REG - Unilever PLC - 2024 First Half Results
25/07/2024 07:00
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RNS Number : 7417X Unilever PLC 25 July 2024
2024 First Half Results
Innovation and brand investment driving faster volume growth
Underlying performance GAAP measures
(unaudited) 2024 vs 2023 2024 vs 2023
First Half
Underlying sales growth (USG) 4.1% Turnover €31.1bn 2.3%
Beauty & Wellbeing 7.1% Beauty & Wellbeing €6.5bn 5.1%
Personal Care 5.6% Personal Care €7.0bn 0.6%
Home Care 3.3% Home Care €6.3bn 2.0%
Nutrition 3.2% Nutrition €6.7bn 1.3%
Ice Cream 0.6% Ice Cream €4.6bn 2.8%
Underlying operating profit €6.1bn 17.1% Operating profit €5.9bn 7.8%
Underlying operating margin 19.6% 250bps Operating margin 19.1% 100bps
Underlying earnings per share €1.62 16.3% Diluted earnings per share €1.47 5.4%
Free cash flow €2.2bn €(0.3)bn Net profit €4.0bn 3.5%
Second Quarter
USG 3.9% Turnover €16.1bn 2.2%
Quarterly dividend payable in September 2024 €0.4396 per share((a) ) 3.0%
(a) See note 9 for more information on dividends
First half highlights
• Underlying sales growth of 4.1%, with volumes up 2.6%
• Power Brands (~75% of turnover) leading growth with 5.7% USG and
volumes up 4.0%
• Turnover increased 2.3% to €31.1 billion with (1.1)% impact from
currency and (0.7)% from net disposals
• Underlying operating margin up 250bps to 19.6%, with gross margin
up 420bps
• Brand and marketing investment up 180bps to 15.1%, focused on
Power Brands
• Underlying EPS increased 16.3%, diluted EPS up 5.4%
• Quarterly dividend raised by 3%; €1.5bn share buyback commenced
• Free cash flow of €2.2 billion, reflecting seasonal working
capital outflow
• Productivity programme underway and separation of Ice Cream on
track
Chief Executive Officer statement
"We are focused on driving high-quality sales growth and gross margin
expansion, led by our Power Brands. Over the first half, we made progress on
those ambitions.
Underlying sales grew 4.1%, driven by a third consecutive quarter of positive,
improving volume growth, while pricing continued to moderate in line with our
expectations. Strong gross margin progression fuelled increased investment
behind our innovations, and resulted in a step-up of our profitability.
We continue to embed the Growth Action Plan, doing fewer things, better and
with greater impact. The implementation of a comprehensive productivity
programme and the separation of Ice Cream are key to delivering on that
commitment and we are progressing at pace.
There is much to do, but we remain focused on transforming Unilever into a
consistently higher performing business."
Hein Schumacher
Outlook
We continue to expect underlying sales growth (USG) for 2024 to be within our
multi-year range of 3% to 5%, with the majority of the growth being driven by
volume.
Underlying operating margin for the full year is expected to be at least 18%,
with increasing investment behind our brands. We expect the year-on-year
margin progression in the second half to be smaller than in the first half.
Our very strong gross margin progression in the first half reflects positive
contributions from volume leverage, mix and net productivity but also factors
that will not repeat in the second half such as, a low prior year comparator
affected by high input costs, and carry-over pricing from a period of higher
inflation.
First Half Review: Unilever Group
Growth
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change
First Half €31.1bn 4.1% 2.6% 1.6% (0.7)% (1.1)% 2.3%
Second Quarter €16.1bn 3.9% 2.9% 1.0% (0.6)% (1.0)% 2.2%
Underlying sales growth in the first half was 4.1%, led by volume of 2.6% and
price of 1.6%. We delivered our third consecutive quarter of positive,
improving volume growth, with UVG up 2.9% in Q2, increasing from 2.2% in Q1
and 1.8% in Q4 2023. Four of our five business groups delivered positive
volume growth in Q2. As expected, underlying price growth continued to
moderate from 2.8% in Q4 2023 to 1.0% in Q2.
The Power Brands performed strongly with 5.7% underlying sales growth, driven
by volume growth of 4.0% in H1. Our other brands also saw a sequential volume
improvement to (1.1)% in Q2, up from (2.0)% in Q1.
As expected, our turnover-weighted market share movement*, which measures our
competitive performance within the footprint in which we operate, remained
largely unchanged on a rolling 12 month-basis. We expect a sequential
improvement of the share trend over time reflecting increasing benefit from
the Growth Action Plan.
Beauty & Wellbeing grew underlying sales by 7.1%, with volume growth of
5.5% driven by continued double-digit growth from Health & Wellbeing and
Prestige Beauty combined. In Q2, particularly strong growth in Health &
Wellbeing more than offset softer growth in Prestige that reflected a slowdown
in the US beauty market. Personal Care grew 5.6% with 2.9% from volume, led by
continued strong sales growth of Deodorants. Home Care underlying sales
increased 3.3%, with 4.6% volume growth more than offsetting the negative
price growth linked to commodity cost deflation in some emerging markets.
Nutrition grew underlying sales by 3.2%, driven by price with flat volume for
the first half. Nutrition returned to positive volumes in Q2 at 0.4%, up from
(0.4)% in Q1. Ice Cream continued to focus on operational improvements.
Underlying sales growth was 0.6% with volume down (1.0)%, driven by weak sales
in China and a softer start to the summer season in Europe.
Emerging markets (59% of Group turnover) grew underlying sales 5.1%, with 3.8%
from volume and 1.3% from price. India grew 1.2%, with stronger volumes
partially offset by price. Lower input costs led to negative price, while
volumes in India sequentially improved throughout the first half, reaching
3.8% in Q2. Latin America grew 8.8%, with continued strong volume growth
across the region. Africa and Turkey delivered broad-based, double-digit
growth, driven by strong volume and price. Growth in South East Asia was
adversely impacted by a sales decline of (5.7)% in Indonesia, where some
consumers avoided the brands of multi-national companies in response to the
geopolitical situation in the Middle East. China declined mid single-digit,
due to market weakness across all categories apart from food service.
Developed markets (41% of Group turnover) grew underlying sales 2.8% with 0.8%
from volume and 2.0% from price. The return to positive volume growth
reflected a continued resilient performance in North America and a marked
volume improvement in Europe, up 2.2% in Q2. As expected, price growth
continued to moderate from the peak in Q2 2023.
Turnover was €31.1 billion, up 2.3% versus the prior year, including (1.1)%
from currency and (0.7)% from disposals net of acquisitions.
*Turnover-weighted market share movement: global aggregate of Unilever value
market share changes, weighted by the turnover of the category-country
combinations
Profitability
(unaudited) UOP UOP growth UOM% Change in UOM OP OP growth OM% Change in OM
First Half €6.1bn 17.1% 19.6% 250bps €5.9bn 7.8% 19.1% 100bps
Underlying operating profit was €6.1 billion, up 17.1% versus the prior
year. Underlying operating margin increased 250bps to 19.6%.
We improved gross margin by 420bps to 45.7%. Accelerating gross margin is a
key focus for the business. We started to rebuild gross margin in the second
half of 2023, with an improvement of 330bps and continued that momentum into
the first half of 2024. The first half improvement reflects positive
contributions from volume leverage, mix and net productivity but also factors
that will not repeat in the second half such as, a low prior year comparator
affected by high input costs, and carry-over pricing from a period of higher
inflation. Improved gross margin supported a further step-up in brand and
marketing investment behind a strong and focused innovation programme.
Investment was up 180bps to 15.1% of turnover, an increase of €0.7 billion.
Overheads reduced by 10bps, benefiting from a focus on tighter cost control.
Operating profit of €5.9 billion increased 7.8% against a prior year
comparator that was boosted by higher profit on disposal.
Progress on productivity programme and Ice Cream separation
In March, we announced the separation of Ice Cream and the launch of a major
productivity programme to strengthen the company and substantially improve our
efficiency and effectiveness. Separation activity is underway and on track to
complete by the end of 2025. We are working at pace on the legal entity set
up, the standalone operating model and carve-out financials. In July, we
communicated internally on the planned changes to simplify our business and
further evolve our category-focused operating model. We have started
consultations with the respective works councils.
Capital allocation
In February 2024, we announced a share buyback programme of up to €1.5
billion to be conducted during 2024. The first tranche of up to €850 million
commenced in May.
As a result of the strong first half performance, the Board increased the
quarterly interim dividend for Q2 by 3.0% to €0.4396, the first increase
since Q4 2020.
We continued to reshape our portfolio, acquiring K18, a premium biotech hair
care brand, in February, and completing the disposal of Elida Beauty in June.
In July we announced agreements to sell our water purification businesses
Pureit, to A.O. Smith, and stake in Qinyuan Group, to Yong Chao Venture
Capital Co., Ltd. The deals are expected to complete in the second half of the
year.
