Interim Results
Unilever PLC
28 July 2004
SECOND QUARTER AND HALF YEAR RESULTS 2004
(Unaudited, constant 2003 average exchange rates, unless stated)
EPS (beia*) increased 11% in the quarter despite flat sales of leading brands in
competitive markets. We have a fully funded programme for the second half and
maintain our outlook for full year earnings.
FINANCIAL HIGHLIGHTS - € millions
Second Quarter Half Year 2004
2004 -------------
-------------
10,835 - 3 % Turnover 20,623 - 3 %
-------- ------- -------- --------
1,613 - 2 % Operating profit - beia* 3,068 - 1 %
-------- ------- -------- --------
1,170 + 19 % Pre-tax profit 2,101 + 5 %
-------- ------- -------- --------
770 + 34 % Net profit 1,300 + 8 %
-------- ------- -------- --------
1,036 + 10 % Net profit - beia* 1,887 + 9 %
-------- ------- -------- --------
1.07 + 11 % EPS NV - beia * (Euros) 1.94 + 10 %
-------- ------- -------- --------
16.02 + 11 % EPS PLC - beia * (Euro 29.12 + 10 %
-------- ------- cents) -------- --------
* Before exceptional items and amortisation of goodwill and
intangible assets
At current rates of exchange EPS (beia) was higher by 10% in the quarter and by
6% for the half year. EPS was 34% higher in the quarter, helped by higher
profits on disposals, and was ahead by 6% for the half year.
KEY FEATURES OF THE QUARTER
•Sales of the leading brands were flat, with a further slowdown in market
growth and poor ice cream and ready-to-drink tea sales in Europe.
•Operating margin (beia) moved ahead by 10 basis points to 14.9% with cost
savings continuing to underpin the funding of intensified competitive
activity.
•With strong cash flow, net debt at quarter end exchange rates was €13.0
billion, down by €3.1 billion over the last twelve months. Net borrowing
costs and pension financing costs reduced by 25% and 41% respectively.
•We continue to reduce our tax rate as a result of initiatives taken
within the Path to Growth strategy.
•EPS (beia) grew by 11% after absorbing 3 percentage points of short-term
dilution from disposals.
CHAIRMEN'S COMMENT
We continue to implement our plans to turn around underperforming businesses.
This includes completion of the restructuring of the prestige fragrance business
together with a focused innovation programme, and completing a full revamp of
the Slim•Fast range. In frozen foods we are making good progress with reshaping
the portfolio and we are relaunching the brands with a clear and differentiated
position.
Consumer confidence remains weak and a number of our key markets are still
growing at below their historical rates with a further slowdown this quarter. In
Europe, home care markets have declined throughout this year and we now see the
same in personal care with price competition driving developments in both cases.
Furthermore there is still no sustained upturn in US consumer spending in our
categories and here too home and personal care markets have declined. Against
this background our volumes in Home & Personal Care continue to grow. In all
regions we are taking the actions necessary to protect our market position and
these are fully funded.
In Foods, improved momentum in spreads and cooking products and in savoury and
dressings was offset by poor sales in Europe of ice cream and ready-to-drink tea
which diluted overall leading brands growth by nearly 2 percentage points
against a tough prior year comparator.
Importantly our business continues to demonstrate its resilience and ability to
finance the necessary investment in our brands through cost savings in every
area. This is a result of the Path to Growth strategy. Thus we have continued to
grow EPS (beia) 11% in this quarter and by 10% in the half year, and this also
enables us to maintain our outlook of low double digit EPS (beia) growth for the
year.
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
28 July 2004
SECOND QUARTER AND HALF YEAR FINANCIAL RESULTS (at constant exchange rates)
Notes:
Unilever uses 'constant rate', 'underlying' and 'beia' measures primarily for
internal performance analysis and targeting purposes. Unilever believes that the
use of such measures provides additional information for shareholders on
underlying business performance trends. Such measures are not defined under UK,
Netherlands or US GAAP and are not intended to be a substitute for GAAP measures
of turnover and profit. Fuller definitions and reconciliations between such
measures and the equivalent GAAP measures are available on our website:
www.unilever.com.
Underlying sales declined by 0.7% in the quarter. Within this, leading brands
declined by 0.2% in markets that have grown below their historical rate and
which have further slowed in this quarter. Sales performance continues to be
affected by the loss of market share in Slim•Fast and prestige during 2003 while
in Europe, ice cream and ready-to-drink tea sales were lower against a tough
comparator in the prior year. Overall prices are 0.3% below last year, with Home
and Personal Care categories particularly affected by market price declines. In
Home and Personal Care our underlying volume growth, at nearly 4%, and just over
3% for the year to date, was strong, however this was partially offset by price
declines of 2.5% in the quarter and nearly 2% in the half year.
For the half year underlying sales declined by 0.2%, while leading brands grew
by 0.5%.
As part of the reshaping of our portfolio within Path to Growth we have
continued to pursue an active programme of business disposals. Including the
impact of these disposals, turnover declined by 2.9% in the quarter and by 2.6%
in the half year.
