REG - Unilever PLC - Third Quarter 2022 Trading Statement
27/10/2022 07:00
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RNS Number : 2671E Unilever PLC 27 October 2022
Unilever Trading Statement - Third Quarter 2022
Another strong quarter of growth, sales guidance raised
Third Quarter 2022 Nine Months 2022
(unaudited) USG Turnover TO vs 2021 USG Turnover TO vs 2021
Unilever 10.6% €15.8bn 17.8% 8.9% €45.6bn 16.1%
Beauty & Wellbeing 6.7% €3.3bn 24.4% 7.8% €9.0bn 21.9%
Personal Care 8.9% €3.6bn 20.0% 7.5% €10.1bn 16.4%
Home Care 13.6% €3.2bn 22.0% 11.6% €9.3bn 18.5%
Nutrition 11.8% €3.3bn 4.8% 8.2% €10.5bn 9.4%
Ice Cream 13.2% €2.4bn 20.8% 10.1% €6.7bn 15.7%
Third Quarter highlights
• Underlying sales growth accelerated to 10.6% in the quarter, and
sales guidance raised for the full year
• Price growth stepped up to 12.5% in the quarter, with volumes
declining 1.6%
• Turnover increased 17.8% including a currency impact of 8.8% and
(2.1)% from disposals net of acquisitions
• The billion+ Euro brands, accounting for more than 50% of Group
turnover, grew 14%, led by strong performances from OMO, Hellmann's, Rexona,
Magnum and Lux
• Simpler, more category-focused organisation operating since 1
July
• Continued portfolio reshaping with the sale of the global tea
business completed and the acquisition of Nutrafol, a leading provider of hair
wellness products
• Second €750 million share buyback tranche, announced in
September, will complete in December 2022
• Quarterly interim dividend for Q3 2022 is maintained at
€0.4268
Chief Executive Officer statement
"Unilever has delivered another quarter of growth in challenging macroeconomic
conditions. Underlying sales growth improved to 10.6%, led by further
increases in pricing with only a limited impact on volume, and we now expect
underlying sales growth for the full year 2022 to be above 8%.
We have delivered growth in each of our five Business Groups, led by a strong
performance from our billion+ Euro brands, growing 14% in the quarter. Strong
pricing allows us to continue to drive increased investment behind our brands.
Our organisation is now better structured to deliver consistent growth through
a simpler, more category-focused operating model. The full benefits will be
realised over time, and we are seeing encouraging early signs of improved
accountability and faster decision-making.
The global macroeconomic outlook remains mixed, and we expect the challenges
of high inflation to persist in 2023. The delivery of consistent growth
remains our first priority."
Alan Jope
27 October 2022
Outlook
We now expect underlying sales growth for the full year 2022 to be above 8%,
with more negative underlying volume growth than in the first nine months.
Our expectation for net material inflation (NMI) for 2022 is virtually
unchanged at around €4.5 billion, with €2.5 billion in the second half.
Although some commodities have softened from their peaks, we expect cost
pressure to carry forward into 2023, driven by currency devaluation, higher
raw material costs versus beneficial covers in the first half of 2022, and
higher supplier processing costs from energy and labour inflation. Our current
estimate for NMI in H1 2023 versus H1 2022 is in the region of €2 billion,
with a range of possible outcomes.
Investment in growth is our priority, and we will continue to protect
investment levels. In the second half of 2022, we expect to increase spend in
brand and marketing, R&D and capital expenditure, as we did in the first
half. Our full year underlying operating margin expectation for 2022 remains
at 16%, and we continue to expect to improve margin in 2023 and 2024, through
pricing, mix and savings.
Third Quarter Review: Unilever Group
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €15.8bn 10.6% (1.6)% 12.5% 1.0% (3.1)% 8.8% 17.8%
Nine Months €45.6bn 8.9% (1.6)% 10.7% 0.8% (1.1)% 6.9% 16.1%
Performance
Underlying sales growth stepped up to 10.6% and was broad-based across all
Business Groups. Price growth has sequentially improved in each of the past
seven quarters, reaching 12.5% in the third quarter. While pricing had, as
expected, some negative impact on volume, underlying volume growth improved in
four Business Groups compared to the second quarter.
