We are meeting the milestones set by our Path to Growth strategy with continuing momentum in the growth of the leading brands and a further expansion of operating margin.
FINANCIAL HIGHLIGHTS
Constant exchange rates (2000 average)
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Second Quarter 2001 EUR Millions Half Year 2001
——————- —————-
13,694 +15% Total Turnover * 26,433 +17 %
1,791 +35% Total Operating profit * – beia ** 3,372 +35 %
1,514 +54% Pre-tax profit 2,142 +7 %
900 +52% Net profit 1,154 (7)%
841 +8% Net profit – beia ** 1,543 +2 %
Per NV share (Fl. 1.12), Euro
—————————–
0.90 +53% Earnings per share (EPS) 1.15 (7)%
0.84 +8% EPS (beia) ** 1.54 +2 %
Per PLC share (1.4p), Euro cent
——————————-
13.53 +53% EPS 17.19 (7)%
12.64 +8% EPS (beia) ** 23.12 +2 %
* Includes our share of Joint Ventures
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By GlobalData** before exceptional items and amortization of goodwill and
intangibles
When expressed in current rates of exchange, earnings per share (beia)
were up 7% for the quarter and 1% for the half year. Earnings per
share rose by 48% in the quarter but declined by 10% for the half
year.
KEY FEATURES FOR THE QUARTER AND THE HALF YEAR
- Sales growth of the leading brands reached 4.8% for the last twelve months, excluding acquisitions, with 5.1% in the quarter.
- Operating profit (beia), boosted by acquisitions, was ahead by EUR 464 million in the quarter and operating margin (beia) rose by 200 basis points in the quarter to 13.1% and by 170 basis points to 12.8% for the half year.
- Savings from restructuring, global buying and Bestfoods integration are fully on track.
- EPS (beia) advanced by 8% in the quarter and by 2% for the half year.
- Cashflow from operations was EUR 3.2 billion for the half year, which was further boosted by EUR 1.3 billion from disposals.
- Profit before tax and EPS includes a profit on the sale of businesses partly offset by planned restructuring costs.
CHAIRMEN’S COMMENT & OUTLOOK
“Our business continues to perform soundly. In Home and Personal Care we have seen broad based and sustained growth of both sales and operating margin.
“In Foods the integration of our acquisitions is proceeding to plan and we already see the benefit of synergy and portfolio change in the margin structure. Delivery of the cost synergy from the Bestfoods integration is fully on track. As to be expected, the focus on fast integration in Foods has restrained the growth of certain Bestfoods brands in the short term.
“Following the Bestfoods acquisition we have completed the planned review of our brand portfolio. Combining our existing brands with recent acquisitions, including Bestfoods, Slim-Fast, Amora Maille and Ben & Jerry’s, we have a larger, more powerful portfolio of leading brands.
“Economies are slowing in many regions. However, our work on portfolio focus and restructuring strengthens our capacity to cope with difficult conditions. Looking forward to the full year we confirm the guidance previously given for EPS (beia) growth in low double digits, and continuing progress for the leading brands.”
N.W.A. FitzGerald
Chairman, Unilever PLC
A. Burgmans
Chairman, Unilever N.V.
UNILEVER BACKGROUND: Unilever is one of the world’s largest consumer products companies with annual sales of approximately $44 billion in 2000. It produces and markets a wide range of foods and home and personal care products. Unilever operates in 88 countries around the globe and employs approximately 300,000 people. In the United States, Unilever sales were approximately $11 billion in 2000. It employs some 28,000 people and has 80 offices and manufacturing sites in 26 states.
The business comprises: Unilever Bestfoods – North America: Lipton teas, recipe products and side dishes; Wish-Bone salad dressings; Lawry’s seasonings; Country Crock and “I Can’t Believe It’s Not Butter!” spreads; Ragu pasta sauces; Knorr soups, sauces and bouillons; Hellmann’s mayonnaise; Skippy peanut butter; Bertolli olive oil; Good-Humor, Breyers and Ben & Jerry’s ice cream; and Slim-Fast nutritional and health snack products. Unilever Home and Personal Care – North America: Wisk, “all” and Surf laundry detergents; Snuggle fabric softener; Sunlight dish detergents; Lever 2000, Caress, Dove, Degree, Pond’s and Vaseline skin care, deodorant and soap products; Q-tips cotton swabs; Mentadent oral care products; Finesse, Salon Selectives, Suave and ThermaSilk hair care products; and Calvin Klein, Nautica and Lagerfeld 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 rates of exchange)
Operating profit, before exceptional items and amortization of goodwill and intangibles (beia), increased by 35% for the quarter and for the half year. Operating margin (beia) was 13.1% in the quarter, an increase of 200 basis points, and was 12.8% for the half year, an increase of 170 basis points.
