3rd Quarter & 9 Mths Results
Unilever PLC
Unilever NV.
2 November 2001
UNILEVER RESULTS
THIRD QUARTER 2001 AND INTERIM DIVIDENDS
(Unaudited)
Good sales growth due to continued momentum in the leading brands and strong
performance in Europe. The Bestfoods integration continues according to plan
with an improved sales trend and full delivery of cost synergies.
FINANCIAL HIGHLIGHTS
Constant exchange rates (2000 average)
Third Quarter 2001 Euro Millions Nine Months 2001
13,568 +13 % Total Turnover * 40,001 +16 %
2,125 +25 % Total Operating profit * - beia ** 5,497 +31 %
1,014 (32)% Pre-tax profit 3,156 (9)%
476 (44)% Net profit 1,630 (22)%
1,053 +5 % Net profit - beia ** 2,596 +3 %
Per NV share (Fl. 1.12), Euro
0.47 (44)% Earnings per share (EPS) 1.62 (22)%
1.06 +6 % EPS (beia) ** 2.60 +4 %
Per PLC share (1.4p), Euro cent
7.11 (44)% EPS 24.30 (22)%
15.91 +6 % EPS (beia) ** 39.03 +4 %
* Includes our share of Joint Ventures
** Before exceptional items and amortisation of goodwill
and intangibles
When expressed in current rates of exchange, earnings per share (beia) were up
5% for the quarter and 2% for the first nine months. Earnings per share
declined by 42% in the quarter and by 23% for the first nine months.
Interim dividend: NV ordinary share Euro0.50 +4%, PLC ordinary share 4.65p
+6%.
KEY FEATURES FOR THE QUARTER AND THE FIRST NINE MONTHS
- Sales growth of the leading brands, excluding acquisitions, reached 5.4% for
the last twelve months, and 5.3% in the quarter.
- Operating margin (beia) rose by 160 basis points to 15.7% in the quarter,
and to 13.7% for the year to date.
- Path to Growth savings from restructuring and global buying are on track
with additional savings from media efficiency.
- Year to date cashflow from operations was Euro5.2 billion with an additional
Euro3.3 billion from disposals.
- EPS (beia) advanced by 6% in the quarter and by 4% for the year to date.
- Profit before tax and EPS reflect planned restructuring and goodwill
amortisation from acquisitions.
CHAIRMEN'S COMMENT
'The quarter saw strong underlying sales growth from our Foods businesses with
improved performances from European Ice Cream and Ready-to-Drink Tea. Spreads
and Frozen Foods continued to benefit from a strong innovation programme.
There were also excellent results from Ice Cream in North America and from
Slim*Fast, both in the USA and following its international roll-out.
In Home and Personal Care our mass businesses had good sales growth in Europe,
North America and East Asia Pacific. These were partly offset by a decline in
Prestige Fragrances and a slowdown in some of our developing and emerging
markets.
In general, conditions have become more challenging but our business is
naturally resilient and has been further strengthened by the Path to Growth
programme which focuses our resources. Successfully managing our operations
through periods of economic difficulty has always been one of Unilever's core
strengths. We remain confident of achieving our targets.'
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
2 November, 2001
THIRD QUARTER AND NINE MONTHS FINANCIAL RESULTS (at constant rates of
exchange)
Operating profit before exceptional items and amortisation of goodwill and
intangibles (beia) increased by 25% for the quarter and by 31% for the year to
date. Operating margin (beia) was 15.7% in the quarter, an increase of 160
basis points, and 13.7% for the year to date.
Exceptional items in the quarter relating to the Path to Growth programme and
Bestfoods integration were Euro329 million. On a year to date basis, charges
of Euro814 million were offset by the exceptional profit on the sale of brands
in the second quarter leaving the cumulative position flat. Associated costs
were Euro82 million in the quarter and Euro266 million for the year to date.
Amortisation of goodwill and intangibles was Euro355 million in the quarter
with Euro297 million related to the acquisition of Bestfoods. For the year to
date these were Euro1,068 million and Euro890 million respectively.
Net interest was Euro430 million for the quarter, an increase of Euro353
million over last year reflecting the increased level of borrowings to fund
acquisitions, partly offset by cash flow from operations and the proceeds of
our disposal programme.
The effective tax rate for the quarter was 47.5%, which reflects the fact that
Bestfoods goodwill amortisation is not tax deductible. The underlying tax rate
for normal trading operations is 34%.
Including the effect of higher exceptional items and goodwill amortisation,
net profit in the quarter decreased by Euro379 million, or by 44%. Year to
date net profit decreased by Euro468 million, or by 22%, as a result of higher
goodwill amortisation. Before exceptional items and goodwill amortisation, net
profit increased by 5% in the quarter, and by 3% for the year to date.
Earnings per share (beia) rose by 6% in the quarter and by 4% for the year to
date. Earnings per share fell by 44% in the quarter and by 22 % in the year to
date, reflecting the movements in net profit described earlier.
