Final Results
Unilever PLC
14 February 2002
UNILEVER FOURTH QUARTER AND ANNUAL RESULTS 2001
(Unaudited and provisional)
Faster growth in the leading brands, strong expansion of operating margin and
excellent progress with the integration of Bestfoods and our other acquisitions,
were the highlights of a successful year. This underpins our confidence that we
will fully achieve our Path to Growth targets.
FINANCIAL HIGHLIGHTS
Constant exchange rates (2000 average) Current exchange
rates
Fourth Quarter 2001 € Millions Full Year 2001 Full Year 2001
13,399 (1)% Total Turnover * 53,400 11% 52,206 9%
1,919 21% Total Operating profit * - beia ** 7,416 28% 7,269 25%
542 173% Pre-tax profit / (loss) 3,698 35% 3,624 33%
228 123% Net profit / (loss) 1,858 66% 1,838 66%
1,006 41% Net profit - beia ** 3,602 12% 3,543 10%
Per NV share (€0.51), Euro
0.22 122% Earnings per share (EPS) 1.84 69% 1.82 70%
1.01 43% EPS (beia) ** 3.61 12% 3.55 11%
Per PLC share (1.4p), Eurocent
3.27 122% Earnings per share (EPS) 27.57 69% 27.27 70%
15.16 43% EPS (beia) ** 54.19 12% 53.29 11%
* Includes our share of Joint Ventures
** Before exceptional items and amortisation of goodwill and intangibles
KEY FEATURES FOR THE YEAR
• Sales growth of our leading brands reached 5.3% for the year, a marked
increase in momentum, and they now represent 84% of our business.
• Operating margin (beia) moved strongly ahead to 13.9% for the year,
compared to 12.0% in 2000.
• Savings from restructuring and global buying are comfortably on plan, with
further benefits from media efficiencies.
• Earnings per share (beia) grew 12.2%, in line with our Path to Growth
commitment.
• Cashflow from operations rose by 11% to € 7.5 billion with an additional €
3.6 billion from disposals.
• Proposed final dividend of €1.06 per NV ordinary share and 9.89p per PLC
ordinary share, increases the total dividend per share by 9% for NV and by
11% for PLC.
CHAIRMEN'S COMMENT & OUTLOOK
The past year has shown the great strength of our business and underlined our
ability to execute substantial change. We have made excellent progress with the
integration of Bestfoods, implemented our new Divisional structure and dealt
effectively with a more challenging business environment. Our performance is a
testimony to the everyday appeal of our brands and particularly to the
professionalism of our people.
A step-up in the growth of our leading brands, a record operating margin, strong
cash flow and the continued reshaping of our portfolio all provide confidence
about the plans we have in place and our ability to deliver against them - on
time and in full.
Our new Divisional structure of Foods and Home & Personal Care is already
accelerating execution of our business plans and has strengthened our capability
to deliver more, and bigger, innovations which provide the fuel for brand
growth.
In Foods we have seen a marked increase in both growth and profitability through
the year. This has been broad based across brands and geography, with the most
notable improvements coming from Europe and throughout our global Ice Cream
business. There were excellent contributions from Slim•Fast, Ben & Jerry's and
from Amora Maille and the integration of Bestfoods has proceeded very well with
the synergy benefits being delivered ahead of plan.
In Home & Personal Care we have made further good progress, with particularly
strong contributions from Skin, Hair and Deodorants and a robust performance
from Laundry, partly offset by a decline in Prestige Fragrances due to tough
market conditions.
In 2002 we are planning to sustain the growth of the leading brands, reinforced
by those of Bestfoods, and to deliver low double-digit growth in earnings per
share, before exceptional items and goodwill amortisation.
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
14 February 2002
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS (at constant exchange rates)
Underlying sales grew by 4% in the quarter, and by 4% for the year. The impact
of our disposal programme led to sales in the quarter being 1% lower than last
year. Sales for the year, including the impact of acquisitions and disposals,
were 11% ahead.
Operating profit, before exceptional items and amortisation of goodwill and
intangibles (beia), increased by 21% in the quarter and by 28% for the year.
Operating margin (beia) in the quarter was 14.3%, an increase of 250 basis
points over last year, and for the full year rose by 190 basis points to 13.9%.
