Unilever today announces its unaudited results for the second quarter and half year 2000.

“The second quarter saw an increase in momentum with improved underlying volume growth, a healthy contribution from acquisitions, and aggressive investment behind our brands. Profitability increased strongly in the first half year. Our Path to Growth strategy continues to drive the business,” the Chairmen commented.

FINANCIAL HIGHLIGHTS

Constant exchange rates (1999 average)

Second Quarter Millions
2000

10,919 +3% Turnover
Operating profit – before exceptional items
1,238 +10% and amortisation of goodwill/intangibles
928 (14)% Pre-tax profit
562 (16)% Net profit
734 +3% Net profit – before exceptional items

Per NV share (Fl. 1.12), Euro (1)

0.56 (10)% EPS
0.73 11% EPS – before exceptional items

Per PLC share (1.40p), Eurocent (1)

8.38 (10)% EPS
10.95 11% EPS – before exceptional items

Half Year 2000

20,611 +2%
Current exchange
2,326 +12% rates

1,884 (9)% Half Year 2000
1,173 (10)% 1,235 (4)%
1,415 +4% 1,484 +10%

1.17 (1)% 1.23 +5%
1.41 +13% 1.48 +20%

17.48 (1)% 18.41 +5%
21.11 +13% 22.18 +20%

(1) See note on combined earnings per share.

KEY FEATURES

  • Sales of our leading brands grew by 6.0 % in the second quarter, including 2.8% from acquisitions.
  • Investment in advertising and promotions increased by 120 bps to 15.7% of turnover in the quarter, and by 70 bps to 14.5% of turnover in the half year.
  • Operating margins before exceptional items and goodwill amortization moved ahead 70 bps in the quarter and 100 bps for the half year.
  • Lower pre-tax profit reflects planned restructuring costs, 200 million more in the second quarter, as part of our Path to Growth strategy.
  • EPS before exceptional items, at constant exchange rates, increased by 11% in the second quarter and by 13% for the half year.
  • Cashflow from operating activities rose by nearly 40% for the half year to 2.9 billion.
  • CHAIRMEN’S COMMENT & OUTLOOK

    “We continue to make good progress with our Path to Growth strategy. We are focusing on our leading brands, addressing the underperforming businesses as demonstrated through the forthcoming sale of our European bakery business and our restructuring program is on target. The most significant event in the quarter was, of course, the agreement to acquire Bestfoods, for which the necessary and regulatory approvals are proceeding according to the timetable, for completion in the fourth quarter.”

    “Today we also announced an evolution of our top management structure, creating improved alignment of activities to fulfill our Path to Growth strategy. This stems from the review of Unilever’s top organization announced in February.”

    “With regard to the outlook for the remainder of the year we expect the pattern of increasing market investment and underlying revenue growth to continue. Before exceptional items and excluding the effect of recently completed acquisitions, this should result in earnings per share growth at constant exchange rates in the expected range of 8-10% for the year as a whole. Those acquisitions will be dilutive of earnings per share, after amortization of goodwill.”

    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 in excess of $45 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 255,000 people.

    In the United States, Unilever sales exceeded $8 billion in 1999. It employs 22,000 people and has 72 offices and manufacturing sites in 24 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; 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 and Elizabeth Arden 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.

    SECOND QUARTER AND HALF YEAR FINANCIAL RESULTS

    At constant exchange rates operating profit before exceptional items and amortization of goodwill and intangibles increased by 10% in the quarter and by 12% for the half year. Net profit at constant exchange rates and before exceptional items increased by 3% in the quarter and by 4% for the half year, mainly because of a swing in interest following the payment of the special dividend in June 1999.

    In the quarter, exceptional items rose as planned asimplementation of the Path to Growth program progressed. As a consequence net profit at constant exchange rates decreased by 16%, and by 10% for the half year.

    At constant exchange rates and taking account of the benefits of the 1999 share consolidation, earnings per share before exceptional items rose 11% in the quarter and 13% for the half year. When expressed in current rates of exchange, earnings per share in the quarter rose 16% before exceptional items but decreased by 5% after exceptional items. On the same basis, earnings for the half year rose 20% before exceptional items and 5% after.

    SECOND QUARTER AND HALF YEAR PERFORMANCE BY REGION

    The following commentary is based on operating profit before exceptional items and amortization of goodwill and intangibles, at constant rates of exchange.

    EUROPE: Operating margins improved strongly but sales revenue was held back by lower vegetable oil prices.

    Profits moved ahead, driven by continuing strong gross margins in Western Europe and improvement in the underlying profitability in Central and Eastern Europe in the second quarter. A faster attrition of our tail brands and the non-consumer goods businesses has been well managed with profitability being raised.