THIRD QUARTER PERFORMANCE BY REGION (at constant rates of exchange)
The following commentary is based on operating profit before exceptional items
and amortisation of goodwill and intangibles. Leading brands growth rates
exclude acquisitions and disposals.
Europe:
Strong growth in both sales and profits.
Total sales were ahead by 9% with an underlying sales growth of 6%. Sales grew
broadly across categories and there was continuing progress in Central &
Eastern Europe. Ice cream and Ready-to-Drink Tea contributed two percentage
points of underlying sales growth, helped by a better summer. Ice cream was
also boosted by innovations such as Carte d'Or Artisanal and Cornetto Soft
Ice.
In Western Europe our leading brands moved ahead by 6.5% in the quarter and by
4.0% on a moving annual total basis.
Among the key highlights in the sales development of our business were:
- Underlying sales growth of 3.5% in Spreads and Cooking Products due to the
continued success of pro*activ, Bertolli Olive Oil based Spreads and the
roll-out of Culinesse.
- The expansion of snacking products and our high quality convenient meal
concept 4 Salti in Padella in Frozen Foods which resulted in an underlying
sales growth of 3%.
- Underlying sales growth of 4% in Home and Personal Care with good growth in
Personal Care (+9%) and Household Care (+6%). Drivers were: Dove, with a
particularly strong performance from face wipes, and Lynx and Sure in the UK
Deodorants market. In Hair we launched Dove shampoo in Italy and continued to
see good growth from Timotei. Cif and Domestos easy-to-use wipes continued to
make good progress. In Oral Care underlying sales grew 6% through the
increasing contribution from electric toothbrushes and chewing gum.
In Central and Eastern Europe we have seen underlying sales growth of 7%
through the launch of soups and Delmy mayonnaise, and growth of Tea in Russia.
Household Care and Skin Care brands performed strongly across the region.
Operating margins of 17.5% are 210 bps ahead of last year reflecting
continuing progress in Central & Eastern Europe, the benefits of Path to
Growth, and the contribution from portfolio changes.
North America:
Acquisitions contribute strongly to sales growth and operating margins remain
robust.
Sales grew by 15% with a strong contribution from acquisitions. Overall
underlying sales growth was 2%, depressed two percentage points by lower sales
of Prestige Fragrances. Our mass Home and Personal Care and Foods businesses
performed well with underlying sales growth of 4%.
Our leading brands grew by 2.7% in the quarter and by 3.7% on a moving annual
total basis.
In Laundry we saw good volume growth of 5%, partly offset by price reductions.
Volume growth was lifted by the performance of our 'sensible shopper' brand
all. In Skin Care we moved underlying sales ahead by 8% through innovations
behind Dove and Suave bar soaps and the recently launched Dove face cloths.
Underlying sales growth of 5% in Deodorants was achieved with a key
contribution from Dove. In daily Hair Care we have retained our market
leadership.
In Foods there were excellent performances from Ice cream where sales were
ahead 11% including an increase of 8% in Ben & Jerry's, and from Slim*Fast
where sales rose by 19%. Operating margins in our Ice cream business have
improved, in spite of the significant increase in butter fat prices. In our
Culinary brands we saw good growth from Ragu with the launch of Ragu Express,
a new Italian style easy to prepare snack, and from both Ragu and Wishbone
following promotional activity.
Operating margin at 15.6% is flat against the prior year with the benefits of
Path to Growth and portfolio change being offset by the loss of contribution
from Prestige Fragrances.
Africa, Middle East AND TURKEY:
Resilient profit performance in spite of market conditions in Turkey.
Sales growth was 12% in the quarter of which 6 percentage points came from
underlying sales, driven by Laundry, Tea, Skin, and Oral. Strongest country
contributions came from Nigeria, Ghana, and South Africa. Price growth was
strong in the quarter reflecting our actions to restore margin structures in
Turkey. We also took action to recover cost increases in countries suffering
devaluation, most notably South Africa.
Our leading brands grew by 8.0% in the quarter and by 7.8% on a moving annual
total basis.
Operating margin, at 12%, is 60 bps behind last year due to poorer market
conditions in Turkey.
Asia and Pacific:
Sales and margins increased despite slower economic growth.
Sales are ahead by 6% with nearly 5 percentage points coming from underlying
sales growth. We have seen strong underlying price increases as key countries
have recovered currency related cost increases.
Our leading brands grew by 6.2% in the quarter and by 7.8% on a moving annual
total basis.
In East Asia Pacific we continue to see good underlying sales growth of 8%
driven by ongoing progress in Japan through the launch of Dove shampoo, the
relaunch of Lux shampoo, and the second phase of the Lipton Ready-to-Drink
expansion. Growth has been further enhanced by the launch of Dove facial foam
in Thailand and the Philippines and the continued success of Dove shampoo in
Korea.
