1st Quarter Results
Unilever PLC
06 May 2005
UNILEVER RESULTS FIRST QUARTER
In competitive markets, first quarter business performance shows signs of
progress.
FINANCIAL HIGHLIGHTS
(unaudited)
€ million First Quarter 2005
Current Current Constant
rates rates rates
Turnover 9 266 2% 4%
Operating profit 1 416 8% 9%
Pre-tax profit 1 282 9% 10%
Net profit attributable to
shareholders' equity 934 24% 25%
EPS NV (Euros) 0.96 25% 26%
EPS PLC (Euro cents) 14.44 25% 26%
KEY FEATURES OF THE QUARTER
•Underlying sales grew by 6%, benefiting from additional calendar days in
the quarter.
•Aggregate market shares are stabilising.
•Operating margin was 15.3% and included €73 million from profits on
disposals.
•Earnings per share benefited from one-off movements in tax and net
restructuring.
CHIEF EXECUTIVE'S COMMENT
We are making progress on the plans to improve top line performance. The first
stage was a step-up in market competitiveness, starting from the fourth quarter
of last year. I am encouraged that we have had two consecutive quarters of
growth and that aggregate market shares are now stabilising.
Our actions in the market place are now being supported by the transition to the
new organisation announced in February, which is proceeding well.
This year we expect market conditions to remain very challenging in Europe, and
margins to continue to be under pressure from increased input costs. However,
performance in developing and emerging markets was better, and here the outlook
is more promising.
Against this background, we will ensure our brands are competitive in their
markets while continuing to drive cost efficiency. At the same time we remain
focused on our priorities. These are: regaining momentum in Europe, building on
our strengths in global personal care and developing and emerging markets; as
well as innovation which addresses the Vitality needs of our consumers.
Patrick Cescau
Group Chief Executive
Unilever has adopted IFRS - the new international accounting standards. These
apply to both the prior year comparators and the current year results. In
addition, the financial statements are now shown only at current exchange rates,
while percentage changes are shown at both current and constant exchange rates
to facilitate comparison. Further information on the impact of IFRS can be found
on page 9 and on the Unilever web site at www.unilever.com/ourcompany/
investorcentre/.
In the following commentary sales growth is stated on an underlying basis at
constant exchange rates and excluding the effects of acquisitions and disposals.
Turnover includes the impact of exchange rates and acquisitions and disposals.
Unilever uses 'constant rate' and 'underlying' measures primarily for internal
performance analysis and targeting purposes. Unilever believes that such
measures provide additional information for shareholders on underlying business
performance trends. Such measures are not defined under IFRS or US GAAP and are
not intended to be a substitute for GAAP measures of turnover and profit.
FIRST QUARTER FINANCIAL RESULTS
Underlying sales grew by 6%, entirely coming from volume. This includes the
impact of an additional 5 days in the quarter, which varies by region. We
estimate that, at the group level, calendar effects contributed about 4% to
growth.
Turnover was 2.3% ahead, with the underlying sales growth partly offset by a
negative 2.1% from disposals and a negative 1.6% from currency movements.
Operating margin was 15.3%, an increase of 0.8 percentage points. There was a
gain in the quarter of €73 million from profits on disposals, mainly in Europe
and South Africa. Gross restructuring costs were also substantially lower than
last year. These effects, together with the benefits of savings programmes, more
than offset higher input costs and increased investment in market
competitiveness.
Operating profit increased by 8% (9% at constant exchange rates).
Net financing costs were 3% lower.
The tax rate in the quarter was 23% and included 6 percentage points benefit to
the rate from non-recurring items including the conclusion of past tax audits.
Earnings per share increased by 25% benefiting from the non-recurring items in
tax which contributed 8% to EPS, and from the favourable movement in net
restructuring charges.
CASH FLOW
Net cash flow from operating activities, which is net of tax payments, was €0.5
billion, a decrease of €0.2 billion on 2004. The increase in operating profit
was more than offset by higher seasonal outflows of working capital, principally
due to calendar effects, and by higher payments for restructuring costs and tax.
During the period there was a net increase in cash and cash equivalents of €132
million.
BALANCE SHEET
Goodwill and intangible assets increased by €0.3 billion, through currency
movements. Trade receivables and inventories both increased reflecting calendar
effects and build-up ahead of the ice cream season.
