Unilever Trading Statement First Quarter 2014
LONDON, UNITED KINGDOM and ROTTERDAM, THE
NETHERLANDS--(Marketwired - Apr 24, 2014) - Unilever (NYSE: UL)
(NYSE: UN) (LSE: ULVR)
GOOD START TO
2014
First quarter
highlights
- Underlying sales growth 3.6% with emerging markets up 6.6%
- Underlying volume growth 1.9% and pricing up 1.6%
- Turnover decreased 6.3% to EUR11.4 billion reflecting a
negative currency impact of (8.9)%
- Quarterly dividend up 6% to EUR0.285
Paul Polman: Chief
Executive Officer statement
"We delivered good growth in the first quarter despite slowing
markets and a tough competitive environment, further evidence that
Unilever is now delivering consistently ahead of our markets. We
saw a continuation of the competitive performances in Home Care and
Personal Care and a strong start to the year in Refreshment. The
decline in Foods was largely explained by the later timing of
Easter and I am confident that we are now taking the right actions
to improve performance. We are now gaining market share in
margarines in Europe and North America in response to our
investment in communicating the improved taste and naturalness of
our brands.
We continue to deliver strong, margin-accretive innovations
whilst embedding operational discipline across our markets. At the
same time we are increasing our distribution reach and enhancing
the capabilities of our people to ensure that we have a strong
foundation from which to deliver sustained growth. Emerging markets
are currently passing through a period of slower demand and
economic volatility but our strategy remains unchanged. We continue
to invest in our brands so that they are well-placed to benefit
from the significant longer term growth opportunity that will come
from growing populations and higher disposable income.
We remain focused on achieving another year of profitable volume
growth ahead of our markets, steady and sustainable core operating
margin improvement and strong cash flow."
24 April 2014
OPERATIONAL REVIEW: CATEGORIES |
|
First Quarter 2014 |
(unaudited) |
Turnover |
|
USG |
|
UVG |
|
UPG |
|
EURbn |
|
% |
|
% |
|
% |
Unilever Total |
11.4 |
|
3.6 |
|
1.9 |
|
1.6 |
Personal Care |
4.2 |
|
4.5 |
|
2.7 |
|
1.8 |
Foods |
3.0 |
|
(1.7) |
|
(2.0) |
|
0.3 |
Home
Care |
2.2 |
|
7.4 |
|
4.8 |
|
2.5 |
Refreshment |
2.1 |
|
5.9 |
|
3.6 |
|
2.2 |
Our markets: Market growth continued to slow in the emerging
markets, particularly in South Asia and South East Asia. Overall,
developed markets remained weak although there were some further
signs of improvement in southern Europe.
Unilever performance summary: We delivered another quarter of
growth ahead of our markets. Emerging markets grew 6.6%, with good
contributions from both volume and price. In developed markets,
North America had a slow start to the year whereas Europe held up
well. We saw continued strong growth from Home Care, a robust
performance in Personal Care and an excellent start to the ice
cream season in Europe. Foods performance was held back by the
timing of Easter and weak markets.
We continued to drive savings programmes and take selective
pricing to offset commodity cost increases. The phasing of
advertising investment, restructuring spend and savings means that
core operating margin is likely to be down in the first half year
and up in the second half.
Personal Care
Personal Care grew ahead of our markets driven by a strong
innovation programme. Deodorants performed well with the successful
compressed aerosol format extended to new markets in Europe and the
launch of the premium Advanced Care range for Dove in the United
States. In skin, the performance of Lux has stepped up, underpinned
by a major relaunch in China and South East Asia. Dove Nutrium
Moisture shower gels also continued to drive growth across our
markets. Vaseline Spray & Go made good progress in existing
markets and was extended to Australia.
In Hair, the Dove Advanced Hair Series was launched in the
United States and TRESemmé 7 Day Smooth, which offers salon-smooth
hair for up to three washes, was introduced in the United Kingdom
and the United States. We also launched dry shampoos under the
Elidor brand in Turkey. Capitalising on the growth of male Personal
Care products, in oral we launched Signal White Now Men, our first
toothpaste specifically designed for men.
Foods The
decline in Foods was largely explained by the later timing of
Easter in 2014. We continued to see evidence that we are taking the
right actions to deliver consistent growth ahead of our markets.