Conference Call
Following the release of this trading statement on 25 July 2024 at 7:00 AM (UK
time), there will be a live webcast at 8:00 AM available on the website
www.unilever.com/investor-relations/results-and-presentations/latest-results
(file:///C%3A/Users/Clara.Sidoroinicz/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/R96LFPTK/www.unilever.com/investor-relations/results-and-presentations/latest-results)
.
A replay of the webcast and the slides of the presentation will be made
available after the live meeting.
Upcoming Events
Date Events
24 October 2024 Q3 2024 trading statement
22 November 2024 Capital Markets Day in London
13 February 2025 Q4 and FY 2024 results
First Half Review: Business Groups
First Half 2024 Second Quarter 2024
(unaudited) Turnover USG UVG UPG UOM% Change in UOM Turnover USG UVG UPG
Unilever €31.1bn 4.1% 2.6% 1.6% 19.6% 250bps €16.1bn 3.9% 2.9% 1.0%
Beauty & Wellbeing €6.5bn 7.1% 5.5% 1.5% 20.0% 110bps €3.4bn 6.8% 5.4% 1.3%
Personal Care €7.0bn 5.6% 2.9% 2.6% 23.0% 300bps €3.5bn 6.4% 4.4% 1.9%
Home Care €6.3bn 3.3% 4.6% (1.3)% 16.3% 400bps €3.1bn 3.4% 4.9% (1.4)%
Nutrition €6.7bn 3.2% -% 3.2% 22.3% 390bps €3.3bn 2.7% 0.4% 2.2%
Ice Cream €4.6bn 0.6% (1.0)% 1.6% 14.6% (40)bps €2.8bn (0.5)% (1.1)% 0.6%
Beauty & Wellbeing (21% of Group turnover)
In Beauty & Wellbeing, we focus on three key priorities that will drive
the unmissable superiority of our brands: elevating our core Hair Care and
Skin Care brands to increase premiumisation; fuelling the growth of Prestige
Beauty and Health & Wellbeing with selective international expansion; and
continuing to strengthen our beauty and wellbeing capabilities.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
First Half €6.5bn 7.1% 5.5% 1.5% (0.8)% (1.2)% 5.1% 20.0% 110bps
Second Quarter €3.4bn 6.8% 5.4% 1.3% 0.2% (0.6)% 6.3%
Beauty & Wellbeing delivered another strong performance, with underlying
sales up 7.1%, driven by volume up 5.5% and price up 1.5%. Power Brands led
this growth with underlying sales growth of 11.3%.
Hair Care delivered mid-single digit growth with positive volume and price.
Our largest hair care brand, Sunsilk grew double-digit supported by combing
cream innovations across Latin America and the continued success of its 2023
relaunch. Dove grew high-single digit led by volume growth following the
launch of Scalp + Hair Therapy, for improved scalp health and hair density.
Clear and TRESemmé grew well with the continued expansion of our patented
anti-dandruff shampoo and our new Lamellar Shine range.
Core Skin Care grew mid-single digit led by strong volume growth in our top
brands. Vaseline grew strong double-digit supported by its premium ranges,
including Radiant X and Gluta Hya, which continue to be rolled out to new
markets. Pond's continued to deliver high-single digit growth led by volume,
following its 2023 relaunch.
Health & Wellbeing and Prestige Beauty combined delivered double-digit
growth for the 14(th) consecutive quarter. This was led by very strong growth
in Health & Wellbeing, while softer growth in Prestige Beauty reflected a
slowdown in the US beauty market. Liquid IV grew strong double-digit with the
continued success of its sugar-free variant, launch of new flavours supported
by prominent social media campaigns, and ongoing international roll-out. Olly
and Nutrafol contributed double-digit volume growth. In H1, Nutrafol extended
into skin care with a daily supplement designed to address the root causes of
acne and Olly drove good growth in China supported by its focus on female
health supplements. Tatcha and Hourglass grew double-digit, while Paula's
Choice was affected by the market slowdown.
Underlying operating profit was €1.3 billion, up 11% versus prior year.
Underlying operating margin increased 110bps to 20.0% driven by gross margin
improvement, which supported a step-up in brand and marketing investment.
Personal Care (22% of Group turnover)
In Personal Care, we focus on winning with science-led brands that deliver
unmissable superiority to our consumers across Deodorants, Skin Cleansing, and
Oral Care. Our priorities include developing superior technology and
multi-year innovation platforms, leveraging partnerships with our customers,
and expanding into premium areas and digital channels
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
First Half €7.0bn 5.6% 2.9% 2.6% (3.4)% (1.4)% 0.6% 23.0% 300bps
Second Quarter €3.5bn 6.4% 4.4% 1.9% (4.1)% (1.6)% 0.3%
Personal Care delivered balanced growth with underlying sales up 5.6%, 2.9%
from volume and 2.6% from price. Performance was led by the Power Brands with
7.0% underlying sales growth.
Deodorants continued to deliver double-digit growth, with high-single digit
volume growth led by Europe and Latin America. Dove grew double-digit with
strong volumes and expanded into the Whole Body deodorants market.
Rexona and Axe contributed strong volume growth with continued momentum from
our multi-year innovation platforms and our Fine Fragrance range.
Skin Cleansing grew low-single digit with positive volume growth and price.
Growth was tempered by deflation in India and market challenges in Indonesia.
Dove delivered high-single digit growth with good growth in Dove Men+Care.
Europe grew double-digit with mid-single digit volume supported by Dove's Body
Wash relaunch. In the United States, we launched a premium range of Dove Body
Wash infused with skin care serums including hyaluronic acid, collagen and
vitamin C.
Oral Care continued to grow mid-single digit with positive volume and price.
Close Up grew high-single digit with positive volume.
Underlying operating profit was €1.6 billion, up 16% versus prior year.
Underlying operating margin increased 300bps driven by gross margin recovery,
supporting a step-up in marketing investment. This investment includes
strategic sponsorships such as our official partnership with UEFA EURO 2024™
and CONMEBOL Copa América USA 2024™.
Home Care (20% of Group turnover)
In Home Care, we focus on delivering for consumers who want superior products
that are sustainable and great value. We drive growth through unmissable
superiority in our biggest brands, in our key markets and across channels. We
have a resilient business that spans price points and grows the market by
premiumising and trading consumers up to additional benefits.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
First Half €6.3bn 3.3% 4.6% (1.3)% -% (1.3)% 2.0% 16.3% 400bps
Second Quarter €3.1bn 3.4% 4.9% (1.4)% -% (1.5)% 1.8%
Home Care delivered underlying sales growth of 3.3%, with continued good
volume growth of 4.6%, partially offset by (1.3)% price, driven primarily by
emerging markets. Underlying sales growth of the Power Brands was up 3.7%.
Fabric Cleaning grew low-single digit with low-single digit volume and
negative price. Growth was supported by the launch of Persil Wonder Wash, with
our patented Pro-S technology, the first ever detergent designed for short
cycle washes. This significant innovation has now been introduced in the UK,
France and China and is on track to be rolled out to other key markets over
the next 18 months. Europe grew double-digit with strong volumes. India and
Brazil grew volume while price declined reflecting commodity deflation,
notably in our powders portfolio.
Home & Hygiene grew high-single digit with mid-single digit volume and
slightly positive price. Cif and Domestos grew double-digit with double-digit
volume. In H1, we expanded Domestos Power Foam to new markets and extended the
range to include specialist solutions with long-lasting fragrance and
limescale removal. Cif was supported by strong performances across Latin
America in its cream and sprays portfolio.
Fabric Enhancers grew high-single digit led by volume, slightly offset by
negative price. Comfort grew high-single digit supported by the launch of our
new, Botanicals and Elixir ranges, with our patented CrystalFresh technology,
delivering 10 times more fragrance.
Underlying operating profit was €1.0 billion, up 35% versus prior year.
Underlying operating margin increased 400bps as commodity deflation supported
a strong gross margin recovery, funding an increase in brand and marketing
investment.
Nutrition (22% of Group turnover)
In Nutrition, our strategy is to deliver consistent, competitive growth by
offering unmissably superior products through our biggest brands. We do this
by reaching more consumers and focusing on top dishes and high consumption
seasons to satisfy consumer's preferences on taste, health and sustainability;
while delivering productivity and resilience in our supply chain.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
First Half €6.7bn 3.2% -% 3.2% (0.4)% (1.4)% 1.3% 22.3% 390bps
Second Quarter €3.3bn 2.7% 0.4% 2.2% (0.3)% (1.5)% 0.9%
Nutrition underlying sales grew 3.2% in the first half, driven by price with
flat volumes. Volume growth turned positive in Q2, up 0.4%. Power Brands,
including Knorr and Hellmann's, which represented nearly 65% of Nutrition
turnover, grew 5.2%. This performance was partially offset by volume declines
of our smaller brands.
Scratch Cooking Aids grew mid-single digit with positive volume and price, led
by Knorr. Growth was supported by double-digit performance in Latin America
where Knorr's innovation and marketing focus on local top dishes continues to
drive growth across the portfolio.