Closing net debt was €10.1 billion, a reduction of €1.1 billion from the
1 January 2005 opening position. €1.4 billion of the reduction relates to the
conversion of the €0.05 preference shares, offset by €0.5 billion from adverse
currency movements.
Total equity increased by €2.3 billion from the 1 January 2005 opening position.
Net profits added €1.0 billion and currency retranslation €0.1 billion. Treasury
stock, which is deducted from equity, was used for the conversion of the €0.05
preference shares. This had the effect of reducing borrowings by €1.4 billion
and increasing equity by the same amount. Subsequent purchases of treasury stock
during the quarter reduced equity by €0.2 billion. Future share purchases to
replenish the treasury stock used in the conversion will further offset the
increase in equity.
FIRST QUARTER PERFORMANCE BY REGION
EUROPE
Market conditions remain difficult through much of Western Europe. Competition
is intense between retailers as well as between manufacturers and pricing is
under pressure.
On a like-for-like calendar basis, underlying sales declined by about 2%,
including the effect of lower pricing as we took action to improve
competitiveness. There were some encouraging signs of progress: we have gained
share in most foods categories compared with the end of last year and ice cream
benefited from a good uptake in the trade for new products.
It was a difficult quarter in home and personal care, largely due to the UK.
While some of this stems from the difficult market environment, we have also
lost market share. Action is being taken and, with a stronger innovation
programme this year, we expect to see a gradual improvement.
Elsewhere in Western Europe performance was mixed. In France, sales of home and
personal care categories held up well, however foods categories were weaker. By
contrast, in the other major markets we saw a better performance in our foods
businesses.
Eastern Europe, and Russia in particular, continued to show strong, volume
driven growth across categories.
The pro.activ range of Flora/Becel was further extended to include yoghurt
drinks. In the Netherlands and Belgium we launched Knorr Vie shots which provide
at least half the daily recommended intake of fruit and vegetables.
Magnum 5 senses ice creams were introduced while in frozen foods the brand
relaunch is underway in all countries, and supports innovation which is focused
on convenience products with fresh, natural ingredients.
The first quarter saw the introduction of Sunsilk hair styling products, Dove
'silk dry' deodorant and new body wash variants.
Operating margin, at 16.4%, was 1.1 percentage points ahead of last year,
boosted by profits on disposals. Savings programmes and improved mix fully
offset the impact of lower prices.
THE AMERICAS
There was a modest pick-up in market growth in most categories in the US, while
consumption in the majority of Latin American countries is buoyant.
On a like-for-like calendar basis our underlying sales grew by about 4%.
Performance was strong across most foods categories and aggregate shares in
foods were slightly up. However, the weight management market has contracted
rapidly and, while Slim.Fast continued to gain some share, sales of the brand
were sharply lower than last year.
We are further refreshing the Slim.Fast Optima product range and are also
introducing the first in a new range of high protein shakes and meal bars.
There was an encouraging return to like-for-like sales growth in home and
personal care categories in the US driven by deodorants, hair care and personal
wash. Skin care and laundry are both very active markets with intense
competition and our market shares are down in both. Prestige grew well,
continuing the progress made in the second half of 2004.
Mexico, Chile and Argentina all showed strong volume growth while sales in
Brazil were in line with a very strong quarter in the previous year. In these
countries the personal care and savoury and dressings brands continue to perform
particularly well.
In the US Country Crock side dishes and Bertolli frozen meals have both been
rolled out nationally. New ice cream products include Breyers ranges that
further build on the 'healthy' platform; Cal Smart, Sugar Smart and Heart Smart.
Dove in the US has extended from its position in shampoo into hair styling, and
we launched 'all' laundry detergent with softening.
In Latin America we introduced new flavours and 'light' varieties of the AdeS
soy based nutritional drink. In Mexico and Argentina, new flavours of Knorr
soups address traditional habits, and Hellmann's cholesterol free mayonnaise,
already succesful in Chile, has been brought to Mexico.
In hair care, Sunsilk Guarana is being rolled out in Brazil, Andina and
Argentina. Rexona 'teens' deodorant complements the existing products for men
and women and Rexona antibacterial soap bar has been extended from Argentina
into Brazil.
