements in shares under incentive schemes
|
3.7
|
|
Number
of shares at 30 June 2024 (net of treasury shares)
|
2,495.4
|
|
6.
Acquisitions and disposals
|
In the
first half of 2024, the Group completed the following business
acquisitions and disposals:
|
Deal
completion date
|
Acquired/disposed
business
|
|
1
February 2024
|
Acquired
91.88% of K18, a U.S. based premium hair care brand. The
acquisition complements Unilever's existing Beauty and Wellbeing
portfolio, with a range of high-quality, hair care
products.
|
|
1 June
2024
|
Sold
Elida Beauty to Yellow Wood Partners LLC. Elida Beauty comprises
more than 20 beauty and personal care brands, such as Q-Tips,
Caress, Timotei and TIGI.
|
On 1
June 2024, Unilever completed the disposal of the Elida Beauty
business to Yellow Wood Partners LLC for consideration of
€588 million. Profit on this disposal is
€151 million, recognised as a non-underlying
item.
In July
we announced agreements to sell our water purification businesses
Pureit, to A.O. Smith, and stake in Qinyuan Group, to Yong Chao
Venture Capital Co., Ltd. The deals are expected to complete in the
second half of the year.
|
7.
Share buyback
|
On 8
February 2024, Unilever PLC announced a programme to buy back
shares with an aggregate market value equivalent of up to
€1.5 billion, to be completed during 2024. On 17 May
2024, Unilever announced the commencement of the first tranche of
the buyback programme (the "First Tranche") for an aggregate market
value equivalent of up to €850 million. As at 30 June
2024, 7,315,036 shares had been purchased for €375
million, which will be held as Treasury stock until
cancellation.
|
8.
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 2024 and 2023. The
Group's cash resources and
other
financial assets are shown below.
|
|
30 June
2024
|
31
December 2023
|
30 June
2023
|
||||||
|
|
Current
|
Non-
current
|
Total
|
Current
|
Non-
current
|
Total
|
Current
|
Non-
current
|
Total
|
|
Cash
and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
Cash at
bank and in hand
|
3,601
|
-
|
3,601
|
2,862
|
-
|
2,862
|
2,790
|
-
|
2,790
|
|
Short-term
deposits(a)
|
981
|
-
|
981
|
1,181
|
-
|
1,181
|
1,804
|
-
|
1,804
|
|
Other
cash equivalents(b)
|
388
|
-
|
388
|
116
|
-
|
116
|
400
|
-
|
400
|
|
|
4,970
|
-
|
4,970
|
4,159
|
-
|
4,159
|
4,994
|
-
|
4,994
|
|
Other
financial assets
|
|
|
|
|
|
|
|
|
|
|
Financial
assets at amortised cost(c)
|
835
|
560
|
1,395
|
961
|
454
|
1,415
|
727
|
352
|
1,079
|
|
Financial
assets at fair value through other comprehensive income(d)
|
61
|
525
|
586
|
151
|
458
|
609
|
-
|
438
|
438
|
|
Financial
assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
|
|
|
Derivatives
|
79
|
39
|
118
|
37
|
75
|
112
|
36
|
31
|
67
|
|
Other(e)
|
470
|
382
|
852
|
582
|
399
|
981
|
613
|
399
|
1,012
|
|
|
1,445
|
1,506
|
2,951
|
1,731
|
1,386
|
3,117
|
1,376
|
1,220
|
2,596
|
|
Total
financial assets(f)
|
6,415
|
1,506
|
7,921
|
5,890
|
1,386
|
7,276
|
6,370
|
1,220
|
7,590
|
(a)
Short-term deposits typically have maturity of up to 3
months.
(b)
Other cash equivalents include investments in overnight funds and
marketable securities.