    Spreads volumes in Western Europe, although flat in the second quarter, significantly improved over the first quarter, with lower vegetable oil prices leading to strong margins, but reducing sales. The approval of our cholesterol reducing spread by the European authorities will allow its introduction during the second half of the year. The introduction of the new Bertolli range drove growth in olive oil, more than reversing the decline seen in the first quarter.

    Culinary continued to make good progress with Stir-it-up, Sizzle & Stir, and Five Brothers sauces, and Amora Maille contributed for the first time. Tea based beverages grew strongly driven by Lipton ready-to-drink, PG-tips in the UK and Tchae in France.

    Volume growth in ice cream was driven by ice cream multipacks, desserts, and the roll out of Solero Shots. Frozen foods volumes grew 2% in the quarter, helped by Quattro Stelle, a new range of quality meals.

    Sales from our leading brands within home and personal care increased, particularly in fabric conditioners, householdcare, skincare and deodorants. Half year sales from Dove rose 18%.

    Profitability in Central and Eastern Europe has improved, and the rate of sales decline has slowed compared to the first quarter. Progress has been made in reshaping our portfolio. In Turkey we regained share leadership in the laundry market in the second quarter, but the competitive pressures in Poland remain, in both laundry and spreads.

    NORTH AMERICA: Acquisitions add to an improved underlying performance in foods. Home and personal care made steady progress.

    Sales in the quarter rose more than 6%, with a first-time contribution from Slimo Fast and Ben & Jerry’s. Investment in advertising and promotions behind our foods business was stepped up significantly. Margins in foods advanced strongly in the quarter and the half year, reflecting the benefits of restructuring, cost effectiveness and lower commodity prices.

    Ice cream, tea based beverages and culinary products all showed good growth driven by innovation: Breyers Parlour, Popsicle Scribblers and Pokemon novelties in ice cream, Sizzle & Stir, Just2Good in culinary and Lipton Cold Brew in tea drove an underlying volume growth in foods of nearly 3% in the quarter, and over 2% for the half year. In spreads, market shares increased, partly as a result of our leadership in the cholesterol lowering segment.

    In our home and personal care business sales were flat for the quarter due to competitors activities and trade destocking. In laundry, volume was up but revenue flat as a result of competitive pricing pressure. However, personal wash and deodorants showed excellent growth, where innovations with Dove and Caress are leading to further share gains. In hair, innovations are planned for the third quarter.

    Fragrances sales were down, but in line with expectations. Most of the innovation is planned for the second half of the year, including activities supporting the new designer ranges.

    AFRICA AND MIDDLE EAST: Stable sales but lower operating profit reflecting marketing investment and lower vegetable oil prices.

    Sales were stable despite political and economic difficulties in several countries. Operating profits are lower as a result of increased marketing support in home and personal care.

    Foods sales were down because of disposals in the previous year, and lower commodity prices. Home and personal care showed good sales growth both in the quarter and the half year, particularly in laundry, skin and oral.

    ASIA AND PACIFIC: Strong sales growth continued and marketing support increased.

    Asia and Pacific region showed healthy and broad based sales and profit growth. The investment behind our brands continued at a high level.

    In India the consumer business achieved higher sales both in the quarter and the half year, with growth particularly driven by laundry and hair. Our sales in branded staple foods developed rapidly but lower sales in non core businesses held back the overall growth rate in the second quarter.

    China continued its progress in laundry and oral, but hair sales were weaker as a result of heavy price discounting by the competition. Our distribution network has been further extended and now covers 500 key cities.

    The performance in South East Asia and Japan was excellent. Strong innovation and increased support levels have driven double digit volume and sales growth in the quarter and the half year, particularly in hair, with Lux and Mods in Japan, Vaseline in the Philippines, Sunsilk in Thailand, and in skin, with Dove and Pond’s in Japan. In Australia volume growth improved markedly in the second quarter, driven by innovations in laundry, culinary and ice cream.

    LATIN AMERICA: Revenues are ahead with good growth in personal care and encouraging progress in laundry shares.

    Revenue growth in the second quarter was 5%, and 3% for the half year, with price and acquisitions more than offsetting an underlying volume decline. Operating profits were lower for the half year reflecting the increased levels of marketing investment in laundry and personal care.

    In laundry our shares in the second quarter improved compared to the first quarter. Good revenue growth in personal care was driven by skin, hair and deodorants, predominantly in our Brazilian business. In ice cream, profitability improved following previous restructuring, and sales were particularly strong in Mexico. Revenues in spreads and culinary were maintained.