The operating margin at 15.2% was 0.2 percentage points higher than last year.
Savings programmes and lower restructuring costs more than offset the impact of
higher input costs and an increase in marketing investment.
ASIA/AFRICA
Consumption overall continues to grow well, despite a weaker economy in Japan
and still modest economic growth in South Africa.
On a like-for-like calendar basis, underlying sales grew by about 7%.
There was widespread growth across South East Asia, with succesful innovations
in hair care and good progress in savoury products.
India had its strongest quarterly growth in over two years, unaffected by the
calendar change and following a robust response to the earlier increase in
competition. In laundry, market shares have been maintained and we started to
regain share in hair care through innovation and increased support. In Japan,
where competition has also been intense, like-for-like sales were in line with
last year.
Turkey and West Africa both performed well, while Arabia saw a good recovery in
sales of Lipton teas.
A strong innovation programme for hair care in India includes new products for
the Clinic range in family health and anti-dandruff positions and Sunsilk 'Fresh
and Cool' for sticky hair. Following the relaunch of Lux super rich in Japan
towards the end of last year, Lux styling has now also been relaunched.
Lipton herbal teas have been introduced to Turkey and China, where we have also
launched Lipton milk tea. In Turkey the main spreads brands, Rama and Sana, now
include olive oil versions.
The operating margin, at 13.4%, was 0.7 percentage points higher than last year
largely through profits on disposals and lower restructuring charges.
SAFE HARBOUR STATEMENT: This document 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 'expects',
'anticipates', 'intends' 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. 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. 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, including, among
others, competitive pricing and activities, consumption levels, costs, the
ability to maintain and manage key customer relationships and supply chain
sources, currency values, interest rates, the ability to integrate acquisitions
and complete planned divestitures, physical risks, environmental risks, the
ability to manage regulatory, tax and legal matters and resolve pending matters
within current estimates, legislative, fiscal and regulatory developments,
political, economic and social conditions in the geographic markets where the
Group operates and new or changed priorities of the Boards. 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 the Annual Report and Accounts on
Form 20-F. These forward-looking statements speak only as of the date of this
document. 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.
CONDENSED INTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
(unaudited)
€million First Quarter
2005 2004 Increase/
(Decrease)
Current rates Constant rates
Turnover 9 266 9 061 2% 4%
Operating profit 1 416 1 316 8% 9%
Finance income 97 86
Finance costs (234) (225)
Other finance income/
(costs) -
(16) (19)
pensions and similar
obligations
Share in net profit of 10 9
joint ventures
Share in net profit of - 1
associates
Other income from
non-current 9 13
investments
Profit before taxation 1 282 1 181 9% 10%
Taxation (301) (379)
Net profit for the 981 802 22% 24%
period
Attributable to:
Minority interests 47 49
Shareholders' equity 934 753 24% 25%
Combined earnings per
share
Per €0.51 ordinary NV 0.96 0.77 25% 26%
share (Euros)
Per 1.4p ordinary PLC
share (Euro 14.44 11.58 25% 26%
cents)
Per €0.51 ordinary NV
share - diluted 0.93 0.74 26% 27%
(Euros)
Per 1.4p ordinary PLC
share - diluted 13.94 11.13 25% 27%
(Euro cents)
STATEMENT OF RECOGNISED INCOME AND EXPENSE
(unaudited)
€ million First Quarter
2005 2004
Fair value gains/(losses) on financial instruments and
cash
flow hedges net of tax 16 n/a
Actuarial gains/(losses) on pension schemes net of tax (3) 32