(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 €212
million (31 December 2023: €227 million; 30 June 2023:
€228 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
2024
|
As at
31
December
2023
|
As at
30 June
2023
|
As at
30 June
2024
|
As at
31
December
2023
|
As at 30
June
2023
|
|
Financial assets
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
4,970
|
4,159
|
4,994
|
4,970
|
4,159
|
4,994
|
|
Financial
assets at amortised cost
|
1,395
|
1,415
|
1,079
|
1,395
|
1,415
|
1,079
|
|
Financial
assets at fair value through other comprehensive
income
|
586
|
609
|
438
|
586
|
609
|
438
|
|
Financial
assets at fair value through profit and loss:
|
|
|
|
|
|
|
|
Derivatives
|
118
|
112
|
67
|
118
|
112
|
67
|
|
Other
|
852
|
981
|
1,012
|
852
|
981
|
1,012
|
|
|
7,921
|
7,276
|
7,590
|
7,921
|
7,276
|
7,590
|
|
Financial liabilities
|
|
|
|
|
|
|
|
Bank
loans and overdrafts
|
(460)
|
(506)
|
(606)
|
(460)
|
(506)
|
(606)
|
|
Bonds
and other loans
|
(27,836)
|
(26,112)
|
(26,265)
|
(28,729)
|
(26,692)
|
(27,599)
|
|
Lease
liabilities
|
(1,358)
|
(1,395)
|
(1,428)
|
(1,358)
|
(1,395)
|
(1,428)
|
|
Derivatives
|
(537)
|
(494)
|
(618)
|
(537)
|
(494)
|
(618)
|
|
Other
financial liabilities
|
(570)
|
(535)
|
(457)
|
(570)
|
(535)
|
(457)
|
|
|
(30,761)
|
(29,042)
|
(29,374)
|
(31,654)
|
(29,622)
|
(30,708)
|
|
€
million
|
As at
30 June 2024
|
As at
31 December 2023
|
As at
30 June 2023
|
||||||
|
|
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
|
70
|
4
|
512
|
163
|
4
|
442
|
14
|
3
|
421
|
|
Financial
assets at fair value through profit or loss:
|
|
|
|
|
|
|
|
|
|
|
Derivatives(a)
|
-
|
192
|
-
|
-
|
149
|
-
|
-
|
142
|
-
|
|
Other
|
470
|
-
|
382
|
582
|
-
|
399
|
613
|
-
|
399
|
|
Liabilities
at fair value
|
|
|
|
|
|
|
|
|
|
|
Derivatives(b)
|
-
|
(586)
|
-
|
-
|
(559)
|
-
|
-
|
(718)
|
-
|
|
Contingent
consideration
|
-
|
-
|
(8)
|
-
|
-
|
(157)
|
-
|
-
|
(123)
|
(a)
Includes €74 million (31 December 2023: €37 million; 30
June 2023: €75 million) derivatives, reported within trade
receivables, that hedge trading activities.
(b)
Includes €(49) million (31 December 2023: €(65)
million; 30 June 2023: €(100) 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 2023. There were also no significant movements between the
fair value hierarchy classifications since 31 December
2023.
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 2024 and 2023.
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 2023.
|
9.
Dividends
|
The
Board has declared a quarterly interim dividend for Q2 2024 of
£0.3696 per Unilever PLC ordinary share or €0.4396 per
Unilever PLC ordinary share at the applicable exchange rate issued
by WM/Reuters on 23 July 2024.
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):
|
£0.3696
|
|
Per
Unilever PLC ordinary share (traded on Euronext in
Amsterdam):
|
€0.4396
|
|
Per
Unilever PLC American Depositary Receipt:
|
US$0.4773
|
The
euro and US dollar amounts above have been determined using the
applicable exchange rates issued by WM/Reuters on 23 July
2024.
US
dollar cheques for the quarterly interim dividend will be mailed on
6 September 2024 to holders of record at the close of business
on 9 August 2024.
The
quarterly dividend calendar for the remainder of 2024 will be as
follows:
|
|
Announcement
Date
|
Ex-Dividend
Date
|
Record
Date
|
Payment
Date
|
|
Q2 2024
Dividend
|
25 July
2024
|
08
August 2024
|
09
August 2024
|
06
September 2024
|
|
Q3 2024
Dividend
|
24
October 2024
|
07
November 2024
|
08
November 2024
|
06
December 2024
|
|
10.
Events after the balance sheet date
|
There
are no material post balance sheet events other than those
mentioned elsewhere in this report.