REG - Unilever PLC Unilever NV. - Full Year Results 2016 <Origin Href="QuoteRef">ULVR.L</Origin> <Origin Href="QuoteRef">UNc.AS</Origin> - Part 2
26/01/2017 07:45
- Part 2: For the preceding part double click ID:nRSZ1484Va
12,524 10,009 10,008 52,713
Change (%) 0.5 (3.1) (1.5) (1.1) (1.0)
Impact of:
Exchange rates (%) (4.9) (4.7) (6.5) (4.6) (5.1)
Acquisitions (%) 1.7 - 0.6 0.2 0.8
Disposals (%) (0.3) (0.3) (0.2) (0.1) (0.2)
Underlying sales growth (%) 4.2 2.1 4.9 3.5 3.7
Price (%) 2.6 2.6 3.6 2.6 2.8
Volume (%) 1.6 (0.5) 1.3 1.0 0.9
Operating profit (E million)
2015 3,637 2,298 740 840 7,515
2016 3,704 2,180 949 968 7,801
Core operating profit (E million)
2015 3,788 2,354 775 948 7,865
2016 3,844 2,240 967 995 8,046
Operating margin (%)
2015 18.1 17.8 7.3 8.3 14.1
2016 18.4 17.4 9.5 9.7 14.8
Core operating margin (%)
2015 18.9 18.2 7.6 9.4 14.8
2016 19.1 17.9 9.7 9.9 15.3
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.
Core 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. Core operating
margin is calculated as core operating profit divided by turnover.
4 SEGMENT INFORMATION - GEOGRAPHICAL AREA
Fourth Quarter Asia / AMET / RUB The Americas Europe Total
Turnover (E million)
2015 5,414 4,258 3,212 12,884
2016 5,547 4,481 3,022 13,050
Change (%) 2.4 5.2 (5.9) 1.3
Impact of:
Exchange rates (%) (0.7) (0.5) (4.3) (1.5)
Acquisitions (%) - 2.3 0.6 1.0
Disposals (%) (0.4) (0.3) - (0.3)
Underlying sales growth (%) 3.5 3.7 (2.3) 2.2
Price (%) 3.8 2.8 0.2 2.6
Volume (%) (0.3) 0.8 (2.5) (0.4)
Full Year Asia / AMET / RUB The Americas Europe Total
Turnover (E million)
2015 22,425 17,294 13,553 53,272
2016 22,445 17,105 13,163 52,713
Change (%) 0.1 (1.1) (2.9) (1.0)
Impact of:
Exchange rates (%) (4.2) (8.0) (2.7) (5.1)
Acquisitions (%) 0.1 1.7 0.7 0.8
Disposals (%) (0.3) (0.3) (0.1) (0.2)
Underlying sales growth (%) 4.6 6.0 (0.7) 3.7
Price (%) 2.5 6.3 (1.1) 2.8
Volume (%) 2.1 (0.2) 0.3 0.9
Operating profit (E million)
2015 3,019 2,273 2,223 7,515
2016 3,275 2,504 2,022 7,801
Core operating profit (E million)
2015 3,035 2,517 2,313 7,865
2016 3,294 2,726 2,026 8,046
Operating margin (%)
2015 13.5 13.1 16.4 14.1
2016 14.6 14.6 15.4 14.8
Core operating margin (%)
2015 13.5 14.6 17.1 14.8
2016 14.7 15.9 15.4 15.3
5 TAXATION
The effective tax rate for the year was 26.2% compared to 27.6% 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 Full Year 2016 Full Year 2015
Before tax Tax (charge)/ credit After tax Before tax Tax (charge)/ credit After tax
Fair value gains/(losses) on financial instruments (15) - (15) 82 18 100
Remeasurements of defined benefit pension plans (1,221) 241 (980) 1,124 (240) 884
Currency retranslation gains/(losses) 217 - 217 (510) 29 (481)
Other comprehensive income (1,019) 241 (778) 696 (193) 503
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 the
exercise of share options by employees.
