Interim Results
Unilever PLC
30 July 2003
UNILEVER SECOND QUARTER AND HALF YEAR RESULTS 2003
(Unaudited)
Outlook for full year earnings confirmed, supported by the sustained benefits of
the Path to Growth strategy.
FINANCIAL HIGHLIGHTS
Second Quarter € Millions (constant 2002 Half Year 2003
2003 average exchange rates) -------------
-------- --------
12,362 - 1 % Turnover 23,486 - 3 %
-------- -------- -------- --------
1,808 - 1 % Operating profit - beia* 3,431 - 1 %
-------- -------- -------- --------
1,039 - 26 % Pre-tax profit 2,134 - 7 %
-------- -------- -------- --------
595 - 13 % Net profit 1,265 + 14 %
-------- -------- -------- --------
1,009 + 2 % Net profit - beia* 1,874 + 2 %
-------- -------- -------- --------
1.03 + 3 % EPS NV - beia * (Euros) 1.91 + 4 %
-------- -------- -------- --------
15.47 + 3 % EPS PLC - beia * (Euro cents) 28.69 + 4 %
-------- -------- -------- --------
* Before exceptional items and amortisation of goodwill and intangibles
Earnings per share (beia) at current rates of exchange were 6% lower than the
prior year for both the quarter and half year.
KEY FEATURES
•Sales of the leading brands grew 3.1% in the first half year and now
represent over 90% of our business.
•Operating margin (beia) moved to 14.6% with Path to Growth savings
continuing to deliver to plan and increases in advertising and promotions of
120 basis points in the half year.
•Interest on net borrowings was reduced by 9% in the half year and net
debt at the quarter end, at closing rates of exchange, had further reduced
to €16.1 billion.
•EPS (beia) grew by 3% in the quarter and by 4% for the half year.
•Lower pre-tax and net profit in the second quarter reflect exceptional
profits on the sale of businesses last year.
CHAIRMEN'S COMMENT
Through the Path to Growth strategy we have continued to build a more robust and
valuable business: focussing on the strength of our leading brands; reshaping
the portfolio and addressing under-performing businesses; and by using our scale
to improve margins, capital efficiency and cash flow.
We have continued to make excellent progress in personal care, savoury and
dressings and in health spreads. Ice cream results across the world are good.
The specific plans to focus and enhance profitability in laundry and tea are
working well and Foodsolutions grew ahead of weak markets. There has been a
disappointing recent performance in North America in HPC and Slim•Fast. Both are
being addressed and will improve.
Path to Growth represents a radical and wide-ranging business transformation
programme. Mid way through year four we have had considerable success in brand
focus, supply chain restructuring and with the integration of major
acquisitions. These have led to continued margin expansion and stronger cash
flow. We continue to aim for sustained top third TSR through robust value
growth.
We confirm our outlook for the year of low double digit growth in earnings per
share (beia) and expect growth of the leading brands of some 4%.
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
30 July 2003
SECOND QUARTER AND HALF YEAR FINANCIAL RESULTS (at constant exchange rates)
Note: These results include the previously announced changes in accounting for
share options and pensions in both the prior and current years. Further details
are given in the notes on page 13. The estimated impact of share options and
pensions is to reduce growth in EPS before exceptional items and goodwill and
intangibles amortisation (beia) growth by 6 percentage points in 2003 which is
included in the outlook for the year.
Underlying sales grew by 2.4% in the quarter and by 2.1% in the first half year.
The impact of our disposal programme as we reshape the portfolio under Path to
Growth led to turnover being lower than last year by 1.5% in the quarter and by
2.5% in the first half.
Operating margin (beia) at 14.6% was ahead of last year by 10 basis points in
the quarter and by 20 basis points for the half year. The improved margin,
applied to lower turnover through the impact of disposals, led to operating
profit (beia) 1% lower for both the quarter and the first half.
Amortisation of goodwill and intangibles was €349 million in the quarter and
€640 million for the half year.
Interest on net borrowings was 6% lower in the quarter and 9% lower in the half
year, as we benefited from continued cash flow from operations and proceeds of
business disposals. Financing of pension fund assets and liabilities, included
in interest, represented a net charge of €48 million in the quarter which
compares with a credit of €27 million in the prior year quarter.
Net exceptional charges within operating profit were €99 million in the quarter.
This includes restructuring investment costs of €111 million and profits on
disposals of €12 million. For the first half year net exceptional charges within
operating profit were €21 million which includes restructuring investment costs
of €183 million and profits on disposals of €162 million.
The effective tax rate was 38% in the quarter and reflects the
non-tax-deductibility of Bestfoods goodwill amortisation. The underlying, or
beia, tax rate was 30%, in line with our expectation for the full year.
Net profit (beia) was up 2% in both the quarter and half year to €1,009 million
and €1,874 million respectively. Net profit was 13% lower in the quarter as a
result of exceptional profits on disposals in the prior year, principally that
of DiverseyLever. For the first half year, net profit was 14% ahead of last year
mainly due to lower after-tax exceptional items, particularly lower
restructuring costs as we move into the latter part of the programme.
Earnings per share (beia) rose by 3% in the quarter and by 4% in the first half
year, while earnings per share was 12% lower in the quarter but ahead by 16% in
the half year.
When expressed at current rates of exchange, earnings per share (beia) for the
half year decreased by 6% in Euros, increased by 15% when measured in US $ and
increased by 3% when measured in £ Sterling. Turnover expressed at current rates
of exchange decreased by 15% in Euros, increased by 5% when measured in US $ and
decreased by 6% when measured in £ Sterling. For further details of the results
at current exchange rates and impact of exchange rate movements see notes on
page 12.
SECOND QUARTER 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. Sales growth is
stated on an underlying basis, excluding the effects of acquisitions and
disposals. Turnover includes the impact of acquisitions and disposals.
EUROPE
Underlying sales grew by 3.3% with 40 basis points from price. Turnover was 1.7%
lower than last year through the impact of planned disposals as we reshape our
portfolio to faster growing and more profitable markets.
There have been strong performances from Personal Care and an expected pick up
in momentum in Foods from both the timing of Easter and our innovation
programme. These were partly offset by declines in Home Care as we accelerate
our focus on improving profitability to create the necessary platform for future
growth.
