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REG - Unilever PLC - Annual Financial Report

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RNS Number : 2485E  Unilever PLC  09 March 2022

Unilever PLC ("Unilever")

 

 

2021 Annual Financial Report Announcement

 

Unilever announces that the following documents are available on its website
www.unilever.com/ara:

 

 

Unilever Annual Report and Accounts 2021

 

Unilever Annual Report on Form 20-F 2021

 

 

A copy of each of the documents listed has been submitted to the National
Storage Mechanism and will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism. A copy of the Unilever
Annual Report on Form 20-F 2021 has also been filed with the U.S. Securities
and Exchange Commission and is available at: www.sec.gov/edgar.shtml.

 

Attached to this announcement is the additional information for the purposes
of compliance with the Disclosure and Transparency Rules including principal
risk factors, details of related party issues and a responsibility statement.

 

The unaudited 2021 Full Year and Fourth Quarter Results for the year ended 31
December 2021, which were announced on 10 February 2022, were prepared in
accordance with IAS 34.

 

 

ADDITIONAL INFORMATION

 

Principal Risk Factors

 

These are the risks that we see as most material to Unilever's business and
performance at this time. There may be other risks that could emerge in the
future.

 

We set out below certain mitigating actions that we believe help us to manage
our principal risks. However, we may not be successful in deploying some or
all of these mitigating actions. If the circumstances in these risks occur or
are not successfully mitigated, our cash flow, operating results, financial
position, business and reputation could be materially adversely affected. In
addition, risks and uncertainties could cause actual results to vary from
those described, which may include forward-looking statements, or could impact
on our ability to meet our targets or be detrimental to our profitability or
reputation.

 

 DESCRIPTION OF RISK                                                              WHAT WE ARE DOING TO MANAGE THE RISK

 BRAND PREFERENCE

 Our success depends on the value and relevance of our brands and products to     We monitor external market trends and collate consumer, customer and shopper
 consumers around the world and on our ability to innovate and remain             insights in order to develop category and brand strategies. We invest in
 competitive.                                                                     markets and segments where we have built, or are confident that we can build,

                                                                                competitive advantage.

 Consumer tastes, preferences and behaviours are changing more rapidly than

 ever before. We see a growing trend for consumers preferring brands which both   Our brand communication strategies are designed to optimise digital
 meet their functional needs and have an explicit social or environmental         communication opportunities. We develop and customise brand messaging content
 purpose.                                                                         specifically for each of our chosen communication channels (both traditional

                                                                                and digital) to ensure that our brand messages reach our target consumers.
                                                                                  Brand teams are driving social purpose into their brand's proposition and

                                                                                communication.
 Technological change is disrupting our traditional brand communication models.

 Our ability to develop and deploy the right communication, both in terms of
 messaging content and medium is critical to the continued strength of our

 brands.                                                                          Our Research and Development function actively searches for ways in which to

                                                                                translate the trends in consumer preference and taste into new technologies
                                                                                  for incorporation into future products.

 We are dependent on creating innovative products that continue to meet the
 needs of our consumers and getting these new products to market with speed.

                                                                                Our innovation management process converts category strategies into projects
                                                                                  which deliver new products to market. We develop product ideas both in-house

                                                                                and with selected partners to enable us to respond to rapidly changing
 The Covid-19 pandemic has driven significant changes in consumer habits and      consumer trends with speed.
 demand (for example, an increase in hygiene-related products and a reduction
 in out-of-home food products), which is requiring a continuing and rapid
 evolution of our brands to ensure we remain competitive.

 Level of risk: No change

 PORTFOLIO MANAGEMENT

 Unilever's strategic investment choices will affect the long-term growth and     Our strategy and our business plans are designed to ensure that resources are
 profits of our business.                                                         prioritised towards those categories and markets having the greatest long-term

                                                                                potential for Unilever. Our acquisition and disposal activity is driven by our
                                                                                  portfolio strategy with a clear, defined evaluation process.

 Unilever's growth and profitability are determined by our portfolio of
 Divisions, geographies and channels and how these evolve over time. If
 Unilever does not make optimal strategic investment decisions, then
 opportunities for growth and improved margin could be missed.

