Unilever PLC Treatment of hyperinflationary countries (8366M)
September 18 2019 - 9:00AM
UK Regulatory
TIDMULVR
RNS Number : 8366M
Unilever PLC
18 September 2019
Treatment of hyperinflationary countries in Underlying Sales
Growth (USG)
Until Q2 2019 our definition of Underlying Sales Growth (USG)
included the impact of volume and excluded the impact of price
growth in Argentina and Venezuela, as consumer price inflation
(CPI) rates had escalated to extreme levels.
After a full year of hyperinflationary conditions in Argentina,
one of our larger markets, it became clear that these conditions
would persist for some time. As a result, we announced with our
second quarter results that we would review our definition of USG.
Following the review, a new definition of USG for all countries
with hyperinflationary economies will be adopted from Q3 2019
onwards, including a change to historical comparators. A normalised
level of price growth will be included in USG, which will be capped
at an annual rate that is equivalent to approximately 2% per month
compounded. This cap is derived from one of the indicators of
hyperinflation cited in IAS 29 and ensures that any price growth
above this level will be excluded from USG.
This definition allows the full volume impact and limited price
growth to be included in USG but avoids the distortion of
hyperinflationary pricing beyond the capped level. We believe the
new definition better reflects our normal pricing actions, distinct
from those taken to respond to hyperinflationary conditions. This
also brings our definition of USG more in-line with peer group
companies.
The below tables show USG and UPG for the last four years
restated on the new basis and a comparison with the previously
reported numbers. There is no impact on turnover or any other line
of the income statement.
SAFE HARBOUR
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 including to plastic packaging; the effect
of climate change on Unilever's business; significant changes or
deterioration in customer relationships; the recruitment and
retention of talented employees; disruptions in our supply chain
and distribution; increases or volatility in the cost of raw
materials and commodities; the production of safe and high quality
products; secure and reliable IT infrastructure; execution of
acquisitions, divestitures and business transformation projects;
economic, social and political risks and natural disasters;
financial risks; failure to meet high and ethical standards; and
managing regulatory, tax and legal matters. 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. 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 2018 and the Unilever
Annual Report and Accounts 2018.
UNDERLYING SALES GROWTH UNDERLYING PRICE GROWTH
Beauty & Foods & Home Total Beauty & Foods & Home Total
Personal Refresh-ment Care Unilever Personal Refresh-ment Care Unilever
Care Care
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2016 Full Year
As previously
reported
(%) 4.2 2.7 4.9 3.7 2.6 2.6 3.6 2.8
Restated (%) 4.2 2.5 4.9 3.6 2.6 2.4 3.6 2.7
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2017 Full Year
As previously reported
(%) 2.9 2.7 4.4 3.1 1.5 3.0 2.3 2.3
Restated (%) 2.9 2.1 4.4 2.8 1.5 2.3 2.3 2.0
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2018 H1
As previously
reported
(%) 2.7 1.8 3.5 2.5 (0.2) 0.6 0.3 0.2