Currency retranslation gains/(losses) net of tax 123 77
Net income/(expense) recognised directly in equity 136 109
Net profit for the period 981 802
Total recognised income and expense for the period 1 117 911
Attributable to:
Minority interests 67 67
Shareholders' equity 1 050 844
BALANCE SHEET
(unaudited)
€million As at As at As at
2 April 31 December 27 March
2005 2004 2004
Non current assets
Goodwill and intangible assets 17 346 17 018 18 990
Property, plant and equipment 6 231 6 181 6 653
Pension asset for funded schemes in 696 625 830
surplus
Deferred tax assets 1 533 1 491 1 181
Other non-current assets 1 582 1 064 1 023
Total non-current assets 27 388 26 379 28 677
Assets held for sale 156 n/a n/a
Current assets
Inventories 4 112 3 756 4 504
Trade and other receivables due
within one 4 616 4 131 5 313
year
Financial assets 334 1 013 1 338
Cash and cash equivalents 1 721 1 590 2 239
Total current assets 10 783 10 490 13 394
Current liabilities
Borrowings due within one year (5 462) (5 155) (7 485)
Trade payables and other current (8 234) (8 232) (9 022)
liabilities
Total current liabilities (13 696) (13 387) (16 507)
Net current assets/(liabilities) (2 913) (2 897) (3 113)
Total assets less current 24 631 23 482 25 564
liabilities
Non-current liabilities
Borrowings due after one year 7 062 6 893 8 659
Pension liability for funded
schemes in 2 363 2 291 2 462
deficit
Pension liability for unfunded 3 906 3 788 3 683
schemes
Deferred tax liabilities 798 740 1 141
Restructuring and other provisions 1 325 1 364 850
Other non-current liabilities 713 717 759
Total non-current liabilities 16 167 15 793 17 554
Liabilities held for sale 9 n/a n/a
Equity
Shareholders' equity 8 041 7 324 7 532
Minority interests 414 365 478
Total equity 8 455 7 689 8 010
Total capital employed 24 631 23 482 25 564
MOVEMENTS IN EQUITY
(unaudited)
€million First Quarter
2005 2004
Equity at 31 December 2004 7 689 n/a
IFRS transition adjustment for financial instruments
(including preference shares) (1 564) n/a
Equity at 1 January 6 125 7 241
Total recognised income and expense for the period 1 117 911
Dividends - (5)
Conversion of preference shares 1 380 -
Purchase/sale of treasury stock (158) (139)
Share option credit 41 56
Dividends paid to minority shareholders (22) (24)
Currency retranslation gains/(losses) net of tax (28) (26)
Other movements in equity - (4)
Equity at the end of the period 8 455 8 010
CASH FLOW STATEMENT
(unaudited)
€million First Quarter
2005 2004
Operating activities
Cash flow from operating activities 779 961
Income tax paid (308) (241)
Net cash flow from operating activities 471 720
Investing activities
Interest received 42 11
Net capital expenditure (182) (170)
Acquisitions and disposals 101 (88)
Other investing activities 210 (79)
Net cash flow from/(used in) investing activities 171 (326)
Financing activities
Dividends paid on ordinary share capital (2) -
Interest and preference dividends paid (115) (107)
Change in borrowings and finance leases (214) 229
Purchase of own shares (158) (120)
Other financing activities (21) (15)
Net cash flow from/(used in) financing activities (510) (13)
Net increase/(decrease) in cash and cash equivalents 132 381
Cash and cash equivalents at the beginning of the year 1 406 1 428
Effect of foreign exchange rate changes (23) 131
Cash and cash equivalents at the end of period 1 515 1 940
ANALYSIS OF NET DEBT
(unaudited)
€million As at As at
2 April 1 January 2005
2005
Cash and cash equivalents as per cash flow
statement 1 515 1 406
Add: bank overdrafts deducted therein 206 184
Less: cash in assets held for disposal - (8)
Cash and cash equivalents as per balance 1 721 1 582
sheet
Financial assets 334 533
Borrowings due within one year (5 462) (6 448)
Borrowings due after one year (7 062) (7 221)
Derivatives and finance leases included in
other
332 369
receivables and other liabilities
Net debt at the end of the period (10 137) (11 185)
GEOGRAPHICAL ANALYSIS
(unaudited)
First Quarter
€million Europe Americas Asia/Africa Total