Beauty & Wellbeing grew 6.7%, driven by price with slightly negative
volume primarily due to core Skin Care and Hair Care. Personal Care underlying
sales were up 8.9%, led by increased pricing and a lower volume decline as
Deodorants returned to volume growth. Home Care delivered 13.6% USG with a
volume decline of 3.6%, having taken the highest pricing action given its
exposure to input cost increases. Nutrition grew 11.8% with virtually flat
volume due to strong performances in Dressings and Food Solutions. Ice Cream
improved underlying sales by 13.2%, driven by double-digit price growth in
both in-home and out-of-home. Volume was up 1.0%, helped by a strong summer
season in Europe compared to the prior year.
Emerging markets grew 13.3% with a 14.9% contribution from price and volume at
(1.4)%. South Asia continued to grow strongly through both price and volume.
Price growth in Latin America increased to 23.2% with volumes contracting by
4.6%. China returned to slightly positive growth, and sales growth in
South-East Asia benefitted from lapping the prior year lockdown effect in some
markets. Developed markets increased by 7.1%, with 9.3% from price and (2.0)%
from volume. North America grew 8.3%, boosted by strong performances of
Nutrition and Ice Cream. Europe delivered 5.4% growth, helped by double-digit
growth in Ice Cream.
Turnover increased 17.8% to €15.8 billion, which included a currency impact
of 8.8% and (2.1)% from disposals net of acquisitions. This reflects the sale
of the global tea business, ekaterra, which completed on 1 July 2022.
Capital allocation and operating model
On 22 July, we completed the first tranche of €750 million of the share
buyback programme of up to €3 billion. On 6 September 2022, we announced a
second tranche of €750 million which will complete in December 2022. The
quarterly interim dividend for the third quarter is maintained at €0.4268.
Our pension funds faced no liquidity or operational issues through recent
market volatility and remain well funded.
Since 1 July 2022, our simpler, more category-focused operating model for
Unilever has been in place, organised around five Business Groups and a
technology-driven backbone, Unilever Business Operations. We expect to deliver
the new structure within existing restructuring plans, and to generate around
€600 million of cost savings over the first two years after 1 July, with the
majority in 2023.
Conference Call and historical information
Following the release of this trading statement on 27 October 2022 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
(http://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.
As this is the first trading statement reflecting the new structure, we have
provided historical information since 2019 for the five Business Groups at
www.unilever.com/investors/results-presentations/other-reporting-announcements/
(file:///C%3A/Users/Nikita.Goel/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/OL3SRJY7/www.unilever.com/investors/results-presentations/other-reporting-announcements/)
.
Third Quarter Review: Business Groups
Third Quarter 2022 Nine Months 2022
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €15.8bn 10.6% (1.6)% 12.5% €45.6bn 8.9% (1.6)% 10.7%
Beauty & Wellbeing €3.3bn 6.7% (0.6)% 7.3% €9.0bn 7.8% 0.6% 7.2%
Personal Care €3.6bn 8.9% (4.1)% 13.5% €10.1bn 7.5% (3.8)% 11.8%
Home Care €3.2bn 13.6% (3.6)% 17.8% €9.3bn 11.6% (3.4)% 15.6%
Nutrition €3.3bn 11.8% 0.1% 11.7% €10.5bn 8.2% (1.4)% 9.7%
Ice Cream €2.4bn 13.2% 1.0% 12.0% €6.7bn 10.1% 1.0% 9.0%
Beauty & Wellbeing
21% of Q3 turnover
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €3.3bn 6.7% (0.6)% 7.3% 4.8% (0.1)% 11.4% 24.4%
Nine Months €9.0bn 7.8% 0.6% 7.2% 4.0% (0.1)% 8.8% 21.9%
Beauty & Wellbeing underlying sales grew 6.7%, with 7.3% from price and
(0.6)% from volume.
Hair Care grew high single-digit, driven by Latin America and South Asia,
partially offset by modest growth in developed markets and China. Sunsilk and
Clear performed well with strong contributions from price. Skin Care grew low
single-digit, as strong growth in South-East Asia was offset by declines in
Europe and North Asia. Vaseline and Pond's delivered good growth, supported by
innovations with additional consumer benefits. Prestige Beauty performed well
with strong contributions from Paula's Choice and Living Proof which entered
into the bond-building premium hair care category. Hourglass continued its
expansion into China through online and premium retail stores. Health &
Wellbeing turnover now includes sales of recent acquisition Nutrafol, while
Liquid IV contributed strongly to underlying sales growth.
Personal Care
23% of Q3 turnover
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €3.6bn 8.9% (4.1)% 13.5% 0.0 % (0.0)% 10.2% 20.0%
Nine Months €10.1bn 7.5% (3.8)% 11.8% 0.0% (0.0)% 8.3% 16.4%
Personal Care underlying sales grew 8.9%, with 13.5% from price and (4.1)%
from volume. While the volume decline was lower than in the second quarter, it
was affected by strong price increases taken in Skin Cleansing to mitigate
input cost inflation.