Dressings delivered low-single digit growth with positive volume and price.
Hellmann's grew mid-single digit with the continued strong performance of
flavoured mayo that launched in additional markets and added new variants in
North America and Europe. Brazil grew double-digit which was enhanced by
strategic partnerships, including our second year as a sponsor of the National
Basketball Association in Brazil.
Unilever Food Solutions grew high-single digit with mid-single digit volume,
led by double-digit growth in China. Growth was driven by the latest edition
of our Future Menu's Trend report, sparking inspiration and sales in
professional kitchens, and continued gains from our digital selling programme.
Underlying operating profit was €1.5 billion, up 23% versus prior year.
Underlying operating margin increased 390bps with a strong recovery in gross
margin driven by normalising commodity costs and SKU optimisation. Gross
margin improvement supported an increase in brand and marketing investment.
Ice Cream (15% of Group turnover)
In Ice Cream, our immediate strategic priority is to expand operating profit
and global market share. We will do this by building the unmissable
superiority of our brands, accelerating market development in emerging
markets, continuing to lead the industry on innovation and premiumisation, and
by stepping up our performance and productivity. In March, we announced the
planned separation of Ice Cream which we expect to be completed by the end of
2025. The separation will create a world-leading business, operating in a
highly attractive category with five of the top 10 selling global ice cream
brands.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
First Half €4.6bn 0.6% (1.0)% 1.6% 1.9% 0.3% 2.8% 14.6% (40)bps
Second Quarter €2.8bn (0.5)% (1.1)% 0.6% 1.9% 0.5% 2.0%
Ice Cream had a disappointing start to its key season, with underlying sales
up 0.6%. 1.6% underlying price growth was partially offset by negative volume
of (1.0)%.
Performance remains below our ambition, having been impacted by a soft start
to the European key season and challenging market dynamics in China. In-home
Ice Cream delivered flat price and volume, while out-of-home Ice Cream grew
low-single digit driven by price.
Wall's grew mid-single digit with positive volume and price, Ben & Jerry's
was slightly up, while sales of Cornetto were adversely affected by the
decline in China. Magnum launched its new 'Pleasure Express' range with 3
variants: Euphoria, Wonder and Chill.
Ice Cream continues to focus on operational improvements, including service
and optimising promotions, while continuing to drive investment behind our
brands and innovations.
Underlying operating profit was €0.7 billion, flat versus prior year.
Underlying operating margin declined (40)bps as gross margin improvement was
offset by an increase in brand and marketing investment. Cost inflation of key
commodities continued, driven by cocoa and sugar.
First Half Review: Geographical Areas
First Half 2024 Second Quarter 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €31.1bn 4.1% 2.6% 1.6% €16.1bn 3.9% 2.9% 1.0%
Asia Pacific Africa €13.4bn 3.5% 2.4% 1.0% €6.7bn 3.4% 2.4% 0.9%
The Americas €11.4bn 5.4% 3.9% 1.5% €5.9bn 5.0% 3.8% 1.1%
Europe €6.3bn 3.5% 0.5% 2.9% €3.5bn 3.0% 2.2% 0.8%
First Half 2024 Second Quarter 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Emerging markets €18.2bn 5.1% 3.8% 1.3% €9.2bn 4.8% 3.7% 1.1%
Developed markets €12.9bn 2.8% 0.8% 2.0% €6.9bn 2.6% 1.8% 0.8%
North America €6.7bn 3.4% 2.0% 1.4% €3.5bn 3.2% 2.5% 0.7%
Latin America €4.7bn 8.8% 7.0% 1.6% €2.4bn 8.0% 6.0% 1.9%
Asia Pacific Africa (43% of Group turnover)
Underlying sales growth was 3.5% with 2.4% from volume and 1.0% from price.
India grew 1.2% as volume sequentially improved in Q2 to 3.8%. Volume was
partially offset by negative price linked to lower commodity costs in several
categories. China declined reflecting weaker market growth in most of our
categories and low consumer confidence. Despite the overall market dynamic,
Unilever Food Solutions delivered double-digit growth in China, building on
its double-digit growth in H1 2023. Underlying sales declined (5.7)% in
Indonesia, with negative price and volume. This largely reflects the ongoing
impact of some Indonesian consumers avoiding multinational brands and the need
for operational improvements.
Africa grew double-digit with positive price and volume. Turkey delivered
strong double-digit volume growth in a hyperinflationary environment.
The Americas (37% of Group turnover)
Underlying sales grew 3.4% in North America with 2.0% from volume and 1.4%
from price. Beauty & Wellbeing delivered volume-led high-single digit
growth, driven by a strong performance in Health & Wellbeing. Personal
Care grew low-single digit driven by price as we lapped a particularly strong
prior year comparator in Deodorants. Nutrition grew low-single digit with
positive volume and price, led by continued growth in Dressings. Ice Cream was
flat with positive volume and negative price as we optimised promotions.
Underlying sales in Latin America grew 8.8% with 7.0% volume and 1.6% price.
Growth was broad-based with all Business Groups. Personal Care and Beauty
& Wellbeing grew double-digit with strong volumes and positive price. Home
Care contributed high-single digit volume growth, which was largely offset by
negative price. Nutrition grew high-single digit with positive price and
volume led by Knorr and Hellmann's. Brazil grew high-single digit led by
volume, with strong volume growth in Deodorants, Dressings, and Home Care
categories. Price was negative largely due to commodity deflation in Home
Care. Mexico grew double-digit with all Business Groups growing volume and
price. Argentina performed well in a challenging environment, delivering
double-digit volume growth despite hyperinflationary pricing.
Europe (20% of Group turnover)
Underlying sales grew 3.5% with 2.9% price and 0.5% volume growth. Helped by
strong innovations and a step-up in brand support, Europe delivered 2.2%
volume growth in Q2. It was the first positive UVG since Q2 2021 despite a
soft start of the key ice cream season. Home Care and Personal Care grew
double-digit led by volume growth, which was supported by strong innovations
across Domestos, Persil, and Dove. Nutrition declined low-single digit but
returned to growth in Q2 with positive volume. Ice Cream declined low-single
digit impacted by poor weather. The United Kingdom, Germany and Eastern Europe
grew well with positive volumes.
Additional commentary on the financial statements - First Half
Finance costs and tax
Net finance costs increased by €99 million to €358 million in 2024. This
was largely driven by the higher cost of debt on bonds, a lower interest
credit from pensions, partially offset by a slightly higher interest income.
As a result, net finance costs were 2.9% on average net debt. For full year
2024, we now expect net finance costs of around 3% on average net debt.
The underlying effective tax rate for the first half increased to 26.0% from
24.2% in the prior year, due to a number of factors including lower benefits
from tax settlements and other one-off items. For full year 2024, we raise our
guidance for the underlying effective tax rate to around 26%, from around 25%
previously. The effective tax rate was 28.6%, up from 26.9% in the prior year.
Joint ventures, associates and other income from non-current investments
Net profit from joint ventures and associates was €138 million, an increase
of €20 million compared to 2023, mainly driven by the Pepsi-Lipton JVs.
Other income from non-current investments was negative at €(5) million,
versus €(10) million in the prior year.
Earnings per share
Underlying earnings per share increased 16.3% to €1.62, including (1.0)% of
adverse currency. The increase primarily reflects a strong operational
performance and a reduction in the average number of shares as a result of the
share buyback programme, which contributed 1.0%. These were partially offset
by higher tax and net finance costs. Diluted earnings per share of €1.47
increased by 5.4% versus the prior year that was boosted by profits on
disposal.
Restructuring costs
Restructuring costs were €248 million in the first half, up from €184
million in the prior year. For full year 2024, we anticipate restructuring
costs of around 1.2% of Group turnover, with the step-up in the second half
driven by cost related to the implementation of the productivity programme.
Free cash flow
Free cash flow in the first half of 2024 was €2.2 billion versus €2.5
billion delivered in the first half of 2023. The increase in operating profit
was more than offset by a higher seasonal outflow in working capital, a
step-up in capital expenditure, and higher income tax paid.
Net debt
Closing net debt was €25.2 billion compared to €23.7 billion as at 31
December 2023. This translated into a net debt / Underlying EBITDA ratio of
2.0x. The increase in net debt was driven by dividends paid, €375 million of
the share buyback programme executed during the first half, partially offset
by free cash flow delivery.
Pensions
Pension assets net of liabilities were in surplus of €2.7 billion at 30 June
2024 versus a surplus of €2.4 billion at the end of 2023. The increase was
primarily driven by strong investment returns in the first half.
Financial implications and impairment risk in Russia
Our Russia business employs approximately 3,000 people in Russia and in the
first six months of 2024 the business represented around 1% of the Group's
turnover and net profit. As at 30 June 2024, our Russia business had net
assets of around €600 million, including four factories. We continually
review our position and still conclude that the containment actions we put in
place at the beginning of the war minimise our economic contribution to the
Russian state.
