REG - Unilever PLC - Final Results
13/02/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250213:nRSM9241Wa&default-theme=true
RNS Number : 9241W Unilever PLC 13 February 2025
2024 Full Year Results
Improved performance led by volume growth and gross margin expansion
Underlying performance GAAP measures
(unaudited) 2024 vs 2023 2024 vs 2023
Full Year
Underlying sales growth (USG) 4.2% Turnover €60.8bn 1.9%
Beauty & Wellbeing 6.5% Beauty & Wellbeing €13.2bn 5.5%
Personal Care 5.2% Personal Care €13.6bn (1.5)%
Home Care 2.9% Home Care €12.3bn 1.4%
Foods((a)) 2.6% Foods((a)) €13.4bn 1.1%
Ice Cream 3.7% Ice Cream €8.3bn 4.5%
Underlying operating profit €11.2bn 12.6% Operating profit €9.4bn (3.7)%
Underlying operating margin 18.4% 170bps Operating margin 15.5% (90)bps
Underlying earnings per share €2.98 14.7% Diluted earnings per share €2.29 (10.6)%
Free cash flow €6.9bn €(0.2)bn Net profit €6.4bn (10.8)%
Fourth Quarter
USG 4.0% Turnover €14.2bn (0.1)%
Quarterly dividend payable in March 2025 €0.4528 per share((b))
(a) Previously reported as Nutrition; (b) See note 9 for more information
on dividends
Financial and operational highlights
• Underlying sales growth of 4.2%, led by 2.9% volume growth
• Turnover increased 1.9% to €60.8 billion with (0.7)% impact
from currency and (1.5)% from net disposals
• Power Brands (>75% of turnover) leading growth with 5.3% USG
and volumes up 3.8%
• Brand and marketing investment up 120bps to 15.5%, its highest
level in over a decade
• Underlying operating margin up 170bps to 18.4%, with gross
margin up 280bps
• Underlying EPS increased 14.7%; diluted EPS decreased 10.6% due
to loss on disposals and accelerated productivity programme spend
• Cash conversion of 106% with free cash flow of €6.9 billion;
underlying ROIC up 190bps to 18.1%
• Quarterly dividend raised by 6.1% vs Q4 2023; new €1.5 billion
share buyback announced
• Ice Cream separation on track
Chief Executive Officer statement
"Today's results reflect a year of significant activity as we focused on
transforming Unilever into a consistently higher performing business.
Under the Growth Action Plan, we committed to doing fewer things, better and
with greater impact. We executed the plan at pace and made progress in 2024.
Underlying sales grew 4.2% with volumes up 2.9%, led by our Power Brands, with
particularly strong performances from Dove, Comfort, Vaseline and Liquid I.V.
Fewer, bigger innovations helped to deliver volume growth consistently above
2% in each quarter. All Business Groups delivered positive volume growth for
the year. Growth was underpinned by gross margin expansion of 280bps, fuelling
increases in brand investment and profitability.
We continue to sharpen our portfolio, allocating capital to premium segments
by acquiring scalable brands in attractive markets, such as K18 and
Minimalist, and announcing the divestment of local food brands such as Unox
and Conimex, as we focus our Foods portfolio on cooking aids and condiments
categories. The comprehensive productivity programme we announced in March is
being implemented at pace and we are ahead of plan in helping to create a
leaner and more accountable organisation. We are taking decisive actions in
Indonesia, where long-standing challenges required a reset of the business,
and China, where we are transforming our go-to-market approach during a market
slowdown. We expect to see the benefits of these actions from the second half
of 2025.
The separation of Ice Cream remains on track and we are making good progress
on the key workstreams. We announce today the appointment of the Chair
Designate for the demerged Ice Cream business and details of the listing
structure.
Market growth, which slowed throughout 2024, is expected to remain soft in the
first half of 2025. The steps we have taken in 2024, including the launch of
our refreshed GAP2030 strategy, further reinvestment in our brands and strong
innovation pipelines leave us better positioned to deliver on our ambitions in
the years ahead."
Hein Schumacher
Outlook
We expect underlying sales growth (USG) for full year 2025 to be within our
multi-year range of 3% to 5%. Market growth slowed throughout 2024. We
anticipate a slower start to 2025 with subdued market growth in the near term.
We expect the market and our growth to improve during the year as price
increases, reflecting higher commodity costs in 2025. We expect a more
balanced split between volume and price.
We anticipate a modest improvement in underlying operating margin for the full
year versus 18.4% in 2024. We expect this improvement to be realised in the
second half given the very strong first half comparator of 19.6%, which
benefitted strongly from the combination of carry-over pricing and input cost
deflation.
Full Year Review: Unilever Group
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change
Full Year €60.8bn 4.2% 2.9% 1.3% (1.5)% (0.7)% 1.9%
Fourth Quarter €14.2bn 4.0% 2.7% 1.3% (2.9)% (1.1)% (0.1)%
Performance
Underlying sales growth for the full year was 4.2%, led by volume of 2.9% and
price of 1.3%. We delivered four consecutive quarters of underlying volume
growth above 2%, with all Business Groups driving positive volume growth for
the year. As expected, underlying price growth moderated to 1.3%. Turnover was
€60.8 billion, up 1.9% versus the prior year, with underlying sales growth
of 4.2% more than offsetting the (0.7)% impact from currency and (1.5)% from
disposals net of acquisitions.
The Power Brands contributed >75% of turnover and performed strongly with
5.3% underlying sales growth, driven by volume growth of 3.8%. The rest of the
business also delivered improved volumes with volume growth of 0.7% in the
second half, up from (1.6)% in the first half of 2024.
As guided with our first half 2024 results, our turnover-weighted market share
movement((a)), which measures our competitive performance on a rolling 12
month-basis, sequentially improved in the second half reflecting the
increasing benefits from the Growth Action Plan.
Beauty & Wellbeing grew underlying sales by 6.5%, with volume growth of
5.1% driven by strong growth across its Power Brands. Personal Care grew 5.2%
with 3.1% volume growth, led by strong, innovation-led sales growth of
Deodorants. Home Care underlying sales increased 2.9%, with 4.0% volume growth
more than offsetting the price decline linked to commodity cost deflation.
Foods grew underlying sales 2.6%, with muted volume growth of 0.2% amidst a
market slowdown and moderating prices. Ice Cream grew 3.7%, with a return to
positive volume growth of 1.6%. This reflected an improved performance in the
second half supported by bigger innovations and operational improvements.
Developed markets (42% of Group turnover) grew underlying sales 4.4%.
Underlying volume growth of 3.3% reflected a strong performance in North
America, led by Beauty & Wellbeing, and a big improvement in Europe,
driven by Home Care and Personal Care. As expected, price growth moderated to
1.1%.
Emerging markets (58% of Group turnover) grew underlying sales 4.1%, with 2.5%
from volume and 1.5% from price. India grew 1.8% with 2.4% underlying volume
growth. Tonnage volume grew mid-single digit, which was partially offset by
adverse mix due to the strong growth in Home Care. The business continued to
increase market share during a period of modest market growth. Underlying
price returned to positive in the fourth quarter on the back of rising input
cost inflation. Latin America grew 6.0% with positive volume growth across
Brazil, Mexico and Argentina. Growth slowed in the second half, reflecting a
deterioration of economic conditions in the region. Africa and Turkey
delivered double-digit growth with positive volumes and price in each quarter.
China declined mid-single digit with market weakness across all categories
apart from Foods. In the context of softer markets, we are accelerating our
portfolio premiumisation and transforming our go-to-market approach to
effectively serve fast-growing e-commerce channels and smaller format stores
in lower tier cities.
In South East Asia, volume-led growth in the Philippines and Thailand was
offset by an 8.7% decline in Indonesia. In the second half, we took decisive
actions by correcting misaligned pricing across channels and resetting stock
levels in retail, while also addressing our long-standing issues of portfolio,
brand, and competitiveness. This will take several quarters. As we have said
previously, we expect to see the benefits of the changes in Indonesia and
China from the second half of 2025.
(a) Turnover-weighted market share movement: global aggregate of Unilever
value market share changes, weighted by the turnover of the category-country
combinations
Profitability
(unaudited) UOP UOP growth UOM% Change in UOM OP OP growth OM% Change in OM
Full Year €11.2bn 12.6% 18.4% 170bps €9.4bn (3.7)% 15.5% (90)bps
Underlying operating profit was €11.2 billion, up 12.6% versus the prior
year. Underlying operating margin increased 170bps to 18.4%. This step-up in
profitability contributed to a 190bps increase in underlying ROIC to 18.1%.
We expanded gross margin by 280bps to 45.0%, the highest it has been in a
decade. Continuing to improve gross margin remains a key focus for the
business. Our gross margin improvement in 2024 reflects positive contributions
from volume leverage, mix and net productivity gains in material, production
and logistics costs. It was also helped by input cost deflation in the first
half, which turned into slight inflation in the second half.
Improved gross margin fuelled further increases in brand and marketing
investment behind a strong and focused innovation programme. Investment was up
120bps to 15.5% of turnover, an increase of €0.9 billion. Overheads reduced
by 10bps, as a result of tighter cost control and savings in the second half
from the productivity programme.
Operating profit of €9.4 billion decreased 3.7% versus the prior year. This
reduction was driven by higher non-underlying charges, most notably a loss on
disposals and higher restructuring costs as a result of accelerating the
productivity programme.
Productivity programme
In March 2024, we announced the launch of a major productivity programme to
simplify the business and further evolve our category-focused model. The
programme is targeted to deliver €800 million of savings, with a reduction
of 7,500 mainly office-based roles, creating a leaner and more accountable
organisation. Including this programme, we expect average restructuring costs
to be around 1.2% of Group turnover over the three-year period from 2024 to
2026.