    CASH FLOW

    Cash flow from operations for the half year of 2.9 billion was 0.8 billion above the corresponding period last year, driven by strong underlying earnings and lower seasonal working capital outflows.

    Returns from investment and financing were lower following payment of the special dividend in 1999 and the funding of acquisitions made in the half year.

    The net acquisition and disposal outflow of 3.7 billion for the half year includes the consideration for Slimo Fast, Ben & Jerry’s, Amora Maille, Cressida and Modern Foods.

    BALANCE SHEET

    Net Debt at 2.8 billion compares to net funds of 0.7 billion at the end of 1999; net gearing is now 23%. Goodwill and intangibles have increased by 3.5 billion through the above acquisitions. The acquisitions have also affected debtors, which including the usual seasonal outflow have increased by 1.5 billion, and provisions for liabilities and charges, which have increased by 0.6 billion.

    Capital and reserves increased by 1.1 billion to 8.8 billion. This mainly reflects profits for the half year less the value of shares purchased in respect of employee share option plans.

    EURO REPORTING

    Information in sterling and US 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.

    .Second Quarter            Millions – constant   Half Year

    2000 1999 % 2000 1999 %
    Incr./ Incr/
    (Decr.) (Decr.)

    10,919 10,617 3 % TURNOVER 20,611 20,258 2 %

    959 1,056 (9)% OPERATING PROFIT 1,929 1,978 (3)%

    Operating Profit
    1,238 1,126 10 % BEIA (2) 2,326 2,085 12 %

    (267) (65) Exceptional items (376) (98)

    Amortization of goodwill
    (12) (5) and intangibles (21) (9)

    Income from fixed
    11 16 investments 23 27

    (42) 11 Interest (net) (68) 58

    928 1,083 (14)% PROFIT BEFORE TAXATION 1,884 2,063 (9)%

    (323) (357) Taxation (628) (670)

    605 726 (17)% PROFIT AFTER TAXATION 1,256 1,393 (10)%

    (43) (55) Minority Interests (83) (92)

    NET PROFIT AT CONSTANT
    1999 EXCHANGE RATES
    562 671 (16)% 1,173 1,301 (10)%

    Net Profit before exceptional
    734 713 3 % items (Constant rates)1,415 1,367 4 %

    NET PROFIT AT EXCHANGE
    RATES CURRENT IN EACH
    592 673 (12)% PERIOD 1,235 1,289 (4)%

    Net Profit before exceptional
    768 715 7 % items (Current rates) 1,484 1,355 10 %

    COMBINED EARNINGS PER
    SHARE (3)(Current rates)
    – per Fl. 1.12 ordinary
    0.59 0.62 (5)% share (Euros) 1.23 1.17 5 %

    – per Fl. 1.12 ordinary
    0.58 0.61 (5)% share – diluted(Euros)1.20 1.15 5 %

    – per 1.40p ordinary
    8.83 9.34 (5)% share (Euro cents) 18.41 17.61 5 %

    – per 1.40p ordinary share –
    8.62 9.12 (5)% diluted (Euro cents) 17.96 17.18 5 %

    (2) Operating profit before exceptional items and amortisation of
    goodwill and intangibles. See note on ‘Goodwill and intangibles’.
    (3) See note on ‘Share consolidation’.

    STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)

    Millions Half Year

    2000 1999

    Net profit 1,235 1,289

    Currency retranslation 63 316

    Total recognized gains 1,298 1,605

    SUMMARY BALANCE SHEET (unaudited)

    Millions
    As at 1st As at 31st
    July December

    2000 1999

    Goodwill and intangibles 4,138 643

    Fixed assets 9,282 8,963

    Stocks 5,034 5,124

    Debtors 9,216 7,685

    Cash and current investments 6,064 5,473

    Trade & other creditors (10,260) (10,177)

    23,474 17,711

    Borrowings 8,854 4,789
    Provisions for liabilities and
    charges 5,178 4,582

    Minority interests 606 579

    Capital and reserves 8,836 7,761

    23,474 17,711

    CASH FLOW STATEMENT (unaudited)

    Millions Half Year

    2000 1999

    Cash flow from operating activities 2,914 2,122

    Dividends from joint ventures 5 5

    Returns on investments and
    servicing of finance (266) 27

    Taxation (698) (632)

    Capital expenditure and
    financial investment (692) (778)

    Acquisitions and disposals (3,739) (162)

    Dividends paid on ordinary share
    capital (888) (6,276)