We will continue to review and disclose the financial implications from the
conflict. While the potential impacts remain uncertain, there remains a risk
that our operations in Russia are unable to continue, leading to loss of
turnover, profit and a write-down of assets.
Share buyback programme
On 8 February 2024, we announced a share buyback programme of up to €1.5
billion to be completed over 2024. The first tranche of up to €850 million
commenced on 17 May. In the first half of 2024, we repurchased 7,315,036
ordinary shares which are held by Unilever as treasury shares. Consideration
paid for the repurchase of shares including transaction costs was €375
million which is recorded within other reserves. The first tranche is expected
to complete on or before 30 August 2024.
Finance and liquidity
In the first six months of 2024, the following notes matured and were repaid:
• March: $500 million 3.25% fixed rate notes
• April: €500 million 0.50% fixed rate notes
• May: $1,000 million 2.60% fixed rate notes
The following notes were issued:
• February: €600 million 3.25% fixed rate notes due 15
February 2032 and €600 million 3.50% fixed rate notes due
15 February 2037
• March: €100 million 3.25% fixed rate notes to be
consolidated and form a single series with the €600 million 3.25% fixed rate
notes issued in February and due 15 February 2032
• June: $170 million 4.75% fixed rate notes due 27 June 2031
On 30 June 2024, Unilever had undrawn revolving 364-day bilateral credit
facilities in aggregate of $5,200 million and €2,600 million with a 364-day
term out.
Non-GAAP measures
Certain discussions and analyses set out in this announcement include measures
which are not defined by generally accepted accounting principles (GAAP) such
as IFRS. We believe this information, along with comparable GAAP measurements,
is useful to investors because it provides a basis for measuring our operating
performance, ability to retire debt and invest in new business opportunities.
Our management uses these financial measures, along with the most directly
comparable GAAP financial measures, in evaluating our operating performance
and value creation. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information presented in
compliance with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unilever uses 'constant rate', and 'underlying' measures primarily for
internal performance analysis and targeting purposes. We present certain
items, percentages and movements, using constant exchange rates, which exclude
the impact of fluctuations in foreign currency exchange rates. We calculate
constant currency values by translating both the current and the prior period
local currency amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in hyperinflationary
economies. These currencies are translated into euros using the prior year
closing exchange rate before the application of IAS 29.
The table below shows exchange rate movements in our key markets.
Half year average rate in 2024 Half year average rate in 2023
Brazilian Real (€1 = BRL) 5.478 5.493
Chinese Yuan (€1 = CNY) 7.732 7.475
Indian Rupee (€1 = INR) 90.004 88.860
Indonesia Rupiah (€1 = IDR) 17,180 16,277
Philippine Peso (€1 = PHP) 61.459 59.674
UK Pound Sterling (€1 = GBP) 0.855 0.877
US Dollar (€1 = US $) 1.082 1.081
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover for the
period, excluding any change in turnover resulting from acquisitions,
disposals, changes in currency and price growth in excess of 26% in
hyperinflationary economies. Inflation of 26% per year compounded over three
years is one of the key indicators within IAS 29 to assess whether an economy
is deemed to be hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the business and
is a key measure used internally. The impact of acquisitions and disposals is
excluded from USG for a period of 12 calendar months from the applicable
closing date. Turnover from acquired brands that are launched in countries
where they were not previously sold is included in USG as such turnover is
more attributable to our existing sales and distribution network than the
acquisition itself.
The reconciliation of changes in the GAAP measure of turnover to USG is as
follows:
(unaudited) Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Second Quarter (%)
Turnover growth 6.3 0.3 1.8 0.9 2.0 2.2
Effect of acquisitions 1.0 - - - 1.9 0.5
Effect of disposals (0.8) (4.1) - (0.3) - (1.1)
Effect of currency-related items, of which: (0.6) (1.6) (1.5) (1.5) 0.5 (1.0)
Exchange rates changes (2.3) (3.2) (4.9) (3.3) (1.5) (3.1)
Extreme price growth in hyperinflationary markets* 1.7 1.6 3.5 1.9 2.1 2.1
Underlying sales growth 6.8 6.4 3.4 2.7 (0.5) 3.9
First Half (%)
Turnover growth 5.1 0.6 2.0 1.3 2.8 2.3
Effect of acquisitions 0.9 - - - 1.9 0.5
Effect of disposals (1.6) (3.4) - (0.4) - (1.2)
Effect of currency-related items, of which: (1.2) (1.4) (1.3) (1.4) 0.3 (1.1)
Exchange rates changes (2.7) (3.2) (4.5) (3.1) (1.6) (3.1)
Extreme price growth in hyperinflationary markets* 1.6 1.9 3.4 1.7 2.0 2.1
Underlying sales growth 7.1 5.6 3.3 3.2 0.6 4.1
*Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales growth in
the tables above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
(unaudited) Asia Pacific Africa The Americas Europe Total
Second Quarter (%)
Turnover growth 0.5 3.9 2.9 2.2
Effect of acquisitions - 1.5 - 0.5
Effect of disposals (0.2) (2.5) (0.7) (1.1)
Effect of currency-related items, of which: (2.6) - 0.5 (1.0)
Exchange rates changes (4.2) (3.8) 0.5 (3.1)
Extreme price growth in hyperinflationary markets* 1.8 3.9 - 2.1
Underlying sales growth 3.4 5.0 3.0 3.9
First Half (%)
Turnover growth (0.4) 4.6 3.8 2.3
Effect of acquisitions - 1.3 - 0.5
Effect of disposals (0.2) (2.8) (0.4) (1.2)
Effect of currency-related items, of which: (3.5) 0.9 0.7 (1.1)
Exchange rates changes (4.9) (3.0) 0.7 (3.1)
Extreme price growth in hyperinflationary markets* 1.5 4.1 - 2.1
Underlying sales growth 3.5 5.4 3.5 4.1
*Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales growth in
the tables above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the applicable
period, the increase in turnover attributable to changes in prices during the
period. UPG therefore excludes the impact to USG due to (i) the volume of
products sold; and (ii) the composition of products sold during the period. In
determining changes in price, we exclude the impact of price growth in excess
of 26% per year in hyperinflationary economies as explained in USG above.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the applicable
period, the increase in turnover in such period calculated as the sum of (i)
the increase in turnover attributable to the volume of products sold; and (ii)
the increase in turnover attributable to the composition of products sold
during such period. UVG therefore excludes any impact on USG due to changes in
prices.
Non-underlying items
Several non-GAAP measures are adjusted to exclude items defined as
non-underlying due to their nature and/or frequency of occurrence:
• Non-underlying items within operating profit are: gains or
losses on business disposals, acquisition and disposal related costs,
restructuring costs, impairments and other items within operating profit
classified here due to their nature and frequency.
• Non-underlying items not in operating profit but within net
profit are: net monetary gain/(loss) arising from hyperinflationary economies
and significant and unusual items in net finance cost, share of profit/(loss)
of joint ventures and associates and taxation.
• Non-underlying items are both non-underlying items within
operating profit and those non-underlying items not in operating profit but
within net profit.
Restructuring costs are charges associated with activities planned by
management that significantly change either the scope of the business or the
manner in which it is conducted.
The breakdown of non-underlying items is shown below:
€ million First Half
(unaudited) 2024 2023
Non-underlying items within operating profit before tax (152) 308
Acquisition and disposal-related costs((a)) (58) (52)
Gain on disposal of group companies((b)) 155 528
Restructuring costs((c)) (248) (184)
Impairments((d)) - (1)
Other (1) 17
Tax on non-underlying items within operating profit (51) (111)
Non-underlying items within operating profit after tax (203) 197
Non-underlying items not in operating profit but within net profit before tax (160) (103)
Interest related to the UK tax audit of intangible income and centralised (3) (5)
services
Net monetary loss arising from hyperinflationary economies (157) (98)
Tax impact of non-underlying items not in operating profit but within net (4) (80)
profit:
Taxes related to the separation of the Tea business 4 (6)
Taxes related to the UK tax audit of intangible income and centralised 1 1
services
Hyperinflation adjustment for Argentina and Turkey deferred tax (9) (75)
Non-underlying items not in operating profit but within net profit after tax (164) (183)
Non-underlying items after tax((e)) (367) 14
Attributable to:
Non-controlling interests (1) -
Shareholders' equity (366) 14
(a) 2024 includes a charge of €36 million relating to the acquisition of
Yasso, €11 million relating to the disposal of Elida Beauty, €6 million
(2023: €4 million) relating to the disposal of the Tea business and other
acquisition and disposal activities.
(b) 2024 includes a gain of €151 million related to the disposal of Elida
Beauty. 2023 includes a gain of €497 million related to the disposal of
Suave business in North America.
(c) Restructuring costs are comprised of organisational change programmes
(including Compass) and various technology and supply chain optimisation
projects.
(d) Impairments include write downs of leased land and building assets.
