REG - Unilever PLC - Q3 2024 Trading Statement
24/10/2024 07:00
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RNS Number : 3835J Unilever PLC 24 October 2024
Unilever Trading Statement - Third Quarter 2024
Volume-led growth, positive in all Business Groups
Third Quarter 2024 Nine Months 2024
(unaudited) USG Turnover vs 2023 USG Turnover vs 2023
Unilever 4.5% €15.2bn -% 4.3% €46.4bn 1.3%
Beauty & Wellbeing 6.7% €3.2bn 5.5% 7.0% €9.8bn 5.1%
Personal Care 4.4% €3.4bn (5.7)% 5.2% €10.4bn (1.6)%
Home Care 1.9% €3.0bn (2.9)% 2.8% €9.3bn -%
Nutrition 1.5% €3.2bn (1.5)% 2.6% €9.9bn 0.3%
Ice Cream 9.8% €2.4bn 8.1% 3.6% €7.0bn 3.9%
Third quarter highlights
• Underlying sales growth (USG) of 4.5%, with volume growth
increasing to 3.6%
• Power Brands (>75% of turnover) leading growth with 5.4% USG
and volumes up 4.3%
• Turnover of €15.2 billion with (2.8)% impact from currency and
(1.5)% from net disposals
• 2024 full year outlook unchanged with 3-5% USG and an underlying
operating margin of at least 18%
• Final tranche underway of 2024 share buyback programme of up to
€1.5 billion
• Productivity programme and separation of Ice Cream on track
Chief Executive Officer statement
"We have delivered a fourth consecutive quarter of positive, improved volume
growth, with each of our Business Groups driving higher volumes year-on-year.
Underlying sales grew 4.5%, led by our Power Brands, with particularly strong
performances from Dove, Liquid I.V., Comfort and Magnum. Price growth
continued to moderate in line with our expectations.
We are still in the early stages of transforming our performance as we execute
the Growth Action Plan at pace - focused on doing fewer things, better and
with greater impact. We are starting to see the positive impact from scaling
fewer, bigger innovations across our markets supported by increased brand
investment. We are taking decisive actions, where we see operational or market
challenges to ensure we are well positioned for consistent and improved
performance. As part of the Group's overall transformation, we are
implementing a comprehensive productivity programme and the separation of Ice
Cream, both of which are progressing as planned.
We are on track to deliver our 2024 outlook and are confident that the steps
we are taking will help to transform Unilever over time into a consistently
higher performing business."
Hein Schumacher
Outlook
Our full year 2024 outlook is unchanged.
We continue to expect underlying sales growth (USG) for 2024 to be within our
multi-year range of 3% to 5%, with the majority of the growth being driven by
volume.
Underlying operating margin for the full year is expected to be at least 18%,
with increasing investment behind our brands. We expect the year-on-year
margin progression in the second half to be smaller than in the first half.
Third Quarter Review: Unilever Group
Growth
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €15.2bn 4.5% 3.6% 0.9% 0.3% (1.8)% (2.8)% -%
Nine Months €46.4bn 4.3% 2.9% 1.3% 0.4% (1.4)% (1.9)% 1.3%
Underlying sales growth in the third quarter was 4.5%, against the backdrop of
slower market growth. Underlying volume growth (UVG) increased to 3.6% in Q3,
the fourth consecutive quarter of positive and improving volume growth. All
business groups achieved positive volume growth. As expected, underlying price
growth continued to moderate to 0.9% in Q3.
The Power Brands performed strongly with 5.4% underlying sales growth, driven
by volume growth of 4.3%. Our other brands also delivered volume growth of
1.3% in Q3, up from (1.6)% in H1.
Beauty & Wellbeing grew underlying sales 6.7%, with volume growth of 5.7%.
Health & Wellbeing and Prestige Beauty combined delivered a fifteenth
consecutive quarter of double-digit, volume-led growth. Strong growth in
Health & Wellbeing more than offset softer growth in Prestige, reflecting
the continued slowdown in the US and China beauty markets. Personal Care grew
4.4% with 3.1% from volume, driven by a strong Dove performance. Home Care
underlying sales increased by 1.9%, with 3.3% volume growth more than
offsetting continued negative price growth linked to commodity cost deflation.