Restated (%) 2.7 1.8 3.5 2.5 (0.2) 0.6 0.3 0.2
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2018 H2
As previously
reported
(%) 3.5 2.3 4.9 3.4 1.5 1.0 3.6 1.7
Restated (%) 4.0 2.7 5.8 3.9 2.0 1.4 4.5 2.3
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2018 Full Year
As previously
reported
(%) 3.1 2.0 4.2 2.9 0.6 0.7 1.9 0.9
Restated (%) 3.4 2.2 4.7 3.2 0.9 0.9 2.4 1.2
------------------------- --------- -------------- ----- --------- ---------- -------------- ------ ----------
2019 H1
As previously
reported
(%) 3.3 1.3 7.4 3.3 1.6 1.4 4.5 2.1
Restated (%) 3.6 1.4 7.9 3.6 1.8 1.5 5.0 2.4
--------- -------------- ----- --------- ---------- -------------- ------ ----------
UNDERLYING SALES GROWTH UNDERLYING PRICE GROWTH
The LATAM Emerging The LATAM Emerging
Americas Markets Americas Markets
----------------------------- ---------- ------ ---------- ------ ---------
2016 Full Year
As previously reported
(%) 6.0 11.4 6.5 6.3 13.3 5.4
Restated (%) 5.7 10.8 6.4 6.0 12.7 5.3
----------------------------- ---------- ------ --------- ---------- ------ ---------
2017 Full Year
As previously reported
(%) 2.4 5.3 5.9 2.2 4.9 4.2
Restated (%) 1.6 3.5 5.4 1.4 3.1 3.7
----------------------------- ---------- ------ --------- ---------- ------ ---------
2018 H1
As previously reported
(%) (0.8) (2.6) 4.1 (0.3) (0.4) 0.8
Restated (%) (0.8) (2.5) 4.1 (0.3) (0.4) 0.8
----------------------------- ---------- ------ --------- ---------- ------ ---------
2018 H2
As previously reported
(%) 0.9 0.5 5.1 1.3 1.9 2.6
Restated (%) 2.5 4.1 6.0 3.0 5.5 3.6
----------------------------- ---------- ------ --------- ---------- ------ ---------
2018 Full Year
As previously reported
(%) - (1.0) 4.6 0.5 0.7 1.7
Restated (%) 0.8 0.8 5.0 1.3 2.6 2.1
----------------------------- ---------- ------ --------- ---------- ------ ---------
2019 H1
As previously reported
(%) 2.1 4.9 6.2 2.2 4.4 3.6
Restated (%) 3.0 7.0 6.7 3.1 6.5 4.1
---------- ------ --------- ---------- ------ ---------
UNDERLYING SALES GROWTH UNDERLYING PRICE GROWTH
------------------------------------------
Beauty & Foods & Home Total Beauty & Foods & Home Total
Personal Refresh-ment Care Unilever Personal Refresh-ment Care Unilever
Care Care
--------- ----------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As
previously
reported
2016 Q1 (%) 5.8 2.7 7.0 4.7 1.9 2.0 2.4 2.0
---------
Restated (%) 5.8 2.6 7.0 4.6 1.9 1.9 2.4 2.0
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2016 Q2 (%) 5.6 3.5 6.0 4.7 2.2 2.7 4.5 2.8
---------
Restated (%) 5.6 3.3 6.0 4.6 2.2 2.5 4.5 2.8
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2016 Q3 (%) 3.1 3.1 3.9 3.2 3.3 3.2 5.1 3.6
---------
Restated (%) 3.1 2.9 3.9 3.1 3.3 2.9 5.1 3.5
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2016 Q4 (%) 2.5 1.4 3.0 2.2 3.0 2.4 2.3 2.6
Restated (%) 2.5 1.1 3.0 2.0 3.0 2.0 2.3 2.5
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2017 Q1 (%) 3.1 2.2 4.1 2.9 2.8 3.4 2.6 3.0
---------
Restated (%) 3.1 1.6 4.1 2.7 2.8 2.8 2.6 2.7
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2017 Q2 (%) 2.2 3.9 2.5 3.0 2.5 3.7 2.4 3.0
---------
Restated (%) 2.2 3.3 2.5 2.8 2.5 3.1 2.4 2.7
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2017 Q3 (%) 1.8 2.3 4.6 2.6 0.9 3.3 3.3 2.4
---------
Restated (%) 1.8 0.9 4.6 1.9 0.9 1.9 3.3 1.8