In India underlying sales have grown 5% with our Home and Personal Care
business leading the way. Household Care was particularly strong with the
relaunch of Vim bars, and in Laundry Hindustan Lever took the two leading
positions for the first time. In Hair we saw 18% underlying sales growth
through the relaunch of Clinic and Lux. In Tea our underlying sales declined
as we withdrew from the tail of brands particularly in the low priced segment.
Operating margin at 13.7% is 120 bps up on last year through savings from
restructuring and procurement programmes.
Latin America:
Profits move ahead strongly despite weaker markets.
Sales have moved ahead by 34%, including 31% from acquisitions and disposals.
Leading brands have grown by 5.5% in the quarter and by 8.3% on a moving
annual total basis.
In Mexico, our business continued to grow in low double digits despite a
slowing economy. This was largely driven by the successful roll-out of Sedal
shampoo and a continued strong contribution from Ice cream.
In the Southern Cone, economic conditions remain difficult with markets in
Argentina declining and devaluation of Brazil's Real leading to a need for
aggressive pricing action. We have continued to gain share in Laundry and in
Brazil our Personal Care business has continued to grow through innovations in
Deodorants.
Operating margin improved to 14.7%. This was the result of the benefits from
procurement and restructuring savings, increased Ice cream profitability, a
less intense competitive environment in Laundry and the benefits of portfolio
change.
Whilst we do not expect any short-term improvement in business conditions in
this region we are well accustomed to managing our business through periods of
volatility whether of currencies or markets.
INTERIM DIVIDEND
In accordance with the interim dividend policy, the interim dividend has been
set at 35% of last year's total dividend, based on the stronger of the two
reporting currencies of our parent companies, Euro and Sterling, over the
first nine months, which for this period was Euro. The interim dividend, to be
paid on 17 December 2001, is therefore fixed at 4.65p per 1.4p ordinary share
of Unilever PLC, an increase of 6% from last year. The interim dividend per
Fl. 1.12 ordinary share of Unilever N.V. is set at Euro 0.50, an increase of
4% from last year. The Unilever PLC shares will go ex-dividend on 14 November
2001, and the Unilever N.V. shares will go ex-dividend on 5 November 2001.
CASH FLOW / BALANCE SHEET
Cash flow from operations for the first nine months of Euro5.2 billion was
Euro0.7 billion above the corresponding period last year. This was driven by
strong underlying earnings growth and the contribution from acquisitions.
Returns on investment and servicing of finance reflect higher interest costs
as a result of the funding of acquisitions.
Capital expenditure and financial investments are higher and include larger
purchases of own shares to cover the broadening of the share option scheme.
Net proceeds from disposals include Euro0.2 billion from the sale of Elizabeth
Arden, Euro1.0 billion for the sale of brands to Campbell's and Euro1.9
billion from the sale of the Bestfoods Baking Company.
Net debt has decreased by Euro3.6 billion since 31 December, 2000 reflecting
the proceeds of disposals and on-going cash generation.
Capital and reserves decreased by Euro0.2 billion. Net profit of Euro1.6
billion and goodwill write-backs on disposals of Euro0.1 billion are reduced
by a negative currency retranslation of Euro1.0 billion, by purchases of own
shares of Euro0.4 billion and the interim dividend of Euro0.5 billion.
EURO REPORTING
Information in Sterling and US Dollars is available as a supplement to this
Euro report.
SAFE HARBOUR STATEMENT: This announcement may contain
forward-looking statements (within the meaning of the U.S. Private
Securities Litigation Reform Act 1995). Any forward-looking
statements are based on current expectations with respect to
important risk factors. It is important to note that the actual
results could materially differ from the results anticipated in
any forward-looking statements which may be contained in this
announcement. Factors which might cause forward-looking statements
to differ materially from actual results include, among other
things, the overall economic, political, social and business
conditions, the demand for our goods and services, competition in
the market, fluctuations in interest rates and foreign currencies,
the impact and other uncertainties of future acquisitions and
disposals and any changes in the tax laws and other legislation
and regulation, in the jurisdictions in which we operate.
We do not undertake any obligation to update any forward-looking
statements contained in or incorporated in this announcement to
reflect actual results, changes in assumptions or in other factors
which may affect any forward-looking statements.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
In the profit and loss account given below, the results in both years have
been translated at constant exchange rates, being the annual average exchange
rates for 2000. This reporting convention facilitates comparisons since the
impact of exchange rate fluctuations is eliminated.
Third Quarter Euro Millions - constant Nine Months
2001 2000 % Incr. 2001 2000 % Incr
/ /
(Decr.)
(Decr.)