Nutrition grew underlying sales 1.5%, with muted volume growth of 0.4% amidst
moderating prices and market slowdown. Ice Cream grew 9.8%, with 6.7% from
volume and 2.9% from price. This improved performance reflects the continued
focus on operational improvements alongside strong innovations, amplified by a
weak comparator.
Developed markets (43% of Group turnover) grew underlying sales 6.9% with 6.8%
from volume and 0.1% from price. Volume growth was broad-based and reflected
strong growth in Beauty & Wellbeing in North America, strong growth in
Home Care in Europe and a marked volume improvement in Ice Cream. As expected,
price growth moderated further.
Emerging markets (57% of Group turnover) grew underlying sales 2.9%, with 1.4%
from volume and 1.5% from price. India grew 2.3% with volume growth of 3.4%.
Underlying price growth of (1.0)% in India lapped a one-off indirect tax
benefit in the prior year, without which Q3 UPG would have been flat. Latin
America grew 3.8%. This slower rate of growth reflected a decline in the
laundry powders market in Brazil and low-single digit growth in Mexico after
eight quarters of double-digit growth. Africa and Turkey continued to deliver
double-digit growth.
China declined low-single digit with market weakness across categories and in
the context of softer markets, we are transforming our go-to-market approach.
South East Asia declined mid-single digit, driven by an (18)% decline in
Indonesia which was only partially offset by volume-led growth in Philippines
and Thailand.
We are making decisive interventions to fix our long-standing issues in
Indonesia, which include removing price instability across channels and
resetting stock levels in retail to what we consider optimum levels. We expect
to see the benefits of the changes in Indonesia and China from the second half
of 2025.
Turnover of €15.2 billion was in line with the prior year, as underlying
sales growth was offset by a currency impact of (2.8)% and (1.5)% from
disposals net of acquisitions.
Progress on Ice Cream separation and productivity programme
In March, we announced the separation of Ice Cream and the launch of a major
productivity programme to strengthen the company and substantially improve our
efficiency and effectiveness.
Separation activity is on track to complete by the end of 2025. We are
progressing with the legal entity set up, the standalone operating model and
the carve-out financials.
In July, we communicated internally on the changes planned within the
productivity programme to simplify our business and further evolve our
category-focused operating model. We have started the implementation in those
countries where the consultation with the respective works councils completed.
Capital allocation
On 2 August 2024, we completed the sale of our stake in Qinyuan Group (also
known as "Truliva"), which offers a range of water purification solutions to
households in China, to Yong Chao Venture Capital Co., Ltd.
On 10 October 2024, we completed the sale of our Russian subsidiary to Arnest
Group. The sale includes all of Unilever's business in Russia and its four
factories, as well as our business in Belarus.
In February 2024, we announced a share buyback programme of up to €1.5
billion to be conducted during 2024. The first tranche of €700 million
completed in August. The second tranche of up to €800 million commenced in
September and will complete in December 2024.
After the quarterly interim dividend for the second quarter was raised by 3.0%
to €0.4396, the quarterly interim dividend for the third quarter is
maintained at this level.
Conference Call
Following the release of this trading statement on 24 October 2024 at 7:00 AM
(UK time), there will be a live webcast at 8:00 AM available on the website
www.unilever.com/investor-relations/results-and-presentations/latest-results
(file:///C:/Users/Clara.Sidoroinicz/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/KOY7ZVJS/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
22 November 2024 Unilever Investor Event 2024
13 February 2025 Q4 and FY 2024 results
Third Quarter Review: Business Groups
Third Quarter 2024 Nine Months 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €15.2bn 4.5% 3.6% 0.9% €46.4bn 4.3% 2.9% 1.3%
Beauty & Wellbeing €3.2bn 6.7% 5.7% 0.9% €9.8bn 7.0% 5.6% 1.3%
Personal Care €3.4bn 4.4% 3.1% 1.3% €10.4bn 5.2% 3.0% 2.2%
Home Care €3.0bn 1.9% 3.3% (1.4)% €9.3bn 2.8% 4.2% (1.3)%
Nutrition €3.2bn 1.5% 0.4% 1.1% €9.9bn 2.6% 0.1% 2.5%
Ice Cream €2.4bn 9.8% 6.7% 2.9% €7.0bn 3.6% 1.5% 2.1%
Beauty & Wellbeing (21% of Q3 turnover)
In Beauty & Wellbeing, we focus on three key priorities that will drive
the unmissable superiority of our brands: elevating our core Hair Care and
Skin Care brands to increase premiumisation; fuelling the growth of Prestige
Beauty and Health & Wellbeing with selective international expansion; and
continuing to strengthen our beauty and wellbeing capabilities.
