USA: Unilever fourth quarter and annual results 2000 – unaudited and provisional
Unilever (NYSE:UN, NYSE:UL)-- Path to Growth on track. Faster growth in leading brands and record operating margin. Bestfoods integration proceeds smoothly. Fourth quarter reflects planned restructuring costs. Strong growth in underlying operating profits for the year. FINANCIAL HIGHLIGHTS Constant exchange rates Current (1999 average) exchange rates Fourth Quarter Pound Full Year Full Year 2000 Millions 2000 2000 12,206 +19% Turnover 43,793 +7% 47,582 +16% Operating profit - before exceptional items & amortization of goodwill/intangibles 1,430 +31% (beia) 5,313 +16% 5,729 +25% (620) (164)% Pre-tax profit/(loss) 2,667 (39)% 2,723 (37)% (828) (232)% Net profit / (loss) 1,151 (58)% 1,105 (60)% 678 (5)% Net profit (beia) 3,046 +2% 3,223 +8% Per NV share (Fl. 1.12), Euro(a) (0.85) (235)% EPS 1.12 (57)% 1.07 (59)% 0.67 (5)% EPS (beia) 3.04 +7% 3.21 +14% Per PLC share (1.4p), Eurocent(a) (12.74)(235)% EPS 16.78 (57)% 16.08 (59)% 10.04 (5)% EPS (beia) 45.52 +7% 48.20 +14% (a) See note on 'Combined Earnings per Share'
February 8, 2001
Unilever (NYSE:UN, NYSE:UL)– Path to Growth on track. Faster growth in leading brands and record operating margin. Bestfoods integration proceeds smoothly. Fourth quarter reflects planned restructuring costs. Strong growth in underlying operating profits for the year.
FINANCIAL HIGHLIGHTS
Constant exchange rates Current
(1999 average) exchange
rates
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
Continuing momentum in sales growth of the leading brands, reaching 4.9% in the quarter, and leading to growth in the year of 3.8%, excluding acquisitions.
Gross margins continue to improve, allowing a significant increase in marketing investment and a record operating margin of 12.1% beia.
Operating profit (beia) advanced by 16% and by 10% before the contribution from Bestfoods.
10.5% growth in earnings per share (bei), on a basis consistent with our outlook statement on February 22, exceeded our forecast.
Strong cashflow from operations at Pound 6.7 billion.
The fourth quarter loss reflects planned Path to Growth restructuring of Pound 1.3 billion.
Proposed final dividend of Pound 0.95 per N.V. ordinary share and 8.67p per PLC ordinary share, increasing the total dividend per share by 13% for N.V. and by 5% for PLC.
CHAIRMEN’S COMMENT & OUTLOOK
Our focus on stronger and faster growing brands, combined with restructuring of the supply chain and global procurement, is already having a positive impact on margins and cash flow. Restructuring in 2000 was ahead of plan with a full year investment of Pound 1.8 billion.
We are planning for continued momentum in the growth of our leading brands, reinforced by the acquisitions of Bestfoods, Slimo Fast and Ben & Jerry’s. Their integration is proceeding well and synergy will be delivered on time and in full.
Our new divisional organization of Foods and Home & Personal Care will speed execution and strengthen our global capability to deliver more big hit innovations. These provide the fuel for brand growth.
For 2001 we plan that these factors will combine to deliver low double-digit growth in earnings per share, before exceptional items and goodwill amortization.
N W A FitzGerald A Burgmans Chairman, Unilever PLC Chairman, Unilever N.V.
UNILEVER BACKGROUND: Unilever is one of the world’s largest consumer products companies with sales of $52 billion. It produces and markets a wide range of foods, home and personal care products. Unilever operates in 88 countries around the globe and employs 300,000 people.
In the United States, Unilever sales were $10 billion in 1999. It employs 38,000 people and has 104 offices and manufacturing sites in 27 states. Two of Unilever’s 12 global Business Groups are headquartered in the United States. Some of their major products are: Foods – North America: Lipton teas, soups, recipe products and side dishes; Wish-Bone salad dressings; Lawry’s seasonings and specialty sauces; Imperial, Promise, Country Crock, “I Can’t Believe It’s Not Butter!”, Brummel & Brown spreads and sprays; Ragu pasta and pizza sauces; Five Brothers premium pasta sauces; Knorr soups, sauces and bouillons; Hellmann’s mayonnaise and dressings; Skippy peanut butter; Bertolli and Mazola oils; Entenmann’s, Thomas’ and Arnold baked goods; Klondike, Good-Humor, Popsicle, Breyers and Ben & Jerry’s ice cream products; Gorton’s frozen seafood products and Slim-Fast nutritional and health snack products. Unilever Home and Personal Care – North America: Wisk, “all” and Surf laundry detergents; Snuggle and Final Touch fabric softeners; Sunlight dish detergents; Lever 2000, Caress, Dove and Shield bar soaps; Pond’s and Vaseline skin care products; Q-tips cotton swabs and cotton balls; Mentadent, Aim, Close-up and Pepsodent oral care products; Degree, Suave and Brut deodorant/toiletry products; Finesse, Salon Selectives, Suave, ThermaSilk, Aqua Net and Rave hair care products; and Calvin Klein, Nautica and Vera Wang cosmetic and fragrance products. In addition, DiverseyLever, a global professional cleaning business, operates in North America, supplying professional cleaning materials and services to institutional and industrial markets.
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS (at constant exchange rates)
Operating profit, before exceptional items and amortization of goodwill and intangibles (beia), increased by 31% in the quarter and by 16% for the year. Excluding the contribution from Bestfoods the increases were 9% and 10%, respectively. Operating margin excluding Bestfoods was 12.0%, an increase of 80 bps over last year.
Amortization of goodwill and intangibles was Pound 316 million in the quarter, and Pound 386 million for the year. Amortization of goodwill for Bestfoods was Pound 266 million in the quarter.
Interest paid was Pound 504 million higher than last year, reflecting the increased level of borrowings related to acquisitions which have been partly offset by the continuing strong cash flow from operations.
Exceptional items for the year were Pound 1.8 billion of which Pound 1.7 billion relates to the planned net investment in Path to Growth restructuring program. The balance is in respect of Bestfoods integration restructuring and the achievement of planned synergy benefits. Associated costs included in operating profit (beia) were Pound 173 million for the year. Of this Pound 103 million relates to Path to Growth and Pound 70 million to Bestfoods integration. The latter has been included within the Bestfoods operating profit (beia).
The effective tax rate for the year is 49%, an increase of 18 percentage points over the previous year. This reflects the inclusion of Bestfoods goodwill amortization, which is not tax deductible, and a tax rate of 14% on exceptional items because tax relief was obtained in prior years on the businesses disposed. The underlying rate of tax for normal trading operations is as anticipated 34% for the year before the inclusion of Bestfoods goodwill amortization.