In Western Europe:
•There has been continued good growth in spreads and cooking products for
our heart health brands Flora/Becel, but our family brands such as Rama and
Blue Band have been affected by competition from lower butter prices and in
Germany from low price competition. Overall we have maintained value market
shares and gross margins are stable notwithstanding substantial movements in
edible oil costs. We have a strong innovation programme in both this market
and heart health brands over the balance of the year.
•Savoury and dressings have shown good progress supported by a range of
innovations and market place activity under the Knorr, Hellmann's and
Bertolli brands. These include meal kits, 'good for you' soups, pasta sauces
and soupy snacks.
•Tea based beverages have performed well with an excellent contribution
from Lipton Ready-to-Drink including green tea and fruit juice variants.
•A strong quarter in ice cream was boosted by our innovations including
Magnum 7 Sins, Magnum Moments and Magnum Snacking Bars, Carte d'Or Fruit and
Fresh - a mix of yoghurt and ice cream, and the continued roll-out of
Cornetto Soft. These have been further enhanced by the relaunch of the Heart
brand logo.
•Frozen foods have yet to show broad based progress. Good performances by
the Knorr brand and by Birds Eye in the UK with innovations in children's
meals and microwaveable vegetables have been offset by poorer performances
elsewhere.
•The Slim•Fast relaunch in the UK has gone well with momentum building
through the quarter. There have been further positive contributions from
France and The Netherlands.
•Foodsolutions has grown in a difficult market, once again confirming the
robustness of our business model and the strength of our team.
•A strong performance in Personal Care was led by Dove in skin cleansing
and shampoo, Sunsilk which is now available in ten Western European markets,
Rexona/Sure with the launch of the Crystal variant, Axe with the launch of
an anti-perspirant variant and a continuing strong contribution from earlier
innovations.
•In Home Care we are focussing on priority brands and markets while
improving the profitability of the portfolio as a whole. In the quarter, the
impact of this strategy was to fully offset the growth in Personal Care, but
with trading margins ahead by over 300 basis points.
In Central and Eastern Europe Personal Care grew well, especially in skin, hair
and deodorants, whilst in Foods good progress in savoury and dressings, tea and
ice cream was partially offset by declines in spreads from low butter prices.
Operating margin at 16.6% was 300 basis points ahead of last year after a 120
basis points increase in advertising and promotions. This reflects the
contribution from our restructuring and savings programmes and our strategy for
improving profitability in Home Care.
NORTH AMERICA
Turnover was 9% lower than last year, including just over 5 percentage points
from disposals, principally DiverseyLever and Mazola. Underlying sales declined
by 4% with negative pricing of 60 basis points. The combination of sharply
reduced stocks in retailers, financial difficulties at key customers and
distributors, lower sales of Slim•Fast and weak out of home channels
particularly affecting our prestige fragrance business has reduced overall
planned growth by the equivalent of just over 5 percentage points. Importantly,
however, our overall market shares in both Home & Personal Care and in Foods
other than Slim•Fast have remained stable.
Unilever Bestfoods continues to show a good trend of improving performance as we
move from integration to innovation and as we successfully implement the new 'go
to market' strategy. In particular there were good performances from Hellmann's
boosted by Easter promotions and favourable pricing and innovation with Dippin'
Sauce; from Bertolli particularly in olive oil; from Lipton through the
continued success of Asian Side Dishes; from Lawry's through improved
distribution and the Steak Sauce innovation and for Lipton tea with a successful
Memorial Day promotion. Partially offsetting this was a weaker performance in
spreads driven by poor category growth because of lower butter prices.
In ice cream, weak out of home channels particularly impacted Ben & Jerry's but
this was more than offset by another strong performance from Good Humor and
Breyers, notwithstanding tough prior year comparators, and we are gaining market
share.
Our Foodsolutions business has done well in very weak market conditions.
Underlying sales growth of 2%, mostly in volume, has strengthened our market
position and gives a good base for our growth plans in the second half.
In Home & Personal Care we have continued to invest behind our innovations and
Dove and Axe have made strong contributions while Vaseline Healthy Hands has
also been successful. In laundry, all has made good progress, particularly in
fabric conditioners. Gains in value market share in Personal Care have been
offset by share erosion in fabric cleaning as we implement a strategy to create
a firmer and more profitable foundation on which to build future growth.
Operating margin at 13.8% is 270 basis points behind the prior year with
advertising and promotions flat. The one-time accounting impact of the 'go to
market' change as we accrue promotional funds at the time of shipment has
impacted operating margin by 100 basis points. In addition, the short term
effect of the loss of profit contribution from the sharply lower trade stocks
had an impact equivalent to a further 100 basis points in the quarter, and we
are absorbing the impact of higher commodity prices.
AFRICA, MIDDLE EAST AND TURKEY
Underlying sales grew 9.2% with 7 percentage points from underlying volume
growth. Turnover grew 5.8% including the impact of disposals.
In Home & Personal Care there have been excellent performances from laundry,
skin and hair. In laundry we have continued to strengthen our position through
the Surf and Omo brands whilst in skin and hair activities behind Dove, Lux and
Sunsilk have been the key contributors.
In Foods, there was good growth in savoury and dressings, especially with Knorr
across the region and in ice cream with the success of the Heart brand re-launch
in both Israel and Turkey.
Operating margin at 11.8% was 320 basis points behind last year with 30 basis
points lower advertising and promotions and reflects the impact of devaluation
driven cost increases, high edible oil prices in the north of the region, and
factory start-up costs as we enter new markets.
ASIA PACIFIC
Underlying sales grew by 3% with underlying volume growth of 2%. Leading brand
growth of around 5% in Home & Personal Care and our retail foods business was
offset by weak out of home channels for ice cream and Foodsolutions and our
actions to reduce the non-leading brand business, particularly in Food. The net
of acquisitions and disposals was favourable reflecting the Ajinomoto
transaction to give a turnover increase of 3.3%.
In Home & Personal Care growth was close to 5% in the consumer branded
businesses and just over 4% in total, reflecting the continued focus on managing
the tail businesses in India for value. Thailand, Vietnam, Taiwan, Singapore,
Bangladesh and Sri Lanka all grew at over 10%, with Indonesia, The Philippines,
Hong Kong, Korea and Japan growing in mid single digits. There has been good
growth in laundry driven by Omo and Surf, strong growth in hair through
innovations in Lux and Clear, whilst growth in skin was broad based with
progress by Lux, Lifebuoy, Vaseline and Fair & Lovely.