Following thorough consultation processes, the programme is ahead of plan with
a reduction of 4,300 FTEs by the end of 2024 and in-year savings close to
€200 million. Restructuring costs, including the accelerated productivity
programme, increased to €850 million, equivalent to 1.4% of Group turnover
in 2024. We anticipate a similar restructuring cost of approximately 1.4% of
Group turnover in 2025 with a lower spend in 2026.
The new organisation structure went live on 1 January 2025. This enables the
Business Groups to focus on the top 24 markets, which represent approximately
85% of Group turnover, and the 30 Power Brands. The remaining smaller markets
are now run on a 'One Unilever' basis to benefit from scale and simplicity,
further enhancing our portfolio prioritisation and focus.
Ice Cream separation
The separation of Ice Cream is on track to complete by the end of 2025. We are
making progress on the key workstreams, including the legal entities set up,
implementing the standalone operating model and preparing the carve-out
financials.
Jean-Francois van Boxmeer has been appointed as Chair Designate for the
separated Ice Cream business. Jean-Francois brings a wealth of experience both
as a non-executive and as an executive operating within the consumer goods
industry. Jean-Francois is currently Chair of Vodafone Group Plc and
non-executive director of Heineken Holding N.V. having been Chief Executive of
Heineken for 15 years.
Ice Cream will be separated by way of demerger, through listing of the
business in Amsterdam, London and New York, the same three exchanges on which
Unilever PLC shares are currently traded. The Ice Cream business will be
incorporated in the Netherlands and will continue to be headquartered in
Amsterdam. This decision follows a full review by the Board of separation
options, focused on maximising returns for shareholders, setting the Ice Cream
business up for success and execution certainty by the end of 2025.
Capital allocation
We continued to reshape our portfolio, allocating capital to premium segments
through bolt-on acquisitions and divesting lower-growth businesses. In
February 2024, we acquired K18, a premium biotech hair care brand. We
completed several disposals during the year. These included Elida Beauty, our
stake in Qinyuan Group (known as "Truliva"), a water purification business in
China, and Pureit, a water purification business in Asia and Mexico. In
October, we completed the sale of our Russian subsidiary to Arnest Group. The
sale included all of Unilever's business in Russia and its four factories, as
well as our business in Belarus. In addition, we announced several disposals
that we expect to complete during 2025, including the sale of the Foods brands
Unox, Conimex and Zwan, as well as the disposal of our laundry business in
Central America.
In January 2025, Hindustan Unilever Limited announced it has signed an
agreement to acquire the premium actives-led beauty brand Minimalist, as we
continue to evolve our Beauty & Wellbeing portfolio towards higher growth
and demand spaces in India.
In 2024, we returned €5.8 billion to shareholders through dividends and
share buybacks. The quarterly interim dividend for the fourth quarter is
raised to €0.4528, up 6.1% vs Q4 2023.
Following the completion of a €1.5 billion share buyback programme in
November, we announce a new share buyback of up to €1.5 billion starting
today and to be completed in the first half, well ahead of the separation of
Ice Cream.
Conference Call
Following the release of this trading statement on 13 February 2025 at 7:00 AM
(UK time), there will be a webcast at 8:00 AM available on the website
www.unilever.com/investor-relations/results-and-presentations/latest-results
(www.unilever.com/investor-relations/results-and-presentations/latest-results)
.
A replay of the webcast and the slides of the presentation will be made
available after the live meeting.
Upcoming Events
Date Events
24 April 2025 Q1 2025 trading statement
Full Year Review: Business Groups
Full Year 2024 Fourth Quarter 2024
(unaudited) Turnover USG UVG UPG UOM Change in UOM Turnover USG UVG UPG
Unilever €60.8bn 4.2% 2.9% 1.3% 18.4% 170bps €14.2bn 4.0% 2.7% 1.3%
Beauty & Wellbeing €13.2bn 6.5% 5.1% 1.3% 19.4% 70bps €3.3bn 5.2% 3.9% 1.2%
Personal Care €13.6bn 5.2% 3.1% 2.1% 22.1% 190bps €3.3bn 5.3% 3.6% 1.6%
Home Care €12.3bn 2.9% 4.0% (1.1)% 14.5% 220bps €3.0bn 3.0% 3.3% (0.3)%
Foods €13.4bn 2.6% 0.2% 2.4% 21.3% 270bps €3.4bn 2.6% 0.5% 2.1%
Ice Cream €8.3bn 3.7% 1.6% 2.1% 11.8% 100bps €1.2bn 4.3% 2.2% 2.0%
Beauty & Wellbeing (22% of Group turnover)
In Beauty & Wellbeing, we focus on three key priorities: premiumising our
core Hair and Skin Care portfolio by emphasising brand superiority; fuelling
the growth of our Prestige Beauty and Wellbeing portfolios with selective
international expansion; and, continuing to strengthen our competitiveness
through innovation and a social-first approach to consumer engagement.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €13.2bn 6.5% 5.1% 1.3% (0.3)% (0.6)% 5.5% 19.4% 70bps
Fourth Quarter €3.3bn 5.2% 3.9% 1.2% (0.7)% (0.4)% 4.1%
Beauty & Wellbeing delivered a strong full year performance, with
underlying sales up 6.5%, driven by volume at 5.1% and price at 1.3%. Volume
growth was broad-based with strong performances from its Power Brands
including Sunsilk, Dove, Vaseline, Ponds, Liquid I.V. and Nutrafol. In Q4,
Beauty & Wellbeing grew 5.2% with 3.9% volume.
The full year performance reflects the ongoing premiumisation of our core Hair
Care and Skin Care portfolio and the continued strength of our Prestige Beauty
and Wellbeing portfolio, which combined accounted for c. 30% of Beauty &
Wellbeing's turnover.
Hair Care grew mid-single digit with balanced volume and price growth. Our
largest hair care brand, Sunsilk, grew high-single digit reflecting the
continued success of its 2023 relaunch and introduction of new formats. Dove
delivered high-single digit volume-led growth following the launch of Scalp +
Hair Therapy, designed for improved scalp health and hair density. TRESemmé
grew mid-single digit following the launch of the Lamellar Shine collection.
Clear grew low-single digit amidst low market growth in its primary market
China.
Core Skin Care grew mid-single digit led by low-single digit volume and
positive price. Vaseline grew double-digit with the expansion of its premium
Gluta-Hya range to new markets and new formats. Gluta-Hya is now in over 22
markets and has introduced a new serum based suncare range. Dove skin care
delivered double-digit growth, with the launch of its body serums and 3-in-1
face care treatments in Brazil, Mexico, and most recently in the US. Pond's
grew double-digit led by volume following its successful relaunch in 2023.
Wellbeing grew strong double-digit led by Liquid I.V., Nutrafol, and Olly.
Liquid I.V. saw continued success of its sugar-free variant and ongoing
international expansion, entering seven new markets during the year. Nutrafol
extended into skin care with a daily supplement designed to address acne,
while Olly saw strong growth in China led by its female health supplements.
Prestige Beauty grew mid-single digit reflecting a slowdown in the US beauty
market. Hourglass and Tatcha grew double-digit while other brands including
Paula's Choice delivered low growth. During the year, we completed the
acquisition of K18, a premium biotech hair care brand, which grew double-digit
and will be included in underlying sales growth from February 2025.
Underlying operating margin improved 70bps with strong gross margin
improvement partially reinvested in increased brand and marketing investment.
Personal Care (22% of Group turnover)
In Personal Care, we focus on winning with science-led brands that deliver
unmissable superiority to our consumers across Deodorants, Skin Cleansing, and
Oral Care. Our priorities include developing superior technology and
multi-year innovation platforms, leveraging partnerships with our customers,
and expanding into premium areas and digital channels.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €13.6bn 5.2% 3.1% 2.1% (5.3)% (1.1)% (1.5)% 22.1% 190bps
Fourth Quarter €3.3bn 5.3% 3.6% 1.6% (8.1)% (1.7)% (5.0)%
Personal Care grew underlying sales 5.2% for the year with volume growth of
3.1%. This growth was led by continued strength in Deodorants. In the fourth
quarter, Personal Care grew 5.3% with Deodorants, Skin Cleansing, and Oral
Care all delivering volume growth.
Personal Care's full year performance was led by its Power Brands and
science-backed innovations. These innovations were supported by a step-up in
marketing investment, including our five-year sponsorship deal with the
Fédération Internationale de Football Association (FIFA), and our
sponsorship of several major football tournaments worldwide, including UEFA
EURO 2024 and the CONMEBOL Copa America USA 2024.
Dove, which represents c. 40% of Personal Care's turnover, grew high-single
digit with the successful launches of a new range of whole-body deodorants and
a serum shower collection, using active face care ingredients in body wash
formats.
Deodorants grew double-digit led by mid-single digit volume growth. This
included Rexona and Axe which grew high-single digit, driven by ongoing
success from multi-year innovations, including our body heat-activated
technology and our Fine Fragrance collection.
Skin Cleansing grew low-single digit with positive volume and price. Good
growth in Dove was partially offset by declines in Lifebuoy and Lux, driven by
challenges in Indonesia, China, and India.
Oral Care grew mid-single digit led by price. Our Power Brands, Close up and
Pepsodent, grew mid-single digit with positive price and volume. Pepsodent
launched its therapeutics range specifically formulated for sensitive teeth.
Underlying operating margin increased by 190bps, driven by a very strong gross
margin improvement fuelling increased brand and marketing investment.