Deodorants continued to perform strongly, delivering double-digit pricing and
positive volume growth. This was supported by continued premiumisation and
strong innovations, such as the 72-hour protection technology from Rexona.
Skin Cleansing delivered strong double-digit price growth with high
single-digit volume decline. Lux grew strongly, still benefitting from the
relaunch of its bars in South Asia and the Middle East which provide a further
improved skin care experience. The reformulated Dove deep moisture body wash,
with microbiome nutrient serum, continued to perform well across its launch
markets. Oral Care achieved high single-digit growth, helped by the relaunch
of Pepsodent with increased naturals and efficacy credentials in South-East
Asia, Africa and the Middle East.
Third Quarter Review: Business Groups
Home Care
20% of Q3 turnover
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €3.2bn 13.6% (3.6)% 17.8% 0.0% (0.0)% 7.5% 22.0%
Nine Months €9.3bn 11.6% (3.4)% 15.6% 0.0% (0.0)% 6.2% 18.5%
Home Care underlying sales grew 13.6%, with 17.8% from price and (3.6)% from
volume.
Fabric Cleaning held volumes while achieving more than 20% price growth,
driven by very good performances in India, Brazil, Turkey and Vietnam with
modest sales growth in Europe and China. Helped by their brand strength, OMO
and Radiant contributed strongly for another quarter. Fabric Enhancers grew
double-digit with modest volume decline, as the category benefitted from some
post-Covid return of consumers in South-East Asia and Turkey. Comfort grew
double-digit with positive volume as it continued to benefit from the relaunch
with a new fragrance and 'Clothes Care' technology to better protect clothes
from damage. Home & Hygiene delivered single-digit growth with lower
volume in a declining market that reflects a slowdown in disinfecting habits.
Nutrition
21% of Q3 turnover
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €3.3bn 11.8% 0.1% 11.7% 0.4% (13.1)% 7.5% 4.8%
Nine Months €10.5bn 8.2% (1.4)% 9.7% 0.3% (4.6)% 5.6% 9.4%
Nutrition underlying sales grew 11.8%, with 11.7% from price and 0.1% from
volume.
The biggest category, Scratch Cooking Aids, grew high single-digit with a
modest volume decline which was driven by Europe. South-East Asia, Africa and
North America performed strongly led by Knorr. Unilever Food Solutions
recovered to pre-Covid volume levels and is now well ahead on sales. Dressings
had a very strong quarter with broad-based, double-digit price growth and
positive volumes, supported by continued growth momentum of Hellmann's,
particularly in the United States. Our remaining Beverages business delivered
slight volume and price growth in competitive markets.
Ice Cream
15% of Q3 turnover
(unaudited) Turnover USG UVG UPG Acquisitions Disposals Currency Turnover change
Third Quarter €2.4bn 13.2% 1.0% 12.0% 0.0% (0.0)% 6.7% 20.8%
Nine Months €6.7bn 10.1% 1.0% 9.0% 0.0% 0.0% 5.1% 15.7%
Ice Cream underlying sales grew 13.2%, with 12.0% from price and 1.0% from
volume.
Both in-home and out-of-home Ice Cream grew strongly, driven by double-digit
price growth. Volume growth was driven by out-of-home which continued to
recover sales lost during the pandemic but is yet to return to 2019 volumes.
In-home showed a slight volume decline, reflecting high price growth in the
Americas and some supply issues in the United States. Europe benefitted from a
strong summer season, and Turkey delivered very good growth despite the
high-inflation pressure on consumers. The Heart brand, Magnum and Cornetto
delivered positive volume growth supported by continued strength of new
variant innovations, such as Magnum Remix which has been launched across 65
countries.