(e) Non-underlying items after tax is calculated as non-underlying items
within operating profit after tax plus non-underlying items not in operating
profit but within net profit after tax.
Underlying operating profit (UOP) and underlying operating margin (UOM)
Underlying operating profit and underlying operating margin mean operating
profit and operating margin before the impact of non-underlying items within
operating profit. Underlying operating profit represents our measure of
segment profit or loss as it is the primary measure used for making decisions
about allocating resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit is as
follows:
€ million First Half
(unaudited) 2024 2023
Operating profit 5,948 5,516
Non-underlying items within operating profit 152 (308)
Underlying operating profit 6,100 5,208
Turnover 31,117 30,428
Operating margin (%) 19.1 18.1
Underlying operating margin (%) 19.6 17.1
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing taxation excluding
the tax impact of non-underlying items by profit before tax excluding the
impact of non-underlying items and share of net (profit)/loss of joint
ventures and associates. This measure reflects the underlying tax rate in
relation to profit before tax excluding non-underlying items before tax and
share of net profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax on each
non-underlying item, based on the applicable country tax rates and tax
treatment. This is shown in the following table:
€ million First Half
(unaudited) 2024 2023
Taxation 1,550 1,385
Tax impact of:
Non-underlying items within operating profit((a)) (51) (111)
Non-underlying items not in operating profit but within net profit((a)) (4) (80)
Taxation before tax impact of non-underlying items 1,495 1,194
Profit before taxation 5,566 5,267
Share of net (profit)/loss of joint ventures and associates (138) (118)
Profit before tax excluding share of net profit/(loss) of joint ventures and 5,428 5,149
associates
Non-underlying items within operating profit before tax((a)) 152 (308)
Non-underlying items not in operating profit but within net profit before tax 160 103
Profit before tax excluding non-underlying items before tax and share of net 5,740 4,944
profit/(loss) of joint ventures and associates
Effective tax rate (%) 28.6 26.9
Underlying effective tax rate (%) 26.0 24.2
(a) See page 12.
Underlying earnings per share
Underlying earnings per share (underlying EPS) is calculated as underlying
profit attributable to shareholders' equity divided by the diluted average
number of ordinary shares. In calculating underlying profit attributable to
shareholders' equity, net profit attributable to shareholders' equity is
adjusted to eliminate the post-tax impact of non-underlying items. This
measure reflects the underlying earnings for each share unit of the Group.
Refer to note 6 for reconciliation of net profit attributable to shareholders'
equity to underlying profit attributable to shareholders' equity.
The reconciliation of net profit attributable to shareholders' equity to
underlying profit attributable to shareholders' equity is as follows:
€ million First Half
(unaudited) 2024 2023
Net profit 4,016 3,882
Non-controlling interest (315) (334)
Net profit attributable to shareholders' equity - used for basic and diluted 3,701 3,548
earnings per share
Post-tax impact of non-underlying items attributable to shareholders' equity 366 (14)
Underlying profit attributable to shareholders' equity - used for basic and 4,067 3,534
diluted earnings per share
Adjusted average number of shares (millions of share units) 2,511.0 2,536.8
Diluted EPS (€) 1.47 1.40
Underlying EPS - diluted (€) 1.62 1.39
Constant underlying EPS
Constant underlying earnings per share (constant underlying EPS) is calculated
as underlying profit attributable to shareholders' equity at constant exchange
rates and excluding the impact of both translational hedges and price growth
in excess of 26% per year in hyperinflationary economies divided by the
diluted average number of ordinary shares. This measure reflects the
underlying earnings for each share unit of the Group in constant exchange
rates.
The reconciliation of underlying profit attributable to shareholders' equity
to constant underlying earnings attributable to shareholders' equity and the
calculation of constant underlying EPS is as follows:
€ million First Half
(unaudited) 2024 2023
Underlying profit attributable to shareholders' equity 4,067 3,534
Impact of translation from current to constant exchange rates and 75 (104)
translational hedges
Impact of price growth in excess of 26% per year in hyperinflationary (159) -
economies
Constant underlying earnings attributable to shareholders' equity 3,983 3,430
Diluted average number of share units (millions of units) 2,511.0 2,536.8
Constant underlying EPS (€) 1.59 1.35
Net debt
Net debt is a measure that provides valuable additional information on the
summary presentation of the Group's net financial liabilities and is a measure
in common use elsewhere. Net debt is defined as the excess of total financial
liabilities, excluding trade payables and other current liabilities, over
cash, cash equivalents and other current financial assets, excluding trade and
other current receivables, and non-current financial asset derivatives that
relate to financial liabilities.
The reconciliation of total financial liabilities to net debt is as follows:
€ million As at 30 June 2024 As at 31 December 2023 As at 30 June 2023
(unaudited)
Total financial liabilities (31,654) (29,622) (30,708)
Current financial liabilities (7,643) (5,087) (6,715)
Non-current financial liabilities (24,011) (24,535) (23,993)
Cash and cash equivalents as per balance sheet 4,970 4,159 4,994
Cash and cash equivalents as per cash flow statement 4,854 4,045 4,870
Add: bank overdrafts deducted therein 116 116 124
Less: cash and cash equivalents held for sale - (2) -
Other current financial assets 1,445 1,731 1,376
Non-current financial asset derivatives that relate to financial liabilities 39 75 31
Net debt (25,200) (23,657) (24,307)
Free cash flow (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as cash flow from
operating activities, less income taxes paid, net capital expenditure and net
interest payments. It does not represent residual cash flows entirely
available for discretionary purposes; for example, the repayment of principal
amounts borrowed is not deducted from FCF. FCF reflects an additional way of
viewing our liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of dividends,
repayment of debt or to fund our strategic initiatives, including
acquisitions, if any.
The reconciliation of cash flow from operating activities to FCF is as
follows:
€ million First Half
(unaudited) 2024 2023
Cash flow from operating activities 4,679 4,377
Income tax paid (1,315) (1,011)
Net capital expenditure (710) (548)
Net interest paid (502) (364)
Free cash flow 2,152 2,454
Net cash flow (used in)/from investing activities (392) (200)
Net cash flow (used in)/from financing activities (2,154) (2,489)
Other Information
This document represents Unilever's half-yearly report for the purposes of the
Disclosure Guidance and Transparency Rules (DTR) issued by the UK Financial
Conduct Authority (DTR 4.2) and the Dutch Act on Financial Supervision,
section 5:25d (8)/(9) (Half-yearly financial reports). In this context: (i)
the condensed consolidated financial statements can be found on pages 19 to
28; (ii) pages 2 to 15 comprise the interim management report; and (iii) the
Directors' responsibility statement can be found on page 17. This report has
been reviewed in accordance with ISRE 2410 by our external auditors. No
material related party transactions have taken place in the first six months
of the year.
Principal Risk Factors
On pages 71 to 78 of our 2023 Annual Report and Accounts we set out our
assessment of the principal risk issues that would face the business under the
headings: brand preference; portfolio management; climate change; plastic
packaging; customer; talent; supply chain; safe and high quality products;
systems and information; business transformation; economic and political
instability; treasury and tax; ethical; and legal and regulatory. In our view,
the nature and potential impact of such risks remain essentially unchanged as
regards our performance over the second half of 2024.
Cautionary Statement
This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United States Private
Securities Litigation Reform Act of 1995, concerning the financial condition,
results of operations and businesses of the Unilever Group (the 'Group'). All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Words and terminology such as 'will', 'aim',
'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision',
'ambition', 'target', 'goal', 'plan', 'potential', 'work towards', 'may',
'milestone', 'objectives', 'outlook', 'probably', 'project', 'risk', 'seek',
'continue', 'projected', 'estimate', 'achieve' or the negative of these terms,
and other similar expressions of future performance, results, actions or
events, and their negatives, are intended to identify such forward-looking
statements. Forward-looking statements also include, but are not limited to,
statements and information regarding Unilever's acceleration of its Growth
Action Plan, Unilever's portfolio optimisation towards global or scalable
brands, the capabilities and potential of such brands, the various aspects of
the separation of Ice Cream and its future operational model, strategy, growth
potential, performance and returns, Unilever's productivity programme, its
impacts and cost savings over the next three years and operation dis-synergies
from the separation of Ice Cream, the Group's emissions reduction targets and
other climate change related matters (including actions, potential impacts and
risks associated therewith). Forward-looking statements can be made in writing
but also may be made verbally by directors, officers and employees of the
Group (including during management presentations) in connection with this
announcement. These forward-looking statements are based upon current beliefs,
expectations and assumptions regarding anticipated developments and other
factors affecting the Group. They are not historical facts, nor are they
guarantees of future performance or outcomes. All forward-looking statements
contained in this announcement are expressly qualified in their entirety by
the cautionary statements contained or referred to in this section. Readers
should not place undue reliance on forward-looking statements.