13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
(195) (101) Less: Share of turnover of joint (524) (270)
ventures
13,373 11,919 12 % GROUP TURNOVER 39,477 34,262 15 %
1,423 1,554 (8)% GROUP OPERATING PROFIT 4,375 3,619 21 %
2,097 1,683 25 % Group operating profit beia * 5,416 4,165 30 %
(329) (73) Exceptional items (1) (468)
(345) (56) Amortisation of goodwill and (1,040) (78)
intangibles
18 12 Add: Share of operating profit of 53 34
joint ventures
1,441 1,566 (8)% TOTAL OPERATING PROFIT 4,428 3,653 21 %
2,125 1,695 25 % Total operating profit beia * 5,497 4,199 31 %
(329) (73) Exceptional items (1) (468)
(355) (56) Amortisation of goodwill and (1,068) (78)
intangibles
3 (2) Other income from fixed 7 -
investments
(430) (77) Interest (1,279) (167)
1,014 1,487 (32)% PROFIT BEFORE TAXATION 3,156 3,486 (9)%
(482) (570) Taxation (1,335) (1,236)
532 917 (42)% PROFIT AFTER TAXATION 1,821 2,250 (19)%
(56) (62) Minority Interests (191) (152)
476 855 (44)% NET PROFIT AT CONSTANT 2000 1,630 2,098 (22)%
EXCHANGE RATES
1,053 1,001 5 % Net Profit before exceptional 2,596 2,516 3 %
items & amortisation of goodwill
and intangibles (Constant rates)
493 854 (42)% NET PROFIT AT EXCHANGE RATES 1,608 2,089 (23)%
CURRENT IN EACH PERIOD
1,034 996 4 % Net Profit before exceptional 2,547 2,501 2 %
items & amortisation of goodwill
and intangibles (Current rates)
COMBINED EARNINGS PER SHARE
(Current rates)
0.49 0.85 (42)% - per Fl. 1.12 ordinary share 1.60 2.08 (23)%
(Euros)
0.47 0.83 (43)% - per Fl. 1.12 ordinary share - 1.55 2.03 (23)%
diluted (Euros)
7.36 12.77 (42)% - per 1.4p ordinary share (Euro 23.97 31.18 (23)%
cents)
7.16 12.45 (43)% - per 1.4p ordinary share - 23.32 30.41 (23)%
diluted (Euro cents)
* beia means before exceptional items and amortisation of goodwill and
intangibles.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
Euro Millions Nine Months
2001 2000
Net profit 1,608 2,089
Currency retranslation (967) 437
Total recognised gains / (losses) since last annual accounts 641 2,526
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
Euro Millions Nine Months
2001 2000
Shareholders' equity as at 1 January 8,169 7,761
Net profit 1,608 2,089
Dividends (520) (497)
Goodwill movements 132 241
Currency retranslation (968) 414
Change of book value of shares or certificates of shares held in (418) (223)
connection with share options
Shareholders' equity as at end period 8,003 9,785
SUMMARY BALANCE SHEET (unaudited)
Euro Millions
As at 29th As at 31st As at 30th
September December September
2001 2000 2000
Goodwill and intangibles 25,240 26,467 4,452
Acquired businesses held for - 1,666 -
resale
Fixed assets 10,274 10,996 9,289
Stocks 5,631 5,421 5,230
Debtors 9,910 9,817 9,869
Cash and current investments 3,388 3,273 20,981
Trade & other creditors (12,894) (12,708) (11,027)
41,549 44,932 38,794
Borrowings 26,256 29,741 22,806
Provisions for liabilities and 6,704 6,404 5,538
charges
Minority interests 586 618 665
Capital and reserves 8,003 8,169 9,785
41,549 44,932 38,794
CASH FLOW STATEMENT (unaudited)
Euro Millions Nine Months
2001 2000
Cash flow from operating activities 5,217 4,468
Dividends from joint ventures 45 19
Returns on investments and servicing of finance (1,392) (238)
Taxation (1,288) (1,116)
Capital expenditure and financial investment (1,138) (849)
Acquisitions and disposals 3,219 (3,327)
Dividends paid on ordinary share capital (927) (877)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES 3,736 (1,920)
AND FINANCING
Management of liquid resources 398 (13,273)
Financing (3,940) 17,406
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 2,213
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
NET FUNDS / (DEBT) AT 1 JANUARY (26,468) 684
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 2,213
Cash flow from (increase)/decrease in borrowings 3,935 (17,425)
Cash flow from increase/(decrease) in liquid resources (398) 13,273
Change in net funds / (debt) resulting from cash flows 3,731 (1,939)
Borrowings within group companies acquired - (92)
Borrowings within group companies sold 1 -
Liquid resources within group companies acquired - 8
Liquid resources within group companies sold - -
Non cash movements (24) (145)
Currency retranslation (108) (341)
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD 3,600 (2,509)
NET FUNDS / (DEBT) AT PERIOD END (22,868) (1,825)
GEOGRAPHICAL ANALYSIS (CONSTANT)
Third Quarter Euro Millions Nine Months
% Incr. % Incr.
/ /
2001 2000 (Decr.) 2001 2000 (Decr.)