Operating margin (beia) was 14.9% in the quarter, an increase of 10 basis
points. We continue to generate savings from our procurement and restructuring
programmes and there was another healthy improvement in mix notwithstanding the
adverse effect of lower ice cream sales in Europe and slower growth in Personal
Care compared with last year. These benefits, along with a redirection of brand
investment, have enabled an increase in consumer related price promotions
accounted for within price of around 200 basis points as we protect our market
positions. Overheads increased by 20 basis points as brand disposals have
resulted in short term unrecovered fixed costs which are being restructured out
of the business. A planned step-up in restructuring activity in the second half
of the year will further improve the overheads ratio. Operating margin (beia)
was 14.9% for the half year, an increase of 20 basis points.
Operating profit (beia), was 2% lower than last year in the quarter and 1% lower
for the half year, additionally reflecting the loss of contribution from
businesses sold.
A gain of €20 million in fixed investments in the quarter includes the sale of
shares in Elizabeth Arden.
Net borrowing costs were 25% lower than last year in the quarter and 24% lower
in the half year through a lower level of net debt and lower interest rates as
we pay off older borrowings at higher fixed rates. Pension financing costs were
reduced by 41% in the quarter and by 45% in the half year.
In the quarter, net exceptional gains within operating profit were €3 million,
including restructuring charges of €86 million more than offset by profits on
disposals of €89 million. This compares with net exceptional charges of €87
million in the prior year which included profits on disposals of €12 million.
For the half year, net exceptional charges are €64 million, compared with €20
million last year.
The beia tax rate was 25% in the quarter, which includes the benefits from the
completion of a number of projects as part of our ongoing actions to realise the
full benefits of Path to Growth. This programme supports the lower sustainable
tax rate set out in Unilever 2010. For the half year the beia tax rate is 27%,
compared with 30% in the prior year, contributing 4 percentage points to EPS
beia. For the full year we now expect a beia tax rate of around 28%. The
effective tax rate was 30% in the quarter and 33% in the half year, reflecting
the non-tax-deductibility of Bestfoods goodwill amortisation.
Net profit (beia) was up by 10% in the quarter to €1,036 million and by 9% for
the half year to €1,887 million. Net profit was up 34% in the quarter, with the
additional benefit of higher after tax profits on disposals, and 8% higher in
the half year. Earnings per share (beia) rose by 11% in the quarter, and by 10%
in the half year, after 3 percentage points of dilution from disposals. Earnings
per share were 36% higher in the quarter and 10% higher in the half year.
When expressed at current rates of exchange, earnings per share (beia) in the
quarter increased by 10% in Euros, by 5% in £ Sterling and by 17% in US $. For
the half year, earnings per share (beia) increased by 6% in Euros, by 4% in £
Sterling and by 18% in US $. Turnover, including the impact of disposals and
expressed at current rates of exchange, decreased by 6% in Euros for the quarter
and by 7% for the half year.
SECOND QUARTER PERFORMANCE BY REGION (at constant exchange rates)
Note:
The following regional commentary is based on operating profit before
exceptional items and amortisation of goodwill and intangible assets. Sales
growth is stated on an underlying basis, excluding the effects of acquisitions
and disposals. Turnover includes the impact of acquisitions and disposals.
EUROPE
Market conditions weakened further in the quarter with price declines in both
home and personal care. Foods markets were held back by lower consumption of ice
cream and ready-to-drink tea. Conditions in Germany, France and the Netherlands
have been particularly difficult. Against this background, our underlying sales
declined by 5%, with two thirds of this coming from ice cream and ready-to-drink
tea. Turnover was 7% lower than last year, including the impact of planned
disposals.
Lower sales in Home and Personal Care reflect an increased level of consumer
related price promotions, with price down by 2.3%. In laundry our actions have
led to a stabilisation of market shares against continued strong competition and
we are now rolling out the successful global 'dirt is good' advertising. A
programme of launches is under way in household care.
Our skin, hair and deodorants brands gained further market share. Key
innovations include Dove firming products and shampoo for coloured hair, the
re-launch of Lux soap bars and bath and shower products and the roll-out of Axe
in Central and Eastern Europe. Sales in prestige fragrances showed an expected
decline from the loss of share during the course of last year as we refocused
the business.
In Foods, spreads returned to growth with 'healthy heart' leading the way
through pro•activ, including the launch in the quarter of yoghurt and milk
products which are now in 12 countries, while pro•activ spread is in 20. Family
brands grew for the first time in a quarter since 2002 through the Cremefine
dairy cream alternative line.
There was good growth in dressings, especially with Bertolli and in Russia under
the Calve brand. Knorr, however, showed a small decline due to specific
competitive activities and the timing of our own promotions.
Ice cream and ready-to-drink sales were markedly down against a strong
comparator last year, particularly in June. We have however continued to invest
in the long-term development of the business with a programme of seasonal
innovations.
In frozen foods we are continuing to reshape the product portfolio towards
higher growth and profitable segments, but with sales reduced in the short term
as a result. Knorr frozen is now well established in a number of countries,
while in the later part of this year we have a full relaunch of the Iglo, Birds
Eye and Findus brands.
Operating margin at 15.8% was 90 basis points lower than last year through the
impact of lower sales in ice cream.
NORTH AMERICA
Underlying sales grew by 4%, including 2.4% in volume, against a low base last
year. Turnover, including the impact of disposals, grew by 1.9%. Markets remain
weak, with low growth in Foods and an overall decline in Home and Personal Care.
Axe continues to perform strongly, gaining market share, and our US business is
now the largest Axe market in the world. Hair care remains a very competitive
category and while Dove has been successfully established in shampoo some of our
weaker hair care brands have lost share.