Because these forward-looking statements involve known and unknown risks and
uncertainties, a number of which may be beyond the Group's control, there are
important factors that could cause actual results to differ materially from
those expressed or implied by these forward-looking statements. Among other
risks and uncertainties, the material or principal factors which could cause
actual results to differ materially from the forward-looking statements
expressed in this announcement are: Unilever's ability to successfully
separate Ice Cream and realise the anticipated benefits of the separation;
Unilever's ability to successfully execute and consummate its productivity
programme in line with expected costs to achieve expected savings; Unilever's
global brands not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its portfolio
management; the effect of climate change on Unilever's business; Unilever's
ability to find sustainable solutions to its plastic packaging; significant
changes or deterioration in customer relationships; the recruitment and
retention of talented employees; disruptions in Unilever's supply chain and
distribution; increases or volatility in the cost of raw materials and
commodities; the production of safe and high quality products; secure and
reliable IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political risks and
natural disasters; financial risks; failure to meet high and ethical
standards; and managing regulatory, tax and legal matters.
The forward-looking statements speak only as of the date of this announcement.
Except as required by any applicable law or regulation, the Group expressly
disclaims any intention, obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based. New risks and uncertainties arise over time, and it is not possible for
us to predict those events or how they may affect us. In addition, we cannot
assess the impact of each factor on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Further details of potential risks and uncertainties affecting the Group are
described in the Group's filings with the London Stock Exchange, Euronext
Amsterdam and the US Securities and Exchange Commission, including in the
Annual Report on Form 20-F 2023 and the Unilever Annual Report and Accounts
2023.
Directors' Responsibility Statement
The Directors declare that, to the best of their knowledge:
• these condensed consolidated financial statements, which have
been prepared in accordance with IAS 34 'Interim Financial Reporting', as
issued by the International Accounting Standard Board and endorsed and adopted
by the UK and the EU gives a true and fair view of the assets, liabilities,
financial position and profit or loss of Unilever; and
• the interim management report gives a fair review of the
information required pursuant to regulations 4.2.7 and 4.2.8 of the Disclosure
Guidance and Transparency Rules (DTR) issued by the UK Financial Conduct
Authority and section 5:25d (8)/(9) of the Dutch Act on Financial Supervision
(Wet op het financieel toezicht).
Unilever's Directors are listed in the Annual Report and Accounts for 2023.
Details of all current Directors are available on our website at
www.unilever.com
By order of the Board
Hein
Schumacher
Fernando Fernandez
Chief Executive Officer
Chief Financial Officer
25 July 2024
Enquiries
Media: Media Relations Team Investors: Investor Relations Team
UK +44 78 2527 3767 lucila.zambrano@unilever.com investor.relations@unilever.com
or +44 77 7999 9683 jonathan.sibun@teneo.com
NL +31 62 191 3705 kiran.hofker@unilever.com
or +31 61 500 8293 fleur-van.bruggen@unilever.com
After the conference call on 25 July 2024 at 8:00 AM (UK time), the webcast of
the presentation will be available at:
www.unilever.com/investor-relations/results-and-presentations/latest-results
(file:///C%3A/Users/Clara.Sidoroinicz/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/R96LFPTK/www.unilever.com/investor-relations/results-and-presentations/latest-results)
.
This Results Presentation has been submitted to the FCA National Storage
Mechanism and is available for inspection at https://data.fca.org.
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) uk
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) /#/nsm/
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)
nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Independent Review Report to Unilever PLC
Conclusion
We have been engaged by Unilever PLC ("the Company") to review the condensed
consolidated financial statements of Unilever PLC and its subsidiaries
("Group") in the 2024 First Half Results for the six months ended 30 June 2024
which comprises the consolidated income statement, the consolidated statement
of comprehensive income, the consolidated statement of changes in equity, the
consolidated balance sheet, the consolidated cash flow statement and the
related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed consolidated financial statements in the 2024 First
Half Results for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with IAS 34 Interim Financial Reporting as
adopted for use in the UK and the Disclosure Guidance and Transparency Rules
("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the
UK. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the 2024 First Half Results and consider whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed consolidated financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
Directors' responsibilities
The 2024 First Half Results is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the 2024 First
Half Results in accordance with the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB) and
UK-adopted international accounting standards.
The directors are responsible for preparing the condensed consolidated
financial statements included in the 2024 First Half Results in accordance
with IAS 34 as adopted for use in the UK.
In preparing the condensed consolidated financial statements, the directors
are responsible for assessing the Group's ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
consolidated financial statements in the 2024 First Half Results based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the DTR of the
UK FCA. Our review has been undertaken so that we might state to the Company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Jonathan Mills
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London, E14 5GL
25 July 2024
Consolidated income statement
€ million First Half
(unaudited) 2024 2023 Change
Turnover 31,117 30,428 2.3%
Operating profit 5,948 5,516 7.8%
Net finance costs (358) (259)
Pensions and similar obligations 35 50
Finance income 217 208
Finance costs (610) (517)
Net monetary gain/(loss) arising from hyperinflationary economies (157) (98)
Share of net profit/(loss) of joint ventures and associates 138 118
Other income/(loss) from non-current investments and associates (5) (10)
Profit before taxation 5,566 5,267 5.7%
Taxation (1,550) (1,385)
Net profit 4,016 3,882 3.5%
Attributable to:
Non-controlling interests 315 334
Shareholders' equity 3,701 3,548 4.3%
Earnings per share
Basic earnings per share (euros) 1.48 1.41 5.3%
Diluted earnings per share (euros) 1.47 1.40 5.4%
Consolidated statement of comprehensive income
€ million First Half
(unaudited) 2024 2023
Net profit 4,016 3,882
Other comprehensive income
Items that will not be reclassified to profit or loss, net of tax:
Gains/(losses) on equity instruments measured at fair value through other 31 (34)
comprehensive income
Remeasurement of defined benefit pension plans 201 (47)
Items that may be reclassified subsequently to profit or loss, net of tax:
Gains/(losses) on cash flow hedges 58 (22)
Currency retranslation gains/(losses) 756 (555)
Total comprehensive income 5,062 3,224
Attributable to:
Non-controlling interests 379 284
Shareholders' equity 4,683 2,940
Consolidated statement of changes in equity
(unaudited)
€ million Called Share Unification Other Retained Total Non- Total
up share premium reserve reserves profit controlling equity
capital account interest
First half - 2024
1 January 2024 88 52,844 (73,364) (8,518) 47,052 18,102 2,662 20,764
Profit or loss for the period - - - - 3,701 3,701 315 4,016
Other comprehensive income, net of tax:
Gains/(losses) on:
Equity instruments - - - 31 - 31 - 31
Cash flow hedges - - - 58 - 58 - 58
Remeasurements of defined benefit pension plans - - - - 200 200 1 201
Currency retranslation gains/(losses)((d)) - - - 10 683 693 63 756
Total comprehensive income - - - 99 4,584 4,683 379 5,062
Dividends on ordinary capital - - - - (2,136) (2,136) - (2,136)
Repurchase of shares((a)) - - - (375) - (375) - (375)
Movements in treasury shares((b)) - - - 25 (100) (75) - (75)
Share-based payment credit((c)) - - - - 164 164 - 164
Dividends paid to non-controlling interests - - - - - - (354) (354)
Hedging gain/(loss) transferred to non-financial assets - - - 1 - 1 - 1
Other movements in equity((e)) - - - (59) 3 (56) 28 (28)
30 June 2024 88 52,844 (73,364) (8,827) 49,567 20,308 2,715 23,023
First half - 2023
1 January 2023 92 52,844 (73,364) (10,804) 50,253 19,021 2,680 21,701
Profit or loss for the period - - - - 3,548 3,548 334 3,882
Other comprehensive income, net of tax:
Gains/(losses) on:
Equity instruments - - - (33) - (33) (1) (34)
Cash flow hedges - - - (22) - (22) - (22)
Remeasurements of defined benefit pension plans - - - - (48) (48) 1 (47)
Currency retranslation gains/(losses)((d)) - - - (736) 231 (505) (50) (555)
Total comprehensive income - - - (791) 3,731 2,940 284 3,224
Dividends on ordinary capital - - - - (2,172) (2,172) - (2,172)
Repurchase of shares((a)) - - - (753) - (753) - (753)
Movements in treasury shares((b)) - - - 69 (68) 1 - 1
Share-based payment credit((c)) - - - - 159 159 - 159
Dividends paid to non-controlling interests - - - - - - (276) (276)
Hedging loss transferred to non-financial assets - - - 78 - 78 - 78
Other movements in equity - - - 5 (22) (17) (24) (41)
30 June 2023 92 52,844 (73,364) (12,196) 51,881 19,257 2,664 21,921
(a) Repurchase of shares reflects the cost of acquiring ordinary shares as
part of the share buyback program announced on 10 February 2022 and 8 February
2024.
(b) Includes purchases and sales of treasury shares, other than the share
buyback programme and the transfer from treasury shares to retained profit of
share-settled schemes arising from prior years and differences between
purchase and grant price of share awards.