Home Care (20% of Group turnover)
In Home Care, we focus on delivering for consumers who want superior products
that are sustainable and great value. We drive growth through unmissable
superiority in our biggest brands, in our key markets and across channels. We
have a resilient business that spans price points and grows the market by
premiumising and trading consumers up to additional benefits.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €12.3bn 2.9% 4.0% (1.1)% (0.9)% (0.5)% 1.4% 14.5% 220bps
Fourth Quarter €3.0bn 3.0% 3.3% (0.3)% (2.4)% (1.0)% (0.5)%
Home Care grew underlying sales 2.9%, with 4.0% from volume and (1.1)% from
price. Home Care faced the highest commodity cost deflation across Unilever
which impacted laundry powders in several emerging markets.
In Home Care, we stepped up multi-year, scalable innovations with several key
launches as well as extending successful 2023 launches. These Power Brand
focused innovations drove a return to strong growth in Europe and were
supported by increased investments in brand and marketing and R&D to drive
unmissable brand superiority.
Fabric Cleaning was flat with low-single digit volume growth fully offset by
negative price. Volume growth was supported by the launch of Persil Wonder
Wash, the first liquid detergent designed for short cycle washes. Wonder Wash,
powered by our patented Pro-S technology, has been launched in 8 markets and
is on track to be in 20 markets by the end of 2025. Europe grew double-digit
with strong volumes. Brazil experienced the most significant price declines
among our key markets reflecting commodity deflation, notably in our powders
portfolio.
Home & Hygiene grew high-single digit with strong volume and positive
price. Both Domestos and CIF grew double-digit led by volume, with
contributions from the Power Foam, cream and sprays portfolio.
Fabric Enhancers grew high-single digit driven by strong volumes, slightly
offset by negative price. The successful launch of our new Botanicals and
Elixir ranges, utilising our patented CrystalFresh technology drove a good
Comfort performance.
Underlying operating margin increased by 220bps, driven by strong gross margin
improvement which was slightly offset by a step-up in brand and marketing
investment.
Foods (22% of Group turnover)
In Foods (formerly known as Nutrition), our strategy is to deliver consistent,
competitive growth by offering unmissably superior products through our
biggest brands. We do this by reaching more consumers and focusing on top
dishes and high consumption seasons to satisfy consumer's preferences on
taste, health and sustainability; while delivering productivity and resilience
in our supply chain.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €13.4bn 2.6% 0.2% 2.4% (0.5)% (1.0)% 1.1% 21.3% 270bps
Fourth Quarter €3.4bn 2.6% 0.5% 2.1% (0.7)% (1.4)% 0.5%
Foods grew underlying sales 2.6% for the year, with 2.4% from price and 0.2%
from volume. Our two largest brands, Hellmann's and Knorr, which accounted for
c. 60% of the Business Group, continued to grow ahead of the Foods average. In
the fourth quarter, Foods grew 2.6% while market growth remained muted.
In Foods we are creating a more focused and simplified business concentrated
on Cooking Aids, Condiments, Mini Meals, Unilever Food Solutions, and our
India local Foods portfolio. These categories are where we will lead and where
we can best concentrate our investment behind our global Power Brands, Knorr
and Hellmann's.
Cooking Aids grew mid-single digit with positive price and volume. Knorr
performed well with mid-single digit growth driven by its leadership in
bouillon and seasonings and its expansion of premium ready-to-eat pots ranges.
Knorr grew double-digit in Latin America through its focus on local dishes and
next generation bouillon & seasoning ranges with enhanced flavours and
micronutrients.
Condiments grew low-single digit with balanced volume and price growth.
Hellmann's grew low-single digit led by volume growth as it continued to
expand its Flavoured Mayo range, now in 30 countries, and grow its premium
format variants, including new squeeze bottles.
Unilever Food Solutions grew high-single digit led by volume with positive
price. This growth was supported by the rollout of our operator solutions
including the latest edition of our Future Menu's Trend Report, now utilised
in over 50 countries, and expansion of our digital selling programme, which
improved product availability and reach. Growth also benefited from the launch
of Hellmann's Professional Mayo in Europe and Brazil, tailored for
professional kitchens. China grew high-single digit following a strong Chinese
New Year in the first half of the year.
India Foods was flat, as tea and functional drinks maintained market
leadership in subdued markets.
Underlying operating margin increased significantly, up 270bps, driven by
strong gross margin improvement which funded an increase in brand and
marketing investment.
Ice Cream (14% of Group turnover)
In Ice Cream, we are focused on continuing to strengthen the business in
preparation for Ice Cream's separation by the end of 2025. We are doing this
by developing an exciting product pipeline, designing more efficient
go-to-market strategies, optimising our supply chain, and building a dedicated
sales team globally. The separation will create a world-leading business,
operating in a highly attractive category with five of the top 10 selling
global ice cream brands.
(unaudited) Turnover USG UVG UPG A&D Currency Turnover change UOM% Change in UOM
Full Year €8.3bn 3.7% 1.6% 2.1% 0.9% (0.1)% 4.5% 11.8% 100bps
Fourth Quarter €1.2bn 4.3% 2.2% 2.0% (2.1)% (0.3)% 1.8%
Ice Cream grew underlying sales 3.7%, with 1.6% from volume and 2.1% from
price, marking a return to positive volume growth. In the fourth quarter, Ice
Cream grew by 4.3%, driven by 2.2% volume growth and 2.0% price growth.
The improving performance in 2024 was fuelled by strong innovations and
operational improvements. These ongoing improvements included a more efficient
go-to-market strategy, improved distribution, and optimised promotional
activities. Share performance improved throughout the year and we sharpened
our focus on net productivity, which supported gross margin expansion and
reinvestment in our brands.
In-home Ice Cream (c. 60% of Ice Cream turnover) grew low-single digit led by
volume growth. This was supported by several snacking innovations with smaller
portions. Magnum launched premium, bite-sized Bon Bons, designed to meet
evolving snacking habits. The range is performing well and is now in 12
markets with further rollout planned for next year. Joining the small
indulgence format, Yasso introduced Poppables, a Greek yogurt-based snack,
while Ben & Jerry's expanded its Peaces range with new flavours like
Salted Caramel Brownie.
Out-of-home Ice Cream (c. 40% of Ice Cream turnover) grew mid-single digit
fully led by price. We launched several premium innovations this year
including Magnum's Pleasure Express featuring flavour filled cores and Ben
& Jerry's new oat base for its non-dairy ice creams. Cornetto celebrated
its 60(th) anniversary with its first global relaunch featuring enhanced
formulation and new packaging.
Underlying operating margin increased by 100bps, driven by improved gross
margins which supported an increase in brand and marketing investment. This
margin improvement was realised despite higher commodity costs in cocoa and
dairy. We expect rising inflation in cocoa and dairy costs to put pressure on
margins in 2025.
Full Year Review: Geographical Areas
Full Year 2024 Fourth Quarter 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €60.8bn 4.2% 2.9% 1.3% €14.2bn 4.0% 2.7% 1.3%
Asia Pacific Africa €26.0bn 3.1% 1.8% 1.3% €6.0bn 3.1% 1.4% 1.6%
The Americas €22.5bn 5.5% 4.0% 1.4% €5.5bn 5.4% 3.9% 1.5%
Europe €12.3bn 4.3% 3.0% 1.2% €2.7bn 3.5% 3.4% 0.1%
Full Year 2024 Fourth Quarter 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Emerging markets €35.3bn 4.1% 2.5% 1.5% €8.1bn 3.0% 1.1% 1.9%
Developed markets €25.5bn 4.4% 3.3% 1.1% €6.1bn 5.4% 5.1% 0.3%
North America €13.4bn 5.3% 4.1% 1.1% €3.4bn 7.0% 6.5% 0.5%
Latin America €9.1bn 6.0% 3.9% 2.0% €2.1bn 3.0% -% 3.0%
Asia Pacific Africa (43% of Group turnover)
Underlying sales growth was 3.1% with 1.8% from volume and 1.3% from price.
India grew 1.8% driven by underlying volume growth at 2.4%. This was primarily
driven by Home Care and Beauty & Wellbeing while Personal Care declined.
In the fourth quarter, UPG turned positive reflecting commodity movements,
while UVG was flat with tonnage volume up mid-single digit, partially offset
by adverse mix due to strong growth in Home Care.
China declined mid-single digit with market weakness across all categories
apart from Foods. In the context of softer markets, we are accelerating our
portfolio premiumisation and transforming our go-to-market approach to
effectively serve fast-growing e-commerce channels and smaller format stores
in lower tier cities.
In South East Asia, volume-led growth in the Philippines and Thailand was
offset by an 8.7% decline in Indonesia. In the second half, we took decisive
actions by correcting misaligned pricing across channels and resetting stock
levels in retail, while also addressing our long-standing issues of portfolio,
brand, and competitiveness. This will take several quarters. As we have said
previously, we expect to see the benefits of the changes in Indonesia and
China from the second half of 2025.
Africa, which represents 3% of Group turnover, grew double-digit with positive
volume and price growth throughout the year. Turkey delivered double-digit
volume growth, led by Ice Cream and Personal Care, in a hyperinflationary
environment.
The Americas (37% of Group turnover)
Underlying sales growth was 5.5% with 4.0% from volume and 1.4% from price.
North America grew 5.3% with 4.1% volume growth, with all Business Groups
delivering positive volumes. This improved volume performance was led by
strong growth in Beauty & Wellbeing. Growth in Personal Care improved in
the second half, helped by a strong performance of Deodorants in the fourth
quarter. Ice Cream showed good improvement and returned to volume-driven
growth. Our Foods business delivered balanced price and volume growth, while
category growth slowed during the year.
Latin America grew 6.0% with 3.9% from volume. Beauty & Wellbeing and
Personal Care grew double-digit, while Foods delivered mid-single digit
growth. Home Care declined slightly, adversely affected by deflation in the
laundry powders market. Volume growth slowed in Brazil and Mexico in the
second half, reflecting a much more volatile economic environment. In
Argentina we delivered positive volume growth in each quarter despite
hyperinflationary pricing and continued to strengthen our market-leading
positions and performed well in a challenging environment.