    CASH INFLOW / (OUTFLOW) BEFORE
    MANAGEMENT OF LIQUID RESOURCES AND
    FINANCING (3,364) (5,694)

    Management of liquid resources 132 3,920

    Financing 4,592 2,766

    INCREASE / (DECREASE) IN CASH IN
    THE PERIOD 1,360 992

    RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)

    NET FUNDS AT 1 JANUARY 684 5,778

    INCREASE IN CASH IN THE PERIOD 1,360 992

    Cash flow from (increase)/ decrease
    in borrowings (4,601) (2,777)

    Cash flow from increase/ (decrease)
    in liquid resources (132) (3,920)

    Change in net funds / (debt)
    resulting from cash flows (3,373) (5,705)

    Borrowings within group companies
    acquired (90) (1)

    Borrowings within group companies
    sold – 4

    Liquid resources within group
    companies acquired 8 2

    Liquid resources within group
    companies sold – –

    Non cash movements 199 (19)

    Currency retranslation (218) (56)

    MOVEMENT IN NET FUNDS / (DEBT)
    IN THE PERIOD (3,474) (5,775)

    NET FUNDS / (DEBT) AT HALF YEAR (2,790) 3

    GEOGRAPHICAL ANALYSIS

    Second Quarter Millions Half Year
    % %
    Incr./ Incr./
    2000 1999 (Decr.) 2000 1999 (Decr.)
    Turnover

    5,043 5,042 – % Europe 9,289 9,441 (2)%
    2,386 2,245 6 % North America 4,524 4,330 4 %
    Africa and
    584 579 1 % Middle East 1,115 1,114 – %
    Asia and
    1,807 1,700 6 % Pacific 3,528 3,276 8 %
    1,099 1,051 5 % Latin America 2,155 2,097 3 %

    10,919 10,617 3 % TURNOVER 20,611 20,258 2 %

    Operating profit –
    before exceptional
    items and amortization
    of goodwill and
    intangibles

    700 595 17 % Europe 1,186 1,029 15 %
    233 201 16 % North America 423 364 16 %
    Africa and
    54 66 (18)% Middle East 115 133 (14)%
    156 164 (5)% Asia and Pacific 395 333 19 %
    95 100 (5)% Latin America 207 226 (9)%

    OPERATING PROFIT
    1,238 1,126 10 % BEIA 2,326 2,085 12 %
    Exceptional
    (267) (65) Items (376) (98)
    Amortization of
    goodwill
    (12) (5) and intangibles (21) (9)

    OPERATING
    959 1,056 9 % PROFIT 1,929 1,978 (3)%

    Operating margin – before
    exceptional items and
    amortization of goodwill
    and intangibles

    13.9% 11.8% Europe 12.8% 10.9%
    9.8% 9.0% North America 9.4% 8.4%
    Africa and
    9.2% 11.3% Middle East 10.3% 11.9%
    8.7% 9.7% Asia and Pacific 11.2% 10.2%
    8.6% 9.5% Latin America 9.6% 10.8%

    OPERATING MARGIN
    11.3% 10.6% BEIA 11.3% 10.3%
    8.8% 9.9% OPERATING MARGIN 9.4% 9.8%

    OPERATIONAL ANALYSIS

    Second Quarter Millions Half Year

    % Incr./ % Incr./
    2000 1999 (Decr.) 2000 1999 (Decr.)

    TURNOVER

    5,624 5,485 3 % Foods 10,272 10,292 – %

    1,724 1,754 (2)% Oil and dairy based
    foods and bakery 3,351 3,559 (6) %
    2,273 2,152 6 % Ice cream and
    beverages 3,673 3,499 5 %
    1,627 1,579 3 % Culinary and frozen
    products (4) 3,248 3,234 – %

    2,364 2,323 2 % Home Care and
    Professional Cleaning 4,616 4,536 2 %
    2,733 2,631 4 % Personal Care 5,343 5,069 5 %
    198 178 11 % Other Operations (4) 380 361 6 %

    10,919 10,617 3 % TURNOVER 20,611 20,258 2 %

    OPERATING PROFIT – before exceptional items and
    amortization of goodwill and intangibles

    754 589 28 % Foods 1,157 928 25 %

    223 162 38 % Oil and dairy based
    foods and bakery 425 341 25 %
    344 278 24 % Ice cream and
    beverages 403 292 38 %
    187 149 24 % Culinary and frozen
    products (4) 329 295 12 %

    166 201 (18)% Home Care and
    Professional Cleaning 402 465 (14) %
    316 313 1 % Personal Care 760 645 18 %
    2 23 (92)% Other Operations (4) 7 47 (86) %