Amortisation of goodwill and intangibles was €368 million in the quarter and
€1,436 million for the year, including €1,186 million for Bestfoods.
Net interest was €1,058 million higher than last year, reflecting the increased
level of borrowings related to acquisitions. In the quarter, interest was €395
million, down from €449 million in the same period last year, as we benefited
from the continuing strong cash flow from operations, proceeds of business
disposals, and lower interest rates.
Exceptional items for the year were €620 million, which includes €1,564 million
of restructuring investment and profits on disposals of €944 million. Of the
latter, €828 million relates to the profit on the sale of the brands to secure
regulatory approval for our acquisition of Bestfoods. Associated costs included
in operating profit (beia) were €393 million for the year, of which €127 million
fell in the fourth quarter.
The effective tax rate for the year is 43% and reflects the
non-tax-deductibility of Bestfoods goodwill amortisation and a tax rate on the
net exceptional charges of 39%. The underlying rate of tax for normal trading
operations is 33%.
Net profit for the year is up 66% to €1,858 million. Excluding exceptional items
and goodwill amortisation, net profit rose by €374 million, or by 12%.
Earnings per share (beia) rose by 43% in the quarter and by 12% for the full
year. Earnings per share rose by 69% for the full year.
When expressed at current rates of exchange, earnings per share (beia) were up
11% for the full year. Earnings per share rose by 70%.
FULL YEAR PERFORMANCE BY REGION (at constant exchange rates)
The following regional commentary is based on operating profit before
exceptional items and amortisation of goodwill and intangibles.
EUROPE: Strong all-round performance with good growth in both sales and
profitability.
Sales were ahead in the year by 6% with an underlying sales growth of 4%. Growth
was broad based and included a strong contribution from Central and Eastern
Europe.
In Western Europe, the success of pro•activ, Culinesse and Bertolli in Spreads
and Cooking Products, the 4 Salti in Padella range of high quality frozen ready
meals and the expansion of Slim•Fast, led to a step-up in the growth rate for
Foods. Cornetto and Carte d'Or both grew strongly through innovation, whilst in
Culinary there was continued momentum in Amora Maille and we started to see the
strength of the Knorr brand.
In Personal Care the leading brands maintained their good rate of growth, led by
range extensions in Dove and Signal and by Rexona. Dove shampoo was launched in
eight countries by the end of the year and the initial response has been very
positive. The success of the Vaporesse ironing aid in Fabric Conditioners
together with a solid response to a more competitive environment in Fabric Wash
helped Laundry to grow. We continued to enjoy good rates of growth in Domestos
and Cif through the success of easy-to-use wipes and the launch of Domestos
Biactif and mousse.
In Central and Eastern Europe we have seen strong growth, most notably Leaf Tea
in Russia, the launch of soups and Delmy mayonnaise and broad based progress in
Home & Personal Care.
Operating margins of 14.7% in Europe are 200 basis points ahead of last year,
due to restructuring, buying and marketing support efficiencies, and portfolio
improvement.
NORTH AMERICA: Major portfolio change improves long term growth and profit
profile with the year being one of transition as we integrate our acquisitions.
Sales were ahead by 16% with an underlying growth of 2%.
In our Home & Personal Care mass business underlying sales growth was 2.5%,
skewed towards the first half of the year, due to the phasing of innovation.
There were good performances by our brands across the Skin, Hair and Deodorant
categories, notably Dove and Suave.
In Prestige Fragrance our sales declined, reflecting both the sale of Elizabeth
Arden and weaknesses in department stores and travel retail following the tragic
events of September 11th. The decline in underlying sales reduced the overall
North American growth rate by nearly a percentage point.
Our Foods Business recorded an underlying sales growth of just over 3% for the
year.
The integration of Ben & Jerry's proceeded well and sales grew 8% in the year.
This, together with strong sales of Breyers Impulse and Multipacks consolidated
our market leadership. Slim•Fast continued to expand and is now close to €1
billion sales. Spreads grew with the introduction of Calcium variants of the
Shedd's and I Can't Believe It's Not Butter! ranges. In Culinary Products, sales
were flat due to competitive activity and our focus on integration. In Tea,
sales declined as we focused on margin improvement and brand convergence.