In Foods the improved momentum which started to be evident in quarter four of
last year continued. In Japan, Lipton Ready to Drink tea led growth of over 10%
in tea and China grew well off a small base driven by Knorr. Indonesia has
continued to make progress with Bango and Sariwangi as we build distribution
whilst in India, a return to growth last quarter in our leading beverage brands
has continued as we start to reap the benefits of our refocused brand portfolio
and innovations such as the re-launch of Lipton Yellow Label packet tea and the
launch of Brooke Bond boilable bags. However these good performances were
largely offset by our exit from low margin low growth businesses, and sales
declines in both ice cream and in Foodsolutions brought about by weak out of
home channels.
Operating margin at 14.1% was 100 basis points ahead of last year with good
momentum in gross margins and a 60 basis point increase in advertising and
promotions.
LATIN AMERICA
Underlying sales grew by 10% with pricing still the main driver as we recover
devaluation-led cost increases, while underlying volumes declined 2%. Within
this there was a return to underlying volume growth in Home & Personal Care
offset by continuing market weakness in Food categories. Including the impact of
disposals, turnover increased 7%.
The key drivers of growth continue to be our Personal Care brands: Dove with
continuing success in hair and with new skin cleansing variants in North Latin
America; Sunsilk boosted by new variants across the region and by extending the
brand into new geographies; Rexona following a relaunch in Brazil and the launch
of new variants in Andina and Mexico; Lux with a range of innovations that has
returned the brand to strong, broad based growth; Axe with the launch of new
variants and extension to new geographies; and Pond's with the launch of new
variants in Mexico. In laundry we have continued to maintain our strong share
positions with progress behind all our key brands.
In Foods there has been further good progress in ice cream, particularly in
Brazil and Mexico, and we have also successfully launched Slim•Fast into Mexico.
In the rest of our Foods portfolio, in competitive markets, we have continued to
strengthen the base of our business with: innovations around AdeS, Arisco and
the migration of CICA to Knorr in Brazil; good growth for Knorr and Hellmann's
in the north of the region; initiatives to increase distribution, for example in
Chile, and as we build on our well established Foodsolutions business. Overall
growth in Foods is impacted by our actions to reduce the tail of non-leading
brands by managing some brands for value through a harvest strategy or through
disposal.
Operating margin at 11.9% was 290 basis points lower than last year after a 160
basis points increase in advertising and promotions. We are making good progress
with both savings programmes and the recovery of devaluation-led cost increases,
however overall operating margins continue to be affected by the impact of
currency movements.
CASH FLOW
Cash flow from operations for the half year of €2.5 billion was €1.0 billion
lower than the corresponding period last year. Operating profit (beia) at
current rates of both periods was €0.5 billion lower than last year mainly due
to currency movements. Cash outflows from restructuring under the Path to Growth
cost saving programme were €0.2 billion higher this year. The remainder of the
decrease is explained by seasonal outflows of working capital in the first half
being higher than in the first half of last year.
The net interest outflow reduced by €0.3 billion in the half year reflecting
lower debt, the positive impact of the US dollar weakening and the timing of
interest payments during the year. Capital expenditure and financial investment
was €0.2 billion lower in the half year through lower spend on fixed assets and
lower cash costs of share option hedging. The net effect on cash of acquisitions
and disposals activity in the half year was broadly neutral.
Net debt decreased by €0.8 billion in the half year. Positive currency effects
on our US$ debt more than offset the change in net funds of €(0.5) billion
resulting from cash flows.
BALANCE SHEET
Capital and reserves increased by €1.4 billion in the half year, coming mostly
from a net profit of €1.2 billion, a positive currency retranslation of €0.5
billion offset by a reduction of reserves of €(0.4) billion due to the purchase
of own shares to hedge share options granted. The effect of changes in the value
of pension funds on reserves under FRS 17 rules was a reduction of €(53)
million, for which further information is given on page 13. Creditors have
reduced by €1.1 billion following payment of the final dividend for 2002.
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)
Note: A description of the exchange rate conventions used is given on page 12.
Second Quarter € Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
---------- --------- ---------- ---------
12,362 12,547 (1)% TURNOVER 23,486 24,098 (3)%
(65) (122) Less: Share of turnover of (147) (264)
------- ------- joint ventures ------- -------
12,297 12,425 (1)% Group turnover 23,339 23,834 (2)%
------- ------- ------- -------
1,345 1,644 (18)% Group operating profit 2,741 2,792 (2)%
15 25 Add: Share of operating 29 39
------- ------- profit of joint ventures ------- -------
1,360 1,669 (19)% OPERATING PROFIT 2,770 2,831 (2)%
------- ------- ------ -------------------------- ------- ------- ------
1,808 1,819 (1)% Operating profit beia * 3,431 3,467 (1)%
(99) 167 Exceptional items (21) (1)
(349) (317) Amortisation of goodwill (640) (635)
------- ------- ------ and intangibles ------- ------- ------
--------------------------
18 13 Share of operating profit 5 13
of associates
(14) (11) Other income from fixed (11) (12)
investments
(277) (296) Interest (excluding (534) (590)
pension related amounts)
(48) 27 Net interest (cost)/return (96) 54
------- ------- on pension scheme assets ------- -------
and liabilities
1,039 1,402 (26)% PROFIT BEFORE TAXATION 2,134 2,296 (7)%
(393) (625) Taxation (741) (1,031)
------- ------- ------- -------
646 777 (17)% PROFIT AFTER TAXATION 1,393 1,265 10%
(51) (93) Minority interests (128) (156)
------- ------- ------- -------
595 684 (13)% NET PROFIT 1,265 1,109 14%
------- ------- ------- -------
------- ------- ------ -------------------------- ------- ------- ------
1,009 988 2% Net profit beia * 1,874 1,834 2%
------- ------- ------ -------------------------- ------- ------- ------
------- ------- ------ -------------------------- ------- ------- ------
COMBINED EARNINGS PER
SHARE
(Constant rates)
0.61 0.69 (12)% - per €0.51 ordinary NV 1.29 1.11 16%
share (Euros)
9.07 10.28 (12)% - per 1.4p ordinary PLC 19.28 16.60 16%
share (Euro cents)
1.03 1.00 3% - per €0.51 ordinary NV 1.91 1.85 4%
share - beia * (Euros)
15.47 14.96 3% - per 1.4p ordinary PLC 28.69 27.69 4%
share - beia * (Euro
cents)
0.59 0.66 (12)% - per €0.51 ordinary NV 1.25 1.07 16%
share - diluted (Euros)
8.79 9.95 (12)% - per 1.4p ordinary PLC 18.71 16.10 16%
share - diluted (Euro
cents)
------- ------- ------ -------------------------- ------- ------- ------
* Before exceptional items and amortisation of goodwill and intangibles
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in our accounting policy for share
option costs (see notes on page 13).