    1,238 1,126 10 % OPERATING PROFIT BEIA 2,326 2,085 12 %
    (267) (65) Exceptional items (376) (98)
    (12) (5) Amortization of
    goodwill and
    intangibles (21) (9)

    959 1,056 (9)% OPERATING PROFIT 1,929 1,978

    OPERATING MARGIN – before exceptional items
    and amortization of goodwill and intangibles

    13.4% 10.7 Foods 11.3% 9.0%

    12.9% 9.2% Oil and dairy based
    foods and bakery 12.7% 9.6%
    15.1% 12.9% Ice cream and
    beverages 11.0% 8.3%
    11.5% 9.5% Culinary and frozen
    products (4) 10.1% 9.1%

    7.0% 8.7% Home Care and
    Professional Cleaning 8.7% 10.2%
    11.5% 9.5% Personal Care 14.2% 12.7%

    0.9% 13.1% Other Operations (4) 1.8% 13.5%

    11.3% 10.6% OPERATING MARGIN BEIA 11.3% 10.3%

    8.8% 9.9% OPERATING MARGIN 9.4% 9.8%

    (4) Includes a prior year restatement, 95m of turnover and 0m of
    operating profit for the half year, relating to a reclassification
    of Indian food categories which have been transferred from
    Culinary and frozen products to Other Operations.

    NOTES

    Acquisitions

    In the first half year 2000 the effect on turnover and operating profit of acquisitions made in the period was 228 million and 31 million respectively.

    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 1 = (pound)0.66 = US $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:


    Second Quarter Half Year
    -------------- ---------
    2000 1 =(pound)0.61 = US $0.93 1 =(pound)0.61 = US $0.96
    1999 1 =(pound)0.66 = US $1.06 1 =(pound)0.65 = US $1.02

    The balance sheet figures have been translated at period-end rates
    of exchange. For our reporting currencies these were
    1 =(pound)0.63 = US $0.96 at the half year
    (December 31, 1999: 1 =(pound)0.62 = US $1.00).

    Share consolidation

    On May 10, 1999 the 1.25p ordinary shares of PLC and the Fl. 1
    ordinary shares of NV were consolidated, so that every 112 ordinary
    shares were replaced by 100 1.40p PLC ordinary shares or 100 Fl. 1.12
    NV 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 UK Accounting Standard FRS 14, earnings per share for prior
    periods have not been restated.

    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 NV 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 NV 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.

    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. To date the amortization charge in operating profit has been immaterial.

    Owing to the significance of recent acquisitions the amortization charge will become a significant element of our operating profit. For the sake of clarity we are now disclosing the charge on the face of the profit and loss account and also show operating profit before exceptional items and the amortization of goodwill and intangibles.

    Earnings per share in Euro


    Shares of Fl. 1.12 Constant rates Current rates
    Thousands of units
    COMBINED EPS 2000 1999 2000 1999

    Net profit 1,173 1,301 1,235 1,289
    less: Preference
    dividends 19 3 19 3
    Net profit attributable
    to ordinary capital 1,154 1,298 1,216 1,286
    Average number of
    combined share units 990,565 1,097,438 990,565 1,097,438

    Combined EPS 1.17 1.18 1.23 1.17



    COMBINED EPS - Before exceptional items Thousands of units
    2000 1999 2000 1999

    Net profit 1,173 1,301 1,235 1,289
    Add back exceptional
    items net of tax 242 66 249 66
    Net profit before
    exceptional items 1,415 1,367 1,484 1,355
    less: Preference
    dividends 19 3 19 3
    Net profit attributable
    before exceptional
    items 1,396 1,364 1,465 1,352
    Average number of
    combined share units 990,565 1,097,438 990,565 1,097,438

    Combined EPS before
    exceptional items 1.41 1.24 1.48 1.23



    COMBINED EPS - Diluted Thousands of units
    2000 1999 2000 1999

    Net profit attributable
    to ordinary capital 1,154 1,298 1,216 1,286
    Adjusted average
    combined share
    units 1,015,621 1,124,898 1,015,621 1,124,898
    Combined diluted
    EPS 1.14 1.15 1.20 1.15



    Shares of 1.40p Constant rates Current rates
    Thousands of units
    COMBINED EPS 2000 1999 2000 1999

    Net profit 1,173 1,301 1,235 1,289
    less: Preference
    dividends 19 3 19 3
    Net profit attributable
    to ordinary capital 1,154 1,298 1,216 1,286
    Average number of
    combined share
    units 6,603,765 7,316,254 6,603,765 7,316,254
    Combined EPS Cents 17.48 Cents 17.74 Cents 18.41 Cents 17.61