Exceptional items for the quarter were positive by EUR 484 million after a pre-tax profit of EUR 813 million arising from the sale of the brands to secure regulatory approval of our acquisition of Bestfoods. Exceptional items in the quarter relating to the Path to Growth program and Bestfoods integration were EUR 329 million negative, giving a total cost for the half year of EUR 485 million. Associated costs were EUR 114 million in the quarter and EUR 184 million in the half year.
Amortization of goodwill and intangibles was EUR 350 million in the quarter with EUR 296 million related to the acquisition of Bestfoods. For the half year these were EUR 713 million and EUR 593 million, respectively.
Net interest was EUR 409 million for the quarter, an increase of EUR 354 million over last year reflecting the increased level of borrowings to fund acquisitions, partly offset by cash flow from operations and the proceeds of our disposal program.
The effective tax rate for the quarter was 35%. This is lower than the rate from the first quarter because the increase arising from the non-deductibility of Bestfoods goodwill amortization has been offset by the lower tax rate on the sale of brands. The underlying tax rate for normal trading operations is 34%.
Minority interests reflect higher net profit primarily in India in both the quarter and half year.
Net profit for the quarter rose by EUR 306 million, or by 52%, with the profit on the sale of businesses partly offset by planned restructuring charges. In the half year net profit fell by 7% reflecting restructuring costs, amortization of goodwill and interest payable relating to the acquisitions completed last year.
Earnings per share (beia) rose by 8% in the quarter and by 2% for the half year. Earnings per share rose by 53% in the quarter but fell by 7% in the half year reflecting the movements described earlier.
SECOND QUARTER PERFORMANCE BY REGION (at constant rates of exchange)
The following commentary is based on operating profit before exceptional items and amortization of goodwill and intangibles.
EUROPE: Margin progress reflects benefits from Path to Growth
Sales were ahead by 6% including the net effect of acquisitions, principally Amora Maille and Bestfoods, and the disposals of European Bakery and Elizabeth Arden. Underlying sales growth was 1% which reflected 4% growth across Home and Personal Care and our Foods portfolio offset by lower sales in Ice Cream.
In Western Europe Foods underlying sales growth was driven by Spreads and Cooking products which achieved 6% through the success of the pro-activ launch, the extension of new spreads including Bertolli, the launch of Culinesse – a novel cooking margarine and good growth in Olive Oil. Frozen Foods grew 2.5% through the roll out of 4 Salti in Padella, our high quality ready meals.
The growth of Slim-Fast was excellent with sales more than doubling compared to last year following a successful launch in the U.K.
Ice Cream results were disappointing with sales down by 9%. This is partly due to poor weather, which also affected ready-to-drink tea, and shedding of tail brands. We are investing heavily in out of home segments such as artisanal and scooping under the Carte d’Or brand. Cornetto soft ice is also growing fast.
Sales growth in the Laundry category was 3.5%, driven by innovation in convenient and easy-to-use laundry capsules, share gains in tablets and new products to make ironing easier.
In our Household Care business sales growth of over 6% has been achieved through Domestos Oxygel and easy-to-use wipes in both Domestos and Cif.
Personal Care sales growth of 4% has come from the continued extension of Dove, and the 12% growth in Oral Care due to strong sales of electric toothbrushes and chewing gum.
In Central and Eastern Europe sales grew by 8% with excellent progress in Spreads, Tea and across all Personal Care categories.
Operating margin for the quarter is ahead by 130 basis points reflecting a strong turnaround in Central and Eastern Europe, the benefits of restructuring and global buying and the contribution from portfolio changes and improved mix.
NORTH AMERICA: Solid sales growth in Home and Personal Care supplemented by acquisitions in Foods. Operating margin moves well up.
Sales grew by 26%. Underlying sales growth was just over 3%.
In Home and Personal Care we saw good underlying sales growth of 4%. Strong growth was recorded across our key personal care categories. In Skincare growth of 6% has been driven by the further expansion of the Dove franchise, a strong performance of the Suave range, and Lever 2000 anti-bacterial wipes. In Hair, sales growth of 17% is driven by the strong performance of Suave and Thermasilk, the latter following its relaunch in the first quarter. In Laundry, previously announced pricing actions were retained despite pricing rollback actions taken by our major competitor. As a result, we traded off some volume to protect profitability.
In Foods, sales grew 3% in both Ice Cream and Culinary products. Tea sales fell because of negative pricing action in response to competitors. Slim-Fast continued its rapid growth with sales up by over 20%.
Operating margin has moved ahead by 300 basis points, reflecting restructuring, portfolio change and improved mix.
AFRICA, MIDDLE EAST AND TURKEY: Good sales growth across the region.
Sales grew by 13%. Underlying sales growth was over 7% with three percentage points coming from price, half of which was derived from Turkey.
Sales have been strong across all key categories. Operating margins are 150 basis points higher due to the benefits of restructuring, portfolio change and improved mix.