NET PROFIT AND EARNINGS PER SHARE - CURRENT EXCHANGE RATES (unaudited)
Net profit and earnings per share given below are stated at current exchange
rates i.e. the results in both years have been translated at the exchange rates
prevailing during the appropriate period.
For further details of the results at current exchange rates and impact of
exchange rate movements see notes on page 12.
Second Quarter € Millions - current Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
---------- --------- ---------- ---------
564 688 (18)% NET PROFIT 1,201 1,129 6%
------- ------- ------ -------------------------- ------- ------- ------
932 1,003 (7)% Net profit beia * 1,747 1,889 (8)%
------- ------- ------ -------------------------- ------- ------- ------
------- ------- ------ -------------------------- ------- ------- ------
COMBINED EARNINGS PER
SHARE
(Current rates)
0.57 0.69 (17)% - per €0.51 ordinary NV 1.22 1.13 8%
share (Euros)
8.59 10.35 (17)% - per 1.4p ordinary PLC 18.28 16.89 8%
share (Euro cents)
0.95 1.01 (6)% - per €0.51 ordinary NV 1.78 1.90 (6)%
share - beia * (Euros)
14.27 15.19 (6)% - per 1.4p ordinary PLC 26.71 28.53 (6)%
share - beia * (Euro
cents)
0.55 0.67 (17)% - per €0.51 ordinary NV 1.18 1.09 8%
share - diluted (Euros)
8.32 10.02 (17)% - per 1.4p ordinary PLC 17.74 16.38 8%
share - diluted (Euro
cents)
------- ------- ------ -------------------------- ------- ------- ------
* Before exceptional items and amortisation of goodwill and intangibles
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
€ Millions - current rates Half Year
-----------
2003 2002
------ ------
Restated
----------
Net profit 1,201 1,129
Currency retranslation 459 (1,170)
--------- ---------
Total recognised gains for the year 1,660 (41)
Pension gains / (losses) net of tax (53) (869)
--------- ---------
Total recognised gains / (losses) since last 1,607 (910)
annual accounts --------- ---------
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in our accounting policy for share
option costs (see notes on page 13).
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
€ Millions - current rates Half Year
-----------
2003 2002
------ -------
Restated
----------
Shareholders' equity as at 1 January (1) 4,629 8,437
Net profit 1,201 1,129
Dividends 10 (6)
Goodwill written back on disposals 10 404
Currency retranslation 502 (1,126)
Change in number of shares or certificates of
shares held in
connection with share options (382) (488)
Pension gains / (losses) net of tax (53) (869)
Adjustment of share option expense 66 42
-------- --------
Shareholders' equity as at the end of the period 5,983 7,523
-------- --------
SUMMARY BALANCE SHEET (unaudited)
€ Millions - current As at 28th June As at 31st As at 29th June
rates December
2003 2002 2002
------ ------ ------
Restated Restated
---------- ----------
Goodwill and intangibles 19,478 20,274 21,853
Other fixed assets 7,538 8,115 8,772
Stocks 4,735 4,500 4,911
Debtors 7,668 6,951 9,536
Cash and current 2,922 3,478 3,664
investments
Trade and other (10,667) (11,732) (11,782)
creditors --------- -------- --------
31,674 31,586 36,954
--------- -------- --------
Borrowings 19,064 20,444 23,616
Provisions for liabilities 6,205 5,894 5,120
and charges
Minority interests 422 619 695
Capital and reserves 5,983 4,629 7,523
--------- -------- --------
31,674 31,586 36,954
--------- -------- --------
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in the accounting policy for share
option costs (see notes on page 13).
€ Millions - current rates As at 1st As at 1st
January January
2003 2002
------------ -------------
(1) Shareholders' equity as previously 5,867 6,993
reported
Change in accounting policy - pensions (1,238) 1,444
--------- --------
Shareholders' equity as restated 4,629 8,437
--------- --------
CASH FLOW STATEMENT (unaudited)
€ Millions - current rates Half Year
-----------
2003 2002
-------- --------
Cash flow from group operating activities 2,490 3,502
Dividends from joint ventures 10 12
Returns on investments and servicing of finance (523) (823)
Taxation (652) (856)
Capital expenditure and financial investment (736) (925)
Acquisitions and disposals 20 1,152
Dividends paid on ordinary share capital (1,068) (1,041)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF (459) 1,021
LIQUID
RESOURCES AND FINANCING
Management of liquid resources 353 (256)
Financing (472) (395)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (578) 370
-------- --------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
€ Millions - current rates Half Year
-----------
2003 2002
-------- --------
NET DEBT AT 1 JANUARY (16,966) (23,199)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (578) 370
Cash flow from (increase) / decrease in 472 394
borrowings
Cash flow from increase / (decrease) in liquid (353) 256
resources -------- --------
Change in net debt resulting from cash flows (459) 1,020
Borrowings within group companies acquired (26) (91)
Borrowings within group companies sold 5 19
Liquid resources within group companies acquired - -
Liquid resources within group companies sold (3) (1)
Non cash movements 272 1,120
Currency retranslation 1,035 1,180
-------- --------
MOVEMENT IN NET DEBT IN THE PERIOD 824 3,247
-------- --------
-------- --------
NET DEBT AT PERIOD END (16,142) (19,952)
-------- --------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
Second Quarter € Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
12,362 12,547 (1)% TURNOVER 23,486 24,098 (3)%
------- ------- ------ ------------------------- ------- ------- ------
5,042 5,131 (2)% Europe 9,365 9,801 (4)%
2,982 3,281 (9)% North America 5,793 6,356 (9)%
864 816 6% Africa, Middle East and 1,642 1,515 8%
Turkey
2,060 1,994 3% Asia and Pacific 3,947 3,849 3%
1,414 1,325 7% Latin America 2,739 2,577 6%
------- ------- ------ ------------------------- ------- ------- ------
1,808 1,819 (1)% OPERATING PROFIT - beia * 3,431 3,467 (1)%
------- ------- ------ ------------------------- ------- ------- ------
836 699 20% Europe 1,530 1,325 16%
412 541 (24)% North America 781 1,011 (23)%