A new leadership team in prestige fragrances has made good progress with
restructuring and the focus is now on this year's more extensive innovation. We
have already launched Vera Wang for men in the US, Cerrutti Si in Europe, and a
summer edition of cK One. We have further innovations planned for the remainder
of the year including cK Eternity Moment endorsed by Scarlett Johansson. While
in the second quarter there is still a year on year decline, these initiatives,
and a lower comparator, are expected to lead to an improved performance in the
second half.
In laundry, we have stabilised market share having focused our brand portfolio
around the Surf/all brand, Wisk liquid and Snuggle fabric conditioners.
Unilever Bestfoods had another strong quarter including the launch of a further
14 products in the Carb Options range. Spreads growth was driven by Country
Crock, I Can't Believe It's Not Butter! and Skippy, including snack bars and
Carb Options launches.
Low-carbohydrate products now account for 50% of the still-growing weight
management market. As part of our plan to stabilise sales of Slim•Fast and then
return them to growth, we have launched a range of 17 low-carbohydrate products
within the overall Slim•Fast programme and these now represent over 20% of
sales. Market shares have stabilised over the last six months, although year on
year sales are still down because of the progressive share loss through last
year. In the second half we will be addressing the decline of the 'Classic'
products through a major relaunch, 'Classic Optima'. This has 50% less sugar and
will complete the relaunch of the entire Slim•Fast range.
Ice cream continues to perform strongly, with a further gain in market share.
The Breyers, Klondike and Ben & Jerry's brands all grew well, particularly
through the health range of products including low-carbohydrate and light
alternatives. The move to warehouse distribution for Ben & Jerry's has been
successfully completed with an increase in retail coverage.
The regional operating margin, at 15.4%, was 170 basis points higher than last
year.
AFRICA, MIDDLE EAST AND TURKEY
Underlying sales grew 4% with volumes ahead by 6%, but with lower prices as we
adjust to strengthening currencies in Turkey and South Africa. This was a good
performance against a stretching comparator of 9% underlying sales growth in the
second quarter of last year. Turnover, including the impact of disposals,
declined by 0.2%.
The launch of Omo multiactive powder in Nigeria and good performances in Turkey,
South Africa and Algeria drove growth in laundry. Household care also grew well
following the launch of a new white variant of Domestos, and the price
repositioning of Cif in Turkey.
Growth in hair care was led by Sunsilk, including new shampoo variants in Turkey
and Arabia and grooming products in Morocco and Algeria. Dove performed strongly
through the beauty bar, the launch of face care and through classic bodywash
products.
Highlights in Foods were a recovery in Ghana, good growth in savoury in Nigeria
with Royco bouillon cubes, and the launch of Lipton Black Sea Tea and Sana
Dalmatian cream cheese spreads in Turkey. This was partly offset by lower sales
in leaf tea in Arabia.
The regional operating margin, 13.9%, was 180 basis points ahead of last year
with a strong improvement in gross margins.
ASIA AND PACIFIC
Underlying sales grew 0.7%. Volume grew by 3.1% but lower pricing to protect
market positions, particularly in Japan and India, impacted the top line.
Turnover, including the net impact of disposals and acquisitions, declined by
2.4%.
In Home and Personal Care there was strong growth in Indonesia, Thailand, China
and Vietnam across key categories. However the increased competition that we saw
in the first quarter in India and Japan has continued into this quarter. In
India volumes continue to grow well, but we have reduced prices to protect our
market positions in laundry, hair and oral care. In laundry, Surf and Rin
supreme are performing well and we are maintaining market share, whilst we see
some small share loss in hair care, primarily to local competition. In Japan,
the hair care market is declining in value and we have lost share. However,
action is being taken, including innovations in styling and colourants under the
mod's hair brand and further initiatives in the category are in our plans for
the second half of the year. The Japanese skin care market category has remained
very competitive.
In Foods, Brooke Bond tea in India has returned to good growth but sales in
Pakistan have been held back by a combination of trade de-stocking and sharply
increased promotional activity by local competition. China and South East Asia
grew well through Knorr including Foodsolutions, through Lipton and in ice
cream.
Overall growth continues to be affected by our actions to reduce the tail of
non-leading brands by managing some brands for value through a harvest strategy
or disposal.
The regional operating margin at 12.6% was 150 basis points lower than last
year, largely through the mix impact of lower sales in hair care and from the
determined actions we are taking to defend our market positions. Margins in the
second half year will benefit from the exit from the low margin fertilisers
business which was completed late in the second quarter.
LATIN AMERICA
Underlying sales grew by 2.7%, on top of 10% growth in the second quarter last
year. After the impact of disposals, turnover declined by 0.2%. While there are
some encouraging signs of a return of economic growth in most countries,
consumer demand remains weak, particularly in Brazil.
In Foods, Knorr moved ahead strongly with the extension of low unit price cubes
from the Caribbean to Brazil, and the successful migration of CICA to Knorr.
Hellmann's performed well in Chile and Brazil. There was good growth in the
nutritional brands such as Maizena and AdeS, while Slim•Fast is doing very well
in Mexico and a regional roll-out is being evaluated.
In Home & Personal Care, we are growing well in Argentina, as our strong
category positions benefit from the economic recovery. Although in Brazil sales
were down following a strong first quarter, importantly, overall market shares
remain firm. Personal care produced good progress in deodorants, notably Axe and
Rexona, and strong broad-based launches within the Lux range.