13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
5,231 4,803 Europe 15,328 14,015
3,458 3,005 15 % North America 10,230 8,283 23 %
1,007 896 12 % Africa, Middle East and Turkey 2,847 2,526
2,120 2,004 6 % Asia and Pacific 6,343 5,924 7 %
1,752 1,312 Latin America 5,253 3,784
2,125 1,695 25 % TOTAL OPERATING PROFIT - before 5,497 4,199 31 %
exceptional items and amortisation
of goodwill and intangibles
914 740 23 % Europe 2,322 1,935 20 %
541 469 15 % North America 1,355 971 40 %
121 113 Africa, Middle East and Turkey 315 251 26 %
290 250 16 % Asia and Pacific 825 681 21 %
259 123 111 % Latin America 680 361 89 %
15.7% 14.1% TOTAL OPERATING MARGIN - before 13.7% 12.2%
exceptional items and amortisation
of goodwill and intangibles
17.5% 15.4% Europe 15.1% 13.8%
15.6% 15.6% North America 13.2% 11.7%
12.0% 12.6% Africa, Middle East and Turkey 11.1% 9.9%
13.7% 12.5% Asia and Pacific 13.0% 11.5%
14.7% 9.3% Latin America 12.9% 9.5%
OPERATIONAL ANALYSIS (CONSTANT)
Third Quarter Euro Millions Nine Months
% Incr. % Incr.
/ /
2001 2000 (Decr.) 2001 2000 (Decr.)
13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
7,442 5,890 26 % Foods 22,048 17,005 30 %
2,148 2,022 6 % Oil and dairy based foods and 6,439 5,620 15 %
bakery
2,347 2,178 Ice cream and beverages 6,482 6,242
2,947 1,690 74 % Culinary and frozen products 9,127 5,143 77 %
2,743 2,643 4 % Home Care and Professional Cleaning 8,164 7,673
3,235 3,273 (1)% Personal Care 9,332 9,214 1 %
148 214 Other Operations 457 640
2,125 1,695 25 % TOTAL OPERATING PROFIT - before 5,497 4,199 31 %
exceptional
items and amortisation of goodwill
and intangibles
1,173 805 46 % Foods 3,073 2,042
288 287 1 % Oil and dairy based foods and 880 733 20 %
bakery
392 318 24 % Ice cream and beverages 832 763 9 %
493 200 146 % Culinary and frozen products 1,361 546 150 %
295 283 4 % Home Care and Professional Cleaning 731 708
666 599 Personal Care 1,672 1,434 17 %
(9) 8 (217)% Other Operations 21 15
15.7 % 14.1 % TOTAL OPERATING MARGIN - before 13.7 % 12.2 %
exceptional items and amortisation
of goodwill and intangibles
15.8 % Foods 13.9 %
13.4 % Oil and dairy based foods and 13.7 %
bakery
16.7 % Ice cream and beverages 12.8 %
16.7 % Culinary and frozen products 14.9 %
10.7 % Home Care and Professional Cleaning 8.9 %
20.6 % Personal Care 17.9 %
(6.0)% Other Operations 4.6 %
NOTES
Exchange Rates
The results for 2001 and the comparative figures for 2000 have been translated
at constant average rates of exchange, being the annual average rates for
2000. For our reporting currencies these were Euro1 = £0.61 = US $0.92. In
addition, the results, earnings per share and cash flow statement have been
translated at rates current in each period. For our reporting currencies these
were:
Third Quarter Nine Months
2001 Euro1 = £0.62 = US $0.89 Euro1 = £0.62 = US $0.89
2000 Euro1 = £0.61 = US $0.91 Euro1 = £0.61 = US $0.94
The balance sheet figures have been translated at period-end rates of
exchange. For our reporting currencies these were :
End September 2001 Euro1 = £0.62 = US $0.92
End December 2000 Euro1 = £0.62 = US $0.93
End September 2000 Euro1 = £0.60 = US $0.88
Current Rates of Exchange
For the first nine months in current rates of exchange: Total turnover is Euro
39,158 million (15% increase); Operating profit beia is Euro5,387 million (29%
increase); Operating profit is Euro4,347 million (20% increase); Interest is a
charge of Euro1,257 million (compared with a charge of Euro158 million last
year); Pre-tax profit is Euro3,097 million (11% decrease); Net profit is Euro
1,608 million (23% decrease); Net profit beia is Euro2,547 million (2%
increase); Earnings per share beia is Euro2.55 per NV share (2% increase);
Earnings per share is Euro1.60 per NV share (23% decrease).
Acquisitions
In the first nine months of 2001 the effect on turnover and operating profit
of acquisitions made in the period was not material.
Disposals
On 2 October, 2001 we announced that the sale of our North American seafood
business to Nippon Suisan (USA), Inc, a subsidiary of Nippon Suisan Kaisha
Limited for US$175 million in cash, had been completed. This business
comprises the Gorton's business in the United States and the BlueWater
Seafoods business in Canada. Together the businesses had net sales of US$250
million in 2000.