(c) The share-based payment credit relates to the non-cash charge recorded
against operating profit in respect of the fair value of share options and
awards granted to employees.
(d) 2024 includes a hyperinflation adjustment of €680 million (2023:
€247 million) in relation to Argentina and Turkey.
(e) Includes the following items related to the acquisition of K18:
€(59) million non-controlling interest purchase option in other reserves
and €28 million non-controlling interest recognised on acquisition.
Consolidated balance sheet
(unaudited)
€ million As at 30 June 2024 As at 31 December 2023 As at 30 June 2023
Non-current assets
Goodwill 22,009 21,109 21,299
Intangible assets 19,092 18,357 18,664
Property, plant and equipment 11,098 10,707 10,590
Pension asset for funded schemes in surplus 3,837 3,781 4,244
Deferred tax assets 1,055 1,113 1,084
Financial assets 1,506 1,386 1,220
Other non-current assets 1,014 911 952
59,611 57,364 58,053
Current assets
Inventories 5,621 5,119 5,668
Trade and other current receivables 7,999 5,775 8,046
Current tax assets 168 427 254
Cash and cash equivalents 4,970 4,159 4,994
Other financial assets 1,445 1,731 1,376
Assets held for sale 18 691 18
20,221 17,902 20,356
Total assets 79,832 75,266 78,409
Current liabilities
Financial liabilities 7,643 5,087 6,715
Trade payables and other current liabilities 17,209 16,857 17,367
Current tax liabilities 721 851 891
Provisions 557 537 634
Liabilities held for sale - 175 -
26,130 23,507 25,607
Non-current liabilities
Financial liabilities 24,011 24,535 23,993
Non-current tax liabilities 494 384 280
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 144 351 431
Unfunded schemes 1,002 1,029 1,040
Provisions 581 563 547
Deferred tax liabilities 4,263 3,995 4,410
Other non-current liabilities 184 138 180
30,679 30,995 30,881
Total liabilities 56,809 54,502 56,488
Equity
Shareholders' equity 20,308 18,102 19,257
Non-controlling interests 2,715 2,662 2,664
Total equity 23,023 20,764 21,921
Total liabilities and equity 79,832 75,266 78,409
Consolidated cash flow statement
(unaudited) First Half
€ million 2024 2023
Net profit 4,016 3,882
Taxation 1,550 1,385
Share of net (profit)/loss of joint ventures/associates and other (133) (108)
(income)/loss from non-current investments and associates
Net monetary (gain)/loss arising from hyperinflationary economies 157 98
Net finance costs 358 259
Operating profit 5,948 5,516
Depreciation, amortisation and impairment 794 754
Changes in working capital (2,127) (1,331)
Inventories (435) 100
Trade and other receivables (2,159) (1,229)
Trade payables and other liabilities 467 (202)
Pensions and similar obligations less payments 36 (103)
Provisions less payments 35 (122)
Elimination of (profits)/losses on disposals (135) (507)
Non-cash charge for share-based compensation 164 159
Other adjustments (36) 11
Cash flow from operating activities 4,679 4,377
Income tax paid (1,315) (1,011)
Net cash flow from operating activities 3,364 3,366
Interest received 189 139
Purchase of intangible assets (98) (92)
Purchase of property, plant and equipment (617) (478)
Disposal of property, plant and equipment 5 22
Acquisition of businesses and investments in joint ventures and associates (797) (67)
Disposal of businesses, joint ventures and associates 489 419
Acquisition of other non-current investments (108) (202)
Disposal of other non-current investments 47 37
Dividends from joint ventures, associates and other non-current investments 94 98
(Purchase)/sale of financial assets 404 (76)
Net cash flow (used in)/from investing activities (392) (200)
Dividends paid on ordinary share capital (2,136) (2,202)
Interest paid (691) (503)
Net change in short-term borrowings 850 158
Additional financial liabilities 3,016 3,511
Repayment of financial liabilities (2,297) (2,242)
Capital element of lease rental payments (191) (197)
Repurchase of shares (375) (753)
Other financing activities (330) (261)
Net cash flow (used in)/from financing activities (2,154) (2,489)
Net increase/(decrease) in cash and cash equivalents 818 677
Cash and cash equivalents at the beginning of the period 4,045 4,225
Effect of foreign exchange rate changes (9) (32)
Cash and cash equivalents at the end of the period 4,854 4,870
Notes to the condensed consolidated financial statements
(unaudited)
1. Accounting information and policies
These condensed consolidated financial statements are prepared in accordance
with IAS 34 'Interim Financial Reporting' as issued by the International
Accounting Standards Board (IASB) and as adopted for use in the UK.
As required by the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority, the condensed consolidated financial statements have been
prepared applying the accounting policies and presentation that were applied
in the preparation of the Group's published consolidated financial statements
for the year ended 31 December 2023. In preparing these condensed consolidated
financial statements, judgements and estimates that affect the application of
accounting policies used by management have remained consistent with those
applied in the consolidated financial statements for the year ended 31
December 2023.
These condensed consolidated financial statements have been reviewed by our
independent auditor KPMG LLP.
Management have produced forecasts which have been modelled for different
plausible scenarios. These scenarios confirm the Group is able to generate
profits and cash in the year ended 31 December 2024 and beyond. As a result,
the Directors have a reasonable expectation that the Group has adequate
resources to meet its obligations as they fall due for a period of at least 12
months from the date of signing these condensed consolidated financial
statements. Accordingly, they continue to adopt the going concern basis in
preparing the half year condensed consolidated financial statements.
The condensed consolidated financial statements are shown at current exchange
rates with year-on-year changes shown to facilitate comparison. The
consolidated income statement on page 19, the consolidated statement of
comprehensive income on page 19, the consolidated statement of changes in
equity on page 20 and the consolidated cash flow statement on page 22 are
translated at exchange rates current in each period. The consolidated balance
sheet on page 21 is translated at period-end rates of exchange.
The condensed consolidated financial statements attached do not constitute the
full financial statements within the meaning of section 434 of the UK
Companies Act 2006. The comparative figures for the financial year ended 31
December 2023 are not Unilever PLC's statutory accounts for that financial
year. The annual financial statements of the Group are prepared in accordance
with international financial reporting standards (IFRS) as issued by the
International Accounting Standards Board (IASB) and UK adopted international
accounting standards and in accordance with the requirements of the UK
Companies Act 2006. Those accounts for the year ended 31 December 2023 have
been reported on by the Group's auditor and delivered to the Registrar of
Companies. The report of the auditor on these accounts was (i) unqualified,
(ii) did not include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report, and (iii) did
not contain a statement under section 498 (2) or (3) of the UK Companies Act
2006.
Recent accounting developments adopted by the Group
The Group adopted the amendments to IAS 7 and IFRS 7 "Supplier Finance
Arrangements" from reporting period beginning 1 January 2024. The amendments
introduce additional disclosure requirements for companies that enter supplier
finance arrangements. The company will apply these amendments in the 2024
Annual Report.
All other standards or amendments to the standards that have been issued by
the IASB and were effective 1 January 2024 were not applicable or material to
Unilever.
2. Segment information - Business Groups
Second Quarter Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2023 3,143 3,519 3,057 3,260 2,760 15,739
2024 3,343 3,531 3,113 3,289 2,815 16,091
Change (%) 6.3 0.3 1.8 0.9 2.0 2.2
First Half Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2023 6,225 6,911 6,205 6,601 4,486 30,428
2024 6,539 6,953 6,328 6,687 4,610 31,117
Change (%) 5.1 0.6 2.0 1.3 2.8 2.3
Operating profit (€ million)
2023 1,237 1,691 731 1,213 644 5,516
2024 1,269 1,696 963 1,423 597 5,948
Underlying operating profit (€ million)
2023 1,179 1,381 763 1,214 671 5,208
2024 1,305 1,601 1,031 1,491 672 6,100
Turnover growth is made up of distinct individual growth components namely
underlying sales, currency impact, acquisitions and disposals. Turnover growth
is arrived at by multiplying these individual components on a compounded basis
as there is a currency impact on each of the other components. Accordingly,
turnover growth is more than just the sum of the individual components.
Underlying operating profit represents our measure of segment profit or loss
as it is the primary measure used for the purpose of making decisions about
allocating resources and assessing performance of segments.
3. Segment information - Geographical area
Second Quarter Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 6,699 5,700 3,340 15,739
2024 6,732 5,924 3,435 16,091
Change (%) 0.5 3.9 2.9 2.2
First Half Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 13,421 10,956 6,051 30,428
2024 13,370 11,463 6,284 31,117
Change (%) (0.4) 4.6 3.8 2.3
4. Taxation
The effective tax rate for the first half is 28.6% compared with 26.9% in
2023. The tax rate is calculated by dividing the tax charge by pre-tax profit
excluding the contribution of joint ventures and associates.