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €3.2bn 6.7% 5.7% 0.9% 1.0% -% (2.1)% 5.5%
Nine Months €9.8bn 7.0% 5.6% 1.3% 0.9% (1.1)% (1.6)% 5.1%
Beauty & Wellbeing delivered a strong performance, with underlying sales
up 6.7%, driven by volume up 5.7% and price up 0.9%.
Hair Care delivered low-single digit growth with low-single digit volume
growth. Dove continued to deliver volume-led growth following the first half
launch of Scalp + Hair Therapy, while TRESemmé grew mid-single digit with
continued success of its treatments and styling range. Our largest hair care
brand, Sunsilk, grew low-single digit and Clear achieved high-single digit
growth outside China, but was flat overall.
Core Skin Care grew mid-single digit led by double-digit volume growth in the
United States. Dove achieved strong double-digit growth, which included the
launch of High Potency Body Serums and 3-in-1 face care treatments in Brazil.
Pond's grew double-digit supported by our Bright Miracle and Age Miracle face
care ranges, featuring advanced technologies for clearer, more youthful skin.
Vaseline continued to perform well, supported by the continued rollout of
premium innovations like Radiant X and Gluta Hya, as well as the launch of Pro
VitaB3 Serum-Burst Lotion in the United States.
Health & Wellbeing and Prestige Beauty combined delivered double-digit
growth for the fifteenth consecutive quarter. This was led by very strong
growth in Health & Wellbeing, which offset lower growth in Prestige
Beauty reflecting the continued slowdown in the United States and China
beauty markets. Liquid I.V. delivered another quarter of strong double-digit
growth, driven by a successful summer season and continued international
expansion. Nutrafol and Olly also saw strong double-digit growth, with Olly's
female health supplements performing well in China. Hourglass led Prestige
growth with strong double-digit growth, driven by hero products such as Vanish
Airbrush Concealer and Veil Hydrating Skin Tint, while Paula's Choice was
impacted by the market slowdown.
Personal Care (22% of Q3 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 Acquisitions Disposals Currency Turnover change
Third Quarter €3.4bn 4.4% 3.1% 1.3% -% (6.3)% (3.6)% (5.7)%
Nine Months €10.4bn 5.2% 3.0% 2.2% -% (4.4)% (2.1)% (1.6)%
Personal Care delivered volume-led growth with underlying sales up 4.4%,
driven by volume up 3.1% and price up 1.3%.
Deodorants grew high-single digit, which was volume-led. Latin America led
growth with double-digit volume, while Europe and North America saw mid-single
digit increases. Dove continued to grow double-digit with strength across both
core women and Dove Men+Care ranges, including our expansion into the whole
body deodorants market in the first half. Axe and Rexona continued to grow,
driven by the ongoing success of our fine fragrance and clinical ranges.
Skin Cleansing grew low-single digit fully driven by volume. In Europe, we
achieved high-single digit growth driven by volume increases, while in the
United States, we saw mid-single digit growth. Dove delivered high-single
digit growth, supported by the first-half relaunch of Dove's body wash in
Europe and the launch of Dove's premium body wash range infused with skincare
serums in the United States. Growth was tempered by deflation in India,
category declines in China, and operational challenges in Indonesia.
Oral Care grew low-single digit with mid-single digit growth in Europe
partially offset by a decline in Indonesia.
Home Care (20% of Q3 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 Acquisitions Disposals Currency Turnover change
Third Quarter €3.0bn 1.9% 3.3% (1.4)% -% (1.2)% (3.6)% (2.9)%
Nine Months €9.3bn 2.8% 4.2% (1.3)% -% (0.4)% (2.3)% -%
Home Care underlying sales grew 1.9%, with volume growth of 3.3%, partially
offset by a (1.4)% price decline.