Europe (20% of Group turnover)
Underlying sales grew 4.3% with volume growth of 3.0% and price of 1.2%. Our
return to positive volume growth in Europe was underpinned by a strong
innovation programme and increased levels of brand investment. Home Care grew
double-digit, while Beauty & Wellbeing and Personal Care grew high-single
digits. Innovations and improved execution led to a step-up of the Ice Cream
performance in the second half and positive volume for the year. Foods
declined slightly as a result of active portfolio rationalisation and slowing
market growth. Growth was broad-based in Europe, led by mid-single digit
growth in the United Kingdom and Germany as well as double-digit growth in
Poland.
Additional commentary on the financial statements - Full Year
Finance costs and tax
Net finance costs increased by €118 million to €604 million in 2024. This
was driven by higher cost of debt on bonds and commercial paper and lower
interest credit from pensions. Net finance costs were 2.5% on average net
debt. For 2025, we expect net finance costs to be around 3% on average net
debt. This reflects the impact of refinancing maturing debt at higher rates
and lower finance income versus 2024.
The underlying effective tax rate for 2024 was 25.8% (2023: 25.6%), as
increases, including in non-deductible interest and withholding tax, were
largely offset by benefits from tax settlements and other one-off items. Our
guidance for 2025 for the underlying effective tax rate remains around 26%.
The effective tax rate for 2024 was 29.0%, and included adverse impacts linked
to disposals in 2024. This compares with 24.1% in the prior year, which
included a benefit related to the disposal of the Dollar Shave Club.
Joint ventures, associates and other income from non-current investments
Net profit from joint ventures and associates increased €24 million to
€255 million, largely driven by the Pepsi-Lipton JVs. Other income from
non-current investments was €13 million, versus €(22) million in the prior
year.
Earnings per share
Underlying earnings per share increased 14.7% to €2.98, including (0.7)% of
adverse currency. Constant underlying earnings per share increased by 15.4%,
reflecting a strong operational performance. The reduction in the average
number of shares as a result of the share buyback programme contributed 1.0%.
Diluted earnings per share of €2.29 decreased by 10.6% versus 2023 due to
loss on disposals and the accelerated productivity programme spend.
Free cash flow
We delivered strong cash conversion of 106%. Free cash flow was €6.9 billion
versus €7.1 billion in 2023. The prior year comparator included a higher tax
refund of €0.4 billion in India and a significant working capital
improvement of €0.8 billion.
Underlying return on invested capital
Underlying return on invested capital improved 190bps to 18.1% (2023: 16.2%).
This reflected strong underlying operating profit growth driven by turnover
growth and underlying operating margin expansion, while average invested
capital in 2024 was up €0.5 billion versus the prior year. Reported return
on invested capital decreased by 180bps to 14.5% driven by a decrease in
operating profit from higher non-underlying charges including the loss on
disposals and accelerated productivity programme spend.
Net debt
Closing net debt increased €0.9 billion to €24.5 billion in 2024. Net debt
to underlying EBITDA was 1.9x at 31 December 2024, versus the prior year at
2.1x and in line with our guidance of around 2x.
Pensions
Pension assets net of liabilities were in surplus of €3.0 billion at 31
December 2024 versus a surplus of €2.4 billion at the end of 2023. The
increase was primarily driven by strong investment returns in equities, while
higher long-term government bond yields led to reductions in both fixed income
assets and pension liabilities.
Share buyback programme
On 5 November 2024, we completed the second and final €800 million tranche
of our share buyback programme of up to €1.5 billion, initiated on 8
February 2024. The total consideration paid for the repurchase of 13,931,208
shares is recorded within other reserves and the shares are held by Unilever
as treasury shares. Under the two tranches of the programme, a total of
27,368,909 ordinary Unilever PLC shares were purchased.
Reflecting the Group's continued strong cash generation, the Board has
approved a new share buyback with an aggregate market value equivalent of up
to €1.5 billion which will be bought back in the form of Unilever PLC
ordinary shares.
The new share buyback will commence on 13 February 2025 and will complete on
or before 6 June 2025. The purpose of the share buyback is to reduce the
capital of Unilever PLC and it will take place within the limitations of the
authority granted to the Board of Unilever PLC by its general meeting, held on
1 May 2024, pursuant to which the maximum number of shares to be bought back
by Unilever PLC is 222,831,091.
Finance and liquidity
In 2024, the following notes matured and were repaid:
• March: $500 million 3.25% fixed rate notes
• April: €500 million 0.50% fixed rate notes
• May: $1,000 million 2.60% fixed rate notes
• August: $500 million 0.626% fixed rate notes
• September: £250 million 1.375% fixed rate notes
The following notes were issued:
• February: €600 million 3.25% fixed rate notes due 15 February
2032 and €600 million 3.50% fixed rate notes due 15 February 2037
• March: €100 million 3.25% fixed rate notes to be consolidated
and form a single series with the €600 million 3.25% fixed rate notes issued
in February and due 15 February 2032
• June: $170 million 4.75% fixed rate notes due 27 June 2031
• August: $750 million 4.25% fixed rate notes due 12 August 2027 and
$1,000 million 4.625% fixed rate notes due 12 August 2034
On 31 December 2024, Unilever had undrawn revolving 364-day bilateral credit
facilities in aggregate of $5,200 million and €2,600 million with a 364-day
term out.
Non-GAAP measures
Certain discussions and analyses set out in this announcement include measures
which are not defined by generally accepted accounting principles (GAAP) such
as IFRS. We believe this information, along with comparable GAAP measurements,
is useful to investors because it provides a basis for measuring our operating
performance, ability to retire debt and invest in new business opportunities.
Our management uses these financial measures, along with the most directly
comparable GAAP financial measures, in evaluating our operating performance
and value creation. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information presented in
compliance with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unilever uses 'constant rate', and 'underlying' measures primarily for
internal performance analysis and targeting purposes. We present certain
items, percentages and movements, using constant exchange rates, which exclude
the impact of fluctuations in foreign currency exchange rates. We calculate
constant currency values by translating both the current and the prior period
local currency amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in hyperinflationary
economies. These currencies are translated into euros using the prior year
closing exchange rate before the application of IAS 29. The table below shows
exchange rate movements in our key markets.
Annual average rate in 2024 Annual average rate in 2023
Brazilian Real (€1 = BRL) 5.761 5.405
Chinese Yuan (€1 = CNY) 7.751 7.635
Indian Rupee (€1 = INR) 90.652 89.232
Indonesia Rupiah (€1 = IDR) 17,177 16,457
Philippine Peso (€1 = PHP) 62.055 60.110
Mexican Peso (€1 = MXN) 19.589 19.169
Turkish Lira (€1 = TRY) 36.671 31.625
UK Pound Sterling (€1 = GBP) 0.848 0.870
US Dollar (€1 = US $) 1.085 1.081
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover for the
period, excluding any change in turnover resulting from acquisitions,
disposals, changes in currency and price growth in excess of 26% in
hyperinflationary economies. Inflation of 26% per year compounded over three
years is one of the key indicators within IAS 29 to assess whether an economy
is deemed to be hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the business and
is a key measure used internally. The impact of acquisitions and disposals
(A&D) is excluded from USG for a period of 12 calendar months from the
applicable closing date. Turnover from acquired brands that are launched in
countries where they were not previously sold is included in USG as such
turnover is more attributable to our existing sales and distribution network
than the acquisition itself.
The reconciliation of changes in the GAAP measure of turnover to USG is as
follows:
(unaudited) Beauty & Wellbeing Personal Care Home Care Foods Ice Cream Total
Fourth Quarter
Turnover (€ million)
2023 3,181 3,404 2,974 3,416 1,202 14,177
2024 3,310 3,235 2,960 3,434 1,223 14,162
Turnover growth (%) 4.1 (5.0) (0.5) 0.5 1.8 (0.1)
Effect of acquisitions (%) 0.9 - - - - 0.2
Effect of disposals (%) (1.6) (8.1) (2.4) (0.7) (2.1) (3.2)
Effect of currency-related items (%), of which: (0.4) (1.7) (1.0) (1.4) (0.3) (1.1)
Exchange rates changes (%) (1.8) (3.9) (3.8) (3.4) (0.4) (3.0)
Extreme price growth in hyperinflationary markets* (%) 1.5 2.2 2.9 2.1 - 2.0
Underlying sales growth (%) 5.2 5.3 3.0 2.6 4.3 4.0
Full Year
Turnover (€ million)
2023 12,466 13,829 12,181 13,204 7,924 59,604
2024 13,157 13,618 12,352 13,352 8,282 60,761
Turnover growth (%) 5.5 (1.5) 1.4 1.1 4.5 1.9
Effect of acquisitions (%) 0.9 - - - 1.2 0.4
Effect of disposals (%) (1.2) (5.3) (0.9) (0.5) (0.3) (1.8)
Effect of currency-related items (%), of which: (0.6) (1.1) (0.5) (1.0) (0.1) (0.7)
Exchange rates changes (%) (2.2) (3.0) (3.6) (2.8) (1.9) (2.8)
Extreme price growth in hyperinflationary markets* (%) 1.6 1.9 3.2 1.9 1.8 2.1
Underlying sales growth (%) 6.5 5.2 2.9 2.6 3.7 4.2
(unaudited) Asia Pacific Africa The Americas Europe Total
Fourth Quarter
Turnover (€ million)
2023 6,119 5,388 2,670 14,177
2024 5,988 5,453 2,721 14,162
Turnover growth (%) (2.1) 1.2 1.9 (0.1)
Effect of acquisitions (%) - 0.6 - 0.2
Effect of disposals (%) (3.8) (2.8) (2.5) (3.2)
Effect of currency-related items (%), of which: (1.3) (1.8) 1.0 (1.1)
Exchange rates changes (%) (2.5) (5.4) 1.0 (3.0)
Extreme price growth in hyperinflationary markets* (%) 1.2 3.8 - 2.0
Underlying sales growth (%) 3.1 5.4 3.5 4.0
Full Year
Turnover (€ million)
2023 26,234 21,531 11,839 59,604
2024 25,991 22,491 12,279 60,761
Turnover growth (%) (0.9) 4.5 3.7 1.9
Effect of acquisitions (%) - 1.0 - 0.4
Effect of disposals (%) (1.2) (2.9) (1.2) (1.8)
Effect of currency-related items (%), of which: (2.7) 0.9 0.7 (0.7)
Exchange rates changes (%) (4.1) (3.0) 0.7 (2.8)
Extreme price growth in hyperinflationary markets* (%) 1.5 4.0 - 2.1
Underlying sales growth (%) 3.1 5.5 4.3 4.2
*Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the underlying sales growth in
the tables above, and an equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
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.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the applicable
period, the increase in turnover attributable to changes in prices during the
period. UPG therefore excludes the impact to USG due to (i) the volume of
products sold; and (ii) the composition of products sold during the period. In
determining changes in price, we exclude the impact of price growth in excess
of 26% per year in hyperinflationary economies as explained in USG above.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the applicable
period, the increase in turnover in such period calculated as the sum of (i)
the increase in turnover attributable to the volume of products sold; and (ii)
the increase in turnover attributable to the composition of products sold
during such period. UVG therefore excludes any impact on USG due to changes in
prices.