102 122 (16)% Africa, Middle East and 191 183 4%
Turkey
289 261 11% Asia and Pacific 582 571 2%
169 196 (14)% Latin America 347 377 (8)%
------- ------- ------ ------------------------- ------- ------- ------
14.6% 14.5% OPERATING MARGIN - beia * 14.6% 14.4%
------- ------- ------ ------------------------- ------- -------
16.6% 13.6% Europe 16.3% 13.5%
13.8% 16.5% North America 13.5% 15.9%
11.8% 15.0% Africa, Middle East and 11.6% 12.1%
Turkey
14.1% 13.1% Asia and Pacific 14.8% 14.8%
11.9% 14.8% Latin America 12.7% 14.6%
------- ------- ------ ------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangibles
OPERATIONAL ANALYSIS (at constant rates - unaudited)
Second Quarter € Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
---------- ---------- ---------- -----------
12,362 12,547 (1)% TURNOVER 23,486 24,098 (3)%
------- ------- ------- ------------------------- ------- ------- -------
7,139 7,214 (1)% Foods 13,201 13,562 (3)%
------- ------- ------- ------------------------- ------- ------- -------
2,393 2,301 4% Savoury and dressings 4,590 4,544 1%
1,334 1,536 (13)% Spreads and cooking 2,632 3,046 (14)%
products
1,057 1,098 (4)% Health & wellness and 2,033 2,092 (3)%
beverages
2,355 2,279 3% Ice cream and frozen 3,946 3,880 2%
------- ------- ------- foods ------- ------- -------
-------------------------
1,997 2,192 (9)% Home care and 3,982 4,522 (12)%
professional cleaning
3,156 3,037 4% Personal care 6,138 5,792 6%
70 104 (34)% Other operations 165 222 (26)%
------- ------- ------- ------------------------- ------- ------- -------
1,808 1,819 (1)% OPERATING PROFIT - beia * 3,431 3,467 (1)%
------- ------- ------- ------------------------- ------- ------- -------
1,109 997 11% Foods 1,908 1,796 6%
------- ------- ------- ------------------------- ------- ------- -------
328 307 7% Savoury and dressings 702 612 14%
186 229 (19)% Spreads and cooking 377 453 (17)%
products
125 85 48% Health & wellness and 261 257 2%
beverages
470 376 25% Ice cream and frozen 568 474 20%
------- ------- ------- foods ------- ------- -------
-------------------------
255 275 (7)% Home care and 502 533 (6)%
professional cleaning
437 531 (18)% Personal care 1,020 1,109 (8)%
7 16 (60)% Other operations 1 29 (99)%
------- ------- ------- ------------------------- ------- ------- -------
14.6% 14.5% OPERATING MARGIN - beia * 14.6% 14.4%
------- ------- ------- ------------------------- ------- -------
15.5% 13.8% Foods 14.5% 13.2%
------- ------- ------- ------------------------- ------- -------
13.7% 13.3% Savoury and dressings 15.3% 13.5%
13.9% 14.9% Spreads and cooking 14.3% 14.9%
products
11.9% 7.7% Health & wellness and 12.9% 12.3%
beverages
20.0% 16.5% Ice cream and frozen 14.4% 12.2%
------- ------- ------- foods ------- -------
-------------------------
12.8% 12.5% Home care and 12.6% 11.8%
professional cleaning
13.9% 17.5% Personal care 16.6% 19.2%
9.4% 15.4% Other operations 0.2% 13.0%
------- ------- ------- ------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangibles
NOTES
Exchange rate conventions and impact of movements in exchange rates
Consistent with our previous practice, the following exchange rate conventions
have been applied:
In the profit and loss account information given on page 6 and the segmental
analysis on pages 10 and 11, the results for 2003 and the comparative figures
for 2002 have been translated at constant exchange rates, being the annual
average exchange rates for 2002. This reporting convention facilitates
comparisons since the impact of exchange rate fluctuations is eliminated, and is
the basis on which we measure our annual operational performance internally. It
also forms the basis for target setting and the annual outlook statement. For
our reporting currencies these rates were €1 = £0.63 = US $0.94.
The results and earnings per share on page 7 and the cash flow statement on page
9 are translated at rates current in each period. For our reporting currencies
these rates were €1 = £0.69 = US $1.10 for the half year 2003 and €1 = £0.62 =
US $0.90 for half year 2002.
As a result of the strengthening Euro, when expressed at current rates of
exchange, earnings per share (beia) for the half year decreased by 6% in Euros,
increased by 15% in US$ and increased by 3% in £ Sterling.
The balance sheet figures have been translated at period-end rates of exchange.
For our reporting currencies these were €1 = £0.69 = US $1.14 at 28 June 2003,
€1 = £0.65 = US $1.05 at 31 December 2002 and €1 = £0.65 = US $1.00 at
29 June 2002.
Results at current rates of exchange
Second Quarter € Millions - current Half Year
---------------- rates -----------
2003 2002 % Incr. 2003 2002 % Incr.
------ ------ --------- ------ ------ ---------
Restated /(Decr.) Restated /(Decr.)
--- ---------- ---------- --- ---------- ----------
11,148 12,755 (13)% Turnover 21,330 24,993 (15)%
------- ------- ------- -------
1,242 1,694 (27)% Operating profit 2,544 2,926 (13)%
------- ------- ------ ------------------------- ------- ------- ------
1,639 1,850 (11)% Operating profit beia * 3,135 3,596 (13)%
------- ------- ------ ------------------------- ------- ------- ------
3 2 Share of operating profit (6) 2
of associates & income
from fixed investments
(272) (279) Interest (including net (534) (575)
interest (cost)/return on
pension scheme assets and
liabilities)
(365) (635) Taxation (690) (1,063)
(44) (94) Minority interests (113) (161)
------- ------- ------- -------
564 688 (18)% Net profit 1,201 1,129 6%
------- ------- ------- -------
------- ------- ------ ------------------------- ------- ------- ------
932 1,003 (7)% Net profit beia * 1,747 1,889 (8)%
------- ------- ------ ------------------------- ------- ------- ------
The impact of exchange rate movements on the half year results at current
exchange rates in Euros, £ Sterling and US dollars is given below, along with
the year on year percentage change at constant rates.
Half Year - Constant rates At current rates of exchange
Millions ---------------- ------------------------------
% Incr. € % Incr. £ % Incr. US $ % Incr.