 Level of risk: No change

 CLIMATE CHANGE

 Climate change and governmental actions to reduce such change may disrupt our    We monitor climate change and in 2021 we published our Climate Transition
 operations and/or reduce consumer demand for our products.                       Action Plan which provides details on how we are reducing the carbon intensity

                                                                                of our operations, developing products with a lower carbon footprint or that
                                                                                  require less water during consumer use including details of how we will

                                                                                achieve our GHG reduction targets which include net zero emissions across our
 Climate change could impact our business in various ways. Government action to   value chain and zero emissions in our operations.
 reduce climate change such as the introduction of a carbon tax, land use

 regulations or product composition regulations which restrict or ban certain
 GHG intensive ingredients, could impact our business through higher costs or

 reduced flexibility of operations. Market risks associated with the energy       We are decarbonising our operations through eco-efficiency measures, powering
 transition and rising energy prices could disrupt our operations and increase    our factories with renewable electricity, transitioning to renewable energy
 costs.                                                                           for heating and cooling and replacing climate harmful refrigerants. We invest

                                                                                in new products and formulations so that our products work with less water,
                                                                                  poor quality water or no water.

 Physical environment risks such as water scarcity could impact our operations
 or reduce demand for our products that require water during consumer use.

 Increased frequency of extreme weather events such as high temperatures,         We monitor trends in raw material availability and pricing due to short-term
 hurricanes or floods could cause increased incidence of disruption to our        weather impacts to ensure continued availability of input materials and
 supply chain, manufacturing and distribution network. If we do not take          integrate weather system modelling into our forecasting process.
 action, climate change could result in increased costs, reduced profit and

 reduced growth.

                                                                                  We also monitor government policy and actions to combat climate change and

                                                                                take proactive action to minimise the impact on our business and advocate for
 Level of risk: No change                                                         changes to public policy frameworks consistent with the 1.5°C ambition of the

                                                                                Paris Agreement.

 PLASTIC PACKAGING

 We use a significant amount of plastic to package our products. A reduction in   We are committed to reducing the amount of post-consumer plastic packaging
 the amount of virgin plastic we use, the use of recycled plastic and an          waste going to landfill. We have committed to ensuring 100% of our plastic
 increase in the recyclability of our packaging are critical to our future        packaging is reusable, recyclable or compostable by 2025.
 success.

                                                                                We aim to halve our use of virgin plastic by both reducing usage and
 Both consumer and customer responses to the environmental impact of plastic      accelerating use of recycled plastic. This requires us to redesign products by
 waste and emerging regulations by governments to tax or ban the use of certain   considering multiple-use packs, wider use of refills, recycling and using
 plastics requires us to find solutions to reduce the amount of plastic we use,   post-consumer recycled materials in innovative ways.
 increase recycling post-consumer use and source recycled plastic for use in

 our packaging. We are also dependent on the work of our industry partners to
 create and improve recycling infrastructure throughout the world.

                                                                                We are working on innovative solutions through new business models. We aim to
                                                                                  collect and process more plastic packaging than we sell, enabled through

                                                                                driving systematic change in circular thinking at an industry level working
 Not only is there a risk around finding appropriate replacement materials, but   with partners such as the Ellen MacArthur Foundation. We are also working with
 also due to high demand, the cost of recycled plastic or other alternative       governments, industry partners, suppliers and consumers to raise awareness and
 packaging materials could significantly increase in the foreseeable future and   find solutions to improve the recycling infrastructure for plastics. We are
 this could impact our business performance. We could also be exposed to higher   helping consumers to understand disposal methods and supporting collection
 costs as a result of taxes or fines if we are unable to comply with plastic      schemes and facilities.
 regulations, which would again impact our profitability and reputation.

 Level of risk: No change

 CUSTOMER

 Successful customer relationships are vital to our business and continued        We build and maintain trading relationships across a broad spectrum of
 growth.                                                                          channels ranging from centrally managed multinational customers through to

                                                                                small traders accessed via distributors in many emerging markets. We identify
                                                                                  changing shopper habits and build relationships with new customers, such as

                                                                                those serving the eCommerce channel.
 Maintaining strong relationships with our existing customers and building

 relationships with new customers who have built new technology-enabled
 business models to serve changing shopper habits are necessary to ensure our

 brands are well presented to our consumers and available for purchase at all     We develop joint business plans with our key customers that include detailed
 times.                                                                           investment plans and customer service objectives and we regularly monitor

                                                                                progress.