Despite the successful launches of great-tasting products like Rama
with Butter in Germany, the decline of the margarine market
remained a drag on our spreads growth but we are now gaining market
share in margarine in both Europe and North America. Knorr cooking
products did well and the successful jelly format was extended into
seasonings through the introduction of Knorr Flavour Pots in the
United Kingdom. Dressings performance was stable as Hellmann's
lapped the 100 year anniversary in the United States.
Home Care
Underlying sales growth was broad-based and volume-led, with a
significant impact from our new product launches. In laundry, the
new concentrated Small & Mighty liquid detergents with improved
formulation and innovative packaging are now present in seven
markets and a new 'Eco' refill pack has been introduced. In France
we launched Skip multi-action capsules, combining both liquid and
powder technology in a single unit dose format to provide enhanced
stain removal. Comfort Aromatherapy super-sensorials was extended
into South Africa and Turkey.
Household cleaning growth outpaced the market. During the
quarter we launched Cif direct application floor cleaner in Europe
and Sun Ultimate, our best ever all-in-one dishwash tablets, in
France. After successfully launching Domestos Turbo Fresh rotating
rim blocks last year, we rolled them out to new countries in
Europe. We saw continued good momentum from the recently launched
Domestos and Cif in Brazil.
Refreshment
Strong growth in Refreshment was driven by ice cream in Brazil and
Australia coupled with a very good start to the ice cream season in
Europe. The ice cream innovation programme for 2014 includes
products celebrating Magnum's 25th birthday, Klondike Kandy bars
and Breyers Gelato in the United States, a new Carte D'Or Artisanal
range in Europe and Cornetto with double topping and new flavours
in China.
Tea growth accelerated in the United States, helped by the
success of Lipton K-Cups®. We also saw good growth in the United
Kingdom as PG Tips launched a range of fruit, herbal and green
teas. Elsewhere we saw good growth in South Asia, Egypt and Arabia
but weaker sales in Russia and Poland. The decline of AdeS soy
drinks reduced as we reached the anniversary of the product recall
last year.
OPERATIONAL REVIEW: GEOGRAPHICAL AREA |
|
First Quarter 2014 |
(unaudited) |
Turnover |
|
USG |
|
UVG |
|
UPG |
|
EURbn |
|
% |
|
% |
|
% |
Unilever Total |
11.4 |
|
3.6 |
|
1.9 |
|
1.6 |
Asia/AMET/RUB |
4.6 |
|
5.8 |
|
3.7 |
|
2.1 |
The
Americas |
3.6 |
|
3.7 |
|
0.5 |
|
3.2 |
Europe |
3.1 |
|
0.1 |
|
1.1 |
|
(1.0) |
Asia/AMET/RUB
AAR growth was ahead of our markets and we saw strong performances
in China, Turkey and Indonesia and a marked improvement in Japan.
Russia was weak reflecting the soft market conditions but our
Personal Care brands continued to grow ahead of the market. South
Africa grew despite weak markets and intense competition.
We completed the acquisition of a majority stake in the Qinyuan
global water purification business, our biggest acquisition in
China for more than ten years, more than doubling the size of our
water purification business. This represents an important step
towards the Unilever Sustainable Living Plan goal to make safe
drinking water available and affordable to people across the
world.
The Americas
North America declined despite competitive growth from the Personal
Care brands. The key drivers of a decline in Foods were the timing
of Easter, the decline of the margarine market and weak sales in
dressings.
Consistent with our commitment to rigorously review our
portfolio we are undertaking a strategic review of our North
America pasta sauces business and the Slim.Fast brand.
Latin America delivered another quarter of strong growth and we
made good progress despite the difficult macro-economic conditions.
We saw good volume growth ahead of our markets coupled with strong
price growth reflecting action taken to respond to higher input
costs.
Europe Europe
was broadly stable in the first quarter, a good performance given
the sluggish markets. Broad-based growth in ice cream, Personal
Care and Home Care was largely offset by a decline in Foods. The
key markets of United Kingdom and Germany grew ahead of their
respective markets. A return to growth in Greece and Spain
underlines the improving conditions in southern Europe.
We completed the disposal of the Bifi and Peperami brands during
the quarter.