ASIA AND PACIFIC: Continuing delivery of strong sales, and profit growth, despite weaker economies.
Asia and Pacific has continued to perform strongly. Underlying sales growth is 7%.
In East Asia Pacific, with a slowdown in some key economies, we continued to see strong sales growth. In Japan the growth was driven by Ready-to-Drink tea following the formation of the alliance with Suntory and by both Lux Super Rich and mods in Hair. In Southeast Asia we had broad based growth particularly in Skin Care across the region and Surf in Indonesia.
In India underlying sales grew by 3.5% with high single digit growth in Home and Personal Care being partly offset by a decline in Foods which was due to lower sales of Tea. The key drivers for growth in Home and Personal Care were hair, laundry, skin care following the re-launch of Fair & Lovely and the continued success of Vim in household care. In Tea the lower sales reflect a decline in tail brands as we focus our brand portfolio and strong price competition from local operators, however, profitability has improved significantly reflecting a major restructuring of the business.
Operating margin is 320 basis points up on last year primarily through operational leverage.
LATIN AMERICA: Good underlying sales growth in difficult economic conditions.
Sales in the quarter have moved ahead by 38% including acquisitions. Underlying sales growth was over 5% coming equally from volume and price.
Laundry sales were particularly strong and Deodorants and Hair also grew strongly. Sedal shampoo in Mexico continues to make excellent progress.
In Foods we had good underlying growth across all categories, recovering from a weak quarter last year. Sales are further boosted by acquisition, strengthening both portfolio and distribution.
Ice cream sales were up 13%, with particularly strong growth in Mexico.
Operating margins have moved ahead by 160 basis points reflecting the benefits of price recovery, our cost effectiveness programs, and portfolio change.
CASH FLOW / BALANCE SHEET
Cash flow from operations for the half year of EUR 3.2 billion was EUR 0.3 billion above the corresponding period last year. This was driven by strong underlying earnings and the contribution from acquisitions partly offset by higher seasonal working capital outflows in Foods.
Returns on investment and servicing of finance reflect higher interest costs as a result of the funding of acquisitions.
Capital expenditure and financial investments are higher and include larger purchases of own shares to cover the broadening of the share option scheme in support of the development of an enterprise culture.
Net proceeds from disposals include EUR 0.2 billion from the sale of Elizabeth Arden and EUR 1.0 billion for the sale of brands to Campbells.
Net debt has increased by EUR 1.1 billion since December 31 reflecting a large currency retranslation of primarily dollar denominated debt of EUR 1.4 billion offset by cash generation and other non-cash movements.
Goodwill and intangibles have increased by EUR 0.6 billion comprising a currency retranslation gain of EUR 1.3 billion less amortization for the half year of EUR 0.7 billion.
Capital and reserves increased by EUR 0.2 billion. Net profit of EUR 1.1 billion is reduced by a negative currency retranslation of EUR 0.5 billion and by purchases of own shares of EUR 0.4 billion.
EURO REPORTING
Information in sterling and U.S. dollars is available as a supplement to this Euro report.
SAFE HARBOUR STATEMENT: This announcement may contain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that the actual results could materially differ from the results anticipated in any forward-looking statements which may be contained in this announcement. Factors which might cause forward-looking statements to differ materially from actual results include, among other things, the overall economic, political, social and business conditions, the demand for our goods and services, competition in the market, fluctuations in interest rates and foreign currencies, the impact and other uncertainties of future acquisitions and disposals and any changes in the tax laws and other legislation and regulation, in the jurisdictions in which we operate.
We do not undertake any obligation to update any forward-looking statements contained in or incorporated in this announcement to reflect actual results, changes in assumptions or in other factors which may affect any forward-looking statements.
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 2000. This reporting convention
facilitates comparisons since the impact of exchange rate fluctuations
is eliminated.
EUR Millions
Second Quarter – constant Half Year
————– ———
2001 2000 % Incr./ 2001 2000 % Incr
—- —- ——– —- —- ——
(Decr.) /(Decr.)