 The strength of our customer relationships also affects our ability to obtain

 pricing and competitive trade terms. Failure to maintain strong relationships    We have developed capabilities for customer sales and outlet design which
 with customers could negatively impact our terms of business with affected       enable us to find new ways to improve customer performance and enhance our
 customers and reduce the availability of our products to consumers.              customer relationships. We invest in technology to optimise order and stock

                                                                                management processes for our distributive trade customers.

 The Covid-19 pandemic has driven a rapid increase in online shopping, which
 means we need to accelerate development of eCommerce capabilities to remain
 competitive.

 Level of risk: No change

 TALENT

 A skilled workforce and agile ways of working are essential for the continued    We have an integrated management development process which includes regular
 success of our business.                                                         performance reviews underpinned by a common set of leadership behaviours,

                                                                                skills and competencies. We have development plans to upskill and reskill
                                                                                  employees for future roles and will bring in flexible talent to access new

                                                                                skills.
 With the rapidly changing nature of work and skills, there is a risk that our

 workforce is not equipped with the skills required for the new environment.

                                                                                  We have targeted programmes to attract and retain top talent and we actively

                                                                                monitor our performance in retaining a diverse talent pool within Unilever.
 Our ability to attract, develop and retain a diverse range of skilled people

 is critical if we are to compete and grow effectively. This is especially true
 in our key emerging markets where there can be a high level of competition for

 a limited talent pool.                                                           We regularly review our ways of working to drive speed and simplicity through

                                                                                our business in order to remain agile and responsive to marketplace trends.

 The loss of management or other key personnel or the inability to identify,

 attract and retain qualified personnel could make it difficult to manage the     We are moving to agile ways of working to unlock internal capacity and
 business and could adversely affect operations and financial results.            prioritise work based on growth and impact.

 The wellbeing of our employees is vital to the success of our business.
 Covid-19 continues to have a significant impact on their wellbeing, therefore
 helping our employees manage the impact of Covid-19 on their lives and their
 ability to work effectively requires continued focus.

 Level of risk: No change

 SUPPLY CHAIN

 Our business depends on purchasing materials,                                    We have contingency plans designed to enable us to secure alternative key

                                                                                material supplies at short notice, to transfer or share production between
 efficient manufacturing and the timely distribution                              manufacturing sites and to use substitute materials in our product

                                                                                formulations and recipes.
 of products to our customers.

                                                                                We have policies and procedures designed to ensure the health and safety of
 Our supply chain network is exposed to potentially adverse events such as        our employees and the products in our facilities, and to deal with major
 physical disruptions, environmental and industrial accidents, trade              incidents including business continuity and disaster recovery.
 restrictions or disruptions at a key supplier, which could impact our ability

 to deliver orders to our customers.

                                                                                  Commodity price risk is managed through forward buying of traded commodities,

                                                                                other appropriate hedging mechanisms and product pricing. Trends are monitored
 The Covid-19 pandemic is an adverse event that has challenged and continues to   and modelled regularly and integrated into our forecasting process.
 challenge the continuity of our supply chain. Maintaining manufacturing
 operations whilst adhering to changing local regulations and meeting enhanced
 health and safety standards has proven possible but has required significant
 management. In addition, ensuring the operation of a global logistics network
 for both input materials and finished goods has presented challenges and
 requires continued focus and flexibility.

 The cost of our products can be significantly affected by the cost of the
 underlying commodities and materials from which they are made. Fluctuations in
 these costs cannot always be passed on to the consumer through pricing.

 Level of risk: Increase

 SAFE AND HIGH QUALITY PRODUCTS

 The quality and safety of our products are of paramount importance for our       Our product quality processes and controls are comprehensive, from product
 brands and our reputation.                                                       design to customer shelf. They are verified annually and regularly monitored

                                                                                through performance indicators that drive improvement activities. Our key
                                                                                  suppliers are externally certified and the quality of material received is

                                                                                regularly monitored to ensure that it meets the rigorous quality standards
 The risk that raw materials are accidentally or maliciously contaminated         that our products require.
 throughout the supply chain or that other product defects occur due to human

 error, equipment failure or other factors cannot be excluded.