Operating margin, at 14.4%, is 290 basis points ahead of last year through the
benefits of savings programmes and a better mix in Foods from an improved
portfolio.
CASH FLOW (at current exchange rates)
Cash flow from group operating activities in the half year was €2.6 billion, an
increase of €0.1 billion on the corresponding period last year. Operating profit
(beia) at current rates of exchange was €0.2 billion lower, which was more than
offset by lower seasonal working capital outflows and lower cash restructuring
compared to the same period last year.
Returns on investment and servicing of finance were €0.2 billion lower as a
result of lower interest costs. Capital expenditure and financial investment was
€0.1 billion lower, reflecting the sale of shares in Elizabeth Arden and lower
purchases of own shares to hedge our share option programmes.
Net debt at the half year was €13.0 billion, an increase of €0.5 billion since
the start of the year, primarily arising from currency movements particularly
the effect of a stronger US dollar on our US dollar-denominated debt.
BALANCE SHEET (at current exchange rates)
Goodwill and intangible assets decreased by € 0.2 billion in the half year, with
the effect of amortisation and disposals (€0.6 billion) offset by currency
movements (€0.4 billion). Higher stocks, trade debtors and trade creditors
reflect seasonal movements, with an offsetting reduction in creditors through
payment of the final 2003 dividend. Provisions are €0.1 billion lower due to
Path to Growth restructuring payments.
Capital and reserves have increased by €0.9 billion in the half year. Net
profits added €1.3 billion, and the credit in respect of share options €0.1
billion. This was offset by movements in pension assets and liabilities and
purchases of own shares to hedge share option plans (€0.5 billion).
EURO REPORTING
Information in sterling and US dollars is available as a supplement to this Euro
report.
SAFE HARBOUR STATEMENT: This announcement may contain forward-looking
statements, including 'forward-looking statements' within the meaning of the
United States Private Securities Litigation Reform Act of 1995. Words such as
'expects', 'anticipates', 'intends' or the negative of these terms and other
similar expressions of future performance or results and their negatives are
intended to identify such forward-looking statements. These forward-looking
statements are based upon current expectations and assumptions regarding
anticipated developments and other factors affecting the Group. They are not
historical facts, nor are they guarantees of future performance. Because these
forward-looking statements involve risks and uncertainties, there are important
factors that could cause actual results to differ materially from those
expressed or implied by these forward-looking statements, including, among
others, competitive pricing and activities, consumption levels, costs, the
ability to maintain and manage key customer relationships and supply chain
sources, currency values, interest rates, the ability to integrate acquisitions
and complete planned divestitures, physical risks, environmental risks, the
ability to manage regulatory, tax and legal matters and resolve pending matters
within current estimates, legislative, fiscal and regulatory developments,
political, economic and social conditions in the geographic markets where the
Group operates and new or changed priorities of the Boards. Further details of
potential risks and uncertainties affecting the Group are described in the
Group's filings with the London Stock Exchange, Euronext Amsterdam and the US
Securities and Exchange Commission, including the Annual Report & Accounts on
Form 20-F. These forward-looking statements speak only as of the date of this
document. Except as required by any applicable law or regulation, the Group
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
Note: A description of the exchange rate conventions used is given on page 13.
Second Quarter € Millions - constant rates Half Year
-------------- ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
(55) (58) Less: Share of turnover of (100) (130)
------- ------- joint ventures ------- -------
10,780 11,105 (3)% Group turnover 20,523 21,037 (2)%
------- ------- ------- -------
1,322 1,242 6 % Group operating profit 2,418 2,505 (3)%
12 13 Add: Share of operating 22 25
------- ------- profit of joint ventures ------- -------
1,334 1,255 6 % OPERATING PROFIT 2,440 2,530 (4)%
------- ------- ------ ---------------------------- ------- ------- ------
1,613 1,648 (2)% Operating profit beia * 3,068 3,113 (1)%
3 (87) Exceptional items (64) (20)
(282) (306) Amortisation of goodwill and (564) (563)
------- ------- ------ intangible assets ------- ------- ------
12 15 Share of operating profit of 22 4
associates
20 (14) Other income from fixed 22 (11)
investments
(172) (230) Interest (337) (441)
(24) (41) Other finance income/(cost) (46) (84)
------- ------- - pensions and similar ------- -------
obligations
1,170 985 19 % PROFIT BEFORE TAXATION 2,101 1,998 5 %
(347) (367) Taxation (695) (687)
------- ------- ------- -------
823 618 33 % PROFIT AFTER TAXATION 1,406 1,311 7 %
(53) (45) Minority interests (106) (112)
------- ------- ------- -------
770 573 34 % NET PROFIT 1,300 1,199 8 %
------- ------- ------ --- ---------------------------- ------- ------- ------
1,036 940 10 % Net profit beia * 1,887 1,738 9 %
------- ------- ------ --- ---------------------------- ------- ------- ------
COMBINED EARNINGS PER SHARE
(Constant rates)
0.79 0.58 36 % - per €0.51 ordinary NV 1.33 1.22 10 %
share (Euros)
11.86 8.72 36 % - per 1.4p ordinary PLC 19.98 18.25 10 %
share (Euro cents)
1.07 0.96 11 % - per €0.51 ordinary NV 1.94 1.77 10 %
share - beia * (Euros)
16.02 14.41 11 % - per 1.4p ordinary PLC 29.12 26.58 10 %
share - beia * (Euro cents)
0.76 0.56 36 % - per €0.51 ordinary NV 1.29 1.18 9 %
share - diluted (Euros)
11.50 8.46 36 % - per 1.4p ordinary PLC 19.38 17.71 9 %
------- ------- ------ --- share - diluted (Euro cents) ------- ------- ------
----------------------------
* Before exceptional items and amortisation of goodwill and intangible assets
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 periods have been translated at the exchange
rates prevailing during the period.