——- ——–
13,694 11,922 15 % TOTAL TURNOVER 26,433 22,512 17 %
(173) (98) Less: Share of
turnover of
joint ventures (329) (169)
13,521 11,824 14 % GROUP TURNOVER 2 6,104 22,343 17 %
1,907 1,027 86 % GROUP OPERATING
PROFIT 2,952 2,065 43 %
1,764 1,317 34 % Group operating
profit beia * 3,319 2,482 34 %
484 (277) Exceptional
items 328 (395)
(341) (13) Amortization
of goodwill
and intangibles (695) (22)
18 10 Add: Share of
operating
profit of
joint
ventures 35 22
1,925 1,037 85 % TOTAL OPERATING 2,987 2,087 43 %
PROFIT
1,791 1,327 35 % Operating Profit 3,372 2,504 35 %
beia *
484 (277) Exceptional items 328 (395)
(350) (13) Amortization of (713) (22)
goodwill and
intangibles
(2) 1 Other income from 4 2
fixed investments
(409) (55) Interest (849) (90)
1,514 983 54 % PROFIT BEFORE 2,142 1,999 7 %
TAXATION
(533) (343) Taxation (853) (666)
981 640 53 % PROFIT AFTER 1,289 1,333 (3)%
TAXATION
(81) (46) Minority Interests (135) (90)
NET PROFIT AT
CONSTANT 2000
EXCHANGE
900 594 52 % RATES 1,154 1,243 (7)%
Net Profit before
exceptional items
& amortization
of goodwill
and intangibles
841 782 8 % (Constant rates) 1,543 1,515 2 %
NET PROFIT AT
EXCHANGE RATES
CURRENT IN EACH
871 592 47 % PERIOD 1,115 1,235 (10)%
Net Profit before
exceptional items
& amortization
of goodwill
and intangibles
829 779 6 % (Current rates) 1,513 1,502 1 %
COMBINED EARNINGS
PER SHARE
(Current rates)
– per Fl. 1.12
ordinary share
0.88 0.59 48 % (Euros) 1.11 1.23 (10)%
– per Fl. 1.12
ordinary share
– diluted
0.85 0.58 48 % (Euros) 1.08 1.20 (10)%
– per 1.4p ordinary
share
13.10 8.83 48 % (Euro cents) 16.61 18.41 (10)%
– per 1.4p ordinary
share
– diluted
12.74 8.62 48 % (Euro cents) 16.16 17.96 (10)%
* beia means before exceptional items and amortization of goodwill
and intangibles.
STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)
EUR Millions Half Year
———
2001 2000
—- —-
Net profit 1,115 1,235
Currency retranslation (537) 63
Total recognized gains /
(losses) since last
annual accounts 578 1,298
SUMMARY BALANCE SHEET (unaudited)
EUR Millions
As at 30th As at 31st As at 1st
June December July
2001 2000 2000
—— —— —-
Goodwill and
intangibles 27,027 26,467 4,138
Acquired businesses
held for resale 1,820 1,666 –
Fixed assets 10,998 10,996 9,282
Stocks 6,040 5,421 5,034
Debtors 10,734 9,817 9,216
Cash and
current
investments 3,492 3,273 6,064
Trade & other
creditors (12,913) (12,708) (10,260)
———– ————- ————
47,198 44,932 23,474
Borrowings 31,084 29,741 8,854
Provisions for
liabilities
and charges 7,068 6,404 5,178
Minority interests 656 618 606
Capital and reserves 8,390 8,169 8,836
——— ————– ————
47,198 44,932 23,474
CASH FLOW STATEMENT (unaudited)
EUR Millions Half Year
———
2001 2000
—– —-
Cash flow from
operating activities 3,226 2914
Dividends from joint ventures 15 5
Returns on investments and
servicing of finance (1,036) (266)
Taxation (638) (698)
Capital expenditure and
financial investment (948) (692)
Acquisitions and disposals 1,277 (3,739)
Dividends paid on ordinary
share capital (926) (888)
CASH INFLOW / (OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES AND
FINANCING 970 (3,364)
Management of liquid resources (443) 132
Financing (591) 4,592
INCREASE / (DECREASE) IN
CASH IN THE PERIOD (64) 1,360
RECONCILIATION OF CASH FLOW TO
MOVEMENT IN NET FUNDS/(DEBT)
NET FUNDS / (DEBT) AT JANUARY 1 (26,468) 684
INCREASE / (DECREASE) IN CASH
IN THE PERIOD (64) 1,360
Cash flow from (increase)/
decrease in borrowings 581 (4,601)
Cash flow from increase/
(decrease) in liquid resources 443 (132)
Change in net funds /
(debt) resulting from cash flows 960 (3,373)
Borrowings within group companies
acquired – (90)
Borrowings within group
companies sold 1 –
Liquid resources within
group companies acquired – 8
Liquid resources within group
companies sold – –
Non cash movements (695) 199
Currency retranslation (1,390) (218)
MOVEMENT IN NET FUNDS /
(DEBT) IN THE PERIOD (1,124) (3,474)
NET FUNDS / (DEBT) AT HALF YEAR (27,592) (2,790)
GEOGRAPHICAL ANALYSIS (CONSTANT)
Second Quarter EUR Millions Half Year
% Incr./ % Incr./
2001 2000 (Decr.) 2001 2000 (Decr.)