Tax effects of components of other comprehensive income were as follows:
First half
2024 2023
€ million Before tax Tax (charge)/credit After tax Before tax Tax (charge)/credit After tax
Gains/(losses) on:
Equity instruments at fair value through other comprehensive income 31 - 31 (34) - (34)
Cash flow hedges 63 (5) 58 (20) (2) (22)
Remeasurements of defined benefit pension plans 242 (41) 201 (90) 43 (47)
Currency retranslation gains/(losses) 772 (16) 756 (535) (20) (555)
Other comprehensive income 1,108 (62) 1,046 (679) 21 (658)
5. Earnings per share
The earnings per share calculations are based on the average number of share
units representing the ordinary shares of PLC in issue during the period, less
the average number of shares held as treasury shares.
In calculating diluted earnings per share, a number of adjustments are made to
the number of shares, principally the exercise of share plans by employees.
Earnings per share for total operations for the six months were calculated as
follows:
First Half
2024 2023
EPS - Basic
Net profit attributable to shareholders' equity (€ million) 3,701 3,548
Average number of shares (millions of share units) 2,499.9 2,523.9
EPS - basic (€) 1.48 1.41
EPS - Diluted
Net profit attributable to shareholders' equity (€ million) 3,701 3,548
Adjusted average number of shares (millions of share units) 2,511.0 2,536.8
EPS - diluted (€) 1.47 1.40
During the period the following movements in shares have taken place:
Millions
Number of shares at 31 December 2023 (net of treasury shares) 2,499.0
Shares repurchased under the share buyback programme (7.3)
Net movements in shares under incentive schemes 3.7
Number of shares at 30 June 2024 (net of treasury shares) 2,495.4
6. Acquisitions and disposals
In the first half of 2024, the Group completed the following business
acquisitions and disposals:
Deal completion date Acquired/disposed business
1 February 2024 Acquired 91.88% of K18, a U.S. based premium hair care brand. The acquisition
complements Unilever's existing Beauty and Wellbeing portfolio, with a range
of high-quality, hair care products.
1 June 2024 Sold Elida Beauty to Yellow Wood Partners LLC. Elida Beauty comprises more
than 20 beauty and personal care brands, such as Q-Tips, Caress, Timotei and
TIGI.
On 1 June 2024, Unilever completed the disposal of the Elida Beauty business
to Yellow Wood Partners LLC for consideration of €588 million. Profit on
this disposal is €151 million, recognised as a non-underlying item.
In July we announced agreements to sell our water purification businesses
Pureit, to A.O. Smith, and stake in Qinyuan Group, to Yong Chao Venture
Capital Co., Ltd. The deals are expected to complete in the second half of the
year.
7. Share buyback
On 8 February 2024, Unilever PLC announced a programme to buy back shares with
an aggregate market value equivalent of up to €1.5 billion, to be completed
during 2024. On 17 May 2024, Unilever announced the commencement of the first
tranche of the buyback programme (the "First Tranche") for an aggregate market
value equivalent of up to €850 million. As at 30 June 2024, 7,315,036
shares had been purchased for €375 million, which will be held as Treasury
stock until cancellation.
8. Financial instruments
The Group's Treasury function aims to protect the Group's financial
investments, while maximising returns. The fair value of financial assets is
the same as the carrying amount for 2024 and 2023. The Group's cash resources
and
other financial assets are shown below.
30 June 2024 31 December 2023 30 June 2023
Current Non-current Total Current Non-current Total Current Non-current Total
Cash and cash equivalents
Cash at bank and in hand 3,601 - 3,601 2,862 - 2,862 2,790 - 2,790
Short-term deposits((a)) 981 - 981 1,181 - 1,181 1,804 - 1,804
Other cash equivalents((b)) 388 - 388 116 - 116 400 - 400
4,970 - 4,970 4,159 - 4,159 4,994 - 4,994
Other financial assets
Financial assets at amortised cost((c)) 835 560 1,395 961 454 1,415 727 352 1,079
Financial assets at fair value through other comprehensive income((d)) 61 525 586 151 458 609 - 438 438
Financial assets at fair value through profit or loss:
Derivatives 79 39 118 37 75 112 36 31 67
Other((e)) 470 382 852 582 399 981 613 399 1,012
1,445 1,506 2,951 1,731 1,386 3,117 1,376 1,220 2,596
Total financial assets((f)) 6,415 1,506 7,921 5,890 1,386 7,276 6,370 1,220 7,590
(a) Short-term deposits typically have maturity of up to 3 months.
(b) Other cash equivalents include investments in overnight funds and
marketable securities.
(c) Current financial assets at amortised cost include short term deposits
with banks with maturities longer than three months excluding deposits which
are part of a recognised cash management process and loans to joint venture
entities. Non-current financial assets at amortised cost include judicial
deposits of €212 million (31 December 2023: €227 million; 30 June 2023:
€228 million).
(d) Included within non-current financial assets at fair value through other
comprehensive income are equity investments.
(e) Other financial assets at fair value through profit or loss include money
market funds, marketable securities, other capital market instruments
and investments in companies and financial institutions in North America,
North Asia, South Asia and Europe.
(f) Financial assets exclude trade and other current receivables.
The Group is exposed to the risks of changes in fair value of its financial
assets and liabilities. The following tables summarise the fair values and
carrying amounts of financial instruments and the fair value calculations by
category.
€ million Fair value Carrying amount
As at 30 June 2024 As at 31 December 2023 As at 30 June 2023 As at 30 June 2024 As at 31 December 2023 As at 30 June 2023
Financial assets
Cash and cash equivalents 4,970 4,159 4,994 4,970 4,159 4,994
Financial assets at amortised cost 1,395 1,415 1,079 1,395 1,415 1,079
Financial assets at fair value through other comprehensive income 586 609 438 586 609 438
Financial assets at fair value through profit and loss:
Derivatives 118 112 67 118 112 67
Other 852 981 1,012 852 981 1,012
7,921 7,276 7,590 7,921 7,276 7,590
Financial liabilities
Bank loans and overdrafts (460) (506) (606) (460) (506) (606)
Bonds and other loans (27,836) (26,112) (26,265) (28,729) (26,692) (27,599)
Lease liabilities (1,358) (1,395) (1,428) (1,358) (1,395) (1,428)
Derivatives (537) (494) (618) (537) (494) (618)
Other financial liabilities (570) (535) (457) (570) (535) (457)
(30,761) (29,042) (29,374) (31,654) (29,622) (30,708)
€ million As at 30 June 2024 As at 31 December 2023 As at 30 June 2023
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets at fair value
Financial assets at fair value through other comprehensive income 70 4 512 163 4 442 14 3 421
Financial assets at fair value through profit or loss:
Derivatives((a)) - 192 - - 149 - - 142 -
Other 470 - 382 582 - 399 613 - 399
Liabilities at fair value
Derivatives((b)) - (586) - - (559) - - (718) -
Contingent consideration - - (8) - - (157) - - (123)
(a) Includes €74 million (31 December 2023: €37 million; 30 June 2023:
€75 million) derivatives, reported within trade receivables, that hedge
trading activities.
(b) Includes €(49) million (31 December 2023: €(65) million; 30 June 2023:
€(100) million) derivatives, reported within trade creditors, that hedge
trading activities.
There were no significant changes in classification of fair value of financial
assets and financial liabilities since
31 December 2023. There were also no significant movements between the fair
value hierarchy classifications since 31 December 2023.
The fair value of trade receivables and payables is considered to be equal to
the carrying amount of these items due to their short-term nature. The fair
value of financial assets and financial liabilities (excluding listed bonds)
is considered to be same as the carrying amount for 2024 and 2023.
Calculation of fair values
The fair values of the financial assets and liabilities are defined as the
price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date.
Methods and assumptions used to estimate the fair values are consistent with
those used in the year ended 31 December 2023.
9. Dividends
The Board has declared a quarterly interim dividend for Q2 2024 of £0.3696
per Unilever PLC ordinary share or €0.4396 per Unilever PLC ordinary share
at the applicable exchange rate issued by WM/Reuters on 23 July 2024.
The following amounts will be paid in respect of this quarterly interim
dividend on the relevant payment date:
Per Unilever PLC ordinary share (traded on the London Stock Exchange): £0.3696
Per Unilever PLC ordinary share (traded on Euronext in Amsterdam): €0.4396
Per Unilever PLC American Depositary Receipt: US$0.4773
The euro and US dollar amounts above have been determined using the applicable
exchange rates issued by WM/Reuters on 23 July 2024.
US dollar cheques for the quarterly interim dividend will be mailed on
6 September 2024 to holders of record at the close of business on 9 August
2024.
The quarterly dividend calendar for the remainder of 2024 will be as follows:
Announcement Date Ex-Dividend Date Record Date Payment Date
Q2 2024 Dividend 25 July 2024 08 August 2024 09 August 2024 06 September 2024
Q3 2024 Dividend 24 October 2024 07 November 2024 08 November 2024 06 December 2024
10. Events after the balance sheet date
There are no material post balance sheet events other than those mentioned
elsewhere in this report.
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