Non-underlying items
Some of our non-GAAP measures are adjusted to exclude items defined as
non-underlying. Management considers non-underlying items to be significant,
unusual or non-recurring in nature and so believe that separately identifying
them helps users to better understand the financial performance of the Group
from period to period.
• Non-underlying items within operating profit are: gains or
losses on business disposals, acquisition and disposal related costs,
restructuring costs, impairments and other approved one-off items within
operating profit classified here due to their nature and frequency.
• Non-underlying items not in operating profit but within net
profit are: net monetary gain/(loss) arising from hyperinflationary economies
and significant and unusual items in net finance cost, share of profit/(loss)
of joint ventures and associates and taxation.
• Non-underlying items after tax is calculated as non-underlying
items within operating profit after tax plus non-underlying items not in
operating profit but within net profit after tax.
Consequently, within underlying operating profit we exclude the following
items:
• Restructuring costs are costs that are directly attributable to
a restructuring project. Management define a restructuring project as a
strategic, major initiative that delivers cost savings and materially change
either the scope of the business or the manner in which the business is
conducted.
• Acquisitions and disposal related costs are costs that are
directly attributable to a business acquisition or disposal project.
• Impairment of assets including goodwill, intangible assets and
property, plant and equipment.
• Gains or losses from the disposal of group companies which arise
from business disposal projects.
• Other approved one-off items are those additional matters
considered by management to be significant and outside the course of normal
operations.
The breakdown of non-underlying items is shown below:
€ million Full Year
(unaudited) 2024 2023
Non-underlying items within operating profit before tax (1,779) (173)
Acquisition and disposal-related costs((a)) (387) (242)
(Loss)/gain disposal of group companies((b)) (406) 489
Restructuring costs((c)) (850) (499)
Impairments((d)) (133) (1)
Other (3) 80
Tax on non-underlying items within operating profit 129 207
Non-underlying items within operating profit after tax (1,650) 34
Non-underlying items not in operating profit but within net profit before tax (155) (153)
Interest related to the UK tax audit of intangible income and centralised 40 (11)
services
Net monetary loss arising from hyperinflationary economies (195) (142)
Tax impact of non-underlying items not in operating profit but within net 90 12
profit, including non-underlying tax items
Non-underlying items not in operating profit but within net profit after tax (65) (141)
Non-underlying items after tax (1,715) (107)
Attributable to:
Non-controlling interests 21 (6)
Shareholders' equity (1,736) (101)
(a) 2024 includes a charge of €239 million (2023: €104 million) relating
to the revaluation of the minority interest liability of Nutrafol, €54
million related to the Ice Cream separation, and €39 million relating to the
acquisition of Yasso.
(b) 2024 net loss arises from the disposals of Russia, Elida Beauty, PureIt,
and Qinyuan. This net loss includes a foreign currency translation reserve
write-off of €545 million. 2023 includes a gain of €497 million related to
the disposal of Suave.
(c) In 2024, we announced the launch of a company-wide Productivity
programme that would impact around 7,500 jobs and support margin improvement
through specific interventions over its duration. The majority of the costs
incurred that relate to the Productivity programme were for redundancy and are
recognised as restructuring in line with our policy. The remaining cost
comprise technology and supply chain projects.
(d) 2024 includes an impairment charge of €127 million relating to
Blueair, an air purification business.
Underlying operating profit (UOP) and underlying operating margin (UOM)
Underlying operating profit and underlying operating margin mean operating
profit and operating margin before the impact of non-underlying items within
operating profit. Underlying operating profit represents our measure of
segment profit or loss as it is the primary measure used for making decisions
about allocating resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit is as
follows:
€ million Full Year
(unaudited) 2024 2023
Operating profit 9,400 9,758
Non-underlying items within operating profit 1,779 173
Underlying operating profit 11,179 9,931
Turnover 60,761 59,604
Operating margin (%) 15.5 16.4
Underlying operating margin (%) 18.4 16.7
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing taxation excluding
the tax impact of non-underlying items by profit before tax excluding the
impact of non-underlying items and share of net (profit)/loss of joint
ventures and associates. This measure reflects the underlying tax rate in
relation to profit before tax excluding non-underlying items before tax and
share of net profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax on each
non-underlying item, based on the applicable country tax rates and tax
treatment. This is shown in the following table:
€ million Full Year
(unaudited) 2024 2023
Taxation 2,500 2,199
Tax impact of:
Non-underlying items within operating profit 129 207
Non-underlying items not in operating profit but within net profit 90 12
Taxation before tax impact of non-underlying items 2,719 2,418
Profit before taxation 8,869 9,339
Share of net profit of joint ventures and associates (255) (231)
Profit before tax excluding share of net profit of joint ventures and 8,614 9,108
associates
Non-underlying items within operating profit before tax 1,779 173
Non-underlying items not in operating profit but within net profit before tax 155 153
Profit before tax excluding non-underlying items before tax and share of net 10,548 9,434
profit of joint ventures and associates
Effective tax rate (%) 29.0 24.1
Underlying effective tax rate (%) 25.8 25.6
Underlying earnings per share
Underlying earnings per share (underlying EPS) is calculated as underlying
profit attributable to shareholders' equity divided by the diluted average
number of ordinary shares. In calculating underlying profit attributable to
shareholders' equity, net profit attributable to shareholders' equity is
adjusted to eliminate the post-tax impact of non-underlying items. This
measure reflects the underlying earnings for each share unit of the Group.
Refer to note 6 for reconciliation of net profit attributable to shareholders'
equity to underlying profit attributable to shareholders' equity.
The reconciliation of net profit attributable to shareholders' equity to
underlying profit attributable to shareholders' equity is as follows:
€ million Full Year
(unaudited) 2024 2023
Net profit 6,369 7,140
Non-controlling interest (625) (653)
Net profit attributable to shareholders' equity - used for basic and diluted 5,744 6,487
earnings per share
Post-tax impact of non-underlying items attributable to shareholders' equity 1,736 101
Underlying profit attributable to shareholders' equity - used for basic and 7,480 6,588
diluted earnings per share
Adjusted average number of shares (millions of share units) 2,507.1 2,532.4
Diluted EPS (€) 2.29 2.56
Underlying EPS - diluted (€) 2.98 2.60
Constant underlying EPS
Constant underlying earnings per share (constant underlying EPS) is calculated
as underlying profit attributable to shareholders' equity at constant exchange
rates and excluding the impact of both translational hedges and price growth
in excess of 26% per year in hyperinflationary economies divided by the
diluted average number of ordinary shares. This measure reflects the
underlying earnings for each share unit of the Group in constant exchange
rates.
The reconciliation of underlying profit attributable to shareholders' equity
to constant underlying earnings attributable to shareholders' equity and the
calculation of constant underlying EPS is as follows:
€ million Full Year
(unaudited) 2024 2023
Underlying profit attributable to shareholders' equity 7,480 6,588
Impact of translation from current to constant exchange rates and 272 (45)
translational hedges
Impact of price growth in excess of 26% per year in hyperinflationary (274) -
economies
Constant underlying earnings attributable to shareholders' equity 7,478 6,543
Diluted average number of share units (millions of units) 2,507.1 2,532.4
Constant underlying EPS (€) 2.98 2.58
Net debt
Net debt is a measure that provides valuable additional information on the
summary presentation of the Group's net financial liabilities and is a measure
in common use elsewhere. Net debt is defined as the excess of total financial
liabilities, excluding trade payables and other current liabilities, over
cash, cash equivalents and other current financial assets, excluding trade and
other current receivables, and non-current financial asset derivatives that
relate to financial liabilities.