Turnover
2004 3 885 2 925 2 251 9 061
2005 3 932 3 004 2 330 9 266
Change 1.2% 2.7% 3.5% 2.3%
Impact of:
Exchange rates 0.3% (2.5)% (3.5)% (1.6)%
Acquisitions 0.2% 0.1% 0.0% 0.1%
Disposals (2.4)% (1.5)% (2.5)% (2.1)%
Underlying sales growth 3.1% 6.8% 10.1% 6.0%
Price (1.0)% 0.7% 0.7% 0.0%
Volume 4.2% 6.1% 9.3% 6.1%
Operating profit
2004 592 438 286 1 316
2005 646 458 312 1 416
Change current rates 8.9% 4.7% 9.1% 7.6%
Change constant rates 8.7% 7.2% 13.9% 9.3%
Operating margin
2004 15.3% 15.0% 12.7% 14.5%
2005 16.4% 15.2% 13.4% 15.3%
CATEGORY ANALYSIS
(unaudited)
First Quarter
€million Savoury Spreads Beverages Ice cream Foods Personal Home Home Total
and and and care care and
dressings cooking frozen and personal
products foods other Care
Turnover
2004 1 889 1 040 733 1 316 4 978 2 375 1 708 4 083 9 061
2005 1 965 1 057 714 1 357 5 093 2 499 1 674 4 173 9 266
Change 4.0% 1.6% (2.5)% 3.1% 2.3% 5.2% (2.0)% 2.2% 2.3%
Impact of:
Exchange rates (0.8)% (0.3)% (2.4)% (1.4)% (1.1)% (2.7)% (1.5)% (2.2)% (1.6)%
Acquisitions 0.0% 0.0% 0.0% 0.6% 0.2% 0.1% 0.0% 0.0% 0.1%
Disposals (1.6)% (6.7)% (1.1)% (2.4)% (2.8)% (0.7)% (2.1)% (1.3)% (2.1)%
Underlying
sales growth 6.6% 9.3% 0.9% 6.5% 6.2% 8.8% 1.6% 5.8% 6.0%
Operating profit
2004 313 170 92 98 673 385 258 643 1 316
2005 366 212 91 89 758 461 197 658 1 416
Change current
rates 17.1% 25.0% (2.4)% (8.4)% 12.7% 19.4% (23.6)% 2.2% 7.6%
Change
constant rates 17.9% 25.7% (0.1)% (6.7)% 13.8% 23.4% (23.2)% 4.7% 9.3%
Operating margin
2004 16.5% 16.3% 12.6% 7.4% 13.5% 16.3% 15.1% 15.8% 14.5%
2005 18.6% 20.1% 12.7% 6.6% 14.9% 18.4% 11.8% 15.8% 15.3%
NOTES
(unaudited)
Adoption of IFRS
Unilever adopted International Financial Reporting Standards (IFRS) with effect
from 1 January 2005. Our transition date is 1 January 2004 as this is the start
date of the earliest period for which we will present full comparative
information under IFRS in our 2005 Annual Report and Accounts.
These interim financial statements have been prepared in accordance with IAS 34.
The financial information is prepared under the historical cost convention as
modified by the revaluation of biological assets, financial assets
'available-for-sale investments' and 'at fair value through profit or loss', and
derivatives.
IFRS 1 mandates that most IFRS are applied fully retrospectively, meaning that
the opening balance sheet at 1 January 2004 is restated as if those accounting
policies had always been applied. There are certain limited exemptions to this
requirement. A reconciliation from old GAAP to IFRS of the balance sheet as per
27 March 2004 and the income statement for the period then ended is given on
page 10 and 11. A more detailed review of the changes to our accounting policies
and a reconciliation of financial statements from old GAAP to IFRS is available
on our website at www.unilever.com/ourcompany/investorcentre/.
From 1 January 2005 Unilever implemented the following additional changes in
accounting policies. These changes are applied prospectively from 1 January 2005
and therefore do not affect the 2004 comparative information.
Financial instruments (including preference shares)
From 1 January 2005 Unilever applies IAS 32 and IAS 39. These standards have
many detailed consequences, however the key areas of impact for Unilever are
described below.
Under IAS 32, Unilever must present the NV preference share capital as a
liability rather than as part of equity. All of the dividends paid on these
preference shares are recognised in the income statement as interest expense.
The carrying value of the preferential share capital of NV as at 1 January 2005
was €1 502 million.
IAS 39 requires certain non-derivative financial assets to be held at fair value
with unrealised movements in fair value recognised directly in equity.
Non-derivative financial liabilities continue to be measured at amortised cost,
unless they form part of a fair value hedge accounting relationship when they
are measured at amortised cost plus the fair value of the hedged risk.