    COMBINED EPS - Before exceptional items Thousands of units
    2000 1999 2000 1999

    Net profit 1,173 1,301 1,235 1,289
    Add back exceptional
    items net of tax 242 66 249 66
    Net profit before
    exceptional items 1,415 1,367 1,484 1,355
    less: Preference
    dividends 19 3 19 3
    Net profit attributable
    before exceptional
    items 1,396 1,364 1,465 1,352
    Average number of
    combined share
    units 6,603,765 7,316,254 6,603,765 7,316,254

    Combined EPS before
    exceptional
    items Cents 21.11 Cents 18.63 Cents 22.18 Cents 18.51


    COMBINED EPS - Diluted Thousands of units
    2000 1999 2000 1999

    Net profit attributable
    to ordinary capital 1,154 1,298 1,216 1,286
    Adjusted average
    combined share
    units 6,770,805 7,499,317 6,770,805 7,499,317

    Combined diluted
    EPS Cents 17.04 Cents 17.31 Cents 17.96 Cents 17.18

    Dates

    The results for the third quarter and announcement of interim dividends will be published on Friday November 3, 2000.

    Internet: http://www.unilever.com
    E-mail: press-office.london@unilever.com

    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.

     Second Quarter        US $ Millions - constant      Half Year

    2000 1999 % Incr. 2000 1999 % Incr.
    /(Decr.) /(Decr.)

    11,633 11,309 3 % TURNOVER 21,959 21,579 2 %

    1,021 1,125 (9)% OPERATING PROFIT 2,055 2,108 (3)%

    1,318 1,199 10 % Operating Profit
    BEIA (5) 2,477 2,221 12 %
    (284) (69) Exceptional items (400) (104)
    (13) (5) Amortization of goodwill
    and intangibles (22) (9)

    11 17 Income from fixed
    investments 24 28

    (44) 11 Interest (net) (72) 61

    988 1,153 (14)% PROFIT BEFORE TAXATION 2,007 2,197 (9)%

    (343) (380) Taxation (668) (714)

    645 773 (17)% PROFIT AFTER TAXATION 1,339 1,483 (10)%

    (46) (58) Minority Interests (89) (97)

    NET PROFIT AT CONSTANT 1999 EXCHANGE RATES
    599 715 (16)% 1,250 1,386 (10)%

    781 758 3 % Net Profit before
    exceptional items
    (Constant rates) 1,506 1,455 4 %

    NET PROFIT AT EXCHANGE
    RATES CURRENT IN EACH PERIOD
    551 714 (23)% 1,182 1,401 (16)%

    717 759 (6)% Net Profit before
    exceptional items
    (Current rates) 1,420 1,472 (4)%

    $ $ COMBINED EARNINGS PER
    SHARE (6)(Current rates) $ $
    0.54 0.66 (18)% - per Fl. 1.12 of
    ordinary share 1.17 1.27 (8)%
    0.54 0.64 (18)% - per Fl. 1.12 of
    ordinary share -
    diluted 1.15 1.24 (8)%
    0.32 0.39 (18)% - per 5.60p ordinary
    share 0.70 0.76 (8)%
    0.32 0.38 (18)% - per 5.60p ordinary
    share - diluted 0.69 0.74 (8)%

    (5) Operating profit before exceptional items and amortisation of
    goodwill and intangibles. See note on 'Goodwill and intangibles'.

    (6) See note on 'Share consolidation'.

    STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)

    US $ Millions Half Year
    2000 1999

    Net profit 1,182 1,401

    Currency retranslation (245) (485)

    Total recognized gains 937 916

    SUMMARY BALANCE SHEET (unaudited)

    US $ Millions
    As at 1st As at 31st
    July December
    2000 1999

    Goodwill and intangibles 3,963 646

    Fixed assets 8,890 9,004

    Stocks 4,822 5,147

    Debtors 8,827 7,720

    Cash and current investments 5,808 5,498

    Trade & other creditors (9,827) (10,223)

    22,483 17,792

    Borrowings 8,480 4,811

    Provisions for liabilities and
    charges 4,959 4,603

    Minority interests 581 581

    Capital and reserves 8,463 7,797

    22,483 17,792

    CASH FLOW STATEMENT (unaudited)

    US $ Millions Half Year
    2000 1999

    Cash flow from operating activities 2,789 2,302

    Dividends from joint ventures 4 6

    Returns on investments and servicing
    of finance (255) 28

    Taxation (668) (686)

    Capital expenditure and financial
    investment (662) (843)