The reconciliation of total financial liabilities to net debt is as follows:
€ million Full Year
(unaudited) 2024 2023
Total financial liabilities (32,053) (29,622)
Current financial liabilities (6,987) (5,087)
Non-current financial liabilities (25,066) (24,535)
Cash and cash equivalents as per balance sheet 6,136 4,159
Cash and cash equivalents as per cash flow statement 5,950 4,045
Add: bank overdrafts deducted therein 180 116
Less: cash and cash equivalents held for sale 6 (2)
Other current financial assets 1,330 1,731
Non-current financial asset derivatives that relate to financial liabilities 68 75
Net debt (24,519) (23,657)
Underlying earnings before interest, taxation, depreciation and amortisation
(UEBITDA)
Underlying earnings before interest, taxation, depreciation and amortisation
means operating profit before the impact of depreciation, amortisation and
non-underlying items within operating profit. We only use UEBITDA to assess
our leverage level, which is expressed as net debt to UEBITDA. The
reconciliation of operating profit to UEBITDA is as follows:
€ million Full Year
(unaudited) 2024 2023
Net profit 6,369 7,140
Net finance costs 604 486
Net monetary loss arising from hyperinflationary economies 195 142
Share of net profit of joint ventures and associates (255) (231)
Other (income)/loss from non-current investments and associates (13) 22
Taxation 2,500 2,199
Operating profit 9,400 9,758
Depreciation and amortisation 1,624 1,578
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 11,024 11,336
Non-underlying items within operating profit 1,779 173
Underlying earnings before interest, taxes, depreciation and amortisation 12,803 11,509
(UEBITDA)
Free cash flow (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as cash flow from
operating activities, less income taxes paid, net capital expenditure and net
interest payments. It does not represent residual cash flows entirely
available for discretionary purposes; for example, the repayment of principal
amounts borrowed is not deducted from FCF. FCF reflects an additional way of
viewing our liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of dividends,
repayment of debt or to fund our strategic initiatives, including
acquisitions, if any.
The reconciliation of cash flow from operating activities to FCF is as
follows:
€ million Full Year
(unaudited) 2024 2023
Cash flow from operating activities 12,144 11,561
Income tax paid (2,625) (2,135)
Net capital expenditure (1,934) (1,703)
Net interest paid (653) (632)
Free cash flow 6,932 7,091
Net cash flow (used in)/from investing activities (625) (2,294)
Net cash flow used in financing activities (6,941) (7,193)
Cash conversion
Unilever defines cash conversion as free cash flow excluding tax on disposal
as a proportion of net profit, excluding gain/loss on disposal and income from
JV, associates and non-current investments. This reflects our ability to
convert profit to cash.
€ million Full Year
(unaudited) 2024 2023
Net profit 6,369 7,140
Loss/(gain) on disposal of group companies 406 (489)
Share of net profit of joint ventures and associates (255) (231)
Other (income)/loss from non-current investments and associates (13) 22
Tax on gain on disposal of group companies 140 (69)
Net profit excluding P&L on disposals, JV, associates, NCI 6,647 6,373
Cash flow from operating activities 12,144 11,561
Free cash flow 6,932 7,091
Cash impact of tax on disposal 111 14
Free cash flow excluding cash impact of tax on disposal 7,043 7,105
Cash conversion from operating activities (%) 191 162
Cash conversion (%) 106 111
Underlying return on invested capital (ROIC)
Underlying return on invested capital (ROIC) is a measure of the return
generated on capital invested by the Group. The measure provides a guard rail
for long-term value creation and encourages compounding reinvestment within
the business and discipline around acquisitions with low returns and long
payback. Underlying ROIC is calculated as underlying operating profit after
tax divided by the annual average of: goodwill, intangible assets, property,
plant and equipment, net assets held for sale, inventories, trade and other
current receivables, and trade payables and other current liabilities.
€ million Full Year
(unaudited) 2024 2023
Operating profit 9,400 9,758
Tax on operating profit((a)) (2,726) (2,352)
Operating profit after tax 6,674 7,406
Operating profit 9,400 9,758
Non-underlying items within operating profit 1,779 173
Underlying operating profit before tax 11,179 9,931
Tax on underlying operating profit((b)) (2,882) (2,545)
Underlying operating profit after tax 8,297 7,386
Goodwill 22,311 21,109
Intangible assets 18,590 18,357
Property, plant and equipment 11,669 10,707
Net assets held for sale 119 516
Inventories 5,177 5,119
Trade and other current receivables 6,011 5,775
Trade payables and other current liabilities (16,690) (16,857)
Period-end invested capital 47,187 44,726
Average invested capital for the period 45,957 45,487
Return on invested capital (%) 14.5 16.3
Underlying return on invested capital (%) 18.1 16.2
(a) Tax on operating profit is calculated as operating profit before tax
multiplied by the effective tax rate of 29.0% (2023: 24.1%) which is shown on
note 4.
(b) Tax on underlying operating profit is calculated as underlying operating
profit before tax multiplied by the underlying effective tax rate of 25.8%
(2023: 25.6%) which is shown on page 16.
Cautionary Statement
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, concerning the financial condition,
results of operations and businesses of the Unilever Group (the 'Group'). All
statements other than statements of historical fact are, or may be deemed to
be, forward-looking statements. Words and terminology such as 'will', 'aim',
'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision',
'ambition', 'target', 'goal', 'plan', 'potential', 'work towards', 'may',
'milestone', 'objectives', 'outlook', 'probably', 'project', 'risk', 'seek',
'continue', 'projected', 'estimate', 'achieve' or the negative of these terms,
and other similar expressions of future performance, results, actions or
events, 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 Unilever's acceleration of its Growth
Action Plan, Unilever's portfolio optimisation towards global or scalable
brands, the capabilities and potential of such brands, the various aspects of
the separation of Ice Cream and its future operational model, strategy, growth
potential, performance and returns, Unilever's productivity programme, its
impacts and cost savings over the next three years and operation dis-synergies
from the separation of Ice Cream, the Group's emissions reduction targets and
other climate change related matters (including actions, potential impacts and
risks associated therewith). Forward-looking statements can be made in writing
but also may be made verbally by directors, officers and employees of the
Group (including during management presentations) in connection with this
announcement. These forward-looking statements are based upon current beliefs,
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. All forward-looking statements
contained in this announcement are expressly qualified in their entirety by
the cautionary statements contained or referred to in this section. Readers
should not place undue reliance on forward-looking statements.
Because these forward-looking statements involve known and unknown risks and
uncertainties, a number of which may be beyond the Group's control, 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 from the forward-looking statements
expressed in this announcement are: Unilever's ability to successfully
separate Ice Cream and realise the anticipated benefits of the separation;
Unilever's ability to successfully execute and consummate its productivity
programme in line with expected costs to achieve expected savings; 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 Unilever's 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.
The 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 intention, 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. New risks and uncertainties arise over time, and it is not possible for
us to predict those events or how they may affect us. In addition, we cannot
assess the impact of each factor on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Further details of potential risks and uncertainties affecting the Group are
described in the Group's filings with the London Stock Exchange, Euronext
Amsterdam and the US Securities and Exchange Commission, including in the
Annual Report on Form 20-F 2023 and the Unilever Annual Report and Accounts
2023.
Enquiries
Media: Media Relations Team Investors: Investor Relations Team
UK +44 78 2527 3767 press-office.london@unilever.com investor.relations@unilever.com
or +44 77 7999 9683 jonathan.sibun@teneo.com
NL +31 62 191 3705 kiran.hofker@unilever.com
or +31 61 500 8293 fleur-van.bruggen@unilever.com
After the conference call on 13 February 2025 at 8:00 AM (UK time), the
webcast of the presentation will be available at
www.unilever.com/investor-relations/results-and-presentations/latest-results
(www.unilever.com/investor-relations/results-and-presentations/latest-results)
.
This Results Presentation has been submitted to the FCA National Storage
Mechanism and is available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Consolidated income statement
€ million Full Year
(unaudited) 2024 2023 Change
Turnover 60,761 59,604 1.9%
Operating profit 9,400 9,758 (3.7)%
Net finance costs (604) (486)
Pensions and similar obligations 71 110
Finance income 438 442
Finance costs (1,113) (1,038)
Net monetary loss arising from hyperinflationary economies (195) (142)
Share of net profit of joint ventures and associates 255 231
Other income/(loss) from non-current investments and associates 13 (22)
Profit before taxation 8,869 9,339 (5.0)%
Taxation (2,500) (2,199)
Net profit 6,369 7,140 (10.8)%
Attributable to:
Non-controlling interests 625 653
Shareholders' equity 5,744 6,487 (11.5)%
Earnings per share
Basic earnings per share (euros) 2.30 2.58 (10.6)%
Diluted earnings per share (euros) 2.29 2.56 (10.6)%
Consolidated statement of comprehensive income
€ million Full Year
(unaudited) 2024 2023
Net profit 6,369 7,140
Other comprehensive income
Items that will not be reclassified to profit or loss, net of tax:
Gains/(losses) on equity instruments measured at fair value through other 60 (28)
comprehensive income
Remeasurement of defined benefit pension plans 264 (510)
Items that may be reclassified subsequently to profit or loss, net of tax:
Gains/(losses) on cash flow hedges 210 (27)
Currency retranslation gains/(losses) 1,389 (1,461)
Total comprehensive income 8,292 5,114
Attributable to:
Non-controlling interests 712 524
Shareholders' equity 7,580 4,590
Consolidated statement of changes in equity
(unaudited)
€ million Called Share Unification Other Retained Total Non- Total
up share premium reserve reserves profit controlling equity
capital account interest
1 January 2023 92 52,844 (73,364) (10,804) 50,253 19,021 2,680 21,701
Profit or loss for the period - - - - 6,487 6,487 653 7,140
Other comprehensive income, net of tax:
Losses on:
Equity instruments - - - (27) - (27) (1) (28)
Cash flow hedges - - - (27) - (27) - (27)
Remeasurements of defined benefit pension plans - - - - (508) (508) (2) (510)
Currency retranslation (losses)/gains((a)) - - - (1,629) 294 (1,335) (126) (1,461)
Total comprehensive income - - - (1,683) 6,273 4,590 524 5,114
Dividends on ordinary capital - - - - (4,327) (4,327) - (4,327)
Cancellation of treasury shares((b)) (4) - - 5,282 (5,278) - - -
Repurchase of shares((c)) - - - (1,507) - (1,507) - (1,507)
Movements in treasury shares((d)) - - - 75 (98) (23) - (23)
Share-based payment credit((e)) - - - - 212 212 - 212
Dividends paid to non-controlling interests - - - - - - (521) (521)
Hedging (gain)/loss transferred to non-financial assets - - - 117 - 117 - 117
Other movements in equity - - - 2 17 19 (21) (2)
31 December 2023 88 52,844 (73,364) (8,518) 47,052 18,102 2,662 20,764
Profit or loss for the period - - - - 5,744 5,744 625 6,369
Other comprehensive income, net of tax:
Gains on:
Equity instruments - - - 60 - 60 - 60
Cash flow hedges - - - 210 - 210 - 210
Remeasurements of defined benefit pension plans - - - - 269 269 (5) 264
Currency retranslation gains((a)) - - - 406 891 1,297 92 1,389
Total comprehensive income - - - 676 6,904 7,580 712 8,292
Dividends on ordinary capital - - - - (4,320) (4,320) - (4,320)
Cancellation of treasury shares - - - - - - - -
Repurchase of shares((c)) - - - (1,508) - (1,508) - (1,508)
Movements in treasury shares((d)) - - - 25 (120) (95) - (95)
Share-based payment credit((e)) - - - - 324 324 - 324
Dividends paid to non-controlling interests - - - - - - (712) (712)
Hedging (gain)/loss transferred to non-financial assets - - - (54) - (54) - (54)
Other movements in equity - - - 80 (119) (39) (97) (136)
31 December 2024 88 52,844 (73,364) (9,299) 49,721 19,990 2,565 22,555
(a) Includes a hyperinflation adjustment of €880 million (2023: €308
million) in relation to Argentina and Turkey.