FINANCIAL POSITION
There has been no material change to Unilever's financial
position since the published 2013 Group financial statements.
DIVIDENDS
The Boards have declared a quarterly interim dividend for Q1
2014 at the following rates which are equivalent in value at the
rate of exchange applied under the terms of the Equalisation
Agreement between the two companies:
Per
Unilever N.V. ordinary share: |
|
EUR 0.2850 |
Per
Unilever PLC ordinary share: |
|
GBP 0.2338 |
Per
Unilever N.V. New York share: |
|
US$ 0.3938 |
Per
Unilever PLC American Depositary Receipt: |
|
US$ 0.3938 |
The quarterly interim dividends have been determined in euros
and converted into equivalent sterling and US dollar amounts using
exchange rates issued by the European Central Bank on 22 April
2014.
US dollar cheques for the quarterly interim dividend will be
mailed on 10 June 2014 to holders of record at the close of
business on 9 May 2014. In the case of the NV New York shares,
Netherlands withholding tax will be deducted.
The quarterly dividend calendar for the remainder of 2014 will
be as follows:
|
Announcement Date |
|
Ex-Dividend Date |
|
Record Date |
|
Payment Date |
Quarterly dividend - for Q1 2014 |
24 April 2014 |
|
7 May 2014 |
|
9 May 2014 |
|
11 June 2014 |
|
|
|
|
|
|
|
|
Quarterly dividend - for Q2 2014 |
24 July 2014 |
|
6 August 2014 |
|
8 August 2014 |
|
10 September 2014 |
|
|
|
|
|
|
|
|
Quarterly dividend - for Q3 2014 |
23 October 2014 |
|
6 November 2014* |
|
7 November 2014 |
|
10 December 2014 |
* For the Q3 2014 dividend, the Ex-dividend date for the NV New
York shares and PLC ADRs will be 5 November 2014
COMPETITION INVESTIGATIONS
As previously disclosed, along with other consumer products
companies and retail customers, Unilever is involved in a number of
ongoing investigations by national competition authorities. These
proceedings and investigations are at various stages and concern a
variety of product markets. Where appropriate, provisions are made
and contingent liabilities disclosed in relation to such
matters.
Ongoing compliance with competition laws is of key importance to
Unilever. It is Unilever's policy to co-operate fully with
competition authorities whenever questions or issues arise. In
addition the Group continues to reinforce and enhance its internal
competition law training and compliance programme on an ongoing
basis.
CAUTIONARY STATEMENT
This announcement may contain forward-looking statements,
including 'forward-looking statements' within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
Words such as 'will', 'aim', 'expects', 'anticipates', 'intends',
'looks', 'believes', 'vision', or the negative of these terms and
other similar expressions of future performance or results, and
their negatives, are intended to identify such forward-looking
statements. These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and
other factors affecting the Unilever group (the "Group"). They are
not historical facts, nor are they guarantees of future
performance.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Among other risks and
uncertainties, the material or principal factors which could cause
actual results to differ materially are: Unilever's global brands
not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its
portfolio management; inability to find sustainable solutions to
support long-term growth; customer relationships; the recruitment
and retention of talented employees; disruptions in our supply
chain; the cost of raw materials and commodities; the production of
safe and high quality products; secure and reliable IT
infrastructure; successful execution of acquisitions, divestitures
and business transformation projects; economic and political risks
and natural disasters; financial risks; failure to meet high
ethical standards; and managing regulatory, tax and legal matters.