The inclusion of the exceptional items and the goodwill amortization from the Bestfoods acquisition has led to the net results decreasing, against the comparative period, by Pound 1,454 million for the quarter to give a net loss of Pound 828 million, and by Pound 1,620 million for the year to give a net profit of Pound 1,151 million. Excluding exceptional items and goodwill amortization, net profit declined Pound 34 million in the quarter and increased by Pound 69 million for the year.
Earnings per share (beia) declined by 5% in the quarter, but rose by 7% for the full year. Earnings per share fell by 235% in the quarter and by 57% for the full year.
When expressed in current rates of exchange, earnings per share (beia) were up 14% for the full year. Earnings per share fell by 258% in the quarter and by 59% for the full year.
FULL YEAR PERFORMANCE BY REGION (at constant exchange rates)
The following regional commentary is based on operating profit before exceptional items and amortization of goodwill and intangibles and excludes Bestfoods. We include a commentary on Bestfoods performance later in the release.
EUROPE: Good progress in the leading brands but overall sales held back by a poor ice cream season and exit from tail businesses.
In our western Europe home and personal care business we achieved sales growth of 5% for the quarter and 3% for this year. Dove grew by 18% and in the second half of the year further impetus to growth came from a strong innovation program building on launches of color laundry tablets, Domestos and Cif easy to use wipes, Easy Iron fabric conditioner and Axe/Lynx and Dove range extensions.
Foods in western Europe had a mixed year as ice cream and beverages sales suffered from a poor summer season. It was a more encouraging story in the other categories. In spreads and cooking products volumes developed favourably during the year with the introduction of Proactiv cholesterol-lowering spread and blended olive oil spreads under the Bertolli brand adding momentum in the second half of the year. Lower raw material costs were largely passed on to consumers, reducing selling prices in the commodity oil businesses but with some margin benefit in leading brands.
Our culinary business performed well led by Sizzle & Stir cooking sauces and the sales of Amora Maille were 7% ahead of last year. In frozen foods our ‘Quattro salti in Padella’ range of high quality ready meals, are bringing innovation, excitement and growth to this sector. Our planned exit from low margin commodity businesses reduced sales but improved margins. Our tea business grew with the roll out of Pyramid tea bags and Lipton Tchae.
The overall sales level also reflects our rapid withdrawal from tail businesses through disposals, including the sale of our European Bakery business.
There was a modest improvement in overall market conditions in central and eastern Europe, however the impact of the financial crisis in Turkey held back sales in the fourth quarter. Personal care achieved high single digit volume growth, driven by deodorants and hair. Lower price held back sales growth as we passed on lower edible oil input costs, repositioned our spreads and tea brands in Russia, and responded to competitive pressures in spreads and laundry in Poland and Turkey.
NORTH AMERICA: Good sales and margin growth in both foods and home & personal care.
Sales rose by 9% for the year, with a strong contribution from the acquisitions of Slimo Fast and Ben & Jerry’s. Operating margins for the year showed a significant increase as the benefits of restructuring, portfolio improvement and procurement savings came through.
In our foods business, ice cream, tea and culinary all performed well. The most significant contributions came from Breyers Parlor take-home and Popsicle and Pokemon novelties in ice cream, Wishbone dressing in culinary and Lipton Cold Brew in tea, contributing to mid-single digit sales growth in these categories. Brummel & Brown Creamy Fruity spreads were successfully launched in the US.
In home and personal care volumes grew 4% as a result of an active and strongly supported innovation program. Dove, Caress and Suave led growth in personal care and, in hair, the relaunch of Salon Selectives was a success. Our fabric care business maintained its overall market position despite price competition and the launch of laundry tablets has begun well.
In our prestige fragrance business the year’s highlights were the sale of much of the Elizabeth Arden business and the launch of Nautica and Calvin Klein’s Truth.
AFRICA AND MIDDLE EAST: A resilient performance in a challenging economic environment.
Overall sales for the year were up 3% with profits increasing by 9%, in a year again characterized by mixed economic conditions.
The momentum in Africa was driven by progress across all our key categories with particularly strong performances from laundry, oral care, deodorants and culinary products. We increased the direct coverage of outlets with the roll out of a distribution model based on our experience in India. Our innovation program in South Africa was concentrated on the launch of laundry tablets but there were also introductions of, Omo liquid bleach, Flora pro-activ, and Lipton Ice Tea.
In the Middle East sales stagnated in adverse business conditions and we have concentrated on maintaining market positions.
ASIA AND PACIFIC: Another year of strong growth and increased profit.
Sales in the year were 7% ahead of 1999, driven by excellent performances in southeast Asia and Japan. Profitability rose significantly across the region while at the same time we maintained a high level of marketing support.
Our businesses in southeast Asia and Japan generated double digit sales growth throughout each quarter. Progress was broad based in respect of both category and geography. Innovation and strong support levels were the key to progress in skincare and hair. Brand successes included Dove, Pond’s, Mods and Lux in Japan, and Vaseline shampoo in the Philippines. In Australasia sales growth was good in ice cream and we gained share in laundry.
In China the repositioning of Omo was well received as were the new variants of the Zhonghua toothpastes, where both achieved volume growth above 20%. In Taiwan Dove shampoo is vying for the number one market position.
Sales of our consumer brands in India made further progress during the year as our renewed focus on building share in the mass markets began to have an impact. Surf continued to perform well at the premium end of the laundry market. Overall sales revenues were impacted by our exit from the imported fertilizer business and by the impact of lower edible oil prices.
LATIN AMERICA: Encouraging performance against a background of recovering economies.
Sales growth for the year of 5% reflects a significant contribution from acquisitions. There were encouraging signs of growth in Brazil, and Mexico continued to perform strongly. Recovery is slower in Argentina and north Latin America.
In laundry, volume growth progressed during the year with share gains in Brazil and Argentina. We also continued to see excellent progress from our Brazilian personal care business, demonstrating the continuing benefits of brand focus.
Growth in foods came from an excellent performance in our Mexican business in ice cream, spreads and culinary. Our Brazilian business also achieved good growth in spreads, and culinary products and there were the first signs of a recovery in our ice cream operations.
Everything we have seen in the Bestfoods business confirms our confidence in the quality of the brands, the management and the business system. We remain confident in our ability to create value through this acquisition. We have moved swiftly to address integration issues.
Although sales in the quarter were just over Pound100 million short of our expectations, this was largely as a result of action we have taken to reduce trade inventories in the U.S., in both the retail and foodservice channels. Market shares have been maintained and have grown in key market segments. Operating profit includes Pound70 million of associated costs in the quarter. These, together with the integration exceptional items previously mentioned, are part of the U.S.$1.1 billion investment required to achieve the acquisition synergy announced to the market at the time of acquisition.