For further details of the results at current exchange rates and impact of
exchange rate movements see notes on page 13.
Second Quarter € Millions - current rates Half Year
---------------- ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
749 564 33 % NET PROFIT 1,264 1,201 5 %
------- ------- ------ --- ---------------------------- ------- ------- ------
1,012 932 9 % Net profit beia * 1,834 1,747 5 %
------- ------- ------ --- ---------------------------- ------- ------- ------
COMBINED EARNINGS PER
SHARE
(Current rates)
0.77 0.57 34 % - per €0.51 ordinary NV 1.30 1.22 6 %
share (Euros)
11.55 8.59 34 % - per 1.4p ordinary PLC 19.44 18.28 6 %
share (Euro cents)
1.05 0.95 10 % - per €0.51 ordinary NV 1.89 1.78 6 %
share - beia * (Euros)
15.65 14.27 10 % - per 1.4p ordinary PLC 28.30 26.71 6 %
share - beia * (Euro cents)
0.75 0.55 35 % - per €0.51 ordinary NV 1.26 1.18 6 %
share - diluted (Euros)
11.21 8.32 35 % - per 1.4p ordinary PLC 18.86 17.74 6 %
------- ------- ------ --- share - diluted (Euro cents) ------- ------- ------
----------------------------
* Before exceptional items and amortisation of goodwill and intangible assets
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
€ Millions - current rates Half Year
-----------
2004 2003
Restated
Net profit 1,264 1,201
Pensions - actuarial gains / (losses) net of tax (41) (53)
Currency retranslation (105) 452
------- -------
Total recognised gains since last annual accounts 1,118 1,600
------- -------
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
€ Millions - current rates Half Year
-------------
2004 2003
Restated
Shareholders' equity as at 1 January 5,920 4,702
Net profit 1,264 1,201
Dividends 10 10
Goodwill written back on disposals 5 10
Change in number of shares or certificates of (366) (382)
shares held in
connection with share options
Actuarial gains / (losses) on pension schemes net (41) (53)
of tax
Share option credit 121 84
Currency retranslation (134) 495
-------- --------
Shareholders' equity as at the end of the period 6,779 6,067
-------- --------
SUMMARY BALANCE SHEET (unaudited)
€ Millions - current rates As at 26 As at 31 As at 28
rates June December June
2004 2003 2003
-------- -------- --------
Restated
Goodwill and intangible
assets 17,529 17,713 19,478
Other fixed assets 6,919 6,854 7,538
Stocks 4,322 4,175 4,735
Debtors 6,582 5,881 7,232
Cash and current
investments 3,485 3,345 2,922
Trade and other creditors (9,932) (10,304) (10,583)
-------- -------- --------
28,905 27,664 31,322
-------- -------- --------
Borrowings 16,359 15,900 19,064
Provisions for liabilities
and charges (excluding
pensions and similar 1,502 1,645 1,918
obligations)
Net pension asset for
funded schemes in surplus (574) (490) (376)
Net pension liability for
funded schemes in deficit 1,746 1,629 1,380
Net pension liability for
unfunded schemes 2,705 2,620 2,847
Minority interests 388 440 422
Capital and reserves 6,779 5,920 6,067
-------- -------- --------
28,905 27,664 31,322
-------- -------- --------
Amounts for June 2003 have been restated following a number of
reclassifications, principally the presentation of net pension assets for funded
schemes in surplus.