IAS 39 requires recognition of all derivative financial instruments on the
balance sheet and that they are measured at fair value. The standard also places
significant restrictions on the use of hedge accounting and changes the hedge
accounting methodology. As a result Unilever recognises all derivative financial
instruments on balance sheet at fair value and applies the new hedge accounting
methodology to all significant qualifying hedging relationships.
Non-current assets and asset groups held for disposal
Application of IFRS 5 has resulted in reclassifications of non-current assets
and asset groups held for disposal in the balance sheet as at 1 January 2005. It
does not significantly affect the asset values themselves.
Turnover definition
From 1 January 2005 Unilever changed its treatment of promotional couponing and
trade communications. From 1 January 2005 these costs are deducted from turnover
together with other trade promotion costs which are already deducted from
turnover. Comparatives have been restated to reflect this change, which has no
impact on operating profit or net profit.
Preference shares
On 15 February 2005 after close of trading NV converted part of the notional
value of the €0.05* cumulative preference shares into NV ordinary shares. Upon
conversion the holders of the preference shares received one NV ordinary share
for every 11.2 preference shares held. This resulted in a total of 18 881 587 NV
ordinary shares being transferred to the preference shareholders. These NV
ordinary shares had previously been held as treasury shares by NV. As a
consequence of the conversion, the notional value of the shares was reduced to
€0.05*. A proposal will be put to the Annual General Meeting of NV on 10 May
2005 to cancel the preference shares upon repayment of the notional value in
accordance with NV's articles of Association.
Acquisitions and Disposals
In December 2004 Unilever announced the restructuring of its Portuguese foods
business. The deal was subject to regulatory approval and was completed at the
end of March. Before the restructuring Unilever Portugal held a 40% stake in the
FimaVG foods business, a joint venture with Jeronimo Martins Group, in addition
to its wholly owned Bestfoods business acquired in 2000. As a result of the deal
the two foods businesses - FimaVG and Unilever Bestfoods Portugal - were unified
and the joint venture stakes re-balanced so that Unilever now holds 49% of the
combined foods business and Jeronimo Martins Group 51%.
Exchange rate conventions
The income statement and statement of recognised income and expense on page 5,
the movements in equity on page 6 and the cash flow statement on page 7 are
translated at rates current in each period.
The balance sheet on page 6 is translated at period-end rates of exchange.
Supplementary information in US dollars and sterling is available on our website
at www.unilever.com/ourcompany/investorcentre/.
Reconciliation of profit for the first quarter ended 27 March 2004
(unaudited)
Goodwill
Previously and
reported indefinite Pensions Deferred
under lived and tax Tax
old intangible Biological similar restatement reclassifying
GAAP assets Software assets obligations effect effect
€ million € million € million € million € million € million € million
Turnover 9 357 - - - - - -
Turnover of joint (43) - - - - - -
ventures
Operating costs (8 267) 259 12 (2) - - -
Share of operating 10 - - - - - -
profit of joint ventures
Operating profit/(loss) 1 057 259 12 (2) - - -
Share of operating 9 2 - - - - -
profit of associates
Finance costs (151) - - - - - -
Other finance income/ (20) - - - 1 - -
(cost) -
pensions and similar
obligations
Share of net profit of - - - - - - -
joint ventures
Share of net profit of - - - - - - -
associates
Income from other 2 - - - 11 - -
non-current investments
Profit/(loss) before 897 261 12 (2) 12 - -
taxation
Taxation (333) (14) (3) - (4) (24) -
Profit/(loss) for the 564 247 9 (2) 8 (24) -
period
Attributable to:
Minority interests 49 1 - (1) - - -
Shareholders' equity 515 246 9 (1) 8 (24) -
Total Change
Joint effect relating
ventures of to Restated
and transition turnover under