(b) During 2023, 112,746,434 PLC ordinary shares held as treasury shares
were cancelled. The amount paid to repurchase these shares was initially
recognised in other reserves and is transferred to retained profit on
cancellation.
(c) Repurchase of shares reflects the cost of acquiring ordinary shares as
part of the share buyback programmes announced on 10 February 2022 and 8
February 2024.
(d) Includes purchases and sales of treasury shares, other than the share
buyback programme and the transfer from treasury shares to retained profit of
share-settled schemes arising from prior years and differences between
purchase and grant price of share awards.
(e) The share-based payment credit relates to the non-cash charge recorded
against operating profit in respect of the fair value of share options and
awards granted to employees.
Consolidated balance sheet
(unaudited)
€ million As at 31 December 2024 As at 31 December 2023
Non-current assets
Goodwill 22,311 21,109
Intangible assets 18,590 18,357
Property, plant and equipment 11,669 10,707
Pension asset for funded schemes in surplus 4,164 3,781
Deferred tax assets 1,280 1,113
Financial assets 1,571 1,386
Other non-current assets 971 911
60,556 57,364
Current assets
Inventories 5,177 5,119
Trade and other current receivables 6,011 5,775
Current tax assets 373 427
Cash and cash equivalents 6,136 4,159
Other financial assets 1,330 1,731
Assets held for sale 167 691
19,194 17,902
Total assets 79,750 75,266
Current liabilities
Financial liabilities 6,987 5,087
Trade payables and other current liabilities 16,690 16,857
Current tax liabilities 678 851
Provisions 831 537
Liabilities held for sale 48 175
25,234 23,507
Non-current liabilities
Financial liabilities 25,066 24,535
Non-current tax liabilities 585 384
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 173 351
Unfunded schemes 1,021 1,029
Provisions 571 563
Deferred tax liabilities 4,342 3,995
Other non-current liabilities 203 138
31,961 30,995
Total liabilities 57,195 54,502
Equity
Shareholders' equity 19,990 18,102
Non-controlling interests 2,565 2,662
Total equity 22,555 20,764
Total liabilities and equity 79,750 75,266
Consolidated cash flow statement
(unaudited) Full Year
€ million 2024 2023
Net profit 6,369 7,140
Taxation 2,500 2,199
Share of net profit of joint ventures/associates and other (income)/loss from (268) (209)
non-current investments and associates
Net monetary loss arising from hyperinflationary economies 195 142
Net finance costs 604 486
Operating profit 9,400 9,758
Depreciation, amortisation and impairment 1,757 1,579
Changes in working capital (160) 814
Inventories (198) 340
Trade and other receivables (206) 768
Trade payables and other liabilities 244 (294)
Pensions and similar obligations less payments (88) (281)
Provisions less payments 330 (185)
Elimination of loss/(profits) on disposals 436 (433)
Non-cash charge for share-based compensation 324 212
Other adjustments 145 97
Cash flow from operating activities 12,144 11,561
Income tax paid (2,625) (2,135)
Net cash flow from operating activities 9,519 9,426
Interest received 432 267
Purchase of intangible assets (233) (243)
Purchase of property, plant and equipment (1,738) (1,502)
Disposal of property, plant and equipment 37 42
Acquisition of businesses and investments in joint ventures and associates (795) (704)
Disposal of businesses, joint ventures and associates 985 436
Acquisition of other non-current investments (166) (533)
Disposal of other non-current investments 59 62
Dividends from joint ventures, associates and other non-current investments 261 239
Sale/(purchase) of financial assets 533 (358)
Net cash flow used in investing activities (625) (2,294)
Dividends paid on ordinary share capital (4,319) (4,363)
Interest paid (1,085) (899)
Net change in short-term borrowings 643 (570)
Additional financial liabilities 4,741 4,972
Repayment of financial liabilities (4,306) (3,905)
Capital element of lease rental payments (381) (394)
Repurchase of shares (1,508) (1,507)
Other financing activities (726) (527)
Net cash flow used in financing activities (6,941) (7,193)
Net increase/(decrease) in cash and cash equivalents 1,953 (61)
Cash and cash equivalents at the beginning of the period 4,045 4,225
Effect of foreign exchange rate changes (48) (119)
Cash and cash equivalents at the end of the period 5,950 4,045
Notes to the condensed consolidated financial statements
(unaudited)
1. Accounting information and policies
Except as set out below the accounting policies and methods of computation are
consistent with the year ended 31 December 2023. In conformity with the
requirements of the Companies Act 2006, the condensed consolidated preliminary
financial statements have been prepared based on the International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standard
Board (IASB) and UK-adopted international accounting standards.
The condensed consolidated financial statements are shown at current exchange
rates, and percentage year-on-year changes are shown to facilitate comparison.
The consolidated income statement on page 21, the consolidated statement of
comprehensive income on page 21, the consolidated statement of changes in
equity on page 22 and the consolidated cash flow statement on page 24 are
translated at exchange rates current in each period. The balance sheet on page
23 is translated at period-end rates of exchange.
The condensed consolidated financial statements attached do not constitute the
full financial statements within the meaning of Section 434 of the UK
Companies Act 2006, which will be finalised and delivered to the Registrar of
Companies in due course. Full accounts for Unilever for the year ended 31
December 2023 have been delivered to the Registrar of Companies; the auditors'
reports on these accounts were unqualified, did not include a reference to any
matters by way of emphasis and did not contain a statement under Section 498
(2) or Section 498 (3) of the UK Companies Act 2006.
Accounting developments adopted by the Group
On 1 January 2024, the Group adopted the amendments to IAS 7 and IFRS 7
"Supplier Finance Arrangements". The amendments introduce additional
disclosure requirements for companies that enter supplier finance
arrangements. This will be disclosed in the financial statements for the year
ended 31 December 2024.
All other new standards or amendments issued by the IASB and UK Endorsement
Board that were effective by 1 January 2024, were either not applicable or not
material to the Group.
2. Segment information - Business Groups
Fourth Quarter Beauty & Wellbeing Personal Care Home Care Foods Ice Cream Total
Turnover (€ million)
2023 3,181 3,404 2,974 3,416 1,202 14,177
2024 3,310 3,235 2,960 3,434 1,223 14,162
Change (%) 4.1 (5.0) (0.5) 0.5 1.8 (0.1)
Full Year Beauty & Wellbeing Personal Care Home Care Foods Ice Cream Total
Turnover (€ million)
2023 12,466 13,829 12,181 13,204 7,924 59,604
2024 13,157 13,618 12,352 13,352 8,282 60,761
Change (%) 5.5 (1.5) 1.4 1.1 4.5 1.9
Operating profit (€ million)
2023 2,209 2,957 1,419 2,413 760 9,758
2024 1,970 2,739 1,521 2,599 571 9,400
Underlying operating profit (€ million)
2023 2,331 2,792 1,496 2,460 852 9,931
2024 2,552 3,014 1,785 2,847 981 11,179
Underlying 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. Underlying
operating margin is calculated as underlying operating profit divided by
turnover.
3. Segment information - Geographical area
Fourth Quarter Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 6,119 5,388 2,670 14,177
2024 5,988 5,453 2,721 14,162
Change (%) (2.1) 1.2 1.9 (0.1)
Full Year Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 26,234 21,531 11,839 59,604
2024 25,991 22,491 12,279 60,761
Change (%) (0.9) 4.5 3.7 1.9
4. Taxation
The effective tax rate for 2024 is 29.0% compared with 24.1% in 2023. For 2024
there is an adverse impact arising from disposals whereas in 2023 there was a
benefit.
5. Earnings per share
The earnings per share calculations are based on the average number of share
units representing the ordinary shares of PLC in issue during the period, less
the average number of shares held as treasury shares.
In calculating diluted earnings per share, a number of adjustments are made to
the number of shares, principally the exercise of share plans by employees.