CASH FLOW STATEMENT (unaudited)
€ Millions - current rates Half Year
-------------
2004 2003
Cash flow from group operating activities 2,551 2,490
Dividends from joint ventures 3 10
Returns on investments and servicing of finance (358) (523)
Taxation (576) (652)
Capital expenditure and financial investment (673) (736)
Acquisitions and disposals (6) 20
Dividends paid on ordinary share capital (962) (1,068)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID (21) (459)
RESOURCES AND FINANCING
Management of liquid resources (878) 353
Financing 420 (472)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (479) (578)
-------- --------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
€ Millions - current rates Half Year
------------------
2004 2003
NET DEBT AT 1 JANUARY (12,555) (16,966)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (479) (578)
Cash flow from (increase) / decrease in borrowings (276) 472
Cash flow from sale and leaseback transaction (144) -
Cash flow from increase / (decrease) in liquid 878 (353)
resources -------- --------
Change in net debt resulting from cash flows (21) (459)
Borrowings within group companies acquired - (26)
Borrowings within group companies sold 41 5
Liquid resources within group companies sold (2) (3)
Non cash movements (631) 272
Currency retranslation 150 1,035
-------- --------
MOVEMENT IN NET DEBT IN THE PERIOD (463) 824
-------- --------
NET DEBT AT PERIOD END (13,018) (16,142)
-------- --------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
Second Quarter € Millions - constant Half Year
---------------- rates ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
------- ------- ------ --- ---------------------------- ------- ------- ------
4,580 4,909 (7)% Europe 8,585 9,114 (6)%
2,560 2,512 2 % North America 4,831 4,880 (1)%
846 848 0 % Africa, Middle East and 1,573 1,598 (2)%
Turkey
1,766 1,810 (2)% Asia and Pacific 3,444 3,471 (1)%
1,083 1,084 0 % Latin America 2,190 2,104 4 %
------- ------- ------ --- ---------------------------- ------- ------- ------
1,613 1,648 (2)% OPERATING PROFIT - beia * 3,068 3,113 (1)%
------- ------- ------ --- ---------------------------- ------- ------- ------
724 820 (12)% Europe 1,348 1,498 (10)%
394 344 14 % North America 689 654 5 %
117 102 15 % Africa, Middle East and 205 184 11 %
Turkey
222 256 (13)% Asia and Pacific 464 513 (9)%
156 126 24 % Latin America 362 264 37 %
------- ------- ------ --- ---------------------------- ------- ------- ------
14.9% 14.8% OPERATING MARGIN - beia * 14.9% 14.7%
------- ------- ------ --- ---------------------------- ------- -------
15.8% 16.7% Europe 15.7% 16.4%
15.4% 13.7% North America 14.3% 13.4%
13.9% 12.1% Africa, Middle East and 13.0% 11.5%
Turkey
12.6% 14.1% Asia and Pacific 13.5% 14.8%
14.4% 11.5% Latin America 16.5% 12.5%
------- ------- ------ --- ---------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangible assets
OPERATIONAL ANALYSIS (at constant rates - unaudited)
Second Quarter € Millions - constant rates Half Year
---------------- ----------------------------- ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
------- ------- ------ ---------------------------- ------- ------- ------
6,244 6,547 (5)% Foods 11,598 12,084 (4)%
------- ------- ------ ---------------------------- ------- ------- ------
2,191 2,171 1 % Savoury and dressings 4,216 4,171 1 %
1,163 1,240 (6)% Spreads and cooking 2,269 2,447 (7)%
products
858 935 (8)% Health & wellness and 1,681 1,793 (6)%
beverages
2,032 2,201 (8)% Ice cream and frozen foods 3,432 3,673 (7)%
------- ------- ------ ---------------------------- ------- ------- ------
1,734 1,798 (4)% Home care 3,486 3,583 (3)%
2,789 2,758 1 % Personal care 5,393 5,357 1 %
68 60 12 % Other operations 146 143 2 %
------- ------- ------ ---------------------------- ------- ------- ------
1,613 1,648 (2)% OPERATING PROFIT - beia * 3,068 3,113 (1)%
------- ------- ------ ---------------------------- ------- ------- ------
979 1,037 (6)% Foods 1,746 1,775 (2)%
------- ------- ------ ---------------------------- ------- ------- ------
365 295 24 % Savoury and dressings 719 642 12 %
175 180 (2)% Spreads and cooking 361 363 0 %
products
114 109 3 % Health & wellness and 230 229 0 %
beverages
325 453 (28)% Ice cream and frozen foods 436 541 (19)%
------- ------- ------ ---------------------------- ------- ------- ------
181 232 (22)% Home care 426 462 (8)%
456 373 22 % Personal care 902 877 3 %
(3) 6 (159)% Other operations (6) (1) (464)%
------- ------- ------ ---------------------------- ------- ------- ------
14.9% 14.8% OPERATING MARGIN - beia * 14.9% 14.7%
------- ------- ------ ---------------------------- ------- -------
15.7% 15.8% Foods 15.1% 14.7%
------- ------- ------ ---------------------------- ------- -------
16.7% 13.6% Savoury and dressings 17.1% 15.4%
15.1% 14.5% Spreads and cooking 15.9% 14.8%
products
13.2% 11.7% Health & wellness and 13.7% 12.8%
beverages
16.0% 20.6% Ice cream and frozen foods 12.7% 14.7%
------- ------- ------ ---------------------------- ------- -------
10.4% 12.9% Home care 12.2% 12.9%
16.4% 13.5% Personal care 16.7% 16.4%
(4.9)% 9.2% Other operations (4.4)% (0.8)%
------- ------- ------ --- ---------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangible assets
NOTES
Exchange rate conventions and impact of movements in exchange rates
The following exchange rate conventions have been applied:
In the profit and loss account information given on page 7 and the segmental
analysis on pages 11 and 12, the results for 2004 and the comparative figures
for 2003 have been translated at constant exchange rates, being the annual
average exchange rates for 2003. This reporting convention facilitates
comparisons since the impact of exchange rate fluctuations is eliminated, and is
the basis on which we measure our operational performance internally. It also
forms the basis for target setting and the annual outlook statement. For our
reporting currencies these rates were €1 = £0.69 = US $1.13.
The results and earnings per share on page 8 and the cash flow statement on page
10 are translated at rates current in each period. For our reporting currencies
these rates were €1 = £0.67 = US $1.23 for the first six months of 2004 and €1 =
£0.69 = US $1.10 for the first six months of 2003.
The lower Euro EPS and turnover at current rates of exchange reflects the
progressive strengthening of the Euro through 2003, particularly against the US
$. For illustrative purposes, if the first half year 2004 exchange rates were to
remain in place through the remainder of the year, then growth for the year
would be around 4% lower at current rates than at constant rates.