--------- --- --------- --- --------- ------ ---------
/(Decr.) 2003 /(Decr.) 2003 /(Decr.) 2003 /(Decr.)
---------- ------ ---------- ------ ---------- ------ ----------
Turnover (3)% 21,330 (15)% 14,611 (6)% 23,527 5%
Operating (1)% 3,135 (13)% 2,147 (4)% 3,458 7%
profit beia *
Net profit 14% 1,201 6% 823 17% 1,324 31%
--------------- --------- -------- ------- -------- -------- ------- -------
Net profit beia* 2% 1,747 (8)% 1,197 2% 1,927 13%
--------------- --------- -------- ------- -------- -------- ------- -------
% Change in 16% 8% 19% 33%
EPS --------- -------- ------- -------- -------- ------- -------
---------------
% Change in EPS 4% (6)% 3% 15%
- beia * --------- -------- ------- -------- -------- ------- -------
---------------
* Before exceptional items and amortisation of goodwill and intangibles
Acquisitions and disposals
On 15 May 2003 we announced the sale of the Van den Bergh Oils business in the
U.K, to Pura Foods Ltd, a subsidiary of ADM International Ltd. This business has
annual third party sales of approximately €60 million.
FRS 17
From 1 January 2003 we have adopted United Kingdom Financial Reporting Standard
17 (FRS 17) 'Retirement Benefits' which requires that pension assets and
liabilities be stated at fair values. The impact of adoption of this standard
has been reflected in all periods covered by this announcement by means of prior
period adjustments to the balance sheets and profit and loss accounts.
The implementation of FRS 17 has resulted in a reduction of €1,238 million in
the opening capital and reserves for 2003 (2002: increase of €1,444 million). In
the 2003 opening balance sheet pension liabilities have increased by €1,752
million (2002: decrease of €628 million). Deferred tax within liabilities has
been reduced by €1,785 million (2002: reduction of €1,383 million). The change
in debtors because of changes in pension assets and deferred tax is a net
reduction of €1,280 million in the 2003 opening balance (2002: reduction of €561
million). Minority interests have also been reduced by €9 million (2002:
increase of €6 million).
In the profit and loss account for the first half of 2002 operating profit has
increased by €93 million and net interest has decreased by €54 million. Total
recognised gains and losses for the first half of 2002 have reduced by €869
million for actuarial gains and losses and differences between actual and
expected return on pensions plan assets.
Share options
In line with recommendations of various standard setting bodies, from 1 January
2003 we changed our accounting policy for share options. The impact of adoption
of this change has been reflected in all periods covered by this announcement by
means of prior period adjustments to the profit and loss accounts. We have been
hedging our existing share option programmes by buying shares at the time of
grant and taking the financing cost within interest. The accounting change is to
include an additional non cash charge against operating profit to reflect the
full value to the employee of the share options granted. In determining this
charge we are applying a Black-Scholes based valuation spread over the vesting
period of the option.
In the profit and loss account for the first half of 2002 operating profit has
been reduced by €42 million, and in the first half of 2003 a charge of €66
million has been included in operating profit.
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 half year
Constant rates Current rates
---------------- ---------------
2003 2002 2003 2002
------ ------ ------ ------
Restated Restated
---------- ----------
Thousands of units
Average number of 971,433 980,180 971,433 980,180
combined share units of
€0.51
Average number of 6,476,222 6,534,531 6,476,222 6,534,531
combined share units of
1.4p
COMBINED EPS € Millions
--------------
Net profit 1,265 1,109 1,201 1,129
Less: Preference (17) (25) (17) (25)
dividends -------- -------- -------- -------
Net profit attributable 1,248 1,084 1,184 1,104
to ordinary capital -------- -------- -------- -------
-------- -------- -------- -------
Combined EPS per €0.51 1.29 1.11 1.22 1.13
(Euros)
Combined EPS per 1.4p 19.28 16.60 18.28 16.89
(Euro cents) -------- -------- -------- -------
COMBINED EPS - beia * € Millions
-----------------------
Net profit 1,265 1,109 1,201 1,129
Add back exceptional 0 114 1 122
items net of tax
Add back amortisation of 609 611 545 638
goodwill / intangibles -------- -------- -------- -------
net of tax
Net profit beia * 1,874 1,834 1,747 1,889
Less: Preference (17) (25) (17) (25)
dividends -------- -------- -------- -------
Net profit attributable 1,857 1,809 1,730 1,864
to ordinary capital - -------- -------- -------- -------
beia *
-------- -------- -------- -------
Combined EPS - beia* per 1.91 1.85 1.78 1.90
€0.51 (Euros)
Combined EPS - beia* per 28.69 27.69 26.71 28.53
1.4p (Euro cents) -------- -------- -------- -------
COMBINED EPS - Diluted Thousands of units
------------------------
Adjusted average 1,000,970 1,010,504 1,000,970 1,010,504
combined share units of
€0.51
Adjusted average 6,673,136 6,736,691 6,673,136 6,736,691
combined share units of
1.4p
€ Millions
Net profit attributable 1,248 1,084 1,184 1,104
to ordinary capital -------- -------- -------- -------
-------- -------- -------- -------
Combined diluted EPS per 1.25 1.07 1.18 1.09
€0.51 (Euros)
Combined diluted EPS per 18.71 16.10 17.74 16.38
1.4p (Euro cents) -------- -------- -------- -------
* Before exceptional items and amortisation of goodwill and intangibles
Dates
The results for the third quarter and announcement of interim dividends will be
published on 29 October 2003.
Salient figures for the above results will be published in the Daily Telegraph
on Thursday, 31 July 2003.
30 July 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
Note: A description of the exchange rate conventions used is given on page 12.