                                                                                  In the event of an incident relating to the safety of our consumers or the

                                                                                quality of our products, incident management teams are activated in the
 Labelling errors can have potentially serious consequences for both consumer     affected markets under the direction of our product quality, science and
 safety and brand reputation. Therefore, on-pack labelling needs to provide       communications experts, to ensure timely and effective marketplace action.
 clear and accurate ingredient information in order that consumers can make

 informed decisions regarding the products they buy.

                                                                                  We have processes in place to ensure that the data used to generate on-pack

                                                                                labelling is compliant with applicable regulations and with relevant Unilever
 Level of risk: No change                                                         labelling policies in order to provide the clarity and transparency needed for

                                                                                consumers.

 SYSTEMS AND INFORMATION

 Unilever's operations are increasingly dependent on IT systems and the           To reduce the impact of external cyber-attacks impacting our business we have
 management of information.                                                       firewalls and threat monitoring systems in place, complete with immediate

                                                                                response capabilities to mitigate identified threats. We also maintain a
                                                                                  global system for the control and reporting of access to our critical IT

                                                                                systems. This is supported by an annual programme of testing of access
 The cyber-attack threat of unauthorised access and misuse of sensitive           controls.
 information or disruption to operations continues to increase. Such an attack

 could inhibit our business operations in a number of ways, including
 disruption to sales, production and cash flows, ultimately impacting our

 results.                                                                         We have policies covering the protection of both business and personal

                                                                                information, as well as the use of IT systems and applications by our
                                                                                  employees. Our employees are trained to understand these requirements.

 In addition, increasing digital interactions with customers, suppliers and
 consumers place ever greater emphasis on the need for secure and reliable IT

 systems and infrastructure and careful management of the information that is     We also have a set of IT security standards and closely monitor their
 in our possession to ensure data privacy.                                        operation to protect our systems and information. Hardware that runs and

                                                                                manages core operating data is fully backed up with separate contingency
                                                                                  systems to provide real-time backup operations should they ever be required.

 Given the changes in the ways of working of all our employees as well as our
 customers and suppliers as a result of Covid-19, there has been an increased

 reliance on certain elements of our IT infrastructure. We are particularly       We have standardised ways of hosting information on our public websites and
 reliant on third-party experts in this space and thus the impact of Covid-19     have systems in place to monitor compliance with appropriate privacy laws and
 on their operations also poses a risk for us.                                    regulations, and with our own policies.

 Level of risk: Increase

 BUSINESS TRANSFORMATION

 Successful execution of business transformation projects is key to delivering    All acquisitions, disposals and global organisational transformation projects
 their intended business benefits and avoiding disruption to other business       are sponsored by a member of the ULE. All such projects have steering groups
 activities.                                                                      in place led by a senior executive and regular progress updates are provided

                                                                                to the ULE. Sound project disciplines are used in all transformation projects
                                                                                  and these projects are resourced by dedicated and appropriately qualified

                                                                                personnel.
 Unilever is continually engaged in major change projects, including

 acquisitions, disposals and organisational transformation, to drive continuous
 improvement in our business and to strengthen our portfolio and capabilities.

 Continued digitalisation of our business models and processes, together with     The digitalisation of our business is led by a dedicated specialist team
 enhancing data management capabilities, is a critical part of our                together with representatives from all parts of the business to ensure an
 transformation.                                                                  integrated and holistic approach. A significant part of the organisational

                                                                                transformation involves the transfer of activities to third parties on and
                                                                                  offshore. New ways of working are being developed to manage this new business

                                                                                model.
 We have an extensive programme of transformation projects. Failure to execute

 such initiatives successfully could result in under-delivery of the expected
 benefits and there could be a significant impact on the value of the business.

                                                                                Unilever also monitors the volume of change programmes under way in an effort
                                                                                  to stagger the impact on current operations and to ensure minimal disruption.

 Level of risk: Increase

 ECONOMIC AND POLITICAL INSTABILITY

 Adverse economic conditions may affect one or more countries, regions or may     The breadth of Unilever's portfolio and our geographic reach help to mitigate
 extend globally. Unilever operates around the world and is exposed to economic   our exposure to any particular localised risk. Our flexible business model
 and political instability that may reduce consumer demand for our products,      allows us to adapt our portfolio and respond quickly to develop new offerings
 disrupt sales operations and/or impact the profitability of our operations.      that suit consumers' and customers' changing needs during economic downturns.

 Government actions such as foreign exchange or price controls can impact on      We regularly update our forecast of business results and cash flows and, where
 the growth and profitability of our local operations.                            necessary, rebalance investment priorities.

