REG - Unilever PLCUnilever NV. - 2014 First Half Year Results <Origin Href="QuoteRef">ULVR.L</Origin> <Origin Href="QuoteRef">UNc.AS</Origin> - Part 2
06/09/2014 20:29
- Part 2: For the preceding part double click ID:nRSX1715Na
4,325 3,634 13,336
2014 5,107 3,993 3,595 12,695
Change (%) (5.0) (7.7) (1.1) (4.8)
Impact of:
Exchange rates (%) (11.2) (11.0) 0.5 (8.1)
Acquisitions (%) 1.2 - 0.2 0.6
Disposals (%) (0.5) (1.1) (1.0) (0.8)
Underlying sales growth (%) 6.3 4.8 (0.8) 3.8
Price (%) 2.3 4.5 (1.9) 1.9
Volume (%) 3.8 0.3 1.1 1.9
First Half Asia / AMET / RUB The Americas Europe Total
Turnover (E million)
2013 10,405 8,355 6,740 25,500
2014 9,748 7,639 6,711 24,098
Change (%) (6.3) (8.6) (0.4) (5.5)
Impact of:
Exchange rate (%) (11.8) (11.2) 0.3 (8.5)
Acquisitions (%) 0.8 - 0.2 0.4
Disposals (%) (0.7) (1.3) (0.6) (0.8)
Underlying sales growth (%) 6.1 4.3 (0.4) 3.7
Price (%) 2.2 3.9 (1.5) 1.7
Volume (%) 3.8 0.4 1.1 1.9
Operating profit (E million)
2013 1,509 1,406 977 3,892
2014 1,376 1,996 1,007 4,379
Core operating profit (E million)
2013 1,445 1,164 967 3,576
2014 1,354 1,029 984 3,367
Operating margin (%)
2013 14.5 16.8 14.5 15.3
2014 14.1 26.1 15.0 18.2
Core operating margin (%)
2013 13.9 13.9 14.3 14.0
2014 13.9 13.5 14.7 14.0
Additional geographical information
Second Quarter 2014 Second Quarter 2013
Turnover USG UVG UPG Turnover USG UVG UPG
Em % % % Em % % %
Unilever Total 12,695 3.8 1.9 1.9 13,336 5.0 3.0 2.0
Developed markets 5,591 0.3 1.8 (1.4) 5,778 (1.3) (0.5) (0.8)
Emerging markets 7,104 6.6 2.1 4.4 7,558 10.3 5.9 4.1
First Half 2014 First Half 2013
Turnover USG UVG UPG Turnover USG UVG UPG
Em % % % Em % % %
Unilever Total 24,098 3.7 1.9 1.7 25,500 5.0 2.6 2.3
Developed markets 10,554 - 1.2 (1.2) 10,933 (1.6) (0.8) (0.8)
Emerging markets 13,544 6.6 2.5 4.0 14,567 10.3 5.5 4.6
Second Quarter 2014 Second Quarter 2013
Turnover USG UVG UPG Turnover USG UVG UPG
Em % % % Em % % %
The Americas 3,993 4.8 0.3 4.5 4,326 5.2 1.9 3.2
North America 1,990 0.4 0.9 (0.6) 2,143 (2.0) (1.9) -
Latin America 2,003 9.2 (0.4) 9.6 2,183 13.0 6.0 6.5
First Half 2014 First Half 2013
Turnover USG UVG UPG Turnover USG UVG UPG
Em % % % Em % % %
The Americas 7,639 4.3 0.4 3.9 8,355 5.6 1.9 3.6
North America 3,804 (1.0) - (0.9) 4,142 (0.9) (1.0) 0.1
Latin America 3,835 9.5 0.8 8.6 4,213 12.6 5.1 7.2
5 TAXATION
The effective tax rate for the first half was 29.4% compared to 27.1% in 2013.
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:
E million First Half 2014 First Half 2013
Beforetax Tax(charge)/credit Aftertax Beforetax Tax(charge)/credit Aftertax
Fair value gains/(losses) on financial instruments (76) 14 (62) 104 (11) 93
Remeasurements of defined benefit pension plans net of tax (654) 165 (489) 697 (171) 526
Currency retranslation gains/(losses) 5 6 11 (168) 6 (162)
Other comprehensive income (725) 185 (540) 633 (176) 457
6 COMBINED EARNINGS PER SHARE
The combined earnings per share calculations are based on the average number
of share units representing the combined ordinary shares of NV and PLC in
issue during the period, less the average number of shares held as treasury
stock.