FINAL DIVIDEND
The Boards will recommend to the Annual General Meetings, to be held on May 9, 2001, a final dividend of Pound 0.95 per Fl. 1.12 ordinary share of Unilever N.V., an increase of 10% over last year and a final dividend of 8.67p per 1.4p ordinary share of Unilever PLC, an increase of 1% over last year. This will bring the total dividend to Pound1.43 per ordinary share of Fl. 1.12, an increase of 13% over last year and 13.07p per ordinary share of 1.4p, an increase of 5% over last year.
CASH FLOW
Cash flow from operations for the year 2000 was Pound6.7 billion compared with Pound 5.7 billion in 1999. This is the result of strong underlying cash generation and due to improvements in working capital, notably stocks.
The disposal of the European Bakery business and the purchase of Bestfoods, Slimo Fast, Amora Maille, Ben & Jerry’s, Cressida and other acquisitions, resulted in a cash outflow of some Pound 27.4 billion.
Net returns from investment were lower following payment of the special dividend in 1999 and the funding of acquisitions made in 2000. The increase in financing directly reflects this funding.
BALANCE SHEET
Net debt at Pound 26.5 billion compares to net funds of Pound 0.7 billion at the end of 1999.
Goodwill/intangibles and acquired businesses held for resale have increased by Pound 27.5 billion through the above acquisitions. All balance sheet items have been significantly impacted by the acquisitions. The key underlying movements are a reduction in stock balances following the elimination of Y2K stocks held at the end of 1999 and an increase in provisions for liabilities and charges as a result of Path to Growth restructuring.
Capital and reserves increased by Pound0.4 billion to Pound8.2 billion.
EURO REPORTING
Information in sterling and U.S. dollars is available as a supplement to this Euro report.
CONSOLIDATED PROFIT AND LOSS ACCOUNT – CONSTANT EXCHANGE RATES (unaudited)
In the profit and loss account given below, the results in both years have been translated at constant exchange rates, being the annual average exchange rates for 1999. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated.
Fourth Quarter Pound Millions Full Year
2000 1999 % Incr./ – constant 2000 1999 % Incr.
(Decr.) /(Decr.)
NET PROFIT / (LOSS) AT
CONSTANT 1999
(828) 626 (232)% EXCHANGE RATES 1,151 2,771 (58)%
Net Profit before
exceptional items &
amortization of Goodwill
678 712 (5)% and Intangibles (a) 3,046 2,977 2%
(a) Operating profit and Net profit before exceptional items and
amortization of goodwill and intangibles. See note on `Goodwill and
intangibles’.
CONSOLIDATED PROFIT AND LOSS ACCOUNT – CURRENT EXCHANGE RATES
(unaudited)
The profit and loss account given below is stated at current
exchange rates i.e. the results in both years have been translated at
the exchange rates prevailing during the appropriate period; see note
on ‘Exchange Rates’ for further information. The reported results are
therefore impacted by exchange rate movements between the periods.
Fourth Quarter Pound Millions Full Year
2000 1999 % Incr./ – constant 2000 1999 % Incr.
(Decr.) /(Decr.)
Preference dividends (44) (20)
Dividends on
ordinary capital (1,414) (1,245)
Profit / (loss) of the
year retained (353) 1,506
(a) Operating profit and Net profit before exceptional items and
amortization of goodwill and intangibles. See note on `Goodwill and
intangibles’.
(b) See note on `Share consolidation’.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
Pound Millions Full Year
2000 1999
Net profit 1,105 2,771
Currency retranslation (237) 380
Total recognized gains 868 3,151
SUMMARY BALANCE SHEET (unaudited)
Pound Millions
As of December 31
2000 1999
Goodwill and Acquired businesses
held for resale 28,133 643
Fixed assets 10,996 8,963
Stocks 5,421 5,124
Debtors 9,817 7,685
Cash and current investments 3,273 5,473
Trade & other creditors (12,708) (10,177)
44,932 17,711
Borrowings 29,741 4,789
Provisions for liabilities and charges 6,404 4,582
Minority interests 618 579
Capital and reserves 8,169 7,761
44,932 17,711
CASH FLOW STATEMENT (unaudited)
Pound Millions Full Year
2000 1999
Cash flow from operating activities (a) 6,738 5,654
Dividends from joint ventures 38 28
Returns on investments and servicing of finance (798) (156)
Taxation (1,734) (1,443)
Capital expenditure and financial investment (1,061) (1,501)
Acquisitions and disposals (27,373) (362)
Dividends paid on ordinary share capital (1,365) (7,359)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT
OF LIQUID RESOURCES AND
FINANCING (25,555) (5,139)
Management of liquid resources 2,464 5,675
Financing 22,902 (146)
INCREASE / (DECREASE) IN CASH IN THE PERIOD (189) 390
RECONCILIATION OF CASH FLOW TO MOVEMENT
IN NET FUNDS/(DEBT) (unaudited)
NET FUNDS AT JANUARY 1 684 5,778
INCREASE / (DECREASE) IN CASH IN THE PERIOD (189) 390
Cash flow from (increase) / decrease
in borrowings (22,920) 150
Cash flow from increase / (decrease)
in liquid resources (2,464) (5,675)
Change in net funds / (debt) resulting
from cash flows (25,573) (5,135)
Borrowings within group companies acquired (3,113) (29)
Borrowings within group companies sold 2 4
Liquid resources within group companies acquired 13 3
Liquid resources within group companies sold – –
Non cash movements 455 (211)
Currency retranslation 1,064 274
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD (27,152) (5,094)
NET FUNDS / (DEBT) AT DECEMBER 31 (26,468) 684
(a) Includes payments of Pound 550 million to settle share options
and similar obligations in Bestfoods consequent to the change of
control.
4,313 4,432 (3)% Europe 19,029 18,454 18,790 (2)%
2,497 2,238 12 % North America 11,099 9,593 8,838 9 %
647 606 7 % Africa and 2,447 2,369 2,298 3 %
Middle East
1,876 1,778 6 % Asia and Pacific 8,011 7,204 6,723 7 %
1,263 1,174 7 % Latin America 5,198 4,563 4,328 5 %
10,596 10,228 4 % TURNOVER 45,784 42,183 40,977 3 %
Operating profit –
before exceptional
items and
amortization of
goodwill and
intangibles
410 431 (5)% Europe 2,389 2,344 2,270 3 %
340 332 3 % North America 1,347 1,164 974 20 %
83 49 69 % Africa and 281 273 251 9 %
Middle East
201 138 46 % Asia and Pacific 902 823 669 23 %
151 142 6 % Latin America 530 464 431 8 %
1,185 1,092 9 % OPERATING PROFIT 5,449 5,068 4,595 10 %
BEIA
Operating margin –
before exceptional
items and
amortization of
goodwill and
intangibles
9.5% 9.7% Europe 12.6% 12.7% 12.1%
13.6% 14.8% North America 12.1% 12.1% 11.0%
12.8% 8.1% Africa and 11.5% 11.5% 10.9%
Middle East
10.7% 7.8% Asia and Pacific 11.3% 11.4% 9.9%
11.9% 12.0% Latin America 10.2% 10.2% 10.0%
11.2% 10.7% OPERATING MARGIN 11.9% 12.0% 11.2%
BEIA
(a) at constant 1999 annual average exchange rates.