Operating margin has moved ahead by 140 basis points reflecting the benefits of
portfolio change, restructuring, global procurement and marketing support
efficiencies.
AFRICA, MIDDLE EAST AND TURKEY: Continued resilience in a challenging economic
environment.
Sales grew by 10% with an underlying growth of 7%. Price increases have had
priority to protect margins in countries where there has been devaluation, in
particular South Africa and Turkey. Growth is broad based across our brands,
with the strongest country contributions coming from South Africa, Nigeria and
Ghana. There were good performances by Omo, relaunched with an improved
formulation, Close-up in West Africa where we continue to strengthen our
position in Oral Care and with Dove.
Operating margin at 11.0% is 100 basis points ahead of last year, reflecting
focused management in challenging economic conditions.
ASIA AND PACIFIC: Strong advance in profitability with continuing good growth.
Total sales grew by 6% with underlying sales ahead by the same amount.
In South East Asia and Japan sales growth exceeded 10%. Notable were: a strong
performance in Japan with the successful launch of Dove shampoo; Lipton
Ready-to-Drink Tea through the alliance with Suntory; and our Skin business
through Pond's and Dove. In South East Asia our Personal Care brands powered
ahead in all countries led by new variants of Sunsilk, increased market
penetration for Rexona and excellent performances in Indonesia from Citra and
Pepsodent following its relaunch.
In India, the more focused brand portfolio delivered improved growth and
profitability. There were particularly strong performances by Sunsilk and Clinic
in Hair, Rin and Wheel in Laundry, and Fair and Lovely range extensions in Skin
Care. In Foods, sales have been flat as we have been aggressively improving
margins and eliminating poor-performing brands.
In China, strong growth in Ice Cream and Food Service has partly offset declines
in retail. In this sector the strong growth in the modern trade has led us to
re-shape our selling and distribution system. In the year we made substantial
progress towards profitability.
Operating margin for the year has advanced by 230 basis points reflecting the
benefits of global procurement, improved Foods profitability and a stronger mix
through the growth in Personal Care.
LATIN AMERICA: Encouraging performance against a difficult background.
Total sales moved ahead by 27% with an underlying sales growth of 5%.
A key feature of the year has been our determination to move pricing to recover
devaluation driven cost increases and so protect our margin structure.
Mexico sustained strong growth throughout the year. The key drivers have been:
Sedal, which reached an 8% share in the Hair Care market in its first year since
launch; further progress in Spreads, Deodorants and Skin Care; and a successful
expansion of the Holanda Ice Cream business.
In Argentina, markets declined as consumer income reduced, however our market
shares remain strong. In Brazil volumes were impacted by the strong price
increases needed to restore margins but underlying sales moved ahead with strong
innovation under the Rexona brand.
Operating margin for the year at 13.0% is 220 basis points ahead of last year
reflecting the benefits of portfolio change, global procurement, restructuring
and improved Ice Cream profitability.
FINAL DIVIDEND
The Boards will recommend to the Annual General Meetings, to be held on 8 May
2002, a final dividend of €1.06 per €0.51 ordinary share of Unilever N.V., an
increase of 12% over last year and a final dividend of 9.89p per 1.4p ordinary
share of Unilever PLC, an increase of 14% over last year. This will bring the
total dividend to €1.56 per ordinary share of €0.51, an increase of 9% over last
year and 14.54p per ordinary share of 1.4p, an increase of 11% over last year.
CASH FLOW
Cash flow from operations for the year 2001 was €7.5 billion compared with €6.7
billion in 2000. This is the result of strong underlying cash generation through
sales growth and the expansion of operating margin, partly offset by higher cash
restructuring costs.
The disposal of acquired businesses held for resale, and the sale of the brands
to secure regulatory approval for our acquisition of Bestfoods, were the major
contributors to €3.6 billion proceeds from disposals.
Higher net interest costs reflect the funding of acquisitions made in 2000.
BALANCE SHEET
Net debt has been reduced to €23.2 billion from €26.5 billion at the end of
2000.