In calculating diluted earnings per share and core earnings per share, a
number of adjustments are made to the number of shares, principally: (i)
conversion into PLC ordinary shares in the year 2038 of shares in a group
company under the arrangements for the variation of the Leverhulme Trust
(refer below) and (ii) the exercise of share options by employees.
On 19 May 2014 Unilever PLC purchased the shares convertible to PLC ordinary
shares in 2038. Due to the repurchase the average number of combined share
units is not adjusted for these shares from 20 May 2014 to 30 June 2014. The
adjusted average number of share units is calculated based on the number of
days the shares were dilutive during the six month period ended 30 June 2014.
Earnings per share for total operations for the six months were calculated as
follows:
2014 2013
Combined EPS - Basic
Net profit attributable to shareholders' equity (E million) 2,818 2,429
Average number of combined share units (millions of units) 2,843.7 2,836.8
Combined EPS - basic (E) 0.99 0.86
Combined EPS - Diluted
Net profit attributable to shareholders' equity (E million) 2,818 2,429
Adjusted average number of combined share units (millions of units) 2,911.1 2,925.6
Combined EPS - diluted (E) 0.97 0.83
Core EPS
Core profit attributable to shareholders' equity (see note 2) (E million) 2,276 2,236
Adjusted average number of combined share units (millions of units) 2,911.1 2,925.6
Core EPS - diluted (E) 0.78 0.76
In calculating core earnings per share, net profit attributable to
shareholders' equity is adjusted to eliminate the post tax impact of business
disposals, acquisition and disposals and related costs, impairments, and other
one-off items.
During the period the following movements in shares have taken place:
Millions
Number of shares at 31 December 2013 (net of treasury stock) 2,840.0
Net movements in shares under incentive schemes 0.4
Number of shares at 30 June 2014 2,840.4
7 ACQUISITIONS AND DISPOSALS
On 7 March 2014 the Group acquired a 55% equity stake in the Qinyuan Group, a
leading Chinese water purification business for an undisclosed amount.
On 22 May 2014 the Group announced that it has signed a definitive agreement
to sell its global Ragu & Bertolli pasta sauce business to Mizkan Group for a
total cash consideration of approximately US$2.15 billion. The transaction
completed on 30 June 2014.
8 IMPAIRMENT OF ASSETS
At 30 June 2014 the Group intended to dispose of its Slim.Fast business and,
anticipating that the disposal would be completed within 12 months,
reclassified the assets to held for sale. As the carrying amount was higher
than the estimated fair value less costs to sell of the related assets and
liabilities, an impairment charge of E318 million has been recognised. This
impairment loss has been recognised within non-core items. The disposal was
completed in July.
9 FINANCIAL INSTRUMENTS
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.
E million Fair value Carrying amount
As at 30 June2014 As at 31 December2013 As at 30 June2013 As at 30 June2014 As at 31 December2013 As at 30 June2013
Financial assets
Cash and cash equivalents 3,419 2,285 3,467 3,419 2,285 3,467
Held-to-maturity investments 74 75 49 74 75 49
Loans and receivables 143 104 325 143 104 325
Available-for-sale financial assets 782 760 711 782 760 711
Financial assets related to acquisition of non-controlling interest - - 420 - - 420
Financial assets at fair value through profit and loss:
Derivatives 197 294 218 197 294 218
Other 26 32 28 26 32 28
4,641 3,550 5,218 4,641 3,550 5,218
Financial liabilities
Preference shares (113) (114) (120) (68) (68) (68)
Bank loans and overdrafts (1,188) (1,067) (1,210) (1,187) (1,067) (1,210)
Bonds and other loans (12,054) (10,162) (10,903) (11,339) (9,594) (10,232)
Liabilities related to acquisition of non-controlling interests(a) - - (4,034) - - (4,034)
Finance lease creditors (208) (217) (226) (192) (204) (203)
Derivatives (248) (299) (160) (248) (299) (160)
Other financial liabilities (402) (269) - (402) (269) -
(14,213) (12,128) (16,653) (13,436) (11,501) (15,907)
(a) Included in liabilities related to acquisition of non-controlling
interests as at 30 June 2013 is E3,754 million relating to acquisition of
shares in Hindustan Unilever and other non-controlling interests totalling
E280 million.