TURNOVER
6,556 4,763 38 % Foods 23,898 22,254 20,339 9 %
2,195 1,923 14 % Oil and dairy 7,930 7,420 7,278 2 %
based foods and
bakery
1,367 1,126 21 % Ice cream and 7,601 7,002 6,637 5 %
beverages
2,994 1,714 74 % Culinary and 8,367 7,832 6,424 22 %
frozen products(1)
2,401 2,293 5 % Home Care and 10,258 9,439 9,106 4 %
Professional
Cleaning
3,040 2,855 6 % Personal Care 12,567 11,321 10,675 6 %
209 317 (33)% Other Operations(1) 859 779 857 (9)%
12,206 10,228 19 % TURNOVER 47,582 43,793 40,977 7 %
OPERATING PROFIT –
before exceptional
items and
amortization of
goodwill and
intangibles
676 428 58 % Foods 2,749 2,582 2,047 26 %
297 249 19 % Oil and dairy 1,044 988 783 26 %
based foods and
bakery
(90) (22) (299)% Ice cream and 647 608 601 1 %
beverages
469 201 133 % Culinary and 1,058 986 663 49 %
frozen products(1)
194 185 5 % Home Care and 917 856 858 – %
Professional
Cleaning
545 436 25 % Personal Care 2,034 1,846 1,582 17 %
15 43 (65)% Other Operations(1) 29 29 108 (73)%
1,430 1,092 31 % OPERATING PROFIT 5,729 5,313 4,595 16 %
BEIA
(1,362) (100) Exceptional items (1,992)(1,790) (269)
(316) (8) Amortization of (435) (386) (23)
goodwill and
intangibles
(248) 984 (125)% OPERATING PROFIT / 3,302 3,137 4,303 (27)%
(LOSS)
OPERATING MARGIN –
before exceptional
items and
amortization of
goodwill and
intangibles
10.3 % 9.0 % Foods 11.5 % 11.6 % 10.1 %
13.6 % 13.0 % Oil and dairy 13.2 % 13.3 % 10.8 %
based foods and
bakery
(6.6)% (2.0)% Ice cream and 8.5 % 8.7 % 9.0 %
beverages
15.6 % 11.7 % Culinary and 12.6 % 12.6 % 10.3 %
frozen products(1)
8.1 % 8.1 % Home Care and 8.9 % 9.1 % 9.4 %
Professional
Cleaning
17.9 % 15.2 % Personal Care 16.2 % 16.3 % 14.8 %
7.4 % 13.8 % Other Operations(1) 3.3 % 3.8 % 12.7 %
11.7 % 10.7 % OPERATING MARGIN 12.0 % 12.1 % 11.2 %
BEIA
(2.0)% 9.6 % OPERATING MARGIN 6.9 % 7.2 % 10.5 %
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the year
(1) Includes a prior year restatement, Pound 165m of turnover and
Pound 0m of operating profit for the year, relating to a
reclassification of Indian food categories which have been transferred
from Culinary and frozen products to Other Operations.
BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
Pound Millions Fourth Quarter
and Full Year
2000(b) 2000(a)
TURNOVER
Foods 1,798 1,610
Oil and dairy based foods and bakery 358 305
Ice cream and beverages 84 73
Culinary and frozen products 1,356 1,232
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations – –
TURNOVER 1,798 1,610
OPERATING PROFIT / (LOSS) – before exceptional items
and amortization of goodwill and intangibles
Foods 315 280
Oil and dairy based foods and bakery 33 29
Ice cream and beverages 6 5
Culinary and frozen products 276 246
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations(c) (35) (35)
OPERATING PROFIT BEIA 280 245
OPERATING MARGIN – before exceptional items and
amortization of goodwill and intangibles
Foods 17.5% 17.4%
Oil and dairy based foods and bakery 9.2% 9.4%
Ice cream and beverages 6.6% 7.1%
Culinary and frozen products 20.4% 19.9%
Home Care and Professional Cleaning -% -%
Personal Care -% -%
Other Operations -% -%
OPERATING MARGIN BEIA 15.6% 15.2%
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the period.
(c) after charging integration costs associated with exceptional items
BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
Pound Millions Fourth Quarter
and Full Year
2000(b) 2000(a)
TURNOVER
Foods 1,798 1,610
Oil and dairy based foods and bakery 358 305
Ice cream and beverages 84 73
Culinary and frozen products 1,356 1,232
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations – –
TURNOVER 1,798 1,610
OPERATING PROFIT / (LOSS) – before exceptional items
and amortization of goodwill and intangibles
Foods 315 280
Oil and dairy based foods and bakery 33 29
Ice cream and beverages 6 5
Culinary and frozen products 276 246
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations(c) (35) (35)
OPERATING PROFIT BEIA 280 245
OPERATING MARGIN – before exceptional items and
amortization of goodwill and intangibles
Foods 17.5% 17.4%
Oil and dairy based foods and bakery 9.2% 9.4%
Ice cream and beverages 6.6% 7.1%
Culinary and frozen products 20.4% 19.9%
Home Care and Professional Cleaning -% -%
Personal Care -% -%
Other Operations -% -%
OPERATING MARGIN BEIA 15.6% 15.2%
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the period.
(c) after charging integration costs associated with exceptional
items
BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
Pound Millions Fourth Quarter
and Full Year
2000(b) 2000(a)
TURNOVER
Foods 1,798 1,610
Oil and dairy based foods and bakery 358 305
Ice cream and beverages 84 73
Culinary and frozen products 1,356 1,232
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations – –
TURNOVER 1,798 1,610
OPERATING PROFIT / (LOSS) – before exceptional items
and amortization of goodwill and intangibles
Foods 315 280
Oil and dairy based foods and bakery 33 29
Ice cream and beverages 6 5
Culinary and frozen products 276 246
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations(c) (35) (35)
OPERATING PROFIT BEIA 280 245
OPERATING MARGIN – before exceptional items and
amortization of goodwill and intangibles
Foods 17.5% 17.4%
Oil and dairy based foods and bakery 9.2% 9.4%
Ice cream and beverages 6.6% 7.1%
Culinary and frozen products 20.4% 19.9%
Home Care and Professional Cleaning -% -%
Personal Care -% -%
Other Operations -% -%
OPERATING MARGIN BEIA 15.6% 15.2%
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the period.