13,694 11,922 15% TOTAL TURNOVER 26,433 22,512 17%
5,306 4,993 6% Europe 10,097 9,212 10%
3,506 2,788 26% North America 6,772 5,278 28%
Africa, Middle East
985 873 13% and Turkey 1,840 1,630 13%
2,161 2,008 8% Asia and Pacific 4,223 3,920 8%
1,736 1,260 38% Latin America 3,501 2,472 42%
TOTAL OPERATING PROFIT –
before exceptional items
and amortization of
goodwill and
1,791 1,327 35% intangibles 3,372 2,504 35%
801 690 16% Europe 1,408 1,195 18%
453 276 64% North America 814 502 62%
Africa, Middle East
110 85 30% and Turkey 194 138 40%
252 168 49% Asia and Pacific 535 431 24%
175 108 64% Latin America 421 238 78%
TOTAL OPERATING MARGIN –
before exceptional items
and amortization of
goodwill and
13.1% 11.1% intangibles 12.8% 11.1%
15.1% 13.8% Europe 13.9% 13.0%
12.9% 9.9% North America 12.0% 9.5%
Africa, Middle East
11.2% 9.7% and Turkey 10.5% 8.5%
11.6% 8.4% Asia and Pacific 12.7% 11.0%
10.1% 8.5% Latin America 12.0% 9.6%
OPERATIONAL ANALYSIS (CONSTANT)
Second Quarter EUR Millions Half Year
% %
Incr./ Incr./
2001 2000 (Decr.) 2001 2000 (Decr.)
13,694 11,922 15% TOTAL TURNOVER 26,433 22,512 17%
7,644 6,084 26% Foods 14,606 11,115 31%
Oil and dairy based
2,163 1,859 16% foods and bakery 4,291 3,598 19%
2,468 2,497 (1)% Ice cream and beverages 4,135 4,064 2%
Culinary and frozen
3,013 1,728 74% products 6,180 3,453 79%
Home Care and
2,739 2,577 6% Professional Cleaning 5,421 5,030 8%
3,151 3,039 4% Personal Care 6,097 5,941 3%
160 222 (28)% Other Operations 309 426 (27)%
TOTAL OPERATING PROFIT –
before exceptional
items and amortization
of goodwill and
1,791 1,327 35% intangibles 3,372 2,504 35%
1,105 804 37% Foods 1,900 1,237 53%
Oil and dairy based
297 236 25% foods and bakery 592 446 32%
349 371 (6)% Ice cream and beverages 440 445 (1)%
Culinary and frozen
459 197 133% products 868 346 152%
Home Care and
188 176 7% Professional Cleaning 436 425 3%
478 345 39% Personal Care 1,006 835 21%
20 2 -% Other Operations 30 7 427%
TOTAL OPERATING MARGIN –
before exceptional items
and amortization of
goodwill and
13.1% 11.1% intangibles 12.8% 11.1%
14.5% 13.2% Foods 13.0% 11.1%
Oil and dairy based
13.7% 12.8% foods and bakery 13.8% 12.5%
14.2% 14.9% Ice cream and beverages 10.7% 11.0%
Culinary and frozen
15.2% 11.4% products 14.0% 10.0%
Home Care and
6.9% 6.8% Professional Cleaning 8.0% 8.5%
15.2% 11.3% Personal Care 16.5% 14.0%
12.1% 0.3% Other Operations 9.6% 1.3%
NOTES
Exchange Rates
The results for 2001 and the comparative figures for 2000 have been translated at constant average rates of exchange, being the annual average rates for 2000. For our reporting currencies these were EUR1 = (pound)0.61 = U.S. $0.92. 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
2001 EUR1 =(pound)0.61 = U.S. $0.89 EUR1 =(pound)0.62 = U.S. $0.90 2000 EUR1 =(pound)0.61 = U.S. $0.93 EUR1 =(pound)0.61 = U.S. $0.96
The balance sheet figures have been translated at period-end rates of exchange. For our reporting currencies these were EUR1 =(pound)0.60 = U.S. $0.85 at the half year (December 31, 2000: EUR1 =(pound)0.62 = U.S. $0.93).
Current Rates of Exchange
For the half year in current rates of exchange: Total turnover is EUR26,028 million (18% increase); Operating profit beia is EUR3,314 million (34% increase); Operating profit is EUR2,915 million (41% increase); Interest is a charge of EUR846 million (compared with a charge of EUR82 million last year); Pre-tax profit is EUR2,074 million (4% increase); Net profit is EUR1,115 million (10% decrease); Net profit beia is EUR1,513 million (1% increase); Earnings per share beia is EUR1.51 per N.V. share (1% increase); Earnings per share is EUR1.11 per N.V. share (10% decrease).
Acquisitions
In the first half year 2001 the effect on turnover and operating profit of acquisitions made in the period was not material.
Disposals
Following the approval of the European Commission, the sale of several of our European dry soups and sauces businesses was completed on May 4 to the Campbell Soup Company for a debt free price of E1 billion. The agreement to sell these businesses, as a result of undertakings given to the European Commission in connection with Unilever’s acquisition of Bestfoods last year, was announced on January 29. Annual sales of these businesses totalled approximately EUR435 million.