Capital and reserves decreased by €1.0 billion to €7.2 billion. Net Profit of
€1.8 billion and goodwill write-backs on disposals of €0.3 billion were offset
by the dividend of €1.6 billion, €0.4 billion purchases of own shares to meet
option obligations, and a €1.1 billion currency retranslation. Included in this
currency retranslation is an adjustment of €(474) million due to the devaluation
of the Argentinian peso.
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.
Fourth Quarter € Millions - constant Full Year
2001 2000 % Incr./ 2001 2000 % Incr /
(Decr.)
(Decr.)
13,399 13,475 (1)% TOTAL TURNOVER 53,400 48,007 11 %
(193) (203) Less: Share of turnover of joint ventures (717) (473)
13,206 13,272 - % GROUP TURNOVER 52,683 47,534 11 %
900 (317) 384 % GROUP OPERATING PROFIT / (LOSS) 5,275 3,302 60 %
1,876 1,554 21 % Group operating profit beia * 7,292 5,719 28 %
(619) (1,523) Exceptional items (620) (1,991)
(357) (348) Amortisation of goodwill and intangibles (1,397) (426)
32 23 Add: Share of operating profit of joint ventures 85 57
932 (294) 418 % TOTAL OPERATING PROFIT / (LOSS) 5,360 3,359 60 %
1,919 1,586 21 % Total operating profit beia * 7,416 5,785 28 %
(619) (1,523) Exceptional items (620) (1,991)
(368) (357) Amortisation of goodwill and intangibles (1,436) (435)
5 (4) Other income from fixed investments 12 (4)
(395) (449) Interest (1,674) (616)
542 (747) 173 % PROFIT / (LOSS) BEFORE TAXATION 3,698 2,739 35 %
(256) (170) Taxation (1,591) (1,406)
286 (917) 131 % PROFIT / (LOSS) AFTER TAXATION 2,107 1,333 58 %
(58) (63) Minority Interests (249) (215)
228 (980) 123 % NET PROFIT / (LOSS) AT CONSTANT 2000 EXCHANGE RATES 1,858 1,118 66 %
1,006 712 41 % Net Profit before exceptional items & amortisation of 3,602 3,228 12 %
goodwill and intangibles (Constant rates)
* beia means before exceptional items and amortisation of goodwill and
intangibles.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CURRENT EXCHANGE RATES (unaudited)
The profit and loss account given below is stated at current exchange rates i.e.
the results in both years have been translated at the exchange rates prevailing
during the appropriate period; further information is given on page 12. The
reported results are therefore impacted by exchange rate movements between the
periods.
Fourth Quarter € Millions - current Full Year
2001 2000 % Incr./ 2001 2000 % Incr /
(Decr.) (Decr.)
13,048 13,834 (6)% TOTAL TURNOVER 52,206 48,066 9 %
(182) (216) Less: Share of turnover of joint ventures (692) (484)
12,866 13,618 (6)% GROUP TURNOVER 51,514 47,582 8 %
879 (296) 398 % GROUP OPERATING PROFIT / (LOSS) 5,174 3,302 57 %
1,841 1,590 16 % Group operating profit beia * 7,149 5,729 25 %
(609) (1,528) Exceptional items (588) (1,992)
(353) (358) Amortisation of goodwill and intangibles (1,387) (435)
32 24 Add: Share of operating profit of joint ventures 84 57
911 (272) 435 % TOTAL OPERATING PROFIT / (LOSS) 5,258 3,359 57 %
1,882 1,627 16 % Total operating profit beia * 7,269 5,794 25 %
(609) (1,528) Exceptional items (588) (1,992)
(362) (371) Amortisation of goodwill and intangibles (1,423) (443)
5 (5) Other income from fixed investments 12 (4)
(389) (469) Interest (1,646) (632)
527 (746) 171 % PROFIT / (LOSS) BEFORE TAXATION 3,624 2,723 33 %
(241) (174) Taxation (1,547) (1,403)
286 (920) 131 % PROFIT / (LOSS) AFTER TAXATION 2,077 1,320 57 %
(56) (64) Minority Interests (239) (215)