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2017 Q4 (%) 4.4 2.3 6.5 4.0 - 1.3 1.1 0.7
Restated (%) 4.4 2.4 6.5 4.0 - 1.4 1.1 0.8
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2018 Q1 (%) 3.9 2.3 4.9 3.4 (0.2) 0.2 0.1 0.1
---------
Restated (%) 3.9 2.3 4.9 3.4 (0.2) 0.2 0.1 0.1
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2018 Q2 (%) 1.6 1.3 2.2 1.6 (0.3) 0.8 0.6 0.3
---------
Restated (%) 1.6 1.3 2.2 1.6 (0.3) 0.8 0.6 0.3
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2018 Q3 (%) 4.0 3.2 4.5 3.8 1.2 0.7 3.0 1.4
---------
Restated (%) 4.5 3.6 5.5 4.4 1.7 1.1 3.9 1.9
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2018 Q4 (%) 3.0 1.3 5.3 2.9 1.7 1.4 4.1 2.1
Restated (%) 3.5 1.7 6.2 3.5 2.2 1.8 5.0 2.7
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2019 Q1 (%) 3.1 1.5 6.0 3.1 1.2 1.0 4.8 1.9
---------
Restated (%) 3.4 1.7 6.4 3.4 1.4 1.2 5.2 2.2
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
As previously
reported
2019 Q2 (%) 3.5 1.0 8.9 3.5 1.9 1.6 4.3 2.3
Restated (%) 3.8 1.2 9.4 3.8 2.2 1.8 4.7 2.5
--------------------------- --------- ------------- ----- --------- --------- ------------- ------ ----------
UNDERLYING SALES GROWTH UNDERLYING PRICE GROWTH
The LATAM Emerging The LATAM Emerging
Americas Markets Americas Markets
--------- ----------------------------- ---------- ------ ---------- ------ ---------
As previously reported
2016 Q1 (%) 8.5 17.9 8.3 7.3 15.1 4.4
---------
Restated (%) 8.4 17.5 8.2 7.2 14.8 4.4
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2016 Q2 (%) 6.4 11.8 7.7 7.3 15.2 5.4
---------
Restated (%) 6.1 11.3 7.6 7.0 14.6 5.3
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2016 Q3 (%) 5.8 9.7 5.6 8.0 15.5 6.6
---------
Restated (%) 5.5 9.1 5.5 7.7 14.8 6.5
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2016 Q4 (%) 3.7 7.2 4.6 2.8 8.1 5.1
Restated (%) 3.2 6.3 4.3 2.4 7.1 4.9
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2017 Q1 (%) 1.2 3.5 6.1 3.4 7.1 5.3
---------
Restated (%) 0.4 1.9 5.7 2.6 5.4 4.9
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2017 Q2 (%) 3.7 6.3 4.8 2.8 5.1 5.0
---------
Restated (%) 2.8 4.4 4.3 1.9 3.2 4.5
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2017 Q3 (%) 1.4 6.6 6.3 2.9 7.0 4.4
---------
Restated (%) (0.5) 2.4 5.2 0.9 2.8 3.4
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2017 Q4 (%) 3.4 4.6 6.3 - 1.0 2.0
Restated (%) 3.6 5.0 6.4 0.2 1.4 2.1
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2018 Q1 (%) 2.5 2.2 5.1 (1.0) (1.5) 0.8
---------
Restated (%) 2.5 2.2 5.1 (1.0) (1.4) 0.8
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2018 Q2 (%) (3.8) (6.9) 3.1 0.3 0.6 0.8
---------
Restated (%) (3.8) (6.9) 3.1 0.3 0.7 0.8
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2018 Q3 (%) 1.7 1.5 5.6 1.5 1.4 2.1
---------
Restated (%) 3.4 5.2 6.5 3.2 5.1 3.1
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2018 Q4 (%) - (0.4) 4.5 1.1 2.3 3.2
Restated (%) 1.7 3.1 5.4 2.8 5.9 4.1
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2019 Q1 (%) 0.4 0.4 5.0 2.1 4.6 3.2
---------
Restated (%) 1.3 2.4 5.5 3.0 6.7 3.7
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
As previously reported
2019 Q2 (%) 3.7 9.3 7.4 2.3 4.1 4.0
Restated (%) 4.6 11.6 7.9 3.3 6.4 4.5
--------------------------------------- ---------- ------ --------- ---------- ------ ---------
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