    Acquisitions and disposals (3,578) (175)

    Dividends paid on ordinary share
    capital (850) (6,808)

    CASH INFLOW / (OUTFLOW) BEFORE
    MANAGEMENT OF LIQUID RESOURCES
    AND FINANCING (3,220) (6,176)

    Management of liquid resources 126 4,252

    Financing 4,394 3,001

    INCREASE / (DECREASE) IN CASH IN
    THE PERIOD 1,300 1,077

    RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS / (DEBT)

    NET FUNDS AT 1 JANUARY 687 6,788

    INCREASE IN CASH IN THE PERIOD 1,300 1,077

    Cash flow from (increase) / decrease
    in borrowings (4,402) (3,013)

    Cash flow from increase / (decrease)
    in liquid resources (126) (4,252)

    Change in net funds / (debt)
    resulting from cash flows (3,228) (6,188)

    Borrowings within group companies
    acquired (86) (2)

    Borrowings within group companies
    sold - 5

    Liquid resources within group
    companies acquired 7 2

    Liquid resources within group
    companies sold - -

    Non cash movements 190 (21)

    Currency retranslation (242) (581)

    MOVEMENT IN NET FUNDS / (DEBT) IN
    THE PERIOD (3,359) (6,785)

    NET FUNDS / (DEBT) AT HALF YEAR (2,672) 3

    GEOGRAPHICAL ANALYSIS

    Second Quarter US $ Millions Half Year
    % Incr./ % Incr./
    2000 1999 (Decr.) 2000 1999 (Decr.)

    Turnover

    5,372 5,371 - % Europe 9,896 10,057 (2)%

    2,543 2,392 6 % North America 4,820 4,613 4 %

    Africa and Middle
    622 616 1 % East 1,188 1,186 - %

    1,925 1,811 6 % Asia and Pacific 3,759 3,490 8 %

    1,171 1,119 5 % Latin America 2,296 2,233 3 %

    11,633 11,309 3 % TURNOVER 21,959 21,579 2 %

    Operating profit -
    before exceptional
    items and amortization
    of goodwill and
    intangibles

    745 634 17 % Europe 1,263 1,096 15 %

    248 215 16 % North America 451 388 16 %

    Africa and Middle
    57 69 (18)% East 122 141 (14)%

    167 175 (5)% Asia and Pacific 421 355 19 %

    101 106 (5)% Latin America 220 241 (9)%

    OPERATING PROFIT
    1,318 1,199 10 % BEIA 2,477 2,221 12 %

    (284) (69) Exceptional Items (400) (104)

    (13) (5) Amortization of goodwill
    and intangibles (22) (9)

    1,021 1,125 (9)% OPERATING PROFIT 2,055 2,108 (3)%

    Operating margin -
    before exceptional
    items and amortization
    of goodwill and
    intangibles

    13.9% 11.8% Europe 12.8% 10.9%

    9.8% 9.0% North America 9.4% 8.4%

    Africa and Middle
    9.2% 11.3% East 10.3% 11.9%

    8.7% 9.7% Asia and Pacific 11.2% 10.2%

    8.6% 9.5% Latin America 9.6% 10.8%

    OPERATING MARGIN
    11.3% 10.6% BEIA 11.3% 10.3%

    8.8% 9.9% OPERATING MARGIN 9.4% 9.8%

    OPERATIONAL ANALYSIS

    Second Quarter US $ Millions Half Year
    % Incr./ % Incr./
    2000 1999 (Decr.) 2000 1999 (Decr.)

    TURNOVER

    5,992 5,843 3 % Foods 10,944 10,965 - %

    Oil and dairy based
    1,837 1,868 (2)% foods and bakery 3,571 3,791 (6)%

    Ice cream and
    2,421 2,293 6 % beverages 3,913 3,727 5 %

    Culinary and
    1,734 1,682 3 % frozen products(7)3,460 3,447 - %

    Home Care and
    Professional
    2,517 2,475 2 % Cleaning 4,917 4,832 2 %

    2,913 2,802 4 % Personal Care 5,693 5,399 5 %

    211 189 11 % Other Operations(7) 405 383 6 %

    11,633 11,309 3 % TURNOVER 21,959 21,579 2 %

    OPERATING PROFIT -
    before exceptional
    items and amortization
    of goodwill and
    intangibles