Acquired businesses held for resale
A number of Bestfoods businesses were expected to be sold within a year from
their purchase. The assets and liabilities of those businesses, after
adjustment to their estimated net proceeds of sale, were included within '
Acquired businesses held for resale'. All of these businesses have now been
sold and any differences between actual and estimated proceeds have been
adjusted in goodwill. The results of these businesses are not included in the
Profit & Loss Account.
Reporting of total turnover and total operating profit
The term 'Total' means Group (turnover and operating profit) plus our share of
the joint ventures (turnover and operating profit) net of our share of any
sales to the joint ventures already included in the Group figures.
Interim Dividends
The Boards today declared interim dividends in respect of 2001 on the ordinary
shares at the following rates which are equivalent in value at the rate of
exchange applied under the terms of the Equalisation Agreement between the two
companies:
N.V.
Per ordinary share Euro0.50 (2000: Euro0.48)
PLC
Per ordinary share 4.65p (2000: 4.40p)
The N.V. interim dividend will be payable as from December 17, 2001, to
shareholders registered at close of business on November 2, 2001.
The PLC interim dividend will be paid on December 17, 2001, to shareholders
registered at close of business on November 16, 2001.
DIVIDEND ON NEW YORK SHARES OF N.V.
The N.V. interim dividend, when converted at the Euro/Dollar European Central
Bank rate of exchange on November 1, 2001, represents US$ 0.454850 per New
York Share of Fl. 1.12 (2000: US$ 0.415008) before deduction of Netherlands
withholding tax. US dollar checks for the interim dividend, after deduction of
Netherlands withholding tax at the appropriate rate, will be mailed on
December 17, 2001, to holders of record of New York shares at the close of
business on November 9, 2001.
DIVIDEND ON AMERICAN SHARES OF PLC
Each American share of PLC represents four 1.4p Ordinary shares of PLC. The
PLC interim dividend will therefore be 18.60p per American Share. If converted
at the noon Sterling/Dollar rate of exchange in London on November 1, 2001,
the interim dividend for holders resident in the US would therefore be US$
0.2724 per American Share. (2000: US$ 0.2573).
US dollar checks for the interim dividend converted at the Sterling/Dollar
rate of exchange current in London on December 17, 2001 will be mailed on
December 24, 2001 to holders of record of American shares at the close of
business on November 16, 2001.
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 = Fl. 12, in accordance with the
Equalisation Agreement.
The diluted earnings per share are based on the average number of share units,
plus all shares under option, together with certain PLC shares which may be
issued in 2038 under the arrangements for the variation of the Leverhulme
Trust. The number of shares is reduced, in accordance with FRS 14, by the
number of shares that could be purchased at fair value with the expected
proceeds from the exercise of options by employees.
Earnings per share in Euro
Constant rates Current rates
2001 2000 2001 2000
Thousands of units
Average number of combined share units 983,181 989,573 983,181 989,573
of Fl. 1.12
Average number of combined share units 6,554,541 6,597,155 6,554,541 6,597,155
of 1.4p
COMBINED EPS
Net profit 1,630 2,098 1,608 2,089
Less: Preference dividends 37 32 37 32
Net profit attributable to ordinary 1,593 2,066 1,571 2,057
capital
Combined EPS per Fl. 1.12 (Euros) 1.62 2.09 1.60 2.08
Combined EPS per 1.4p (Euro cents) 24.30 31.34 23.97 31.18
COMBINED EPS - BEIA
Net profit 1,630 2,098 1,608 2,089
Add back exceptional items net of tax (49) 356 (67) 352
Add back amortisation of goodwill /
intangibles net of 1,031 62 1,023 60
tax
Add back exceptional items in minority
interests net of (16) - (17) -
tax
Net profit beia 2,596 2,516 2,547 2,501
Less: Preference dividends 37 32 37 32
Net profit attributable to ordinary
capital - beia 2,559 2,484 2,510 2,469
Combined EPS beia per Fl. 1.12 (Euros) 2.60 2.51 2.55 2.50
Combined EPS beia per 1.4p (Euro cents) 39.03 37.66 38.29 37.43
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined share units 1,010,632 1,014,722 1,010,632 1,014,722
of Fl. 1.12
Adjusted average combined share units 6,737,550 6,764,814 6,737,550 6,764,814
of 1.4p
Net profit attributable to ordinary 1,593 2,066 1,571 2,057
capital
Combined diluted EPS per Fl. 1.12 1.58 2.04 1.55 2.03
(Euros)
Combined diluted EPS per 1.4p (Euro 23.64 30.55 23.32 30.41
cents)
Dates
Salient figures from the above results will be published in the Financial
Times and Daily Telegraph on 3 November, 2001.
The provisional results for the fourth quarter and for the year 2001 and the
proposed final dividends will be published on Thursday 14 February, 2002.