associates Dividends Other to IFRS definition IFRS
€ million € million € million € million € million € million
Turnover (43) - - (43) (253) 9 061
Turnover of joint 43 - - 43 - -
ventures
Operating costs - - - 269 253 (7 745)
Share of operating (10) - - (10) - -
profit of joint ventures
Operating profit/(loss) (10) - - 259 - 1 316
Share of operating (11) - - (9) - -
profit of associates
Finance costs 12 - - 12 - (139)
Other finance income/ - - - 1 - (19)
(cost) - pensions and
similar obligations
Share of net profit of 9 - - 9 - 9
joint ventures
Share of net profit of 1 - - 1 - 1
associates
Income from other - - - 11 - 13
non-current investments
Profit/(loss) before 1 - - 284 - 1 181
taxation
Taxation (1) - - (46) - (379)
Profit/(loss) for the - - - 238 - 802
period
Attributable to:
Minority interests - - - - - 49
Shareholders' equity - - - 238 - 753
Reconciliation of equity at 27 March 2004
(unaudited)
Goodwill
Previously and
reported indefinite Pensions Deferred
under lived and tax Tax
old intangible Biological similar restatement reclassifying
GAAP assets Software assets obligations effect effect
€ million € million € million € million € million € million € million
Non-current
assets
Goodwill 13 556 209 - - - - -
Intangible 4 276 833 116 - - - -
assets
Property, plant 6 750 - - (40) - - -
and equipment
Biological - - - 27 - - -
assets
Joint ventures 61 - - - - - -
and associates
Other 150 - - - 194 - -
non-current
investments
Pension asset 574 - - - (49) - 305
for funded
schemes in
surplus
Trade and other 764 - - - - - (610)
receivables
due after more
than one year
Deferred tax - - - - - - 1 181
assets
Total 26 131 1 042 116 (13) 145 - 876
non-current
assets
Current assets
Inventories 4 505 - - - - - -
Trade and other 5 692 - - - - - -
receivables
due within one
year
Financial 1 230 - - - - - -
assets
Cash and cash 2 347 - - - - - -
equivalents
Total current 13 774 - - - - - -
assets
Current
liabilities
Creditors due (17 654) - - - - - 873
within one year
Borrowings (7 485) - - - - - -
Trade and other (10 169) - - - - - 873
payables
Current tax - - - - - - (873)
liabilities
Net current (3 880) - - - - - -
assets/
(liabilities)
Total assets 22 251 1 042 116 (13) 145 - 876
less current
liabilities
Non-current
liabilities
Creditors due 9 418 - - - - - -
after more than
one year
Borrowings 8 659 - - - - - -
Trade and other 759 - - - - - -
payables
Provisions for 852 (2) - - - - -
liabilities and
charges
(excluding
pensions and
similar
obligations)
Restructuring 824 - - - - - -
and other
provisions
Interest in 28 (2) - - - - -
associates
Liabilities for 4 407 - - - 179 - 1 559
pensions and
similar
obligations
Pension 1 709 - - - 14 - 739
liability for
funded schemes
in deficit
Pension 2 698 - - - 165 - 820
liability for
unfunded
schemes
Deferred tax 693 (6) 37 (1) (10) 1 111 (683)
liabilities
Total 15 370 (8) 37 (1) 169 1 111 876
non-current
liabilities
Shareholders'
equity
Called up share 642 - - - - - -
capital
Share premium 1 537 - - - - - -
account
Other reserves (2 613) - - - - - -
Retained profit 6 835 1 049 79 (9) (24) (1 111) -
Total 6 401 1 049 79 (9) (24) (1 111) -
shareholders'
equity
Minority 480 1 - (3) - - -
interests
Total equity 6 881 1 050 79 (12) (24) (1 111) -
Total capital 22 251 1 042 116 (13) 145 - 876
employed
Total
Joint effect
ventures of Restated
and transition under
associates Dividends Other to IFRS IFRS
€ million € million € million € million € million
Non-current assets
Goodwill - - - 209 13 765
Intangible assets - - - 949 5 225
Property, plant and - - (57) (97) 6 653
equipment
Biological assets - - - 27 27
Joint ventures and - - - - 61
associates
Other non-current - - 380 574 724
investments
Pension asset for - - - 256 830
funded schemes in
surplus
Trade and other - - 57 (553) 211
receivables
due after more than
one year
Deferred tax assets - - - 1 181 1 181
Total non-current - - 380 2 546 28 677
assets
Current assets
Inventories - - (1) (1) 4 504
Trade and other - - (379) (379) 5 313
receivables
due within one year
Financial assets - - 108 108 1 338
Cash and cash - - (108) (108) 2 239
equivalents
Total current assets - - (380) (380) 13 394
Current liabilities