230 (984) 123 % NET PROFIT / (LOSS) AT EXCHANGE RATES CURRENT IN EACH PERIOD 1,838 1,105 66 %
996 716 39 % Net Profit before exceptional items & amortisation of 3,543 3,223 10 %
goodwill and intangibles
COMBINED EARNINGS PER SHARE (Current rates)
0.22 (1.01) 122 % - per €0.51 ordinary share (Euros) 1.82 1.07 70 %
0.22 (0.98) 122 % - per €0.51 ordinary share - diluted (Euros) 1.77 1.05 69 %
3.30 (15.10) 122 % - per 1.4p ordinary share (Euro cents) 27.27 16.08 70 %
3.22 (14.72) 122 % - per 1.4p ordinary share - diluted (Euro cents) 26.54 15.69 69 %
Preference dividends (51) (44)
Dividends on ordinary capital (1,530) (1,414)
Result for the year retained 257 (353)
* beia means before exceptional items and amortisation of goodwill and
intangibles
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
€ Millions Full Year
2001 2000
Net profit 1,838 1,105
Currency retranslation * (1,058) (237)
Total recognised gains 780 868
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
€ Millions Full Year
2001 2000
Shareholders' equity as at 1 January 8,169 7,761
Net profit 1,838 1,105
Dividends (1,581) (1,458)
Goodwill movements 274 1,193
Currency retranslation * (1,069) (248)
Change in number of shares or certificates of shares held in (436) (184)
connection with share options
Shareholders' equity as at 31 December 7,195 8,169
SUMMARY BALANCE SHEET (unaudited)
€ Millions As at 31 December
2001 2000
Goodwill and Acquired businesses held for resale 25,097 28,133
Fixed assets 10,124 10,996
Stocks 5,343 5,421
Debtors 10,094 9,817
Cash and current investments 2,301 3,273
Trade & other creditors (12,738) (12,708)
40,221 44,932
Borrowings 25,500 29,741
Provisions for liabilities and charges 6,862 6,404
Minority interests 664 618
Capital and reserves 7,195 8,169
40,221 44,932
* Includes a currency retranslation loss of €(474) million due to the
devaluation of the Argentinian peso.
CASH FLOW STATEMENT (unaudited)
€ Millions Full Year
2001 2000
Cash flow from operating activities * 7,497 6,738
Dividends from joint ventures 82 38
Returns on investments and servicing of finance (1,887) (798)
Taxation (2,205) (1,734)
Capital expenditure and financial investment (1,358) (1,061)
Acquisitions and disposals 3,477 (27,373)
Dividends paid on ordinary share capital (1,420) (1,365)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID RESOURCES AND 4,186 (25,555)
FINANCING
Management of liquid resources 1,106 2,464
Financing (5,098) 22,902
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 (189)
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) (unaudited)
NET FUNDS / (DEBT) AT 1 JANUARY (26,468) 684
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 (189)
Cash flow from (increase) / decrease in borrowings 5,095 (22,920)
Cash flow from increase / (decrease) in liquid resources (1,106) (2,464)
Change in net funds / (debt) resulting from cash flows 4,183 (25,573)
Borrowings within group companies acquired (1) (3,113)
Borrowings within group companies sold 3 2
Liquid resources within group companies acquired - 13
Liquid resources within group companies sold - -
Non cash movements (408) 455
Currency retranslation (508) 1,064
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD 3,269 (27,152)
NET FUNDS / (DEBT) AT 31 DECEMBER (23,199) (26,468)
* Includes payments of €550 million in 2000 to settle share options and similar
obligations in Bestfoods consequent to the change of control.