(c) after charging integration costs associated with exceptional items
TURNOVER
4,946 4,763 4 % Foods 22,100 20,644 20,339 1 %
1,890 1,923 (2)% Oil and dairy 7,572 7,115 7,278 (2)%
based foods and
bakery
1,294 1,126 15 % Ice cream and 7,517 6,929 6,637 4 %
beverages
1,762 1,714 3 % Culinary and 7,011 6,600 6,424 3 %
frozen
products(1)
2,401 2,293 5 % Home Care and 10,258 9,439 9,106 4 %
Professional
Cleaning
3,040 2,855 6 % Personal Care 12,567 11,321 10,675 6 %
209 317 (33)% Other Operations(1) 859 779 857 (9)%
10,596 10,228 4 % TURNOVER 45,784 42,183 40,977 3 %
OPERATING PROFIT –
before exceptional
items and
amortization of
goodwill and
intangibles
396 428 (7)% Foods 2,434 2,302 2,047 12 %
268 249 8 % Oil and dairy 1,011 959 783 22 %
based foods and
bakery
(95) (22) (322)% Ice cream and 641 603 601 – %
beverages
223 201 11 % Culinary and 782 740 663 12 %
frozen products(1)
194 185 5 % Home Care and 917 856 858 – %
Professional
Cleaning
545 436 25 % Personal Care 2,034 1,846 1,582 17 %
50 43 16 % Other Operations(1) 64 64 108 (40)%
1,185 1,092 9 % OPERATING PROFIT 5,449 5,068 4,595 10 %
BEIA
OPERATING MARGIN –
before exceptional
items and
amortization of
goodwill and
intangibles
8.0 % 9.0 % Foods 11.0 % 11.2 % 10.1 %
14.2 % 13.0 % Oil and dairy 13.4 % 13.5 % 10.8 %
based foods and
bakery
(7.4)% (2.0)% Ice cream and 8.5 % 8.7 % 9.0 %
beverages
12.6 % 11.7 % Culinary and 11.2 % 11.2 % 10.3 %
frozen products(1)
8.1 % 8.1 % Home Care and 8.9 % 9.1 % 9.4 %
Professional
Cleaning
17.9 % 15.2 % Personal Care 16.2 % 16.3 % 14.8 %
24.0 % 13.8 % Other Operations(1) 7.4 % 8.3 % 12.7 %
11.2 % 10.7 % OPERATING MARGIN 11.9 % 12.0 % 11.2 %
BEIA
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the year
(1) Includes a prior year restatement, Pound 165m of turnover and Pound 0m of operating profit for the year, relating to a reclassification of Indian food categories which have been transferred from Culinary and frozen products to Other Operations.
In 2000 the effect on turnover and operating profit beia of acquisitions made in the year was Pound 2,636 million and Pound 278 million, respectively. This included turnover and operating profit beia in respect of Bestfoods of Pound 1,610 million and Pound 245 million, respectively. On the basis of 1999’s results the impact of disposals completed in 2000, principally the European Bakery business, was a reduction in turnover of approximately Pound 500 million.
On January 29 we announced an agreement to sell our dry soup and sauces businesses in Europe for a debt free price of Pound 1 billion. The sale is conditional on approval by the European Commission Mergers Task Force and subject to consultative procedures before completion. Annual sales of the business total approximately Pound 435 million. The businesses are being divested as a result of undertakings given to the European Commission in connection with the acquisition of Bestfoods which was completed in October 2000.
Exchange Rates
The results for 2000 and the comparative figures for 1999 have been translated at constant average rates of exchange, being the annual average rates for 1999. For our reporting currencies these were Pound 1 = (pound) 0.66 = U.S. $1.07. In addition, the results, earnings per share and cash flow statement have been translated at rates current in each period. For our reporting currencies these were:
Fourth Quarter
2000 Pound 1 = (pound)0.61 = U.S. $0.86 1999 Pound 1 = (pound)0.64 = U.S. $1.04
Full Year
Pound 1 = (pound)0.61 = U.S. $0.92 Pound 1 = (pound)0.66 = U.S. $1.07
The Bestfoods results were translated at the average rates of exchange for the fourth quarter 2000 which were Pound 1 = (pound)0.60 = U.S. $0.87.
The balance sheet figures have been translated at year-end rates of exchange. For our reporting currencies these were Pound 1 = (pound)0.62 = U.S. $0.93 (December 31, 1999: Pound 1 = (pound)0.62 = U.S. $1.00).
Share consolidation
On May 10, 1999 the 1.25p ordinary shares of PLC and the Fl. 1 ordinary shares of N.V. were consolidated, so that every 112 ordinary shares were replaced by 100 1.4p PLC ordinary shares or 100 Fl. 1.12 N.V. ordinary shares. This consolidation was associated with the payment on June 9, 1999, of a special dividend of 66.13p per 1.25p share and Fl. 14.50 per Fl. 1 share, so that the economic impact was that of a share buy back at fair value at that date and therefore, in accordance with U.K. Accounting Standard FRS 14, earnings per share for prior periods have not been restated.
Goodwill and intangibles
In accordance with FRS 10, goodwill and identifiable intangible assets purchased as from January 1, 1998 are capitalized and amortized in operating profit over the period of their expected useful life.
Acquired businesses held for resale
A number of Bestfoods businesses are expected to be sold within a year from the purchase date. The assets and liabilities of those businesses, after adjustment to their estimated net proceeds of sale, have been included within `Goodwill and Acquired businesses held for resale’.
Sale of Elizabeth Arden
On October 31, 2000 Unilever announced the signing of a definitive agreement to sell its Elizabeth Arden business, brands and certain assets to FFI Fragrances based in Miami Lakes, Florida, USA, for a consideration of approximately $225 million (Pound 244 million approx.). The transaction was completed on January 24, 2001.
The cash inflow, after tax, on disposal is $160 million (Pound 174 million approx.). As a result of the write-back of $830 million (Pound 902 million approx.) of goodwill which was charged direct to shareholders funds on the acquisition of the business in 1989, the loss on disposal, after tax, will be $791 million (Pound 859 million approx.). This loss has been included in Unilever’s fourth quarter results and falls within the restructuring charges of Pound 5 billion announced in February 2000 as part of Unilever’s Path to Growth strategy.
DIVIDENDS
The Boards have resolved to recommend to the Annual General Meetings to be held on May 9, 2001 the declaration of final dividends in respect of 2000 on the Ordinary capitals at the following rates which are equivalent in value at the rate of exchange applied in terms of the Equalisation Agreement between the two companies:
N.V.
Pound 0.95 per ordinary share (1999: Pound 0.87(a), bringing the total of N.V.’s dividend for 2000 to Pound 1.43 per ordinary share (1999: Pound 1.27(a).