Fabric Cleaning declined low-single digit as slightly positive volume was more
than offset by low-single digit negative price. Europe led with high-single
digit growth, driven by double-digit volume. Persil Wonder Wash, featuring our
patented Pro-S technology designed for short cycle washes, continued to
perform well and was launched in Turkey in Q3. In India, we grew high-single
digit driven by strong volumes and double-digit growth in liquids led by our
Surf Excel Matic and Rin ranges. Brazil saw declines in both price and volume
due to a softening market and commodity deflation, particularly affecting our
powders portfolio.
Home & Hygiene grew mid-single digit led by volume. Domestos grew
double-digit led by momentum in our Power Foam range which expanded to new
geographies including Poland and Turkey. Cif also maintained double-digit,
volume-led growth.
Fabric Enhancers grew double-digit with strong volumes slightly offset by
negative price. Comfort continued to deliver double-digit volume growth
following the successful first-half launch of our new, Botanicals and Elixir
ranges, with our patented CrystalFresh technology.
Nutrition (21% of Q3 turnover)
In 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 Acquisitions Disposals Currency Turnover change
Third Quarter €3.2bn 1.5% 0.4% 1.1% -% (0.5)% (2.5)% (1.5)%
Nine Months €9.9bn 2.6% 0.1% 2.5% -% (0.4)% (1.9)% 0.3%
Nutrition underlying sales grew 1.5%, driven by positive price and volume.
Scratch Cooking Aids grew low-single digit, led by mid-single digit growth in
Knorr. In Latin America, we achieved double-digit growth, driven by strong
performance from our next generation bouillon & seasoning ranges with
enhanced flavours and micronutrients. In the United States, we saw mid-single
digit growth, entirely volume-driven, benefiting from social-first campaigns
promoting home cooking with bouillon.
Dressings was flat with low-single digit volume offset by negative price.
Hellmann's delivered low-single digit volume growth which was offset by
negative price as promotional intensity increased. Flavoured mayo continued to
perform well with rapid geographic expansion, including recent launches in
Argentina and the Philippines.
Unilever Food Solutions grew low-single digit with positive volumes despite a
slowdown in China. We continued to expand our digital selling programme and
benefited from the launch of Hellmann's Professional Mayo in Europe and
Brazil, specifically designed for professional kitchens.
Ice Cream (16% of Q3 turnover)
In Ice Cream, our immediate strategic priority is to expand operating profit
and global market share. We will do this by building the unmissable
superiority of our brands, accelerating market development in emerging
markets, continuing to lead the industry on innovation and premiumisation, and
by stepping up our performance and productivity. In March, we announced the
planned separation of Ice Cream which we expect to be completed by the end of
2025. 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 Acquisitions Disposals Currency Turnover change
Third Quarter €2.4bn 9.8% 6.7% 2.9% 0.7% -% (2.3)% 8.1%
Nine Months €7.0bn 3.6% 1.5% 2.1% 1.5% -% (1.2)% 3.9%
Ice Cream underlying sales grew 9.8%, with 6.7% from volume and 2.9% from
price. This improved performance was driven by operational strengthening,
including distribution gains and optimised promotional activities, alongside
strong innovations. These improvements were amplified by a weak Q3 2023
comparator.
In-home grew double-digit led by double-digit volume growth in Europe.
Magnum's first bite-sized innovation, Bon Bons, along with Ben & Jerry's
Peaces and Yasso's Poppables, performed well. These premium micro-format
innovations cater to the demand for smaller, frequent indulgences, driving
growth in the Ice Cream category year-round.
Out-of-home grew high-single digit with positive volume and price growth.
Magnum achieved double-digit growth, with continued strong performance of its
premium 'Pleasure Express' range, featuring Euphoria, Wonder, and Chill. Ben
& Jerry's and Cornetto saw high-single digit growth, supported by
Cornetto's first global relaunch with enhanced formulation and new packaging.