Third Quarter Review: Geographical Areas
Third Quarter 2022 Nine Months 2022
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Unilever €15.8bn 10.6% (1.6)% 12.5% €45.6bn 8.9% (1.6)% 10.7%
Asia Pacific Africa €7.1bn 12.5% 0.3% 12.1% €20.9bn 10.1% (0.6)% 10.8%
The Americas €5.6bn 11.7% (3.2)% 15.4% €15.6bn 10.8% (2.1)% 13.2%
Europe €3.1bn 5.4% (3.2)% 8.9% €9.1bn 3.7% (3.0)% 7.0%
Third Quarter 2022 Nine Months 2022
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
Emerging markets €9.2bn 13.3% (1.4)% 14.9% €26.8bn 11.1% (1.7)% 13.0%
Developed markets €6.6bn 7.1% (2.0)% 9.3% €18.8bn 6.0% (1.5)% 7.6%
North America €3.5bn 8.3% (2.4)% 11.0% €9.7bn 8.6% (0.6)% 9.2%
Latin America €2.1bn 17.6% (4.6)% 23.2% €5.9bn 14.8% (4.7)% 20.6%
Asia Pacific Africa
45% of Q3 turnover
Underlying sales grew 12.5%, with 12.1% from price and 0.3% from volume,
driven by strong performances from Home Care and Ice Cream. India showed
strong growth with double-digit pricing and positive volumes, supported by
innovations and continued strength of its premium portfolio. China grew low
single-digit as the market growth reflected some lockdown effects and remained
more muted than in previous years. Indonesia delivered price-driven growth,
while volumes were affected by a reduction in stock-in-trade levels. Vietnam,
the Philippines and Thailand delivered double-digit growth which was boosted
by lapping the lockdowns in the prior year. Turkey posted another quarter of
double-digit growth across all Business Groups, driven by both price and
volume.
The Americas
35% of Q3 turnover
Underlying sales growth in North America was 8.3%, with 11.0% from price and
(2.4)% from volume, helped by strong double-digit growth in Nutrition, notably
Dressings, and Ice Cream. Deodorants performed well but the Air Wellness
business declined sharply in the quarter against a very strong prior year
comparator. Prestige Beauty and Health & Wellbeing delivered double-digit
growth while growth in Skin Cleansing and Hair Care was modest.
Latin America delivered underlying sales growth of 17.6%, with 23.2% from
price and (4.6)% from volume. All Business Groups delivered strong
double-digit underlying price growth which stepped up versus previous
quarters. The volume decline was similar to the first half, supported by
consumer-relevant innovations and a portfolio that spans across different
price points and channels.
Europe
20% of Q3 turnover
Underlying sales grew 5.4%, with 8.9% from price and (3.2)% from volume.
Growth sequentially improved in the third quarter, helped by strong Ice Cream
and Nutrition performances. Home Care declined slightly driven by Home &
Hygiene, while Deodorants drove underlying sales growth in Personal Care.
Price-driven growth was broad-based across countries and underlying volume
growth, albeit negative, was supported by strong Ice Cream sales in July and
August.
Competition Investigations
As previously disclosed, Unilever is involved in ongoing investigations by
national competition authorities, including those of France and South Africa.
These proceedings and investigations are at different stages and concern
different product markets. Where appropriate, provisions are made and
contingent liabilities disclosed in relation to such matters.
Ongoing compliance with competition laws is of key importance to Unilever. It
is Unilever's policy to co-operate fully with competition authorities whenever
questions or issues arise. In addition, the Group continues to reinforce and
enhance its internal competition law training and compliance programme on an
ongoing basis.
Share-based compensation plans
Unilever has historically purchased a very small number of shares in the
market to satisfy awards under its share-based compensation plans. Going
forward, we may also use new issue shares and/or treasury shares, subject to
the dilution limits already approved by shareholders. This provides more
flexibility and is in line with common market practice. Therefore, we may
undertake block listings of shares for the purpose of satisfying awards under
our share plans with new issue shares (including new American Depositary
Shares). Specific details will be announced at the time of any such block
listing and issuance.
Dividends
The Board has declared a quarterly interim dividend for Q3 2022 of £0.3722
per Unilever PLC ordinary share or €0.4268 per Unilever PLC ordinary share
at the applicable exchange rate issued by WM/Reuters on 25 October 2022.
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): £ 0.3722
Per Unilever PLC ordinary share (traded on Euronext in Amsterdam): € 0.4268
Per Unilever PLC American Depositary Receipt: US$ 0.4211
The euro and US dollar amounts above have been determined using the applicable
exchange rates issued by WM/Reuters on 25 October 2022.
US dollar cheques for the quarterly interim dividend will be mailed on 9
December 2022 to holders of record at the close of business on 18 November
2022.