GEOGRAPHICAL ANALYSIS (unaudited)
Fourth Quarter € Millions Full Year
% Incr./ % Incr./
2001* 2000* (Decr.)* 2001** 2001* 2000* (Decr.) *
13,399 13,475 (1)% TOTAL TURNOVER 52,206 53,400 48,007 11 %
4,905 5,056 (3)% Europe 20,220 20,233 19,071 6 %
3,313 3,396 (2)% North America 13,880 13,543 11,679
996 973 2 % Africa, Middle East & Turkey 3,455 3,843 3,499
2,215 2,167 2 % Asia and Pacific 8,046 8,558 8,091
1,970 1,883 Latin America 6,605 7,223 5,667
TOTAL OPERATING PROFIT
1,919 1,586 21 % before exceptional items and 7,269 7,416 5,785 28 %
amortisation of goodwill and
intangibles
656 484 Europe 2,967 2,978 2,419 23 %
568 523 North America 1,973 1,923 1,494 29 %
107 101 Africa, Middle East & Turkey 380 422 352 20 %
329 227 Asia and Pacific 1,077 1,154 908 27 %
259 251 Latin America 872 939 612 53 %
TOTAL OPERATING
MARGIN
14.3 % 11.8 % 13.9 % 13.9 % 12.0 %
before exceptional
items and
amortisation of
goodwill and
intangibles
13.4 % 9.6 % Europe 14.7 % 14.7 % 12.7 %
17.1 % 15.4 % North America 14.2 % 14.2 % 12.8 %
10.7 % 10.3 % Africa, Middle East & Turkey 11.0 % 11.0 % 10.0 %
14.9 % 10.5 % Asia and Pacific 13.4 % 13.5 % 11.2 %
13.1 % 13.4 % Latin America 13.2 % 13.0 % 10.8 %
* at constant 2000 annual average exchange rates.
** at exchange rates current in the year.
OPERATIONAL ANALYSIS (unaudited)
Fourth Quarter € Millions Full Year
% Incr./ % Incr./
2001 * 2000 * (Decr.)* 2001 ** 2001 * 2000 * (Decr.)*
13,399 13,475 (1)% TOTAL TURNOVER 52,206 53,400 48,007 11 %
7,138 7,253 (2) Foods 28,796 29,186 24,258 20
2,412 2,400 1 Oil and dairy based foods and bakery 8,713 8,851 8,020 10
1,482 1,572 Ice cream and beverages 7,838 7,964 7,814 2
3,244 3,281 Culinary and frozen products 12,245 12,371 8,424 47
2,720 2,611 Home Care and Professional Cleaning 10,467 10,884 10,284
3,353 3,376 Personal Care 12,310 12,685 12,590
188 235 Other Operations 633 645 875 (26)
TOTAL OPERATING PROFIT / (LOSS) before
exceptional items and amortisation of
1,919 1,586 21 % goodwill and intangibles 7,269 7,416 5,785 28 %
1,093 761 43 % Foods 4,140 4,166 2,803 49
465 323 44 Oil and dairy based foods and bakery 1,334 1,345 1,056 27 %
49 (80) 163 % Ice cream and beverages 870 881 683 29
579 518 12 Culinary and frozen products 1,936 1,940 1,064 82
195 210 (6)% Home Care and Professional Cleaning 886 926 918 1
626 601 Personal Care 2,219 2,298 2,035
5 14 (61)% Other Operations 24 26 29 (7)
TOTAL OPERATING MARGIN
14.3 % 11.8 % before exceptional items and amortisation 13.9 % 13.9 % 12.0 %
of goodwill and intangibles
15.3 % Foods 14.4 % 14.3 %
19.2 % Oil and dairy based foods and bakery 15.3 % 15.2 %
3.3 % Ice cream and beverages 11.1 % 11.1 %
17.9 % Culinary and frozen products 15.8 % 15.7 %
7.2 % Home Care and Professional Cleaning 8.5 % 8.5 %
18.6 % 17.8 % Personal Care 18.0 % 18.1 %
2.7 % Other Operations 3.8 % 4.0 %
* at constant 2000 annual average exchange rates.
** at exchange rates current in the year.
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 €1 = £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:
Fourth Quarter Full Year
2001 €1 = £0.62 = US $0.90 €1 = £0.62 = US $0.90
2000 €1 = £0.61 = US $0.86 €1 = £0.61 = US $0.92
The current rate results for 2000 differ from the 2000 results translated at
annual average rates for that year because the Bestfoods results were translated
at the average rates of exchange for the fourth quarter. The annual average
rates have been applied for constant rate reporting.
The balance sheet figures have been translated at year-end rates of exchange.
For our reporting currencies these were €1 = £0.61 = US $0.89 (31 December 2000:
€1 = £0.62 = US $0.93).
Acquisitions
In 2001, the effect on turnover and operating profit of acquisitions made in the
year was not material.