PLC
8.67p per ordinary share (1999: 8.57p), bringing the total of PLC’s dividend for 2000 to 13.07p per ordinary share (1999: 12.50p).
(a) In 1999, the N.V. dividends were declared and paid in guilders. For comparative purposes, guilder values have been converted into euros using the official rate of Pound 1 = Fl. 2.20371.
The N.V. final dividend will be paid on May 21, 2001, to shareholders registered at close of business on May 10, 2001.
The PLC final dividend will be paid on May 21, 2001, to shareholders registered at close of business on April 27, 2001.
DIVIDENDS ON NEW YORK SHARES OF N.V.
U.S. dollar checks for the final dividend on the New York Shares of Fl. 1.12 nominal amount after deduction of Netherlands withholding tax at the appropriate rate, converted at the euro/dollar rate of exchange in Amsterdam on May 9, 2001 will be mailed on May 25, 2001, to holders of record at the close of business on May 16, 2001. If converted at the euro/dollar rate of exchange at noon on February 7, 2001 the final dividend would be U.S.$ 0.8852 per New York share (1999 final dividend: U.S.$ 0.7725 actual payment) before deduction of Netherlands withholding tax. With the interim dividend in respect of 2000 of U.S.$ 0.4150 at the actual euro/dollar conversion rate, already paid, this would result in a total for interim and final dividends in respect of 2000 of U.S.$ 1.3002 per New York Share (1999: U.S.$ 1.1881 actual payment).
DIVIDENDS ON AMERICAN SHARES OF PLC
U.S. dollar checks for the final dividend on the American shares in PLC converted at the sterling/dollar rate of exchange current in London on May 21, 2001 will be mailed on May 25, 2001, to holders of record at the close of business on April 27, 2001. Each American Share in PLC represents four 1.4p ordinary shares in PLC. The PLC final dividend will therefore be 34.68p per American Share. If converted at the sterling/dollar rate of exchange at noon on February 7, 2001, the PLC final dividend would be U.S.$ 0.5067 per American Share (1999 final dividend: U.S.$ 0.5050 actual payment). With the interim dividend in respect of 2000 of U.S.$ 0.2573 at the actual sterling/dollar conversion rate, already paid, this would result in a total for interim and final dividends in respect of 2000 of U.S.$ 0.7640 per American Share (1999: U.S.$ 0.7565 actual payment).
Combined earnings per share
The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of N.V. and PLC in issue during the year, less the average number of shares held to meet options granted under various employee share plans.
The number of combined share units is calculated from the underlying N.V. and PLC shares using the exchange rate of (pound)1 = Fl. 12, in accordance with the Equalization Agreement, taking into account the share consolidation.
The diluted earnings per share are based on the average number of share units, plus all shares under option, together with certain PLC shares which may be issued in 2038 under the arrangements for the variation of the Leverhulme Trust. The number of shares is reduced, in accordance with FRS 14, by the number of shares that could be purchased at fair value with the expected proceeds from the exercise of options by employees.
Earnings per share in Euro for the year
Constant rates Current rates
2000 1999 2000 1999
Thousands of units
Average number of
combined share
units of Fl. 1.12 989,217 1,045,183 989,217 1,045,183
Average number of
combined share
units of 1.4p 6,594,782 6,967,884 6,594,782 6,967,884
COMBINED EPS
Net profit 1,151 2,771 1,105 2,771
Less: Preference
dividends 44 20 44 20
Net profit attributable
to ordinary capital 1,107 2,751 1,061 2,751
Combined EPS per
Fl. 1.12 (Euros) 1.12 2.63 1.07 2.63
Combined EPS per
1.4p (Eurocents) 16.78 39.48 16.08 39.48
COMBINED EPS – BEIA
Net profit 1,151 2,771 1,105 2,771
Add back exceptional
items net of tax 1,532 185 1,709 185
Add back amortization of
goodwill / intangibles
net of tax 363 21 409 21
Net profit beia 3,046 2,977 3,223 2,977
Less: Preference
dividends 44 20 44 20
Net profit attributable
beia 3,002 2,957 3,179 2,957
Adjusted average combined
share units of
Fl. 1.12 1,014,275 1,071,712 1,014,275 1,071,712
Adjusted average
combined share
units of 1.4p 6,761,833 7,144,743 6,761,833 7,144,743
Net profit attributable
to ordinary capital 1,107 2,751 1,061 2,751
Combined diluted EPS
per Fl. 1.12 (Euros) 1.09 2.57 1.05 2.57
Combined diluted EPS
per 1.4p (Eurocents) 16.37 38.50 15.69 38.50
Dates
The Annual Review and Accounts 2000 will be published on March 28,
2001.
The provisional results for the first quarter 2001 will be
published on Friday, April 27, 2001.
CONSOLIDATED PROFIT AND LOSS ACCOUNT – CONSTANT EXCHANGE RATES
(unaudited)
In the profit and loss account given below, the results in both
years have been translated at constant exchange rates, being the
annual average exchange rates for 1999. This reporting convention
facilitates comparisons since the impact of exchange rate fluctuations
is eliminated.
Fourth Quarter U.S. $ Millions – constant Full Year
2000 1999 % Incr./ 2000 1999 %Incr.
(Decr.) /(Decr.)
NET PROFIT / (LOSS)
AT CONSTANT 1999
(883) 667 (232)% EXCHANGE RATES 1,226 2,952 (58)%
Net Profit before
exceptional items &
amortization of
Goodwill and
723 758 (5)% Intangibles (a) 3,245 3,172 2 %
(a) Operating profit before exceptional items and amortization of
goodwill and intangibles. See note on `Goodwill and intangibles’.
CONSOLIDATED PROFIT AND LOSS ACCOUNT – CURRENT EXCHANGE RATES
(unaudited)
The profit and loss account given below is stated at current
exchange rates i.e. the results in both years have been translated at
the exchange rates prevailing during the appropriate period; see note
on ‘Exchange Rates’ for further information. The reported results are
therefore impacted by exchange rate movements between the periods.
This translation has been prepared solely for the convenience of users
and does not form part of Unilever’s accounts.
Fourth Quarter U.S. $ Millions – current Full Year
(a) Operating profit before exceptional items and amortization of
goodwill and intangibles. See note on `Goodwill and intangibles’.
(b) See note on `Share consolidation’.