Creditors due within - 1 147 - 2 020 (15 634)
one year
Borrowings - - - - (7 485)
Trade and other - 1 147 - 2 020 (8 149)
payables
Current tax - - - (873) (873)
liabilities
Net current assets/ - 1 147 (380) 767 (3 113)
(liabilities)
Total assets less - 1 147 - 3 313 25 564
current liabilities
Non-current
liabilities
Creditors due after - - - - 9 418
more than one year
Borrowings - - - - 8 659
Trade and other - - - - 759
payables
Provisions for - - - (2) 850
liabilities and
charges (excluding
pensions and similar
obligations)
Restructuring and - - - - 824
other provisions
Interest in associates - - - (2) 26
Liabilities for - - - 1 738 6 145
pensions and similar
obligations
Pension liability for - - - 753 2 462
funded schemes in
deficit
Pension liability for - - - 985 3 683
unfunded schemes
Deferred tax - - - 448 1 141
liabilities
Total non-current - - - 2 184 17 554
liabilities
Shareholders' equity
Called up share - - - - 642
capital
Share premium account - - - - 1 537
Other reserves - - - - (2 613)
Retained profit - 1 147 - 1 131 7 966
Total shareholders' - 1 147 - 1 131 7 532
equity
Minority interests - - - (2) 478
Total equity - 1 147 - 1 129 8 010
Total capital employed - 1 147 - 3 313 25 564
EARNINGS PER SHARE
Combined earnings per share
The combined earnings per share calculations are based on the average number of
share units representing the combined ordinary shares of NV and PLC in issue
during the period, less the average number of shares held to meet options
granted under various employee share plans.
The number of combined share units is calculated from the underlying NV and PLC
shares using the exchange rate of £ 1 = €5.445, in accordance with the
Equalisation Agreement. This number (expressed in terms of NV shares) increased
from 962 million at the start of the year to 979 million at the end of the first
quarter (6 412 million to 6 525 million in terms of PLC shares) following the
conversion of the €0.05 preference shares in February. The number is expected to
reduce as we replenish treasury stock.
The calculations of diluted earnings per share are based on (i) conversion into
PLC ordinary shares in the year 2038 of shares in a group company under the
arrangements for the variation of the Leverhulme Trust; (ii) conversion of the
€0.05* NV preference shares; (iii) the exercise of share options by employees.
*This amount is a representation in Euros on the basis of Article 67c Book 2 of
the Dutch Civil Code, rounded to two decimal places, of underlying Dutch
guilders, as these have not been converted into Euros in Unilever N.V.'s
Articles of Association.
Earnings per share for the first quarter
2005 2004
Combined EPS Thousands of units
Average number of combined share units of €0.51 970 260 966 182
Average number of combined share units of 1.4p 6 468 403 6 441 217
€million
Net profit attributable to shareholders' equity 934 753
Less preference dividends n/a (7)
Net profit attributable to shareholders' equity
for
934 746
basic earnings per share calculation
Combined EPS per €0.51 (Euros) 0.96 0.77
Combined EPS per 1.4p (Euro cents) 14.44 11.58
Combined EPS - Diluted Thousands of units
Adjusted average number of combined share units
of €0.51 1 007 820 1 012 542
Adjusted average number of combined share units
of 1.4p 6 718 801 6 750 283
€million
Adjusted net profit attributable to
shareholders' 937 751
equity
Combined diluted EPS per €0.51 (Euros) 0.93 0.74
Combined diluted EPS per 1.4p (Euro cents) 13.94 11.13
Combined EPS - American shares
Combined EPS per €0.51 NV - New York Share $ 1.26 $ 0.97
Combined EPS per 5.6p PLC - American Depositary
Receipt $ 0.76 $ 0.58
Combined diluted EPS per €0.51 NV - New York $ 1.22 $ 0.93
Share
Combined diluted EPS per 5.6p PLC - American
Depositary Receipt $ 0.73 $ 0.56
DATES
The results for the second quarter and for the first half-year 2005 will be
published on 4 August 2005
ENQUIRIES: UNILEVER PRESS OFFICE
+44 (0) 20 7822 6805/6010
Internet: www.unilever.com
E-mail: press-office.london@unilever.com
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 22nd November 2024
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