REG - Unilever PLC Unilever NV. - 2nd Quarter Results 2016 <Origin Href="QuoteRef">ULVR.L</Origin> <Origin Href="QuoteRef">UNc.AS</Origin> - Part 2

UnileverAnnouncement

21/07/2016 07:06

- Part 2: For the preceding part double click  ID:nRSU8008Ea 

    14.0          16.7    15.0    
                                                                                     
 
 
5   TAXATION 
 
The effective tax rate for the first half was 26.0% compared to 26.8% in 2015.
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 2016  First Half 2015     
                                                     Beforetax        Tax(charge)/credit  Aftertax  Beforetax  Tax(charge)/credit  Aftertax  
 Fair value gains/(losses) on financial instruments  (76)             58                  (18)      41         (2)                 39        
 Remeasurements of defined benefit pension plans     (1,814)          458                 (1,356)   958        (279)               679       
 Currency retranslation gains/(losses)               (140)            -                   (140)     234        15                  249       
 Other comprehensive income                          (2,030)          516                 (1,514)   1,233      (266)               967       
 
 
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 which principally
includes the exercise of share options by employees. 
 
Earnings per share for total operations for the six months were calculated as
follows: 
 
                                                                            2016     2015     
                                                                            
 Combined EPS - Basic                                                                         
 Net profit attributable to shareholders' equity (E million)                2,512    2,489    
                                                                                              
 Average number of combined share units (millions of units)                 2,841.1  2,841.0  
                                                                                              
 Combined EPS - basic (E)                                                   0.88     0.88     
                                                                                              
 Combined EPS - Diluted                                                                       
 Net profit attributable to shareholders' equity (E million)                2,512    2,489    
                                                                                              
 Adjusted average number of combined share units (millions of units)        2,853.5  2,854.9  
                                                                                              
 Combined EPS - diluted (E)                                                 0.88     0.87     
                                                                                              
 Core EPS                                                                                     
 Core profit attributable to shareholders' equity (see note 2) (E million)  2,630    2,595    
                                                                                              
 Adjusted average number of combined share units (millions of units)        2,853.5  2,854.9  
                                                                                              
 Core EPS - diluted (E)                                                     0.92     0.91     
 
 
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 2015 (net of treasury stock)    2,838.9   
 Net movements in shares under incentive schemes                 (0.1)     
 Number of shares at 30 June 2016                                2,838.8   
 
 
7   ACQUISITIONS AND DISPOSALS 
 
 Date         Deal                                                                                                                                                                                                    
 6 May 2016   The Group completed the disposal of Alberto Culver brands Antiall, Farmaco, Veritas and VO5 in Unilever Argentina                                                                                       
 1 June 2016  The Group announced that it has signed an agreement with Coca Cola FEMSA and The Coca Cola Company to sell the AdeS soy beverage business in Latin America for an aggregate amount of US$ 575 million.  
 
 
On 20 July 2016 the Group announced that it has signed an agreement to
purchase Dollar Shave Club, an innovative male grooming business and category
leader in the direct-to-consumer channel. Subject to regulatory approval, the
transaction is expected to close during the third quarter of 2016. 
 
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 June2016                                        As at 31 December2015  As at 30 June2015  As at 30 June2016  As at 31 December2015  As at 30 June2015  
 Financial assets                                                                                                                                                          
 Cash and cash equivalents                                3,119                  2,302              2,710              3,119                  2,302              2,710     
 Held-to-maturity investments                             138                    144                89                 138                    144                89        
 Loans and receivables                                    344                    303                294                344                    303                294       
 Available-for-sale financial assets                      544                    641                672                544                    641                672       
 Financial assets at fair value through profit and loss:                                                                                                                   
 Derivatives                                              130                    230                289                130                    230                289       
 Other                                                    124                    123                141                124                    123                141       
                                                          4,399                  3,743              4,195              4,399                  3,743              4,195     
 Financial liabilities                                                                                                                                                     
 Preference shares                                        (129)                  (132)              (124)              (68)                   (68)               (68)      
 Bank loans and overdrafts                                (1,181)                (1,067)            (1,126)            (1,179)                (1,064)            (1,121)   
 Bonds and other loans                                    (15,475)               (13,509)           (14,024)           (14,308)               (12,703)           (13,258)  
 Finance lease creditors                                  (175)                  (217)              (222)              (149)                  (195)              (208)     
 Derivatives                                              (144)                  (124)              (272)              (144)                  (124)              (272)     
 Other financial liabilities                              (523)                  (489)              (454)              (523)                  (489)              (454)     
                                                          (17,627)               (15,538)           (16,222)           (16,371)               (14,643)           (15,381)  
 