 Unilever has more than half of its turnover in emerging markets which can        We believe that many years of exposure to emerging markets have given us
 offer greater growth opportunities but also expose Unilever to related           experience of operating and developing our business successfully during
 economic and political volatility.                                               periods of economic and political volatility.

 Level of risk: Increase

 TREASURY AND TAX

 Unilever is exposed to a variety of external financial                           Currency exposures are managed within prescribed limits and by the use of

                                                                                financial hedging instruments. Further, operating companies borrow in local
 risks in relation to Treasury and Tax.                                           currency except where inhibited by local regulations, lack of local liquidity

                                                                                or local market conditions.

 The relative value of currencies can fluctuate widely and could have a

 significant impact on business results. Further, because Unilever consolidates   We seek to maintain access to global debt markets through short-term and
 its financial statements in euros it is subject to exchange risks associated     long-term debt programmes. In addition, we maintain significant undrawn
 with the translation of the underlying net assets and earnings of its foreign    committed credit facilities for general corporate purposes as disclosed in
 subsidiaries.                                                                    note 16A.

 We are also subject to the imposition of exchange controls by individual         Group treasury regularly monitors exposure to our banks, tightening
 countries which could limit our ability to import materials paid in foreign      counter-party limits where appropriate. Unilever actively manages its banking
 currency or to remit dividends to the parent company.                            exposures on a daily basis. We regularly assess and monitor counter-party risk

                                                                                in our suppliers and customers and take appropriate action to manage our
                                                                                  exposures.

 A material shortfall in our cash flow could undermine Unilever's credit
 rating, impair investor confidence and restrict Unilever's ability to raise

 funds. In times of financial crisis, there is a further risk that we may not     Our Global Tax Principles provide overarching governance and we have a process
 be able to raise funds due to market illiquidity.                                in place to monitor compliance with the Tax Principles. We have a Tax Risk

                                                                                Framework in place which sets out the controls established to assess and
                                                                                  monitor tax risk for direct and indirect taxes. We monitor proposed changes in

                                                                                taxation legislation and ensure these are taken into account when we consider
 We are exposed to counter-party risks with banks, suppliers and customers,       our future business plans.
 which could result in financial losses.

 Tax is a complex and evolving area where laws and their interpretation are
 changing regularly, leading to the risk of unexpected tax exposures.
 International tax reform remains a key focus of attention with the OECD's Base
 Erosion and Profit Shifting project, and the Digitalising Economy Project, and
 further potential tax reform in the European Union and the US.

 Level of risk: No change

 ETHICAL

 Unilever's brands and reputation are valuable assets and the way in which we     Our Code of Business Principles and our Code Policies govern the behaviour of
 operate, contribute to society and engage with the world around us is always     our employees, suppliers, distributors and other third parties who work with
 under scrutiny both internally and externally.                                   us. Our processes for identifying and resolving breaches of our Code of

                                                                                Business Principles and our Code Policies are clearly defined and regularly
                                                                                  communicated throughout Unilever. Data relating to such breaches is reviewed

                                                                                by the ULE and by relevant Board Committees and helps to determine the
 Acting in an ethical manner, consistent with the expectations of customers,      allocation of resources for future policy development, process improvement,
 consumers and other stakeholders, is essential for the protection of the         training
 reputation of Unilever and its brands.

                                                                                and awareness initiatives.

 A key element of our ethical approach to business is to reduce inequality and

 promote fairness. Our activities touch the lives of millions of people and it    Our Responsible Sourcing Policy and Responsible Business Partners Policy help
 is our responsibility to protect their rights and help them live well.           us improve the lives of the people in our supply chains by ensuring human

                                                                                rights are protected and makes a healthy and safe workplace a mandatory
                                                                                  requirement for our suppliers. We have detailed safety standards and monitor

                                                                                safety incidents at the highest level.
 The safety of our employees and the people and communities we work with is

 critical. Failure to meet these high standards could result in damage to
 Unilever's corporate reputation and business results.

                                                                                Through our Brands with Purpose agenda, a number of our brands are taking
                                                                                  action on societal issues such as fairness and equality.