The balance sheet figures have been translated at period-end rates of exchange.
For our reporting currencies these were €1 = £0.67 = US $1.21 at 26 June 2004,
€1 = £0.71 = US $1.26 at 31 December 2003 and €1 = £0.69 = US $1.14 at
28 June 2003.
Results at current rates of exchange
Second Quarter € Millions - current rates Half Year
-------------------------- --------------------------
2004 2003 % Incr. 2004 2003 % Incr.
/(Decr.) /(Decr.)
10,516 11,148 (6)% Turnover 19,873 21,330 (7)%
------- ------- ------- -------
1,289 1,242 4 % Operating profit 2,346 2,544 (8)%
------- ------- ------ ---------------------------- ------- ------- ------
1,567 1,639 (4)% Operating profit beia * 2,959 3,135 (6)%
------- ------- ------ ---------------------------- ------- ------- ------
30 3 Share of operating profit of 41 (6)
associates & income from
fixed investments
(184) (272) Interest (including net (355) (534)
interest on pension scheme
assets and liabilities)
(335) (365) Taxation (668) (690)
(51) (44) Minority interests (100) (113)
------- ------- ------- -------
749 564 33 % Net profit 1,264 1,201 5 %
------- ------- ------ ---------------------------- ------- ------- ------
1,012 932 9 % Net profit beia * 1,834 1,747 5 %
------- ------- ------ ---------------------------- ------- ------- ------
The impact of exchange rate movements on the six months results at current
exchange rates in Euros, £ Sterling and US $ is given below, along with the year
on year percentage change at constant rates.
Half Year - Millions Constant rates At current rates of exchange
-----------------------------------------------------------
% Incr. € % Incr. £ % Incr. US $ % Incr.
/(Decr.) 2004 /(Decr.) 2004 /(Decr.) 2004 /(Decr.)
Turnover (3)% 19,873 (7)% 13,398 (8)% 24,384 4 %
Operating profit beia * (1)% 2,959 (6)% 1,995 (7)% 3,630 5 %
Net profit 8 % 1,264 5 % 852 4 % 1,551 17 %
Net profit beia * 9 % 1,834 5 % 1,237 3 % 2,251 17 %
% Change in EPS 10 % 6 % 5 % 18 %
% Change in EPS - beia * 10 % 6 % 4 % 18 %
* Before exceptional items and amortisation of goodwill and intangible assets
Preference shares
On 24 March 2004, Unilever made the following announcement:
'Unilever announced today that it intends to exercise its option to convert its
€0.05* N.V. preference shares into ordinary Unilever N.V. shares during the
first quarter of 2005. The conversion will follow the terms stipulated in the
original information memorandum and in Unilever's Articles of Association.
The conversion will be met out of existing shares and will not involve the issue
of any new shares. The maximum number of ordinary Unilever N.V. shares involved
is 18.9 million.
The preference shares were offered to holders of ordinary Unilever N.V. shares
at the time of the special dividend payment in 1999.
The decision to convert reflects the current ordinary Unilever N.V. share price,
respects the interests of all Unilever shareholders, and is consistent with the
conditions of the original issue.
The conversion timing takes into account fiscal considerations reflecting
changes to Dutch taxation in recent years and allows for the purchase of
ordinary N.V. shares from the market to the extent that this is required for the
conversion.
Unilever will discuss with Euronext an extension of the listing of the
preference shares beyond 31 December 2004 and until the conversion.
Following conversion, the preference shares will retain a €0.05 residual
notional value, which Unilever intends to redeem for cash in 2005, subject to
approval at the 2005 AGM of Unilever N.V.
The normal preference dividend will accrue up to the date of conversion and
thereafter will accrue on the residual notional value until its redemption.'
On 26 March 2004 Unilever added, 'It has been agreed with Euronext that the
listing of Prefs will be continued until, at the latest, the moment of
redemption. The listing of the Prefs originally ended on 31 December 2004.'
Since then, a request has been submitted to the Enterprise Chamber of the
Amsterdam Court of Appeal by a group of shareholders representing approximately
10% of the preference shares outstanding, for an inquiry into the company's
policy on the preference shares. In order to ensure an orderly course of affairs
Unilever has decided not to take the definitive decision to convert until after
the court session, which will take place on 6 September 2004. Unilever's
intentions as regards to the preference shares as described above have not
changed.
* This amount is a representation in euros on the basis of Article 67c Book 2 of
the Dutch Civil Code, rounded to two decimal places, of underlying Dutch
guilders, as these have not been converted into euros in Unilever N.V.'s
Articles of Association.