The quarterly dividend calendar for the remainder of 2022 will be as follows:
Announcement Date Ex-Dividend Date Record Date Payment Date
Q3 2022 Dividend 27 October 2022 17 November 2022 18 November 2022 9 December 2022
Segment Information - Business Groups
(unaudited)
Third Quarter Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2021 2,626 3,065 2,635 3,175 1,952 13,453
2022 3,267 3,267 3,677 3,216 3,216 3,328 2,358 15,846
Change (%) 24.4 20.0 22.0 4.8 20.8 17.8
Impact of:
Acquisitions (%) 4.8 0.0 0.0 0.4 0.0 1.0
Disposals (%) (0.1) (0.0) (0.0) (13.1) (0.0) (3.1)
Currency-related items (%), of which: 11.4 10.2 7.5 7.5 6.7 8.8
Exchange rates changes (%) 10.0 8.9 4.4 5.9 3.3 6.7
Extreme price growth in hyperinflationary markets* (%) 1.3 1.2 2.9 1.5 3.4 2.0
Underlying sales growth (%) 6.7 8.9 13.6 11.8 13.2 10.6
Price* (%) 7.3 13.5 17.8 11.7 12.0 12.5
Volume (%) (0.6) (4.1) (3.6) 0.1 1.0 (1.6)
Nine Months Beauty & Wellbeing Personal Care Home Care Nutrition Ice Cream Total
Turnover (€ million)
2021 7,394 8,714 7,826 9,557 5,779 39,270
2022 9,014 9,014 10,142 9,276 10,456 6,685 6,685 45,573
Change (%) 21.9 16.4 18.5 9.4 15.7 16.1
Impact of:
Acquisitions (%) 4.0 0.0 0.0 0.3 0.0 0.8
Disposals (%) (0.1) (0.0) (0.0) (4.6) 0.0 (1.1)
Currency-related items (%), of which: 8.8 8.3 6.2 5.6 5.1 6.9
Exchange rates changes (%) 7.9 7.4 4.3 4.6 3.2 5.6
Extreme price growth in hyperinflationary markets* (%) 0.8 0.8 1.8 1.0 1.8 1.2
Underlying sales growth (%) 7.8 7.5 11.6 8.2 10.1 8.9
Price* (%) 7.2 11.8 15.6 9.7 9.0 10.7
Volume (%) 0.6 (3.8) (3.4) (1.4) 1.0 (1.6)
* 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)
2021 6,094 6,094 4,360 2,999 13,453
2022 7,130 7,130 5,631 3,085 15,846
Change (%) 17.0 29.2 2.9 17.8
Impact of:
Acquisitions (%) 0.3 2.0 1.2 1.0
Disposals (%) (3.7) (2.2) (3.4) (3.1)
Currency-related items (%), of which: 7.7 16.0 (0.2) 8.8
Exchange rates changes (%) 5.0 13.2 (0.2) 6.7
Extreme price growth in hyperinflationary markets* (%) 2.6 2.5 0.0 2.0
Underlying sales growth (%) 12.5 11.7 5.4 10.6
Price* (%) 12.1 15.4 8.9 12.5
Volume (%) 0.3 (3.2) (3.2) (1.6)
Nine Months Asia Pacific Africa The Americas Europe Total
Turnover (€ million)
2021 18,132 12,409 8,729 39,270
2022 20,866 15,640 9,067 45,573
Change (%) 15.1 26.0 3.9 16.1
Impact of:
Acquisitions (%) 0.3 1.6 0.9 0.8
Disposals (%) (1.3) (0.8) (1.3) (1.1)
Currency-related items (%), of which: 5.6 12.8 0.6 6.9
Exchange rates changes (%) 4.1 10.9 0.6 5.6
Extreme price growth in hyperinflationary markets* (%) 1.4 1.7 (0.0) 1.2
Underlying sales growth (%) 10.1 10.8 3.7 8.9
Price* (%) 10.8 13.2 7.0 10.7
Volume (%) (0.6) (2.1) (3.0) (1.6)
* 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 pages 7 and 8.
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 pages 7 and 8.
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
pages 7 and 8.
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. Words such as 'will', 'aim',
'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', or the
negative of these terms and other similar expressions of future performance or
results, 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 the Unilever Group's (the 'Group')
emissions reduction targets and other climate change related matters
(including actions, potential impacts and risks associated therewith). These
forward-looking statements are based upon current 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.
Because these forward-looking statements involve risks and uncertainties,
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 are: 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 our 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.
These 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 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.
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 2021 and the Unilever Annual Report and Accounts
2021.
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 JSibun@tulchangroup.com
NL +31 62 375 8385 marlous-den.bieman@unilever.com
or +31 6 1500 8293 fleur-van.bruggen@unilever.com (mailto:fleur-van.bruggen@unilever.com)
After the conference call on 27 October 2022 at 8AM (UK time), the webcast of
the presentation will be available at:
www.unilever.com/investor-relations/results-and-presentations/latest-results
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