 
 E million                            Level 1             Level 2                 Level 3             Level 1  Level 2  Level 3  Level 1  Level 2  Level 3  
                                      As at 30 June 2016  As at 31 December 2015  As at 30 June 2015  
 Assets at fair value                                                                                                                                       
 Other cash equivalents               -                   211                     -                   -        100      -        -        185      -        
 Available-for-sale financial assets  93                  1                       450                 14       180      447      11       168      493      
 Financial assets at fair value                                                                                                                             
 through profit or loss:                                                                                                                                    
 Derivatives(a)                       -                   349                     -                   -        303      -        -        341      -        
 Other                                -                   121                     3                   120      -        3        139      -        3        
 Liabilities at fair value                                                                                                                                  
 Derivatives(b)                       -                   (394)                   -                   -        (194)    -        -        (332)    -        
 
 
(a) Includes E219 million (December 2015: E73 million) derivatives, reported
within trade receivables, that hedge trading activities. 
 
(b) Includes E(250) million (December 2015: E(71) 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 2015. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2015. 
 
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 2015. 
 
9   DIVIDENDS 
 
The Boards have declared a quarterly interim dividend for Q2 2016 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 0.3201    
 Per Unilever PLC ordinary share:               £ 0.2689    
 Per Unilever N.V. New York share:              US$ 0.3531  
 Per Unilever PLC American Depositary Receipt:  US$ 0.3531  
 
 
The quarterly interim dividends have been determined in euros and converted
into equivalent sterling and US dollar amounts using exchange rates issued by
WM/Reuters on 19 July 2016. 
 
US dollar cheques for the quarterly interim dividend will be mailed on 7
September 2016 to holders of record at the close of business on 5 August 2016.
In the case of the NV New York shares, Netherlands withholding tax will be
deducted. 
 
The quarterly dividend calendar for the remainder of 2016 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 2016  21July 2016        3 August 2016                       4 August 2016                5 August 2016    7 September 2016  
 Quarterly dividend - for Q3 2016  13 October 2016    26 October 2016                     27 October 2016              28 October 2016  7 December 2016   
 
 
10   EVENTS AFTER THE BALANCE SHEET DATE 
 
There were no material post balance sheet events other than those mentioned
elsewhere in this report. 
 
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', as issued by
the International Accounting Standard Board and endorsed and adopted by 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 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 2015,
with the exception of certain changes following the Unilever N.V. and Unilever
PLC 2016 AGMs: 
 
The following individuals retired as Non-Executive Directors on 21 April
2016: 
 
·           Michael Treschow 
 
·           Hixonia Nyasulu 
 
The following individuals were appointed as Non-Executive Directors on 21
April 2016: 
 
·           Marijn Dekkers 
 
·           Strive Masiyiwa 
 
·           Youngme Moon 
 
Graeme Pitkethly was appointed as an Executive Director on 21 April 2016 
 
Details of all current Directors are available on our website at
www.unilever.com. 
 
By order of the Board 
 
Paul Polman                                          Graeme Pitkethly 
 
Chief Executive Officer                            Chief Financial Officer 
 
21 July 2016 
 
This information is provided by RNS
The company news service from the London Stock Exchange