Further details of potential risks and uncertainties affecting the
Group are described in the Group's filings with the London Stock
Exchange, Euronext in Amsterdam and the US Securities and Exchange
Commission, including the Group's Annual Report on Form 20-F for
the year ended 31 December 2013 and Annual Report and Accounts
2013. These 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 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.
ENQUIRIES |
|
Media: Media Relations Team |
|
Investors: Investor Relations Team |
UK
+44 20 7823 5354 |
|
+44
20 7822 6830 |
lucila.zambrano@unilever.com |
|
investor.relations@unilever.com |
NL
+31 6 1137 5464 |
|
|
marc.potma@unilever.com |
|
|
|
|
|
There will be a web cast of the results presentation available
at:
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/default.asp
The web cast can also be viewed from the Unilever Investor
Relations app which you can download from:
http://itunes.apple.com/us/app/unilever-investor-centre-app/id483403509?mt=8&ign-mpt=uo%3D4
SEGMENT INFORMATION - CATEGORIES |
|
(unaudited) |
|
First Quarter |
Personal Care |
|
|
Foods |
|
|
Home Care |
|
|
Refreshment |
|
|
Total |
|
Turnover ( EUR million) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
4,416 |
|
|
3,374 |
|
|
2,274 |
|
|
2,100 |
|
|
12,164 |
|
|
2014 |
4,154 |
|
|
3,019 |
|
|
2,163 |
|
|
2,067 |
|
|
11,403 |
|
Change (%) |
(5.9 |
) |
|
(10.5 |
) |
|
(4.9 |
) |
|
(1.6 |
) |
|
(6.3 |
) |
Impact of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rates (%) |
(9.9 |
) |
|
(6.3 |
) |
|
(11.7 |
) |
|
(7.8 |
) |
|
(8.9 |
) |
|
Acquisitions (%) |
- |
|
|
- |
|
|
0.3 |
|
|
0.8 |
|
|
0.2 |
|
|
Disposals (%) |
(0.1 |
) |
|
(2.9 |
) |
|
- |
|
|
- |
|
|
(0.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying sales growth (%) |
4.5 |
|
|
(1.7 |
) |
|
7.4 |
|
|
5.9 |
|
|
3.6 |
|
|
Price
(%) |
1.8 |
|
|
0.3 |
|
|
2.5 |
|
|
2.2 |
|
|
1.6 |
|
|
Volume (%) |
2.7 |
|
|
(2.0 |
) |
|
4.8 |
|
|
3.6 |
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION - GEOGRAPHICAL AREA |
|
(unaudited) |
|
First Quarter |
Asia / AMET / RUB |
|
|
The Americas |
|
|
Europe |
|
|
Total |
|
Turnover ( EUR million) |
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
5,029 |
|
|
4,029 |
|
|
3,106 |
|
|
12,164 |
|
|
2014 |
4,641 |
|
|
3,646 |
|
|
3,116 |
|
|
11,403 |
|
Change (%) |
(7.7 |
) |
|
(9.5 |
) |
|
0.3 |
|
|
(6.3 |
) |
Impact of: |
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rates (%) |
(12.4 |
) |
|
(11.4 |
) |
|
0.2 |
|
|
(8.9 |
) |
|
Acquisitions (%) |
0.4 |
|
|
- |
|
|
0.2 |
|
|
0.2 |
|
|
Disposals (%) |
(0.8 |
) |
|
(1.5 |
) |
|
(0.1 |
) |
|
(0.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying sales growth (%) |
5.8 |
|
|
3.7 |
|
|
0.1 |
|
|
3.6 |
|
|
Price
(%) |
2.1 |
|
|
3.2 |
|
|
(1.0 |
) |
|
1.6 |
|
|
Volume (%) |
3.7 |
|
|
0.5 |
|
|
1.1 |
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional geographical information |
|
(unaudited) |
|
|
First Quarter |
|
|
Turnover |
|
USG |
|
|
UVG |
|
UPG |
|
|
EURm |
|
% |
|
|
% |
|
% |
|
Unilever Total |
11,403 |
|
3.6 |
|
|
1.9 |
|
1.6 |
|
Developed markets |
4,963 |
|
(0.3 |
) |
|
0.6 |
|
(0.9 |
) |
Emerging markets |
6,440 |
|
6.6 |
|
|
3.0 |
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
Turnover |
|
USG |
|
|
UVG |
|
|
UPG |
|
|
EURm |
|
% |
|
|
% |
|
|
% |
|
The
Americas |
3,646 |
|
3.7 |
|
|
0.5 |
|
|
3.2 |
|
North
America |
1,814 |
|
(2.4 |
) |
|
(1.0 |
) |
|
(1.4 |
) |
Latin
America |
1,832 |
|
9.8 |
|
|
2.1 |
|
|
7.6 |
|
This information is provided by RNS
The company news service from the London Stock Exchange
Contacts: RNS Customer Services 0044-207797-4400
rns@londonstockexchange.com http://www.rns.com
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