E million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
As at 30 June 2014 As at 31 December 2013 As at 30 June 2013
Assets at fair value
Other cash equivalents - 299 - - 91 - - 126 -
Available-for-sale financial assets 6 317 459 8 276 476 13 206 493
Financial assets at fair value
through profit or loss:
Derivatives - 233 - - 376 - - 267 -
Other 20 - 6 25 - 7 23 - 5
Liabilities at fair value
Bonds and other loans - (769) - - (777) - - (785) -
Derivatives - (542) - - (395) - - (309) -
There were no significant changes in classification of fair value of financial
assets and financial liabilities since 31 December 2013. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2013.
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.
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 2013.
10 DIVIDENDS
The Boards have declared a quarterly interim dividend for Q2 2014 at the
following rates which are equivalent in value at the rate of exchange applied
under the terms of the Equalisation Agreement between the two companies:
Per Unilever N.V. ordinary share: E 0.2850
Per Unilever PLC ordinary share: £ 0.2253
Per Unilever N.V. New York share: US$ 0.3842
Per Unilever PLC American Depositary Receipt: US$ 0.3842
The quarterly interim dividends have been determined in euros and converted
into equivalent sterling and US dollar amounts using exchange rates issued by
the European Central Bank on 22 July 2014.
The quarterly dividend calendar for the remainder of 2014 will be as follows:
Announcement Date Ex-Dividend Date Record Date Payment Date
Quarterly dividend - for Q2 2014 24 July 2014 6 August 2014 8 August 2014 10 September 2014
Quarterly dividend - for Q3 2014 23 October 2014 6 November 2014* 7 November 2014 10 December 2014
* For the Q3 2014 dividend, the Ex-dividend date for the NV New York shares
and PLC ADRs will be 5 November 2014
US dollar cheques for the quarterly interim dividend will be mailed on 10
September 2014 to holders of record at the close of business on 8 August 2014.
In the case of the NV New York shares, Netherlands withholding tax will be
deducted.
11 PURCHASE OF ESTATE SHARES CONVERTIBLE TO UNILEVER PLC SHARES IN 2038
The first Viscount Leverhulme was the founder of the company which became
Unilever PLC. When he died in 1925, he left in his will a large number of
Unilever PLC shares in various trusts. When the will trusts were varied in
1983, the interests of the beneficiaries of his will were also preserved. Four
classes of special shares were created in Margarine Union (1930) Limited, a
subsidiary of Unilever PLC. One of these classes of shares ('Estate shares')
has rights that enable it to be converted at the end of the year 2038 to
70,875,000 Unilever PLC ordinary shares. Before this date these shares have no
rights to dividends nor do they allow early conversion. There are 20,000
Estate shares with a nominal value of £0.01 each.
On 19 May 2014 Unilever PLC purchased all of the Estate shares for a cash
consideration of £715 million. The resulting loss of E880 million, being the
difference between the nominal value and amount paid, has been recorded in
retained profit.
12 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned
elsewhere in this report.
RESPONSIBILITIES OF DIRECTORS
The Directors declare that, to the best of their knowledge:
· this condensed set of interim financial statements, which have been
prepared in accordance with IAS 34 'Interim Financial Reporting', 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 UK DTR regulations 4.2.7 and 4.2.8 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 2013,
with the exception of certain changes following the Unilever N.V. and Unilever
PLC AGMs:
· Charles Golden retired as a Non-executive Director on 14 May 2014
· Feike Sijbesma was appointed as a Non-executive Director on 14 May
2014, such appointment to take effect on
1 November 2014
Details of all current Directors are available on our website at
www.unilever.com.
By order of the Board
Paul Polman Jean-Marc Huët
Chief Executive Officer Chief Financial Officer
24 July 2014
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Unilever
See all newsREG - Unilever PLC - Director/PDMR Shareholding
AnnouncementREG - Stock Exch Notice - Admission to ISM - 11/12/2025
AnnouncementREG - Unilever PLC - Cancellation of Treasury Shares
AnnouncementREG - Unilever PLC - Director/PDMR Shareholding
AnnouncementREG - Stock Exch Notice - Admission to Trading - 09/12/2025
Announcement