Second Quarter £ Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
--- ---------- --------- --- ---------- ---------
7,763 7,880 (1)% TURNOVER 14,749 15,134 (3)%
(41) (77) Less: Share of turnover of (92) (166)
------- ------- joint ventures ------- -------
7,722 7,803 (1)% Group turnover 14,657 14,968 (2)%
------- ------- ------- -------
844 1,032 (18)% Group operating profit 1,721 1,753 (2)%
9 15 Add: Share of operating 18 24
------- ------- profit of joint ventures ------- -------
853 1,047 (19)% OPERATING PROFIT 1,739 1,777 (2)%
------- ------- ------ -------------------------- ------- ------- ------
1,135 1,141 (1)% Operating profit beia * 2,155 2,176 (1)%
(63) 105 Exceptional items (14) 0
(219) (199) Amortisation of goodwill (402) (399)
------- ------- ------ and intangibles ------- ------- ------
--------------------------
11 8 Share of operating profit 3 8
of associates
(9) (7) Other income from fixed (7) (7)
investments
(173) (186) Interest (excluding (335) (371)
pension related amounts)
(30) 17 Net interest (cost)/return (60) 34
------- ------- on pension scheme assets ------- -------
and liabilities
652 879 (26)% PROFIT BEFORE TAXATION 1,340 1,441 (7)%
(246) (392) Taxation (465) (647)
------- ------- ------- -------
406 487 (17)% PROFIT AFTER TAXATION 875 794 10%
(33) (59) Minority interests (81) (98)
------- ------- ------- -------
373 428 (13)% NET PROFIT 794 696 14%
------- ------- ------- -------
------- ------- ------ -------------------------- ------- ------- ------
633 620 2% Net profit beia * 1,177 1,151 2%
------- ------- ------ -------------------------- ------- ------- ------
------- ------- ------ -------------------------- ------- ------- ------
COMBINED EARNINGS PER
SHARE
(Constant rates)
5.69 6.45 (12)% - per 1.4p ordinary PLC 12.10 10.42 16%
share (pence)
9.72 9.39 3% - per 1.4p ordinary PLC 18.02 17.39 4%
share - beia * (pence)
5.52 6.25 (12)% - per 1.4p ordinary PLC 11.75 10.11 16%
------- ------- ------ share - diluted (pence) ------- ------- ------
--------------------------
* Before exceptional items and amortisation of goodwill and intangibles
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in our accounting policy for share
option costs (see notes on page 13).
NET PROFIT AND EARNINGS PER SHARE - CURRENT EXCHANGE RATES (unaudited)
Net profit and earnings per share given below are stated at current exchange
rates i.e. the results in both years have been translated at the exchange rates
prevailing during the appropriate period.
For further details of the results at current exchange rates and impact of
exchange rate movements see notes on page 12.
Second Quarter £ Millions - current Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
--- ---------- --------- --- ---------- ---------
397 431 (8)% NET PROFIT 823 702 17%
------- ------- ------ -------------------------- ------- ------- ------
652 630 3% Net profit beia * 1,197 1,175 2%
------- ------- ------ -------------------------- ------- ------- ------
COMBINED EARNINGS PER
SHARE
(Current rates)
6.03 6.49 (7)% - per 1.4p ordinary PLC 12.52 10.51 19%
share (pence)
9.98 9.55 5% - per 1.4p ordinary PLC 18.30 17.75 3%
share - beia * (pence)
5.85 6.28 (7)% - per 1.4p ordinary PLC 12.15 10.19 19%
------- ------- ------ share - diluted (pence) ------- ------- ------
--------------------------
* Before exceptional items and amortisation of goodwill and intangibles
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
£ Millions - current rates Half Year
-----------
2003 2002
------ ------
Restated
--- ----------
Net profit 823 702
Currency retranslation 501 (440)
--------- ---------
Total recognised gains for the year 1,324 262
Pension gains / (losses) net of tax (36) (541)
--------- ---------
Total recognised gains / (losses) since last 1,288 (279)
annual accounts --------- ---------
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in our accounting policy for share
option costs (see notes on page 13).
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
£ Millions - current rates Half Year
-----------
2003 2002
------ -------
Restated
----------
Shareholders' equity as at 1 January (1) 3,011 5,154
Net profit 823 702
Dividends 7 (4)
Goodwill written back on disposals 7 251
Currency retranslation 531 (402)
Change in number of shares or certificates of
shares held in
connection with share options (262) (303)
Pension gains / (losses) net of tax (36) (541)
Adjustment to cost of share options 46 26
-------- --------
Shareholders' equity as at the end of the period 4,127 4,883
-------- --------
SUMMARY BALANCE SHEET (unaudited)
£ Millions - current As at 28th June As at 31st As at 29th June
rates December
2003 2002 2002
------ ------ ------
Restated Restated
---------- ----------
Goodwill and intangibles 13,436 13,188 14,185
Other fixed assets 5,199 5,279 5,694
Stocks 3,266 2,927 3,188
Debtors 5,290 4,522 6,190
Cash and current 2,016 2,263 2,378
investments
Trade and other (7,358) (7,632) (7,648)
creditors --------- -------- --------
21,849 20,547 23,987
--------- -------- --------
Borrowings 13,150 13,299 15,329
Provisions for liabilities 4,281 3,834 3,324
and charges
Minority interests 291 403 451
Capital and reserves 4,127 3,011 4,883
--------- -------- --------
21,849 20,547 23,987
--------- -------- --------
Restatements relate to the implementation of United Kingdom Financial Reporting
Standard 17 'Retirement Benefits' and changes in our accounting policy for share
option costs (see notes on page 13).
£ Millions - current rates As at 1st As at 1st
January January
2003 2002
------------ -------------
(1) Shareholders' equity as previously 3,816 4,272
reported
Change in accounting policy - pensions (805) 882
--------- --------
Shareholders' equity as restated 3,011 5,154
--------- --------
CASH FLOW STATEMENT (unaudited)
£ Millions - current rates Half Year
-----------
2003 2002
-------- --------
Cash flow from group operating activities 1,705 2,178
Dividends from joint ventures 7 8
Returns on investments and servicing of finance (358) (512)
Taxation (447) (533)
Capital expenditure and financial investment (504) (577)
Acquisitions and disposals 13 717
Dividends paid on ordinary share capital (731) (648)
(315) 633
CASH INFLOW/(OUTFLOW) BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING
Management of liquid resources 242 (159)
Financing (322) (247)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (395) 227
-------- --------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
£ Millions - current rates Half Year
-----------
2003 2002
-------- --------
NET DEBT AT 1 JANUARY (11,036) (14,173)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (395) 227
Cash flow from (increase)/decrease in borrowings 322 246
Cash flow from increase/(decrease) in liquid (242) 159
resources -------- --------
Change in net debt resulting from cash flows (315) 632
Borrowings within group companies acquired (18) (57)
Borrowings within group companies sold 3 12
Liquid resources within group companies acquired - -
Liquid resources within group companies sold (2) (1)
Non cash movements 186 697
Currency retranslation 48 (61)
-------- --------
MOVEMENT IN NET DEBT IN THE PERIOD (98) 1,222
-------- --------
-------- --------
NET DEBT AT PERIOD END (11,134) (12,951)
-------- --------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
Second Quarter £ Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ ---------- ------ ------ ----------
Restated (Decr.) Restated (Decr.)