Earnings per share for total operations for the twelve months were calculated
as follows:
Full Year
2024 2023
EPS - Basic
Net profit attributable to shareholders' equity (€ million) 5,744 6,487
Average number of shares (millions of share units) 2,492.6 2,515.9
EPS - basic (€) 2.30 2.58
EPS - Diluted
Net profit attributable to shareholders' equity (€ million) 5,744 6,487
Adjusted average number of shares (millions of share units) 2,507.1 2,532.4
EPS - diluted (€) 2.29 2.56
During the period the following movements in shares have taken place:
Millions
Number of shares at 31 December 2023 (net of treasury shares) 2,499.0
Shares repurchased under the share buyback programme (27.4)
Net movements in shares under incentive schemes 4.0
Number of shares at 31 December 2024 (net of treasury shares) 2,475.6
6. Acquisitions and disposals
In 2024, the Group completed the business acquisitions and disposals as listed
below.
Deal completion date Acquired/disposed business
1 February 2024 Acquired 91.88% of K18, a U.S. based premium hair care brand. The acquisition
complements Unilever's existing Beauty and Wellbeing portfolio, with a range
of high-quality, hair care products.
1 June 2024 Sold Elida Beauty to Yellow Wood Partners LLC. Elida Beauty comprises more
than 20 beauty and personal care brands, such as Q-Tips, Caress, Timotei and
TIGI.
1 August 2024 Sold Qinyuan Group (also known as "Truliva") to Yong Chao Venture Capital Co.,
Ltd. Qinyuan Group offers a range of water purification solutions to
households in China.
8 October 2024 Sold the Russian subsidiary to Arnest Group. The sale includes all of
Unilever's business in Russia and its four factories in the country, along
with our business in Belarus.
1 November 2024 Sold Pureit to A.O. Smith. Pureit offers a range of water purification
solutions across India, Bangladesh, Sri Lanka, Vietnam and Mexico, among
others.
On 22 January 2025, Hindustan Unilever Limited announced it has signed an
agreement to acquire Minimalist, a premium actives-led beauty brand in India.
The transaction is expected to be completed by Q2 2025.
Acquisitions
The net consideration for acquisitions in 2024 is €616 million (2023: €675
million for acquisitions completed during that year).
Effect on consolidated income statement
If the acquisition deals completed in 2024 had all taken place at the
beginning of the year, Group turnover would have been €60,772 million, and
Group operating profit would have been €9,402 million.
Effect on consolidated balance sheet
The following table summarises the consideration and net assets acquired in
2024. The fair values currently used for opening balances are provisional.
These balances remain provisional due to there being outstanding relevant
information in regard to facts and circumstances that existed as of the
acquisition date and/or where valuation work is still ongoing.
€ million Total 2024
Intangible assets 382
Other non-current assets 14
Trade and other receivables 15
Other current assets 36
Non-current liabilities((a)) (99)
Current liabilities (15)
Net assets acquired 333
Non-controlling interest (27)
Goodwill 310
Total consideration 616
Of which:
Cash consideration paid 616
Deferred consideration -
(a) Non-current liabilities include deferred tax of €99 million.
Disposals
Total consideration for 2024 disposals is €1,396 million (2023: €578
million for disposals completed during that year). The following table sets
out the effect of the disposals in 2024 and comparative year on the
consolidated balance sheet. The results of disposed businesses are included in
the consolidated financial statements up until their date of disposal.
€ million 2024 2023
Goodwill and intangible assets((a)) 1,107 56
Other non-current assets 218 55
Current assets((b)) 700 108
Liabilities((c)) (683) (144)
Net assets sold 1,342 75
Loss on recycling of currency retranslation on disposal 545 14
Non-controlling interest (85) -
Profit/(loss) on sale attributable to Unilever (406) 489
Consideration 1,396 578
Of which:
Cash((d)) 1,299 477
Non-cash items and deferred consideration 97 101
(a) 2024 includes intangibles of €984 million relating to the disposals of
the Elida Beauty, Russia and Truliva businesses.
(b) 2024 includes inventories of €126 million, cash of €324 million and
trade receivables of €215 million.
(c) 2024 includes €431 million of trade payables.
(d) 2024 includes €324 million related to cash balances of businesses
sold.
7. Share buyback
On the 8 February 2024, we announced a share buyback programme for an
aggregate market value equivalent of up to €1.5 billion. As at 31 December
2024 the Group repurchased 27,368,909 ordinary shares for €1.5 billion,
which will be held as Treasury stock until cancellation.
8. Financial instruments
The Group's Treasury function aims to protect the Group's financial
investments, while maximising returns. The fair value of financial assets is
the same as the carrying amount for 2024 and 2023. The Group's cash resources
and
other financial assets are shown below.
31 December 2024 31 December 2023
€ million Current Non-current Total Current Non-current Total
Cash and cash equivalents
Cash at bank and in hand 3,241 - 3,241 2,862 - 2,862
Short-term deposits((a)) 2,436 - 2,436 1,181 - 1,181
Other cash equivalents((b)) 459 - 459 116 - 116
6,136 - 6,136 4,159 - 4,159
Other financial assets
Financial assets at amortised cost((c)) 736 526 1,262 961 454 1,415
Financial assets at fair value through other comprehensive income((d)) - 600 600 151 458 609
Financial assets at fair value through profit or loss:
Derivatives 149 68 217 37 75 112
Other((e)) 445 377 822 582 399 981
1,330 1,571 2,901 1,731 1,386 3,117
Total financial assets((f)) 7,466 1,571 9,037 5,890 1,386 7,276
(a) Short-term deposits typically have a maturity of up to 3 months.
(b) Other cash equivalents include investments in overnight funds and
marketable securities.
(c) Current financial assets at amortised cost include short term deposits
with banks with maturities longer than three months excluding deposits which
are part of a recognised cash management process, fixed income securities and
loans to joint venture entities. Non-current financial assets at amortised
cost include judicial deposits of €196 million (2023: €227 million).
(d) Included within non-current financial assets at fair value through other
comprehensive income are equity investments.
(e) Other financial assets at fair value through profit or loss include
money market funds, marketable securities, other capital market instruments
and investments in financial institutions.
(f) Financial assets exclude trade and other current receivables.
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.
Fair value Carrying amount
€ million As at 31 December 2024 As at 31 December 2023 As at 31 December 2024 As at 31 December 2023
Financial assets
Cash and cash equivalents 6,136 4,159 6,136 4,159
Financial assets at amortised cost 1,262 1,415 1,262 1,415
Financial assets at fair value through other comprehensive income 600 609 600 609
Financial assets at fair value through profit and loss:
Derivatives 217 112 217 112
Other 822 981 822 981
9,037 7,276 9,037 7,276
Financial liabilities
Bank loans and overdrafts (521) (506) (521) (506)
Bonds and other loans (28,037) (26,112) (28,648) (26,692)
Lease liabilities (1,486) (1,395) (1,486) (1,395)
Derivatives (594) (494) (594) (494)
Other financial liabilities (804) (535) (804) (535)
(31,442) (29,042) (32,053) (29,622)
For assets and liabilities which are carried at fair value, the classification
of fair value calculations by category is summarised below:
As at 31 December 2024 As at 31 December 2023
€ million Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets at fair value
Financial assets at fair value through other comprehensive income 10 4 586 163 4 442
Financial assets at fair value through profit or loss:
Derivatives((a)) - 420 - - 149 -
Other 445 - 377 582 - 399
Liabilities at fair value
Derivatives((b)) - (650) - - (559) -
Contingent consideration - - (1) - - (157)
(a) Includes €203 million (2023: €37 million) derivatives, reported
within trade receivables, that hedge trading activities.
(b) Includes €(56) million (2023: €(65) 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 2023. There were also no
significant movements between the fair value hierarchy classifications since
31 December 2023.
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 fair
value of financial assets and financial liabilities (excluding listed bonds)
is considered to be same as the carrying amount for 2024 and 2023.
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
2023.
9. Dividends
The Board has declared a quarterly interim dividend for Q4 2024 of £0.3775
per Unilever PLC ordinary share or €0.4528 per Unilever PLC ordinary share
at the applicable exchange rate issued by WM/Reuters on 11 February 2025.
The following amounts will be paid in respect of this quarterly interim
dividend on the relevant payment date:
Per Unilever PLC ordinary share (traded on the London Stock Exchange): £0.3775
Per Unilever PLC ordinary share (traded on Euronext in Amsterdam): €0.4528
Per Unilever PLC American Depositary Receipt: US$0.4674
The euro and US dollar amounts above have been determined using the applicable
exchange rates issued by WM/Reuters on 11 February 2025.
US dollar cheques for the quarterly interim dividend will be mailed on
28 March 2025 to holders of record at the close of business on 28 February
2025.
The quarterly dividend calendar for Q4 2024 and the remainder of 2025 will be
as follows:
Announcement Ex-dividend Date for Ordinary Shares Ex-dividend Date for ADRs Record Date Last Date for DRIP Election Payment Date
Date
Q4 2024 Dividend 13 February 2025 27 February 2025 28 February 2025 28 February 2025 07 March 2025 28 March 2025
Q1 2025 Dividend 24 April 2025 15 May 2025 16 May 2025 16 May 2025 22 May 2025 13 June 2025
Q2 2025 Dividend 31 July 2025 14 August 2025 15 August 2025 15 August 2025 21 August 2025 12 September 2025
Q3 2025 Dividend 23 October 2025 06 November 2025 07 November 2025 07 November 2025 14 November 2025 05 December 2025
10. Events after the balance sheet date
There are no material post balance sheet events other than those mentioned
elsewhere in this report.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR KLLFFELLXBBERecent news on Unilever
See all newsREG - Unilever PLC - Director Declaration
AnnouncementREG - Unilever PLC - Total Voting Rights
AnnouncementREG - Unilever PLC - Transaction in Own Shares
AnnouncementREG - Unilever PLC - Result of AGM
AnnouncementREG - Unilever PLC - SID and Board Committee Membership
Announcement