On May 31, we announced plans to sell a number of North American food brands and related assets from the Bestfoods portfolio, primarily cooking oil products, corn starches, commodity oils and syrups. Also included in the sale are the Rit dye and Niagara starch fabric care brands. In total these brands had combined annual sales approaching U.S. $400 million in 2000.
On June 19, we announced plans to sell Unipath Limited, our women’s health diagnostics subsidiary as we continue to focus resource behind selected consumer brands in our ‘Path to Growth’ strategy.
On June 27 we announced plans to sell two of our edible oil refineries in the Netherlands and Germany. These businesses together have annual third party sales of EUR170 million.
On July 31 we announced the completion of the sale of the Bestfoods Bakery Company to George Weston Limited for U.S. $1.77 billion.
Acquired businesses held for resale
A number of Bestfoods businesses are expected to be sold within a year from their purchase. The assets and liabilities of those businesses, after adjustment to their estimated net proceeds of sale, have been included within ‘Acquired businesses held for resale’. The results of these businesses for the period are not included in the Profit & Loss Account.
Reporting of total turnover and total operating profit
The term ‘Total’ means Group (turnover and operating profit) plus our share of the joint ventures (turnover and operating profit) net of our share of any sales to the joint ventures already included in the Group figures.
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 period, 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.
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
Constant rates Current rates
2001 2000 2001 2000
Thousands of units
Average number of
combined share
units of Fl. 1.12 984,039 990,565 984,039 990,565
Average number of
combined share
units of 1.4p 6,560,258 6,603,765 6,560,258 6,603,765
COMBINED EPS
Net profit 1,154 1,243 1,115 1,235
Less: Preference dividends 26 19 26 19
Net profit attributable
to ordinary capital 1,128 1,224 1,089 1,216
Combined EPS per
Fl. 1.12 (Euros) 1.15 1.24 1.11 1.23
Combined EPS per
1.4p (Euro cents) 17.19 18.53 16.61 18.41
COMBINED EPS – BEIA
Net profit 1,154 1,243 1,115 1,235
Add back exceptional
items net of tax (297) 253 (285) 249
Add back amortization of
goodwill / intangibles
net of tax 689 19 686 18
Add back exceptional items
in minority interests
net of tax (3) – (3) –
Net profit beia 1,543 1,515 1,513 1,502
Less: Preference dividends 26 19 26 19
Net profit attributable to
ordinary capital – beia 1,517 1,496 1,487 1,483
Combined EPS beia per
Fl. 1.12 (Euros) 1.54 1.51 1.51 1.50
Combined EPS beia per
1.4p (Euro cents) 23.12 22.65 22.66 22.45
COMBINED EPS – Diluted
Thousands of units
Adjusted average combined
share units of
Fl. 1.12 1,011,220 1,015,621 1,011,220 1,015,621
Adjusted average combined
share units of 1.4p 6,741,465 6,770,805 6,741,465 6,770,805
Net profit attributable
to ordinary capital 1,128 1,224 1,089 1,216
Combined diluted EPS
per Fl. 1.12 (Euros) 1.12 1.20 1.08 1.20
Combined diluted EPS
per 1.4p (Euro cents) 16.73 18.07 16.16 17.96
Dates
The results for the third quarter and announcement of interim
dividends will be published on Friday, November 2, 2001.
Internet: http://www.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 2000. This reporting convention facilitates
comparisons since the impact of exchange rate fluctuations is
eliminated.
Second Quarter U.S. $ Millions – constant Half Year
2001 2000 % Incr./ 2001 2000 % Incr
(Decr.) /(Decr.)
12,608 10,977 15 % TOTAL TURNOVER 24,337 20,727 17 %
Less: Share of turnover
(159) (91) of joint ventures (303) (156)
12,449 10,886 14 % GROUP TURNOVER 24,034 20,571 17 %
1,754 945 86 % GROUP OPERATING PROFIT 2,716 1,901 43 %
Group operating
1,624 1,211 34 % profit beia * 3,055 2,285 34 %
445 (255) Exceptional items 301 (364)
Amortization of goodwill
(315) (11) and intangibles (640) (20)
Add: Share of operating
16 10 profit of joint ventures 32 21
1,770 955 85 % TOTAL OPERATING PROFIT 2,748 1,922 43 %
1,649 1,221 35 % Operating Profit BEIA * 3,105 2,306 35 %
445 (255) Exceptional items 301 (364)
Amortization of goodwill
(324) (11) and intangibles (658) (20)
Other income from
– 1 fixed investments 5 2
(377) (50) Interest (782) (83)
1,393 906 54 % PROFIT BEFORE TAXATION 1,971 1,841 7 %
(490) (317) Taxation (785) (614)
903 589 53 % PROFIT AFTER TAXATION 1,186 1,227 (3)%
(74) (43) Minority Interests (124) (83)
NET PROFIT AT CONSTANT
829 546 52 % 2000 EXCHANGE RATES 1,062 1,144 (7)%
Net Profit before
exceptional items &
amortization of goodwill
and intangibles
774 719 8 % (Constant rates) 1,420 1,394 2 %
NET PROFIT AT EXCHANGE RATES
775 551 40 % CURRENT IN EACH PERIOD 999 1,182 (16)%
Net Profit before exceptional
items & amortization of
goodwill and intangibles
725 727 – % (Current rates) 1,355 1,437 (6)%
$ $ COMBINED EARNINGS PER SHARE $ $
(Current rates)
– per Fl. 1.12
0.77 0.54 41 % ordinary share 0.99 1.17 (16)%
– per Fl. 1.12
0.76 0.54 41 % ordinary share – diluted 0.97 1.15 (16)%
0.47 0.32 41 % – per 5.6p ordinary share 0.60 0.70 (16)%
– per 5.6p ordinary
0.45 0.32 41 % share – diluted 0.58 0.69 (16)%
* beia means before exceptional items and amortization of goodwill
and intangibles.
STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)
U.S. $ Millions Half Year
2001 2000
Net profit 999 1,182
Currency retranslation (1,100) (245)
Total recognized gains / (losses)
since last annual accounts (101) 937
SUMMARY BALANCE SHEET (unaudited)
U.S. $ Millions
As at 30th As at 31st As at 1st
June December July
2001 2000 2000
Goodwill and intangibles 22,930 24,622 3,963
Acquired businesses held for resale 1,544 1,550 –
Fixed assets 9,330 10,230 8,890
Stocks 5,125 5,043 4,822
Debtors 9,107 9,133 8,827
Cash and current investments 2,963 3,045 5,808
Trade & other creditors (10,956) (11,822) (9,827)
40,043 41,801 22,483
Borrowings 26,372 27,668 8,480
Provisions for liabilities
and charges 5,997 5,958 4,959
Minority interests 556 575 581
Capital and reserves 7,118 7,600 8,463
40,043 41,801 22,483
CASH FLOW STATEMENT (unaudited)
U.S. $ Millions Half Year
2001 2000
Cash flow from operating activities 2,890 2,789
Dividends from joint ventures 13 4
Returns on investments and servicing of finance (928) (255)
Taxation (571) (668)
Capital expenditure and financial investment (849) (662)
Acquisitions and disposals 1,144 (3,578)
Dividends paid on ordinary share capital (517) (850)
CASH INFLOW / (OUTFLOW) BEFORE
MANAGEMENT OF LIQUID RESOURCES AND FINANCING 1,182 (3,220)
Management of liquid resources (397) 126
Financing (529) 4,394
INCREASE / (DECREASE) IN CASH IN THE PERIOD 256 1,300
RECONCILIATION OF CASH FLOW TO
MOVEMENT IN NET FUNDS/(DEBT)
NET FUNDS / (DEBT AT JANUARY 1 (24,623) 687
INCREASE / (DECREASE) IN CASH IN THE PERIOD 256 1,300
Cash flow from (increase)/decrease in borrowings 520 (4,402)
Cash flow from increase/(decrease)
in liquid resources 397 (126)
Change in net funds /
(debt) resulting from cash flows 1,173 (3,228)
Borrowings within group companies acquired – (86)
Borrowings within group companies sold 1 –
Liquid resources within group companies acquired – 7
Liquid resources within group companies sold – –
Non cash movements (622) 190
Currency retranslation 662 (242)
MOVEMENT IN NET FUNDS /
(DEBT) IN THE PERIOD 1,214 (3,359)
NET FUNDS / (DEBT) AT HALF YEAR (23,409) (2,672)
GEOGRAPHICAL ANALYSIS (CONSTANT)
Second Quarter U.S. $ Millions Half Year
% Incr./ % Incr./
2001 2000 (Decr.) 2001 2000 (Decr.)
12,608 10,977 15% TOTAL TURNOVER 24,337 20,727 17%
4,885 4,597 6% Europe 9,296 8,481 10%
3,228 2,568 26% North America 6,235 4,860 28%
906 803 13% Africa, Middle East 1,694 1,501 13%
and Turkey
1,990 1,849 8% Asia and Pacific 3,888 3,610 8%
1,599 1,160 38% Latin America 3,224 2,275 42%
TOTAL OPERATING PROFIT –
before exceptional items
and amortization of
1,649 1,221 35% goodwill and intangibles 3,105 2,306 35%
738 636 16% Europe 1,296 1,101 18%
417 254 64% North America 750 462 62%
101 77 30% Africa, Middle East 179 127 40%
and Turkey
231 155 49% Asia and Pacific 492 397 24%
162 99 64% Latin America 388 219 78%
TOTAL OPERATING MARGIN –
before exceptional items
and amortization of
13.1% 11.1% goodwill and intangibles 12.8% 11.1%
15.1% 13.8% Europe 13.9% 13.0%
12.9% 9.9% North America 12.0% 9.5%
11.2% 9.7% Africa, Middle East 10.5% 8.5%
and Turkey
11.6% 8.4% Asia and Pacific 12.7% 11.0%
10.1% 8.5% Latin America 12.0% 9.6%
OPERATIONAL ANALYSIS (CONSTANT)
Second Quarter U.S. $ Millions Half Year
————– ———–
%Incr./ % Incr./
——– ——–
2001 2000 (Decr.) 2001 2000 (Decr.)