    803 627 28 % Foods 1,233 989 25 %

    Oil and dairy based
    238 172 38 % foods and bakery 453 363 25 %

    Ice cream and
    366 295 24 % beverages 429 311 38 %

    Culinary and
    199 160 24 % frozen products(7) 351 315 12 %

    Home Care and
    Professional
    177 214 (18)% Cleaning 428 495 (14)%

    336 333 1 % Personal Care 809 686 18 %

    2 25 (92)% Other Operations(7) 7 51 (86)%

    OPERATING PROFIT
    1,318 1,199 10 % BEIA 2,477 2,221 12 %

    (284) (69) Exceptional items (400) (104)

    Amortization of goodwill
    (13) (5) and intangibles (22) (9)

    1,021 1,125 (9)% OPERATING PROFIT 2,055 2,108 (3)%

    OPERATING MARGIN -
    before exceptional
    items and amortization
    of goodwill and
    intangibles

    13.4% 10.7% Foods 11.3% 9.0%

    Oil and dairy based
    12.9% 9.2% foods and bakery 12.7% 9.6%

    Ice cream and
    15.1% 12.9% beverages 11.0% 8.3%

    Culinary and
    11.5% 9.5% frozen products(7)10.1% 9.1%

    Home Care and
    Professional
    7.0% 8.7% Cleaning 8.7% 10.2%

    11.5% 11.9% Personal Care 14.2% 12.7%

    0.9% 13.1% Other Operations(7) 1.8% 13.5%

    OPERATING MARGIN
    11.3% 10.6% BEIA 11.3% 10.3%

    8.8% 9.9% OPERATING MARGIN 9.4% 9.8%

    (7) Includes a prior year restatement, US $100m of turnover and US $0m
    of operating profit for the half 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 US dollars

    Shares of N.V. Constant rates Current rates
    Per share of Fl.1.12
    Thousands of units
    COMBINED EPS 2000 1999 2000 1999

    Net profit 1,250 1,386 1,182 1,401
    Less: Preference
    dividends 21 3 19 4
    Net profit
    attributable to
    ordinary capital 1,229 1,383 1,163 1,397
    Average number of
    combined share
    units 990,565 1,097,438 990,565 1,097,438

    Combined EPS $ 1.24 $ 1.26 $ 1.17 $ 1.27

    COMBINED EPS - Before exceptional items Thousands of units
    2000 1999 2000 1999

    Net profit 1,250 1,386 1,182 1,401
    Add back exceptional
    items net of tax 256 69 238 71
    Net profit before
    exceptional items 1,506 1,455 1,420 1,472
    Less: Preference
    dividends 21 3 19 4
    Net profit
    attributable before
    exceptional items 1,485 1,452 1,401 1,468
    Average number of
    combined share
    units 990,565 1,097,438 990,565 1,097,438

    Combined EPS before
    exceptional items $ 1.50 $ 1.32 $ 1.41 $ 1.34

    COMBINED EPS - Diluted Thousands of units
    2000 1999 2000 1999

    Net profit
    attributable to
    ordinary capital 1,229 1,383 1,163 1,397
    Adjusted average
    combined share
    units 1,015,621 1,124,898 1,015,621 1,124,898

    Combined diluted
    EPS $ 1.21 $ 1.23 $ 1.15 $ 1.24

    Shares of PLC Constant rates Current rates
    Per share of 5.60p
    Thousands of units
    COMBINED EPS 2000 1999 2000 1999

    Net profit 1,250 1,386 1,182 1,401
    Less: Preference
    dividends 21 3 19 4
    Net profit
    attributable to
    ordinary capital 1,229 1,383 1,163 1,397
    Average number of
    combined share
    units 1,650,941 1,829,063 1,650,941 1,829,063

    Combined EPS $ 0.74 $ 0.76 $ 0.70 $ 0.76

    COMBINED EPS - Before exceptional items Thousands of units
    2000 1999 2000 1999

    Net profit 1,250 1,386 1,182 1,401
    Add back
    exceptional items
    net of tax 256 69 238 71
    Net profit before
    exceptional items 1,506 1,455 1,420 1,472
    Less: Preference
    dividends 21 3 19 4
    Net profit
    attributable
    before exceptional
    items 1,485 1,452 1,401 1,468
    Average number of
    combined share
    units 1,650,941 1,829,063 1,650,941 1,829,063

    Combined EPS
    before
    exceptional items $ 0.90 $ 0.79 $ 0.85 $ 0.80

    COMBINED EPS - Diluted Thousands of units
    2000 1999 2000 1999

    Net profit
    attributable to
    ordinary capital 1,229 1,383 1,163 1,397
    Adjusted average
    combined share
    units 1,692,701 1,874,829 1,692,701 1,874,829

    Combined diluted
    EPS $ 0.73 $ 0.74 $ 0.69 $ 0.74