7,763 7,880 (1)% TURNOVER 14,749 15,134 (3)%
------- ------- ------ ------------------------- ------- ------- ------
3,166 3,223 (2)% Europe 5,881 6,156 (4)%
1,873 2,060 (9)% North America 3,638 3,991 (9)%
542 512 6% Africa, Middle East and 1,031 951 8%
Turkey
1,294 1,253 3% Asia and Pacific 2,479 2,418 3%
888 832 7% Latin America 1,720 1,618 6%
------- ------- ------ ------------------------- ------- ------- ------
1,135 1,141 (1)% OPERATING PROFIT - beia * 2,155 2,176 (1)%
------- ------- ------ ------------------------- ------- ------- ------
525 437 20% Europe 961 830 16%
258 340 (24)% North America 490 635 (23)%
64 77 (16)% Africa, Middle East and 120 115 4%
Turkey
182 164 11% Asia and Pacific 366 359 2%
106 123 (14)% Latin America 218 237 (8)%
------- ------- ------ ------------------------- ------- ------- ------
14.6% 14.5% OPERATING MARGIN - beia * 14.6% 14.4%
------- ------- ------ ------------------------- ------- -------
16.6% 13.6% Europe 16.3% 13.5%
13.8% 16.5% North America 13.5% 15.9%
11.8% 15.0% Africa, Middle East and 11.6% 12.1%
Turkey
14.1% 13.1% Asia and Pacific 14.8% 14.8%
11.9% 14.8% Latin America 12.7% 14.6%
------- ------- ------ ------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangibles
OPERATIONAL ANALYSIS (at constant rates - unaudited)
Second Quarter £ Millions - constant Half Year
---------------- rates -----------
2003 2002 % Incr./ 2003 2002 % Incr./
------ ------ (Decr.) --- ------ ------ ----------
------------
Restated Restated (Decr.)
--- ---------- --- --- ----------
7,763 7,880 (1)% TURNOVER 14,749 15,134 (3)%
------- ------- ------- ------------------------- ------- ------- -------
4,483 4,530 (1)% Foods 8,290 8,517 (3)%
------- ------- ------- ------------------------- ------- ------- -------
1,503 1,445 4% Savoury and dressings 2,883 2,854 1%
838 965 (13)% Spreads and cooking 1,653 1,914 (14)%
products
663 689 (4)% Health & wellness and 1,276 1,313 (3)%
beverages
1,479 1,431 3% Ice cream and frozen 2,478 2,436 2%
------- ------- ------- foods ------- ------- -------
-------------------------
1,255 1,377 (9)% Home care and 2,501 2,840 (12)%
professional cleaning
1,982 1,907 4% Personal care 3,855 3,637 6%
43 66 (34)% Other operations 103 140 (26)%
------- ------- ------- ------------------------- ------- ------- -------
1,135 1,141 (1)% OPERATING PROFIT - beia * 2,155 2,176 (1)%
------- ------- ------- ------------------------- ------- ------- -------
696 626 11% Foods 1,198 1,128 6%
------- ------- ------- ------------------------- ------- ------- -------
206 193 7% Savoury and dressings 441 385 14%
116 143 (19)% Spreads and cooking 236 284 (17)%
products
78 53 48% Health & wellness and 164 161 2%
beverages
296 237 25% Ice cream and frozen 357 298 20%
------- ------- ------- foods ------- ------- -------
-------------------------
160 173 (7)% Home care and 316 335 (6)%
professional cleaning
275 332 (18)% Personal care 641 695 (8)%
4 10 (60)% Other operations 0 18 (99)%
------- ------- ------- ------------------------- ------- ------- -------
14.6% 14.5% OPERATING MARGIN - beia * 14.6% 14.4%
------- ------- ------- ------------------------- ------- -------
15.5% 13.8% Foods 14.5% 13.2%
------- ------- ------- ------------------------- ------- -------
13.7% 13.3% Savoury and dressings 15.3% 13.5%
13.9% 14.9% Spreads and cooking 14.3% 14.9%
products
11.9% 7.7% Health & wellness and 12.9% 12.3%
beverages
20.0% 16.5% Ice cream and frozen 14.4% 12.2%
------- ------- ------- foods ------- -------
-------------------------
12.8% 12.5% Home care and 12.6% 11.8%
professional cleaning
13.9% 17.5% Personal care 16.6% 19.2%
9.4% 15.4% Other operations 0.2% 13.0%
------- ------- ------- ------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangibles
Earnings per share in Sterling for the half year
Constant rates Current rates
---------------- ---------------
2003 2002 2003 2002
------ ------ ------ ------
Restated Restated
---------- ----------
Thousands of units
Average number of 6,476,222 6,534,531 6,476,222 6,534,531
combined share units of
1.4p
COMBINED EPS £ Millions
--------------
Net profit 794 696 823 702
Less: Preference (11) (16) (12) (16)
dividends -------- -------- -------- -------
Net profit attributable 783 680 811 686
to ordinary capital -------- -------- -------- -------
-------- -------- -------- -------
Combined EPS per 1.4p 12.10 10.42 12.52 10.51
-------- -------- -------- -------
COMBINED EPS - beia * £ Millions
-----------------------
Net profit 794 696 823 702
Add back exceptional 0 72 1 77
items net of tax
Add back amortisation of 383 383 373 396
goodwill / intangibles -------- -------- -------- -------
net of tax
Net profit beia * 1,177 1,151 1,197 1,175
Less: Preference (11) (16) (12) (16)
dividends -------- -------- -------- -------
Net profit attributable 1,166 1,135 1,185 1,159
to ordinary capital - -------- -------- -------- -------
beia *
-------- -------- -------- -------
Combined EPS - beia * 18.02 17.39 18.30 17.75
per 1.4p -------- -------- -------- -------
COMBINED EPS - Diluted Thousands of units
------------------------
Adjusted average 6,673,136 6,736,691 6,673,136 6,736,691
combined share units of
1.4p
£ Millions
Net profit attributable 783 680 811 686
to ordinary capital -------- -------- -------- -------
-------- -------- -------- -------
Combined diluted EPS per 11.75 10.11 12.15 10.19
1.4p -------- -------- -------- -------
* Before exceptional items and amortisation of goodwill and intangibles
This information is provided by RNS
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