—- —- ——- —- —- ——
12,608 10,977 15% TOTAL TURNOVER 24,337 20,727 17 %
——————- ———————————- ——— —–
7,037 5,601 26% Foods 13,447 10,234 31 %
——————- ———————————- ——— —–
1,991 1,711 16% Oil and dairy 3,951 3,313 19 %
based foods
and bakery
2,272 2,298 (1)% Ice cream and 3,806 3,741 2%
beverages
2,774 1,592 74% Culinary and frozen 5,690 3,180 79 %
products
——————- ———————————- ——— —–
2,522 2,373 6% Home Care and 4,991 4,631 8%
Professional Cleaning
2,901 2,798 4% Personal Care 5,614 5,470 3 %
148 205 (28)% Other Operations 285 392 (27)%
——————- ———————————- ——— —–
TOTAL OPERATING PROFIT –
before exceptional
1,649 1,221 35% items and amortization of 3,105 2,306 35 %
goodwill and intangibles
——————- ———————————- ——— —–
1,017 741 37% Foods 1,750 1,141 53%
——————- ———————————- ——— —–
273 218 25% Oil and dairy based 545 413 32 %
foods and bakery
322 341 (6)% Ice cream and beverages 406 410 (1) %
422 182 133% Culinary and frozen 799 318 152 %
products
——————- ———————————- ——— —–
173 162 7% Home Care and 401 392 3%
Professional Cleaning
441 317 39% Personal Care 927 768 21 %
18 1 -% Other Operations 27 5 427%
——————- ———————————- ——— —–
TOTAL OPERATING MARGIN –
before exceptional
items and
13.1 % 11.1 % amortization of 12.8% 11.1 %
goodwill and intangibles
——————- ——————————— ——— ——
14.5 % 13.2% Foods 13.0% 11.1%
——————- ——————————— ——— ——
13.7 % 12.8% Oil and dairy based 13.8% 12.5%
foods and bakery
14.2 % 14.9% Ice cream and 10.7% 11.0%
beverages
15.2 % 11.4% Culinary and 14.0% 10.0%
frozen products
——————- ——————————— ——— ——
6.9 % 6.8% Home Care and 8.0% 8.5%
Professional Cleaning
15.2 % 11.3% Personal Care 16.5% 14.0%
12.1 % 0.3% Other Operations 9.6% 1.3%
——————- ——————————— ——— ——
Earnings per share in U.S. Dollars
Constant rates Current rates
2001 2000 2001 2000
Thousands of units
Average number of combined
share units of Fl. 1.12 984,039 990,565 984,039 990,565
Average number of combined
share units of 5.6p 1,640,064 1,650,941 1,640,064 1,650,941
COMBINED EPS
Net profit 1,062 1,144 999 1,182
Less: Preference dividends 24 18 23 19
Net profit attributable to
ordinary capital 1,038 1,126 976 1,163
Combined EPS per Fl. 1.12 $1.06 $1.14 $0.99 $1.17
Combined EPS per 5.6p $0.63 $0.68 $0.60 $0.70
COMBINED EPS – BEIA
Net profit 1,062 1,144 999 1,182
Add back exceptional
items net of tax (272) 233 (255) 238
Add back amortization
of goodwill/intangibles
net of tax 633 17 614 17
Add back exceptional items
in minority interests
net of tax (3) – (3) –
Net profit beia 1,420 1,394 1,355 1,437
Less: Preference dividends 24 18 23 19
Net profit attributable to
ordinary capital – beia 1,396 1,376 1,332 1,418
Combined EPS beia per
Fl. 1.12 $1.42 $1.39 $1.35 $1.43
Combined EPS beia per 5.6p $0.85 $0.83 $0.81 $0.86
COMBINED EPS – Diluted
Thousands of units
Adjusted average combined
share units of Fl. 1.12 1,011,220 1,015,621 1,011,220 1,015,621
Adjusted average combined
share units of 5.6p 1,685,366 1,692,701 1,685,366 1,692,701
Net profit attributable
to ordinary capital 1,038 1,126 976 1,163
Combined diluted EPS
per Fl. 1.12 $1.03 $1.11 $0.97 $1.15
Combined diluted EPS
per 5.6p $0.62 $0.67 $0.58 $0.69
To view related research reports, please follow the links below:- Frozen Food: The International Market |