 Level of risk: No change

 LEGAL AND REGULATORY

 Compliance with laws and regulations is an essential part of Unilever's          Unilever is committed to complying with the laws and regulations of the
 business operations.                                                             countries in which we operate. In specialist areas the relevant teams at

                                                                                global, regional or local levels are responsible for setting detailed
                                                                                  standards and ensuring that all employees are aware of and comply with

                                                                                regulations and laws specific and relevant to their roles.
 Unilever is subject to national and regional laws and regulations in such

 diverse areas as product safety, product claims, trademarks, copyright,
 patents, competition, employee health and safety, data privacy, the

 environment, corporate governance, listing and disclosure, employment and        Our legal and regulatory specialists are heavily involved in monitoring and
 taxes.                                                                           reviewing our practices to provide reasonable assurance that we remain aware

                                                                                of and in line with all relevant laws and legal obligations.

 Failure to comply with laws and regulations could expose Unilever to civil
 and/or criminal actions leading to damages, fines and criminal sanctions
 against us and/or our employees with possible consequences for our corporate
 reputation. Changes to laws and regulations could have a material impact on
 the cost of doing business.

 Level of risk: No change

 

 

RELATED PARTY TRANSACTIONS

 

The following related party balances existed with associate or joint venture
businesses at 31 December:

 

 

 Related party balances           € million    € million

                                  2021         2020
 Sales to joint ventures          1,060        1,004
 Purchases from joint ventures    127          118
 Receivables from joint ventures  71           80
 Payables to joint ventures       36           43
 Loans to joint ventures          241          255
 Royalties and service fees       20           21

 

Significant joint ventures are Unilever FIMA LDA in Portugal, Binzagr Unilever
Distribution in the Middle East, the Pepsi Lipton Tea Partnership in the US
and Pepsi Lipton International Ltd for the rest of the world.

 

ASSOCIATES

There are no trading balances due to or from associates.

 

Langholm Capital II was launched in 2009. Unilever has invested €65 million
in Langholm II, with an outstanding commitment at the end of 2021 of €1
million (2020: €2 million). During 2021, Unilever received €32 million
(2020: €nil) from its investment in Langholm Capital II.

 

 

DIRECTORS' RESPONSIBILITY STATEMENT

 

Each of the Directors confirms that, to the best of his or her knowledge:

·      The Unilever Annual Report and Accounts 2021, taken as a whole,
is fair, balanced and understandable, and provides the information necessary
for shareholders to assess the Company's position and performance, business
model and strategy;

·      The financial statements which have been prepared in accordance
with international financial reporting standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and UK-adopted international
accounting standards give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings
included in the consolidation taken as a whole; and

·      The Strategic Report includes a fair review of the development
and performance of the business and the position of PLC and the undertakings
included in the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.

 

 

 Name               Function
 Nils Andersen      Chairman

 Andrea Jung        Vice-Chairman / Senior Independent Director

 Alan Jope          Chief Executive Officer

 Graeme Pitkethly   Chief Financial Officer

 Laura Cha          Non-Executive Director

 Judith Hartmann    Non-Executive Director

 Adrian Hennah      Non-Executive Director

 Susan Kilsby       Non-Executive Director

 Ruby Lu            Non-Executive Director

 Strive Masiyiwa    Non-Executive Director

 Youngme Moon       Non-Executive Director

 John Rishton       Non-Executive Director

 Feike Sijbesma     Non-Executive Director

 

 

Safe Harbour

 

This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Words such as 'will', 'aim',
'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', or the
negative of these terms and other similar expressions of future performance or
results, and their negatives, are intended to identify such forward-looking
statements. Forward-looking statements also include, but are not limited to,
statements and information regarding the Unilever Group's (the 'Group')
emissions reduction targets and other climate change related matters
(including actions, potential impacts and risks associated therewith). These
forward-looking statements are based upon current 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.

 

Because these forward-looking statements involve risks and uncertainties,
there are important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements. Among other risks and uncertainties, the material or principal
factors which could cause actual results to differ materially are: Unilever's
global brands not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its portfolio
management; 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 our supply chain and
distribution; increases or volatility in the cost of raw materials and
commodities; the production of safe and high quality products; secure and
reliable IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political risks and
natural disasters; financial risks; failure to meet high and ethical
standards; and managing regulatory, tax and legal matters. A number of these
risks have increased as a result of the current Covid-19 pandemic.

 

These forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or regulation, the
Group expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

 

 

 

9 March 2022.

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