2 November, 2001
Internet: http://www.unilever.com
E-mail: press-office.london@unilever.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
In the profit and loss account given below, the results in both years have
been translated at constant exchange rates, being the annual average exchange
rates for 2000. This reporting convention facilitates comparisons since the
impact of exchange rate fluctuations is eliminated.
Third Quarter £ Millions - constant Nine Months
2001 2000 % Incr. 2001 2000 % Incr
/ /
(Decr.)
(Decr.)
8,259 7,317 13 % TOTAL TURNOVER 24,349 21,020 16 %
(119) (61) Less: Share of turnover of joint (319) (164)
ventures
8,140 7,256 12 % GROUP TURNOVER 24,030 20,856 15 %
867 946 (8)% GROUP OPERATING PROFIT 2,663 2,203 21 %
1,277 1,025 25 % Group operating profit beia * 3,297 2,535 30 %
(200) (45) Exceptional items (1) (284)
(210) (34) Amortisation of goodwill and (633) (48)
intangibles
11 6 Add: Share of operating profit of 32 20
joint ventures
878 952 (8)% TOTAL OPERATING PROFIT 2,695 2,223 21 %
1,293 1,031 25 % Total operating profit beia * 3,346 2,555 31 %
(200) (45) Exceptional items (1) (284)
(215) (34) Amortisation of goodwill and (650) (48)
intangibles
1 - Other income from fixed investments 4 1
(261) (47) Interest (778) (102)
618 905 (32)% PROFIT BEFORE TAXATION 1,921 2,122 (9)%
(294) (346) Taxation (813) (751)
324 559 (42)% PROFIT AFTER TAXATION 1,108 1,371 (19)%
(34) (38) Minority Interests (116) (93)
290 521 (44)% NET PROFIT AT CONSTANT 2000 EXCHANGE 992 1,278 (22)%
RATES
641 610 5 % Net Profit before exceptional items & 1,580 1,531 3 %
amortisation of goodwill and
intangibles (Constant rates)
306 522 (42)% NET PROFIT AT EXCHANGE RATES CURRENT 1,001 1,278 (22)%
IN EACH PERIOD
642 611 5 % Net Profit before exceptional items & 1,584 1,530 4 %
amortisation of goodwill and
intangibles (Current rates)
COMBINED EARNINGS PER SHARE (Current
rates)
4.57p 7.81p (42)% - per 1.4p ordinary share 14.91p 19.07p (22)%
4.44p 7.61p (42)% - per 1.4p ordinary share - diluted 14.51p 18.60p (22)%
* beia means before exceptional items and amortisation of goodwill and
intangibles.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
£ Millions Nine Months
2001 2000
Net profit 1,001 1,278
Currency retranslation (600) 91
Total recognised gains / (losses) since last annual accounts 401 1,369
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
£ Millions Nine Months
2001 2000
Shareholders' equity as at 1 January 5,095 4,825
Net profit 1,001 1,278
Dividends (324) (304)
Goodwill movements 82 147
Currency retranslation (602) 52
Change of book value of shares or certificates of shares held in (136)
connection with share options
(260)
Shareholders' equity as at end period 4,992 5,862
SUMMARY BALANCE SHEET (unaudited)
£ Millions
As at 29th As at 31st As at 30th
September December September
2001 2000 2000
Goodwill and intangibles 15,745 16,508 2,667
Acquired businesses held for - 1,039 -
resale
Fixed assets 6,409 6,858 5,565
Stocks 3,513 3,381 3,133
Debtors 6,182 6,123 5,913
Cash and current investments 2,114 2,042 12,570
Trade & other creditors (8,044) (7,926) (6,606)
25,919 28,025 23,242
Borrowings 16,378 18,549 13,663
Provisions for liabilities and 4,183 3,995 3,318
charges
Minority interests 366 386 399
Capital and reserves 4,992 5,095 5,862
25,919 28,025 23,242
CASH FLOW STATEMENT (unaudited)
£ Millions Nine Months
2001 2000
Cash flow from operating activities 3,245 2,734
Dividends from joint ventures 28 11
Returns on investments and servicing of finance (866) (145)
Taxation (801) (683)
Capital expenditure and financial investment (707) (520)
Acquisitions and disposals 2,001 (2,034)
Dividends paid on ordinary share capital (577) (536)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES 2,323 (1,173)
AND FINANCING
Management of liquid resources 247 (8,119)
Financing (2,451) 10,647
INCREASE / (DECREASE) IN CASH IN THE PERIOD 119 1,355
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT)
NET FUNDS / (DEBT) AT 1 JANUARY (16,507) 425
INCREASE / (DECREASE) IN CASH IN THE PERIOD 119 1,355
Cash flow from (increase)/decrease in borrowings 2,448 (10,659)
Cash flow from increase/(decrease) in liquid resources (247) 8,119
Change in net funds / (debt) resulting from cash flows 2,320 (1,185)
Borrowings within group companies acquired - (56)
Borrowings within group companies sold 1 -
Liquid resources within group companies acquired - 5
Liquid resources within group companies sold - -
Non cash movements (15) (89)
Currency retranslation (63) (193)
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD 2,243 (1,518)
NET FUNDS / (DEBT) AT PERIOD END (14,264) (1,093)
GEOGRAPHICAL ANALYSIS (CONSTANT)
Third Quarter £ Millions Nine Months
% Incr. % Incr.