Earnings per share for total operations for the twelve months were calculated
as follows:
2016 2015
Combined EPS - Basic
Net profit attributable to shareholders' equity (E million) 5,184 4,909
Combined average number of share units (millions of units) 2,840.2 2,840.1
Combined EPS - basic (E) 1.83 1.73
Combined EPS - Diluted
Net profit attributable to shareholders' equity (E million) 5,184 4,909
Diluted combined average number of share units (millions of units) 2,853.9 2,855.4
Combined EPS - diluted (E) 1.82 1.72
Core EPS
Core profit attributable to shareholders' equity (see note 2) (E million) 5,370 5,210
Diluted combined average number of share units (millions of units) 2,853.9 2,855.4
Core EPS - diluted (E) 1.88 1.82
Millions
Combined number of shares at 31 December 2015 (net of treasury stock) 2,838.9
Net movements in shares under incentive schemes 0.8
Combined number of shares at 31 December 2016 2,839.7
7 ACQUISITIONS AND DISPOSALS
In 2016, the Group completed the following business acquisitions and disposals
as listed below. Total consideration for 2016 acquisitions is E2,069 million
(2015: E2,011 million for acquisitions completed during that year).
Deal completion date Acquired/Disposed business
31 March 2016 Sold the bread and bakery business under the brand 'Modern' in India to Nimman Foods Private Limited, part of the Everstone Group.
7 April 2016 Acquired Indulekha and Vayodha brands from Mosons Group.
6 May 2016 Sold local Alberto Culver brands Antiall, Farmaco, Veritas, the rights for VO5 in Argentina and a manufacturing plant to Santiago Saenz.
31 July 2016 Sold the Rice Exports business in India to LT Foods Middle East DMCC, a group company of LT Foods Limited.
10 August 2016 Acquired Dollar Shave Club, a subscription-based direct-to-consumer male grooming business.
20 October 2016 Acquired Seventh Generation, a North American home and personal care eco-friendly naturals business.
1 December 2016 Acquired Blueair, a supplier of innovative mobile indoor air purification technologies and solutions.
On 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. Subject to
regulatory approval, the transaction is expected to complete during the first
quarter of 2017.
On 16 December 2016 the Group announced that it has signed an agreement to
purchase Living Proof Inc., an innovative premium hair care business. Subject
to regulatory approval, the transaction is expected to complete during the
first quarter of 2017.
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 31 December 2016 As at 31 December 2015 As at 31 December 2016 As at 31 December 2015
Financial assets
Cash and cash equivalents 3,382 2,302 3,382 2,302
Held-to-maturity investments 142 144 142 144
Loans and receivables 398 303 398 303
Available-for-sale financial assets 509 641 509 641
Financial assets at fair value through profit and loss:
Derivatives 91 230 91 230
Other 132 123 132 123
4,654 3,743 4,654 3,743
Financial liabilities
Preference shares (125) (132) (68) (68)
Bank loans and overdrafts (1,147) (1,067) (1,146) (1,064)
Bonds and other loans (15,844) (13,509) (15,053) (12,703)
Finance lease creditors (165) (217) (143) (195)
Derivatives (185) (124) (185) (124)
Other financial liabilities - (489) - (489)
(17,466) (15,538) (16,595) (14,643)
E million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
As at 31 December 2016 As at 31 December 2015
Assets at fair value
Other cash equivalents - 90 - - 100 -
Available-for-sale financial assets 138 98 273 14 180 447
Financial assets at fair value through profit or loss:
Derivatives(a) - 226 - - 303 -
Other - 131 1 120 - 3
Liabilities at fair value
Derivatives(b) - (331) - - (194) -
(a) Includes E135 million (2015: E73 million) derivatives, reported within
trade receivables, that hedge trading activities.
(b) Includes E(146) million (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.
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 Q4 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: £ 0.2768
Per Unilever N.V. New York share: US$ 0.3439
Per Unilever PLC American Depositary Receipt: US$ 0.3439
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 24 January 2017.
US dollar cheques for the quarterly interim dividend will be mailed on 15
March 2017 to holders of record at the close of business on 10 February 2017.
In the case of the NV New York shares, Netherlands withholding tax will be
deducted.
The quarterly dividend calendar for the remainder of 2017 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 Q4 2016 26January 2017 8 February 2017 9 February 2017 10 February 2017 15 March 2017
Quarterly dividend - for Q1 2017 20 April 2017 3 May 2017 4 May 2017 5 May 2017 7 June 2017
Quarterly dividend - for Q2 2017 20July 2017 2 August 2017 3 August 2017 4 August 2017 6 September 2017
Quarterly dividend - for Q3 2017 19 October 2017 1 November 2017 2 November 2017 3 November 2017 13 November 2017
10 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned
elsewhere in this report.
This information is provided by RNS
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