SUMMARY BALANCE SHEET (unaudited)
U.S. $ Millions
As of December 31
2000 1999
Goodwill and Acquired businesses for resale 26,172 646
Fixed assets 10,230 9,004
Stocks 5,043 5,147
Debtors 9,133 7,720
Cash and current investments 3,045 5,498
Trade & other creditors (11,822) (10,223)
41,801 17,792
Borrowings 27,668 4,811
Provisions for liabilities and charges 5,958 4,603
Minority interests 575 581
Capital and reserves 7,600 7,797
41,801 17,792
CASH FLOW STATEMENT (unaudited)
U.S. $ Millions Full Year
2000 1999
Cash flow from operating activities (a) 6,203 6,023
Dividends from joint ventures 35 29
Returns on investments and
servicing of finance (735) (167)
Taxation (1,596) (1,538)
Capital expenditure and financial investment (977) (1,599)
Acquisitions and disposals (24,142) (388)
Dividends paid on ordinary share capital (1,257) (7,839)
CASH INFLOW / (OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES AND
FINANCING (22,469) (5,479)
Management of liquid resources 2,268 6,047
Financing 21,085 (156)
INCREASE/ (DECREASE) IN CASH IN THE PERIOD 884 412
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
(unaudited)
NET FUNDS AT JANUARY 1 687 6,788
INCREASE / (DECREASE) IN CASH IN THE PERIOD 884 412
Cash flow from (increase)/
decrease in borrowings (21,102) 160
Cash flow from increase /
(decrease) in liquid resources (2,268) (6,047)
Change in net funds / (debt)
resulting from cash flows (22,486) (5,475)
Borrowings within group companies acquired (2,728) (31)
Borrowings within group companies sold 2 5
Liquid resources within group companies acquired 12 3
Liquid resources within group companies sold – –
Non cash movements 419 (229)
Currency retranslation (529) (374)
MOVEMENT IN NET FUNDS /(DEBT) IN THE
PERIOD (25,310) (6,101)
NET FUNDS / (DEBT) AT DECEMBER 31 (24,623) 687
(a) Includes payments of U.S.$477 million to settle share options
and similar obligations in Bestfoods consequent to the change of
control.
5,410 4,721 15 % Europe 18,244 20,475 20,015 2 %
3,123 2,384 31 % North America 10,709 10,683 9,414 13 %
Africa and
689 645 7 % Middle East 2,253 2,524 2,448 3 %
2,024 1,894 7 % Asia and Pacific 7,401 7,700 7,162 7 %
1,758 1,252 40 % Latin America 5,202 5,274 4,611 14 %
13,004 10,896 19 % TURNOVER 43,809 46,656 43,650 7 %
Operating profit –
before exceptional
items and amortization
of goodwill and
intangibles
513 460 12 % Europe 2,264 2,573 2,419 6 %
475 354 34 % North America 1,359 1,353 1,038 30 %
Africa and
88 52 69 % Middle East 258 291 267 9 %
213 147 45 % Asia and Pacific 829 875 712 23 %
235 151 56 % Latin America 564 569 459 24 %
OPERATING PROFIT
1,524 1,164 31 % BEIA 5,274 5,661 4,895 16 %
Exceptional
(1,452) (107) items (1,834) (1,908) (287)
Amortization of
goodwill and
(337) (9) intangibles (400) (411) (24)
OPERATING PROFIT
(265) 1,048 (125)% / (LOSS) 3,040 3,342 4,584(27)%
Operating margin – before
exceptional items and
amortization of goodwill
and intangibles
9.5 % 9.7 % Europe 12.4 % 12.6 % 12.1 %
15.2 % 14.8 % North America 12.7 % 12.7 % 11.0 %
Africa and
12.8 % 8.1 % Middle East 11.5 % 11.5 % 10.9 %
Asia and
10.5 % 7.8 % Pacific 11.2 % 11.4 % 9.9 %
13.4 % 12.0 % Latin America 10.8 % 10.8 % 10.0 %
OPERATING
11.7 % 10.7 % MARGIN BEIA 12.0 % 12.1 % 11.2 %
(2.0)% 9.6 % OPERATING MARGIN 6.9 % 7.2 % 10.5 %
(a) at constant 1999 annual average exchange rates.
(b) at exchange rates current in the year.
BESTFOODS
GEOGRAPHICAL ANALYSIS (unaudited)
U.S. $ Millions Fourth Quarter and Full Year
2000(b) 2000(a)
Turnover
Europe 725 815
North America 490 463
Africa and Middle East – –
Asia and Pacific 25 25
Latin America 416 412
TURNOVER 1,656 1,715
Operating profit – before exceptional items and
amortization of goodwill and intangibles
Europe(c) 64 75
North America 118 112
Africa and Middle East – –
Asia and Pacific (1) (1)
Latin America 76 75
OPERATING PROFIT BEIA 257 261
Operating margin – before exceptional items and
amortization of goodwill and intangibles
Europe(c) 8.9 % 9.3 %
North America 24.2 % 24.2 %
Africa and Middle East – % – %
Asia and Pacific (5.5)% (5.8)%
Latin America 18.3 % 18.1%
OPERATING MARGIN BEIA 15.6 % 15.2 %
(a) at constant 1999 annual average exchange rates.
(b) at exchange rates current in the period.
(c) after charging U.S. $ 75m (constant) of costs associated with
integration.
Oil and dairy
based foods
2,338 2,049 14 % and bakery 7,301 7,905 7,753 2 %
Ice cream and
1,457 1,199 21 % beverages 6,998 7,460 7,070 5 %
Culinary and frozen
3,190 1,826 74 % products(1) 7,704 8,344 6,843 22 %
Home Care and
Professional
2,558 2,443 5 % Cleaning 9,445 10,056 9,700 4 %
3,238 3,041 6 % Personal Care 11,571 12,061 11,371 6 %
223 338 (33)% Other Operations(1) 790 830 913 (9)%
13,004 10,896 19 % TURNOVER 43,809 46,656 43,650 7 %
OPERATING PROFIT –
before exceptional
items and amortization
of goodwill and
intangibles
720 456 58 % Foods 2,531 2,751 2,181 26 %
Oil and dairy based
317 267 19 % foods and bakery 961 1,053 835 26 %
Ice cream and
(95) (25) (299)% beverages 596 648 639 1 %
Culinary and frozen
498 214 133 % products(1) 974 1,050 707 49 %
Home Care and Pro-
207 197 5 % fessional Cleaning 845 912 914 – %
580 464 25 % Personal Care 1,872 1,966 1,685 17 %
17 47 (65)% Other Operations(1) 26 32 115(73)%
OPERATING PROFIT
1,524 1,164 31 % BEIA 5,274 5,661 4,895 16 %
(1,452) (107) Exceptional items(1,834)(1,908) (287)
Amortization of
goodwill and
(337) (9) intangibles (400) (411) (24)
OPERATING PROFIT /
(265) 1,048 (125)% (LOSS) 3,040 3,342 4,584 (27)%
OPERATING MARGIN –
before exceptional
items and
amortization of
goodwill and
intangibles
10.3 % 9.0 % Foods 11.5% 11.6% 10.1%
Oil and dairy
based foods
13.6 % 13.0 % and bakery 13.2% 13.3% 10.8%
Ice cream and
(6.6)% (2.0)% beverages 8.5% 8.7% 9.0%
Culinary and frozen
15.6 % 11.7 % products (1) 12.6% 12.6% 10.3%
Home Care and
Professional
8.1 % 8.1 % Cleaning 8.9% 9.1% 9.4%
17.9 % 15.2 % Personal Care 16.2% 16.3% 14.8%
7.4 % 13.8 % Other Operations(1)3.3% 3.8% 12.7%
OPERATING MARGIN
11.7 % 10.7% BEIA 12.0% 12.1% 11.2%
(2.0)% 9.6 % OPERATING MARGIN 6.9% 7.2% 10.5%
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the year
(1) Includes a prior year restatement, U.S. $176m of turnover and
U.S. $0m of operating profit for the year, relating to a
reclassification of Indian food categories which have been transferred
from Culinary and frozen products to Other Operations.
BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
U.S. $ Millions Fourth Quarter and Full Year
2000 (b) 2000 (a)
TURNOVER
Foods 1,656 1,715
Oil and dairy based foods and bakery 330 324
Ice cream and beverages 77 78
Culinary and frozen products 1,249 1,313
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations – –
TURNOVER 1,656 1,715
OPERATING PROFIT / (LOSS) – before
exceptional items and
amortization of goodwill and intangibles
Foods 289 298
Oil and dairy based foods and bakery 30 31
Ice cream and beverages 5 6
Culinary and frozen products 254 261
Home Care and Professional Cleaning – –
Personal Care – –
Other Operations(c) (32) (37)
OPERATING PROFIT BEIA 257 261
OPERATING MARGIN – before exceptional items
and amortization of goodwill and intangibles
Foods 17.5 % 17.4 %
Oil and dairy based foods and bakery 9.2 % 9.4 %
Ice cream and beverages 6.6 % 7.1 %
Culinary and frozen products 20.4 % 19.9 %
Home Care and Professional Cleaning – % – %
Personal Care – % – %
Other Operations – % – %
OPERATING MARGIN BEIA 15.6 % 15.2 %
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the period.
(c) after charging integration costs associated with exceptional
items
Fourth Quarter U.S. $ Full Year
% Incr./ Millions % Incr./
2000(a) 1999(a) (Decr.)(a) 2000(b) 2000(a) 1999(a) (Decr.)
(a)
TURNOVER
5,270 5,074 4 Foods 20,347 21,994 21,666 1
Oil and dairy
based foods and
2,014 2,049 (2) bakery 6,971 7,581 7,753 (2)
Ice cream
and
1,379 1,199 15 beverages 6,921 7,382 7,070 4
Culinary and
frozen
1,877 1,826 3 products(1) 6,455 7,031 6,843 3
Home Care
and
Professional
2,558 2,443 5 Cleaning 9,445 10,056 9,700 4
Personal
3,238 3,041 6 Care 11,571 12,061 11,371 6
Other
223 338 (33) Operations(1) 790 830 913 (9)
11,289 10,896 4 TURNOVER 42,153 44,941 43,650 3
OPERATING PROFIT
– before
exceptional
items and
amortization of
goodwill and
intangibles
422 456 (7)% Foods 2,242 2,453 2,181 12%
Oil and dairy
based foods
286 267 8 and bakery 931 1,022 835 22%
Ice cream
and
(101) (25) (322) beverages 591 642 639 -%
Culinary and
frozen
237 214 11 products(1) 720 789 707 12
Home Care and
Professional
207 197 5 Cleaning 845 912 914 -%
Personal
580 464 25 Care 1,872 1,966 1,685 17
Other
54 47 16 Operations(1) 58 69 115 (40)
OPERATING
1,263 1,164 9 PROFIT BEIA 5,017 5,400 4,895 10
OPERATING MARGIN
– before
exceptional
items and
amortization of
goodwill and
intangibles
8.0% 9.0% Foods 11.0% 11.2% 10.1%
Oil and dairy
based foods
14.2% 13.0% and bakery 13.4% 13.5% 10.8%
Ice cream
and
(7.4)% (2.0)% beverages 8.5% 8.7% 9.0%
Culinary and
frozen
12.6% 11.7% products(1) 11.2% 11.2% 10.3%
Home Care
and
Professional
8.1% 8.1% Cleaning 8.9% 9.1% 9.4%
Personal
17.9% 15.2% Care 16.2% 16.3% 14.8%
Other
24.0% 13.8% Operations(1) 7.4% 8.3% 12.7%
OPERATING
MARGIN
11.2% 10.7% BEIA 11.9% 12.0% 11.2%
(a) at constant 1999 annual average exchange rates
(b) at exchange rates current in the year
(1) Includes a prior year restatement, U.S. $176m of turnover and
U.S. $0m of operating profit for the year, relating to a
reclassification of Indian food categories which have been transferred
from Culinary and frozen products to Other Operations.
Earnings per share in U.S. dollars for the year
Constant rates Current rates
2000 1999 2000 1999
Thousands of units
Average number of
combined share
units of Fl. 1.12 989,217 1,045,183 989,217 1,045,183
Average number of
combined share
units of 5.6p 1,648,696 1,741,971 1,648,696 1,741,971
COMBINED EPS
Net profit 1,226 2,952 1,017 2,952
Less: Preference
dividends 47 22 41 22
Net profit attributable
to ordinary capital 1,179 2,932 976 2,930
Combined EPS per Fl. 1.12 $1.19 $2.80 $0.99 $2.80
Combined EPS per 5.6p $0.72 $1.68 $0.59 $1.68
COMBINED EPS – BEIA
Net profit 1,226 2,952 1,017 2,952
Add back exceptional
items net of tax 1,632 197 1,574 197
Add back amortization
of goodwill / intangibles
net of tax 387 23 376 23
Net profit before
exceptional items 3,245 3,172 2,967 3,172
Less: Preference
dividends 44 22 41 22
Net profit attributable
before exceptional items 3,201 3,150 2,926 3,150
Combined EPS beia
Fl. 1.12 $3.24 $3.01 $2.96 $3.01
Combined EPS beia
per 5.6p $1.94 $1.81 $1.77 $1.81
COMBINED EPS – Diluted
Thousands of units
Adjusted average combined
share units of
Fl. 1.12 1,014,274 1,071,712 1,014,274 1,071,712
Adjusted average
combined share
units of 5.6p 1,690,458 1,786,186 1,690,458 1,786,186
Net profit attributable
to ordinary capital 1,179 2,932 976 2,930
Combined diluted EPS
per Fl. 1.12 $1.16 $2.73 $0.96 $2.73
Combined diluted EPS
per 5.6p $0.70 $1.64 $0.58 $1.64
Company Profile – free sample