Third Quarter Review: Geographical Areas
Third Quarter 2024 Nine Months 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €15.2bn 4.5% 3.6% 0.9% €46.4bn 4.3% 2.9% 1.3%
Asia Pacific Africa €6.5bn 2.5% 1.0% 1.5% €19.9bn 3.2% 2.0% 1.2%
The Americas €5.5bn 5.9% 4.6% 1.3% €16.9bn 5.6% 4.1% 1.4%
Europe €3.2bn 6.5% 7.7% (1.0)% €9.6bn 4.5% 2.9% 1.5%
Third Quarter 2024 Nine Months 2024
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Emerging markets €8.7bn 2.9% 1.4% 1.5% €27.0bn 4.4% 3.0% 1.3%
Developed markets €6.5bn 6.9% 6.8% 0.1% €19.4bn 4.1% 2.8% 1.3%
North America €3.3bn 7.4% 6.2% 1.1% €10.0bn 4.7% 3.4% 1.3%
Latin America €2.2bn 3.8% 2.0% 1.7% €6.9bn 7.0% 5.3% 1.6%
Asia Pacific Africa (43% of Q3 turnover)
Underlying sales growth was 2.5% with 1.0% from volume and 1.5% from price.
India grew 2.3% driven by volume at 3.4%. Price at (1.0)% lapped an indirect
tax one-off in the 2023 base; excluding this, Q3 UPG would have been flat.
Growth was led by strong volume in both Beauty & Wellbeing and Home Care.
Africa and Turkey continued to grow double-digit with positive price and
volume.
China declined low-single digit amidst continued weak consumer sentiment. In
addition, we are resetting our go-to-market approach with higher category
focus, updated channel strategies and sharper geographic choices. We appointed
new leadership in China, and we will continue to build on our strong positions
in core categories.
Underlying sales declined (18)% in Indonesia, primarily due to our
long-standing operational issues.
We are taking significant actions in Indonesia, which include removing price
instability across channels and resetting stock levels in retail to what we
consider optimum levels.
We expect to see the benefits of the changes in Indonesia and China from the
second half of 2025.
The Americas (36% of Q3 turnover)
Underlying sales grew 7.4% in North America with 6.2% from volume and 1.1%
from price. Beauty & Wellbeing delivered double-digit, volume-led growth,
driven by a strong performance in Health & Wellbeing and continued good
momentum in Vaseline. Personal Care saw a balanced mid-single digit growth,
supported by Dove. Nutrition grew low-single digit with positive volume and
price, but reflecting a slowdown in category growth. Ice Cream contributed
high-single digit volume growth and positive price supported by strong
Popsicle SpongeBob and Minions innovations.
Underlying sales in Latin America decelerated to 3.8% with 2.0% volume and
1.7% price. Beauty & Wellbeing and Personal Care grew high-single digit
with positive price and volume, led by double-digit volume growth in
Deodorants and Skin Care. Home Care declined low-single digit, adversely
affected by a slowdown in Brazil powders' market. Nutrition grew mid-single
digit with a strong performance from Knorr. Ice Cream declined low-single
digit driven by adverse weather conditions in the region. Brazil grew
low-single digit with strong growth from Beauty & Wellbeing and Personal
Care. Mexico experienced low-single digit growth as pricing and volumes began
to normalise after double-digit growth over the previous eight quarters.
Despite ongoing economic adjustments in Argentina and continued
hyperinflationary pricing, we delivered positive volume growth.
Europe (21% of Q3 turnover)
Underlying sales grew 6.5% with volume growth of 7.7% partially offset by
negative price of (1.0)%. Our stepped-up performance in Europe was underpinned
by a strong innovation programme and increased levels of brand investment. Ice
Cream and Home Care delivered double-digit, volume-led growth, while Personal
Care grew mid-single digit, led by another quarter of strong volume growth in
Deodorants. Nutrition was slightly positive. Growth was broad-based in Europe,
with all major markets delivering positive volume growth in the quarter.
Dividends
The Board has declared a quarterly interim dividend for Q3 2024 of £0.3663
per Unilever PLC ordinary share or €0.4396 per Unilever PLC ordinary share
at the applicable exchange rate issued by WM/Reuters on 22 October 2024.
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): £0.3663
Per Unilever PLC ordinary share (traded on Euronext in Amsterdam): €0.4396
Per Unilever PLC American Depositary Receipt: US$0.4755
The euro and US dollar amounts above have been determined using the applicable
exchange rates issued by WM/Reuters on 22 October 2024.