Disposals
On 8 January 2002 Unilever in the Netherlands and Golden Hope Plantations Berhad
in Malaysia announced a definitive agreement for the sale of Unilever's Unimills
refinery business at Zwijndrecht, the Netherlands to Golden Hope for
approximately €60 million in cash. The intention to sell Unimills was announced
on 27 June 2001 and the discussions with Golden Hope Plantations were announced
in November 2001. The Unimills refinery has annual sales to third parties of
€130 million.
On 20 December 2001 we announced the completion of the sale of Unipath Limited,
the women's health diagnostics business to Inverness Medical Innovations Inc of
Waltham, Massachusetts, USA, for £103 million (€166 million) in cash. The
intention to sell Unipath was announced on 19 June 2001. Unipath's sales in 2000
were approximately £60 million (€97 million).
On 20 November 2001, we announced a definitive agreement to sell our
DiverseyLever institutional and industrial cleaning business to Johnson Wax
Professional for some US $1.0 billion (€1.1 billion) in cash and a loan note of
US $279 million (€310 million). We will also take a one-third equity share in
the combined business. A valuation of around US $300 million (€330 million) for
this one-third equity share brings the total worth of the transaction to
Unilever to approximately US $1.6 billion (€1.75 billion). Total turnover of
DiverseyLever for the 12 months to December 2001, excluding sales of the
consumer brands which Johnson Wax Professional will distribute for Unilever
under a separate sales agency agreement, was approximately US $1.5 billion (€1.7
billion).
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' in the balance sheet at the end of 2000. 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 for the period up to disposal 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.
DIVIDENDS
The Boards have resolved to recommend to the Annual General Meetings to be held
on 8 May 2002 the declaration of final dividends in respect of 2001 on the
Ordinary capitals at the following rates which are equivalent in value at the
rate of exchange applied in terms of the Equalisation Agreement between the two
companies:
N.V. € 1.06 per ordinary share (2000: € 0.95), bringing the total of N.V.'s
dividend for 2001 to € 1.56 per ordinary share (2000: € 1.43).
PLC 9.89p per ordinary share (2000: 8.67p), bringing the total of PLC's
dividend for 2001 to 14.54p per ordinary share (2000:13.07p).
The N.V. final dividend will be paid on 10 June 2002, to shareholders registered
at close of business on 9 May 2002.
The PLC final dividend will be paid on 10 June 2002, to shareholders registered
at close of business on 17 May 2002.
DIVIDENDS ON NEW YORK SHARES OF N.V.
US Dollar checks for the final dividend on the New York Shares of €0.51* nominal
amount after deduction of Netherlands withholding tax at the appropriate rate,
converted at the Euro/Dollar rate of exchange in Amsterdam on 8 May 2002 will be
mailed on 7 June 2002, to holders of record at the close of business on 17 May
2002. If converted at the Euro/Dollar rate of exchange at noon on 13 February
2002 the final dividend would be US$ 0.927182 per New York share (2000 final
dividend: US$ 0.838565 actual payment) before deduction of Netherlands
withholding tax. With the interim dividend in respect of 2001 of US$ 0.454850 at
the actual Euro/Dollar conversion rate, already paid, this would result in a
total for interim and final dividends in respect of 2001 of US$ 1.382032 per New
York Share (2000: US$ 1.253573 actual payment).
DIVIDENDS ON AMERICAN SHARES OF PLC
US Dollar checks for the final dividend on the American Depositary Receipts in
PLC converted at the Sterling/Dollar rate of exchange current in London on 8 May
2002 will be mailed on 7 June 2002, to holders of record at the close of
business on 17 May 2002. Each American Depositary Receipt in PLC represents four
1.4p ordinary shares in PLC. The PLC final dividend will therefore be 39.56p per
American Depositary Receipt. If converted at the Sterling/Dollar rate of
exchange at noon on 13 February 2002, the PLC final dividend would be US$ 0.5669
per American Depositary Receipt (2000 final dividend: US$ 0.4978 actual
payment). With the interim dividend in respect of 2001 of US$ 0.2702 at the
actual Sterling/Dollar conversion rate, already paid, this would result in a
total for interim and final dividends in respect of 2001 of US$ 0.8371 per
American Depositary Receipt (2000: US$ 0.7551 actual payment).
* The euro amounts of share capital shown above are representations in euros on
the basis of article 67c Book 2 Dutch Civil Code of underlying amounts of share
capital in Dutch guilders.
