REG - Unilever PLC Unilever NV. - 2nd Quarter Results 2015 <Origin Href="QuoteRef">ULVR.L</Origin> <Origin Href="QuoteRef">UNc.AS</Origin> - Part 2
23/07/2015 07:01
- Part 2: For the preceding part double click ID:nRSW8308Ta
0.2 0.9 - 0.4
Disposals (%) (0.1) (3.6) (1.0) (1.5)
Underlying sales growth (%) 3.4 5.3 (0.7) 2.9
Price (%) 1.8 4.9 (2.0) 1.7
Volume (%) 1.6 0.4 1.4 1.1
Operating profit (E million)
2014 1,376 1,996 1,007 4,379
2015 1,581 1,035 1,178 3,794
Core operating profit (E million)
2014 1,354 1,029 984 3,367
2015 1,580 1,145 1,177 3,902
Operating margin (%)
2014 14.1 26.1 15.0 18.2
2015 13.8 11.8 17.4 14.1
Core operating margin (%)
2014 13.9 13.5 14.7 14.0
2015 13.8 13.1 17.4 14.5
5 TAXATION
The effective tax rate for the first half was 26.8% compared to 29.4% in 2014.
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 2015 First Half 2014
Beforetax Tax(charge)/credit Aftertax Beforetax Tax(charge)/credit Aftertax
Fair value gains/(losses) on financial instruments 41 (2) 39 (76) 14 (62)
Remeasurements of defined benefit pension plans 958 (279) 679 (654) 165 (489)
Currency retranslation gains/(losses) 234 15 249 5 6 11
Other comprehensive income 1,233 (266) 967 (725) 185 (540)
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 2015. For
half year 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:
2015 2014
Combined EPS - Basic
Net profit attributable to shareholders' equity (E million) 2,489 2,818
Average number of combined share units (millions of units) 2,841.0 2,843.7
Combined EPS - basic (E) 0.88 0.99
Combined EPS - Diluted
Net profit attributable to shareholders' equity (E million) 2,489 2,818
Adjusted average number of combined share units (millions of units) 2,854.9 2,911.1
Combined EPS - diluted (E) 0.87 0.97
Core EPS
Core profit attributable to shareholders' equity (see note 2) (E million) 2,595 2,276
Adjusted average number of combined share units (millions of units) 2,854.9 2,911.1
Core EPS - diluted (E) 0.91 0.78
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 2014 (net of treasury stock) 2,836.8
Net movements in shares under incentive schemes (4.4)
Number of shares at 30 June 2015 2,841.1
7 ACQUISITIONS AND DISPOSALS
On 2 March 2015 the Group announced that it has signed an agreement to acquire
REN Skincare, the iconic British skincare brand. The deal was completed on 1
May 2015.
On 1 May 2015 the Group announced that it has completed the acquisition of the
Zest and Camay brands from the Procter & Gamble Company.
On 6 May 2015 Unilever announced that it has acquired leading independent
prestige skincare brand, Kate Somerville Skincare LLC.
On 24 June 2015 Unilever announced that it has signed an agreement to acquire
Dermalogica, the world's number one professional skin care brand.
8 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 June2015 As at 31 December2014 As at 30 June2014 As at 30 June2015 As at 31 December2014 As at 30 June2014
Financial assets
Cash and cash equivalents 2,710 2,151 3,419 2,710 2,151 3,419
Held-to-maturity investments 89 89 74 89 89 74
Loans and receivables 294 208 143 294 208 143
Available-for-sale financial assets 672 671 782 672 671 782
Financial assets at fair value through profit and loss:
Derivatives 289 296 197 289 296 197
Other 141 122 26 141 122 26
4,195 3,537 4,641 4,195 3,537 4,641
Financial liabilities
Preference shares (124) (108) (113) (68) (68) (68)
Bank loans and overdrafts (1,126) (1,119) (1,188) (1,121) (1,114) (1,187)
Bonds and other loans (14,024) (11,417) (12,054) (13,258) (10,573) (11,339)
Finance lease creditors (222) (224) (208) (208) (199) (192)
Derivatives (272) (350) (248) (272) (350) (248)
Other financial liabilities (454) (418) (402) (454) (418) (402)
(16,222) (13,636) (14,213) (15,381) (12,722) (13,436)
E million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
As at 30 June 2015 As at 31 December 2014 As at 30 June 2014
Assets at fair value
Other cash equivalents - 185 - - 221 - - 299 -
Available-for-sale financial assets 11 168 493 15 158 498 6 317 459
Financial assets at fair value
through profit or loss:
Derivatives(a) - 341 - - 417 - - 233 -
Other 139 - 3 119 - 3 20 - 6
Liabilities at fair value
Derivatives(b) - (332) - - (514) - - (542) -
(a) Includes E52 million (2014: E121 million) derivatives, reported within
trade receivables, that hedge trading activities.
(b) Includes E(60) million (2014: E(164) 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 2014. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2014.
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
instruments that have a fair value that is different from the carrying amount
are classified as Level 2.
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 2014.
9 DIVIDENDS
The Boards have declared a quarterly interim dividend for Q2 2015 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
0.3020
Per Unilever PLC ordinary share: £ 0.2110
Per Unilever N.V. New York share: US$ 0.3282
Per Unilever PLC American Depositary Receipt: US$ 0.3282
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 21 July 2015.
US dollar cheques for the quarterly interim dividend will be mailed on 9
September 2015 to holders of record at the close of business on 7 August 2015.
In the case of the NV New York shares, Netherlands withholding tax will be
deducted.
The quarterly dividend calendar for the remainder of 2015 will be as follows:
Announcement Date NV NY and PLC ADR ex-Dividend Date NV and PLC ex-Dividend Date Record Date Payment Date
Quarterly dividend - for Q2 2015 23 July 2015 5 August 2015 6 August 2015 7 August 2015 9 September 2015
Quarterly dividend - for Q3 2015 15 October 2015 28 October 2015 29 October 2015 30 October 2015 9 December 2015
10 EVENTS AFTER THE BALANCE SHEET DATE
On 2 July 2015 Unilever announced that it has signed an agreement to acquire
Murad, a leading clinical skincare brand.
DIRECTORS' RESPONSIBILITY STATEMENT
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 regulations 4.2.7 and 4.2.8 of the Disclosure 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 2014,
with the exception of certain changes following the Unilever N.V. and Unilever
PLC 2015 AGMs:
The following people retired as a Non-executive Directors on 30 April 2015:
· Kees Storm
· Dr Byron Grote
· Sir Malcolm Rifkind
· Paul Walsh
The following people were appointed as a Non-executive Director:
· Nils Andersen, on 30 April 2015
· Judith Hartmann, on 30 April 2015
· Vittorio Colao, on 1 July 2015
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
23 July 2015
This information is provided by RNS
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