/ /
2001 2000 (Decr.) 2001 2000 (Decr.)
8,259 7,317 13 % TOTAL TURNOVER 24,349 21,020 16 %
3,184 2,924 Europe 9,330 8,531
2,105 1,829 15 % North America 6,227 5,042 23 %
613 546 12 % Africa, Middle East and Turkey 1,733 1,538
1,290 1,219 6 % Asia and Pacific 3,861 3,606 7 %
1,067 799 Latin America 3,198 2,303
1,293 1,031 25 % TOTAL OPERATING PROFIT - before 3,346 2,555 31 %
exceptional items and amortisation of
goodwill and intangibles
556 450 23 % Europe 1,413 1,178 20 %
329 286 15 % North America 825 591 40 %
74 69 Africa, Middle East and Turkey 192 153 26 %
177 152 16 % Asia and Pacific 502 414 21 %
157 74 111 % Latin America 414 219 89 %
15.7% 14.1% TOTAL OPERATING MARGIN - before 13.7% 12.2%
exceptional items and amortisation of
goodwill and intangibles
17.5% 15.4% Europe 15.1% 13.8%
15.6% 15.6% North America 13.2% 11.7%
12.0% 12.6% Africa, Middle East and Turkey 11.1% 9.9%
13.7% 12.5% Asia and Pacific 13.0% 11.5%
14.7% 9.3% Latin America 12.9% 9.5%
OPERATIONAL ANALYSIS (CONSTANT)
Third Quarter £ Millions Nine Months
% Incr. % Incr.
/ /
2001 2000 (Decr.) 2001 2000 (Decr.)
8,259 7,317 13 % TOTAL TURNOVER 23,349 21,020 16 %
4,531 3,585 26 % Foods 13,422 10,351 30 %
1,308 1,231 6 % Oil and dairy based foods and bakery 3,920 3,421 15 %
1,429 1,325 Ice cream and beverages 3,946 3,799
1,794 1,029 74 % Culinary and frozen products 5,556 3,131 77 %
1,669 1,609 4 % Home Care and Professional Cleaning 4,969 4,671
1,969 1,993 (1)% Personal Care 5,680 5,609 1 %
90 130 Other Operations 278 389
1,293 1,031 25 % TOTAL OPERATING PROFIT - before 3,346 2,555 31 %
exceptional
items and amortisation of goodwill
and intangibles
714 490 46 % Foods 1,871 1,244
175 175 1 % Oil and dairy based foods and bakery 536 448 20 %
239 193 24 % Ice cream and beverages 507 464 9 %
300 122 146 % Culinary and frozen products 828 332 150 %
179 172 4 % Home Care and Professional Cleaning 444 431
405 364 Personal Care 1,018 872 17 %
(5) 5 (217)% Other Operations 13 8 45 %
15.7% 14.1% TOTAL OPERATING MARGIN - before 13.7 % 12.2 %
exceptional items and amortisation of
goodwill and intangibles
15.8% Foods 13.9 %
13.4% Oil and dairy based foods and bakery 13.7 %
16.7% Ice cream and beverages 12.8 %
16.7% Culinary and frozen products 14.9 %
10.7% Home Care and Professional Cleaning 8.9 %
20.65 Personal Care 17.9 %
(6.0)% Other Operations 4.6 %
Earnings per share in Sterling
Constant rates Current rates
2001 2000 2001 2000
Thousands of units
Average number of combined share units 6,554,541 6,597,155 6,554,541 6,597,155
of 1.4p
COMBINED EPS
Net profit 992 1,278 1,001 1,278
Less: Preference dividends 23 19 23 20
Net profit attributable to ordinary 969 1,259 978 1,258
capital
Combined EPS per 1.4p 14.79p 19.07p 14.91p 19.07p
COMBINED EPS - BEIA
Net profit 992 1,278 1,001 1,278
Add back exceptional items net of tax (31) 216 (43) 215
Add back amortisation of goodwill /
intangibles net 629 37 636 37
of tax
Add back exceptional items in minority
interests (10) - (10) -
net of tax
Net profit beia 1,580 1,531 1,584 1,530
Less: Preference dividends 23 19 23 20
Net profit attributable to ordinary
capital - beia 1,557 1,512 1,561 1,510
Combined EPS beia per 1.4p 23.76p 22.92p 23.82p 22.90p
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined share units 6,737,550 6,764,814 6,737,550 6,764,814
of 1.4p
Net profit attributable to ordinary 969 1,259 978 1,258
capital
Combined diluted EPS per 1.4p 14.39p 18.61p 14.51p 18.60p