US dollar cheques for the quarterly interim dividend will be mailed on
06 December 2024 to holders of record at the close of business on
08 November 2024.
The quarterly dividend calendar for the remainder of 2024 will be as follows:
Announcement Date Ex-dividend Date for Ordinary Shares Ex-dividend Date for ADRs Record Date Payment Date
Q3 2024 Dividend 24 October 2024 07 November 2024 08 November 2024 08 November 2024 06 December 2024
Segment Information - Business Groups
(unaudited)
Third Quarter Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2023 3,106 3,597 3,084 3,250 2,205 15,242
2024 3,276 3,393 2,993 3,201 2,383 15,246
Change (%) 5.5 (5.7) (2.9) (1.5) 8.1 -
Impact of:
Acquisitions (%) 1.0 - - - 0.7 0.3
Disposals (%) - (6.3) (1.2) (0.5) - (1.8)
Currency-related items (%), of which: (2.1) (3.6) (3.6) (2.5) (2.3) (2.8)
Exchange rates changes (%) (3.7) (5.3) (6.6) (4.4) (4.4) (4.9)
Extreme price growth in hyperinflationary markets* 1.7 1.8 3.2 2.0 2.2 2.2
Underlying sales growth (%) 6.7 4.4 1.9 1.5 9.8 4.5
Price* (%) 0.9 1.3 (1.4) 1.1 2.9 0.9
Volume (%) 5.7 3.1 3.3 0.4 6.7 3.6
Nine Months Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2023 9,343 10,515 9,325 9,861 6,733 45,777
2024 9,817 10,349 9,326 9,890 6,996 46,378
Change (%) 5.1 (1.6) - 0.3 3.9 1.3
Impact of:
Acquisitions (%) 0.9 - - - 1.5 0.4
Disposals (%) (1.1) (4.4) (0.4) (0.4) - (1.4)
Currency-related items (%), of which: (1.6) (2.1) (2.3) (1.9) (1.2) (1.9)
Exchange rates changes (%) (3.2) (3.9) (5.5) (3.6) (3.2) (3.9)
Extreme price growth in hyperinflationary markets* 1.6 1.9 3.3 1.8 2.1 2.1
Underlying sales growth (%) 7.0 5.2 2.8 2.6 3.6 4.3
Price* (%) 1.3 2.2 (1.3) 2.5 2.1 1.3
Volume (%) 5.6 3.0 4.2 0.1 1.5 2.9
* Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the price 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.
Segment Information - Geographical Areas
(unaudited)
Third Quarter Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 6,600 5,525 3,117 15,242
2024 6,493 5,478 3,275 15,246
Change (%) (1.6) (0.9) 5.1 -
Impact of:
Acquisitions (%) - 0.9 - 0.3
Disposals (%) (0.9) (3.1) (1.8) (1.8)
Currency-related items (%), of which: (3.2) (4.3) 0.4 (2.8)
Exchange rates changes (%) (4.7) (8.1) 0.4 (4.9)
Extreme price growth in hyperinflationary markets* 1.6 4.2 - 2.2
Underlying sales growth (%) 2.5 5.9 6.5 4.5
Price* (%) 1.5 1.3 (1.0) 0.9
Volume (%) 1.0 4.6 7.7 3.6
Nine Months Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2023 20,141 16,467 9,169 45,777
2024 19,869 16,950 9,559 46,378
Change (%) (1.3) 2.9 4.3 1.3
Impact of:
Acquisitions (%) - 1.1 - 0.4
Disposals (%) (0.5) (2.9) (0.8) (1.4)
Currency-related items (%), of which: (3.9) (0.7) 0.6 (1.9)
Exchange rates changes (%) (5.4) (4.6) 0.6 (3.9)
Extreme price growth in hyperinflationary markets* 1.5 4.1 - 2.1
Underlying sales growth (%) 3.2 5.6 4.5 4.3
Price* (%) 1.2 1.4 1.5 1.3
Volume (%) 2.0 4.1 2.9 2.9
* Underlying price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the price growth in the tables
above, and an equal and opposite amount is shown as extreme price growth in
hyperinflationary markets.
Non - GAAP measures
In our financial reporting we use certain measures that 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, and our
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. The non-GAAP measures used in this
announcement are underlying sales growth, underlying volume growth and
underlying price growth (see below).
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 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 turnover
to USG is provided on page 9 and 10.
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. The
measures and the related turnover GAAP measure are set out on page 9 and 10.
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. The measures and the related turnover GAAP measure are set out on page
9 and 10.
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 lucila.zambrano@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 24 October 2024 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
(file:///C:/Users/Clara.Sidoroinicz/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/KOY7ZVJS/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) .
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