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 year, 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.
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 for the year
Constant rates Current rates
2001 2000 2001 2000
Thousands of units
Average number of combined share units of €0.51 982,845 989,217 982,845 989,217
Average number of combined share units of 1.4p 6,552,302 6,594,782 6,552,302 6,594,782
COMBINED EPS
Net profit 1,858 1,118 1,838 1,105
Less: Preference dividends (51) (44) (51) (44)
Net profit attributable to ordinary capital 1,807 1,074 1,787 1,061
Combined EPS per €0.51 (Euros) 1.84 1.09 1.82 1.07
Combined EPS per 1.4p (Euro cents) 27.57 16.29 27.27 16.08
COMBINED EPS - BEIA
Net profit 1,858 1,118 1,838 1,105
Add back exceptional items net of tax 383 1,708 358 1,709
Add back amortisation of goodwill / intangibles net of tax 1,385 402 1,371 409
Add back exceptional items and amortisation in (24) - (24) -
minority interests net of tax
Net profit beia 3,602 3,228 3,543 3,223
Less: Preference dividends (51) (44) (51) (44)
Net profit attributable to ordinary capital - beia 3,551 3,184 3,492 3,179
Combined EPS beia per €0.51 (Euros) 3.61 3.22 3.55 3.21
Combined EPS beia per 1.4p (Euro cents) 54.19 48.28 53.29 48.20
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined share units of €0.51 1,010,009 1,014,275 1,010,009 1,014,275
Adjusted average combined share units of 1.4p 6,733,393 6,761,833 6,733,393 6,761,833
Net profit attributable to ordinary capital 1,807 1,074 1,787 1,061
Combined diluted EPS per €0.51 (Euros) 1.79 1.06 1.77 1.05
Combined diluted EPS per 1.4p (Euro cents) 26.83 15.88 26.54 15.69
Dates
The Annual Report & Accounts 2001 will be published on 28 March 2002.
The provisional results for the first quarter 2002 will be published on Friday,
26 April 2002.
Salient figures for the above results will be published in the Financial Times
and Daily Telegraph on Friday, 15 February.
14 February 2002
Internet: http://www.unilever.com
E-mail: press-office.london@unilever.com
SUPPLEMENTARY INFORMATION ON UNILEVER GROUP RESULTS
€ Millions (provisional)
EXCEPTIONAL ITEMS IN OPERATING PROFIT 2001** 2001* 2000*
Restructuring (1,515) (1,564) (1,149)
Others including business disposals 927 944 (842)
(588) (620) (1,991)
By geographical area
Europe 254 270 (561)
North America (285) (281) (1,132)
Africa, Middle East and Turkey (139) (160) (16)
Asia and Pacific (157) (166) (109)
Latin America (261) (283) (173)
(588) (620) (1,991)
By operation
Foods (363) (387) (604)
Oil and dairy based foods and bakery (292) (303) (22)
Ice Cream and beverages (364) (375) (260)
Culinary and frozen foods 293 291 (322)
Home Care and Professional Cleaning (201) (209) (322)
Personal Care (49) (50) (1,069)
Other Operations 25 26 4
(588) (620) (1,991)
CAPITAL EXPENDITURE (at current average exchange rates)
By geographical area 2001 2000
Europe 631 605
North America 355 310
Africa, Middle East and Turkey 114 116
Asia and Pacific 217 183
Latin America 196 142
1,513 1,356
By operation
Foods 810 704
Home Care, Professional Cleaning and Personal Care 678 619
Other Operations 25 33
1,513 1,356
* at constant 2000 annual average exchange rates
** at exchange rates current in the year
€ Millions (provisional)
(At current average exchange rates)
2001 2000
RESEARCH AND DEVELOPMENT EXPENDITURE 1,178 1,187
ADVERTISING AND PROMOTIONS 6,648 6,545
PERSONNEL NUMBERS BY GEOGRAPHICAL AREA (Average in Thousands)
(Parent and group companies)
Europe 75 74
North America 30 27
Africa, Middle East and Turkey 49 48
Asia and Pacific 84 79
Latin America 41 33
279 261
14 February, 2002
This information is provided by RNS
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