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
-------------- -------------
2004 2003 2004 2003
Thousands of units
Average number of combined 965,018 971,433 965,018 971,433
share units of €0.51
Average number of combined 6,433,454 6,476,222 6,433,454 6,476,222
share units of 1.4p
COMBINED EPS € Millions
--------------
Net profit 1,300 1,199 1,264 1,201
Less: Preference dividends (14) (17) (14) (17)
Net profit attributable to 1,286 1,182 1,250 1,184
ordinary capital
Combined EPS per €0.51 (Euros) 1.33 1.22 1.30 1.22
Combined EPS per 1.4p (Euro cents) 19.98 18.25 19.44 18.28
COMBINED EPS - beia * € Millions
-----------------------
Net profit 1,300 1,199 1,264 1,201
Add back exceptional items 52 1 58 1
net of tax
Add back amortisation of
goodwill / intangible
assets net of tax 535 538 512 545
Net profit beia * 1,887 1,738 1,834 1,747
Less: Preference (14) (17) (14) (17)
dividends
Net profit attributable to 1,873 1,721 1,820 1,730
ordinary capital - beia*
Combined EPS - beia* per €0.51 (Euros) 1.94 1.77 1.89 1.78
Combined EPS - beia* per 1.4p (Euro cents) 29.12 26.58 28.30 26.71
COMBINED EPS - Diluted Thousands of units
------------------------
Adjusted average combined 994,858 1,000,970 994,858 1,000,970
share units of €0.51
Adjusted average combined 6,632,384 6,673,136 6,632,384 6,673,136
share units of 1.4p
€ Millions
Net profit attributable to 1,286 1,182 1,250 1,184
ordinary capital
Combined diluted EPS per €0.51 (Euros) 1.29 1.18 1.26 1.18
Combined diluted EPS per 1.4p (Euro cents) 19.38 17.71 18.86 17.74
* Before exceptional items and amortisation of goodwill and intangible assets
Dates
The results for the third quarter and announcement of interim dividends will be
published on Wednesday 27 October 2004.
Salient figures for the above results will be published in the Daily Telegraph
on Thursday 29 July 2004.
28 July 2004
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
Note: A description of the exchange rate conventions used is given on page 13.
Second Quarter £ Millions - constant Half Year
---------------- rates
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
7,488 7,716 (3)% TURNOVER 14,254 14,631 (3)%
(38) (40) Less: Share of turnover of (69) (90)
------- ------- joint ventures ------- -------
7,450 7,676 (3)% Group turnover 14,185 14,541 (2)%
------- ------- ------- -------
914 858 6% Group operating profit 1,671 1,731 (3)%
8 9 Add: Share of operating 15 17
------- ------- profit of joint ventures ------- -------
922 867 6% OPERATING PROFIT 1,686 1,748 (4)%
------- ------- ------ ---------------------------- ------- ------- ------
1,115 1,138 (2)% Operating profit beia * 2,121 2,151 (1)%
2 (60) Exceptional items (45) (14)
(195) (211) Amortisation of goodwill and (390) (389)
------- ------- ------ intangible assets ------- ------- ------
----------------------------
8 11 Share of operating profit of 15 3
associates
14 (10) Other income from fixed 15 (8)
investments
(118) (159) Interest (232) (305)
(17) (29) Other finance income/(cost) (32) (58)
------- ------- - pensions and similar ------- -------
obligations
809 680 19% PROFIT BEFORE TAXATION 1,452 1,380 5%
(240) (253) Taxation (480) (474)
------- ------- ------- -------
569 427 33% PROFIT AFTER TAXATION 972 906 7%
(37) (32) Minority interests (74) (78)
------- ------- ------- -------
532 395 34% NET PROFIT 898 828 8%
------- ------- ------- -------
------- ------- ------ --- ---------------------------- ------- ------- ------
716 650 10% Net profit beia * 1,304 1,201 9%
------- ------- ------ --- ---------------------------- ------- ------- ------
COMBINED EARNINGS PER SHARE
(Constant rates)
8.20 6.02 - per 1.4p ordinary PLC 13.81 12.61
share (pence)
11.08 9.96 - per 1.4p ordinary PLC 20.13 18.37
share - beia * (pence)
7.96 5.84 - per 1.4p ordinary PLC 13.40 12.24
------- ------- ------ --- share - diluted (pence) ------- ------- ------
----------------------------
* Before exceptional items and amortisation of goodwill and intangible assets
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 13.
Second Quarter £ Millions - current rates Half Year
----------------
------- ------- ------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
501 397 26% NET PROFIT 853 823 4%
------- ------- ------ ---------------------------- ------- ------- ------
677 652 4% Net profit beia * 1,237 1,197 3%
------- ------- ------ ---------------------------- ------- ------- ------
COMBINED EARNINGS PER SHARE
(Current rates)
7.73 6.03 - per 1.4p ordinary PLC 13.11 12.52
share (pence)
10.45 9.98 - per 1.4p ordinary PLC 19.08 18.30
share - beia * (pence)
7.49 5.85 - per 1.4p ordinary PLC 12.71 12.15
------- ------- ------ --- share - diluted (pence) ------- -------
----------------------------
* Before exceptional items and amortisation of goodwill and intangible assets
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
£ Millions - current rates Half Year
2004 2003
Restated
Net profit 853 823
Pension - actuarial gains / (losses) net of tax (28) (36)
Currency retranslation (341) 500
------- -------
Total recognised gains since last annual accounts 484 1,287
------- -------
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
£ Millions - current rates Half Year
2004 2003
Restated
Shareholders' equity as at 1 January 4,190 3,058
Net profit 853 823
Dividends 7 7
Goodwill written back on disposals 3 7
Change in number of shares or certificates of (248) (262)
shares held in
connection with share options
Actuarial gains / (losses) on pension schemes net (28) (36)
of tax
Share option credit 82 58
Currency retranslation (346) 530
-------- --------
Shareholders' equity as at the end of the period 4,513 4,185
-------- --------
SUMMARY BALANCE SHEET (unaudited)
£ Millions - current rates As at 26 As at 31 As at 28
rates June December June
2004 2003 2003
-------- -------- --------
Restated
Goodwill and intangible
assets 11,669 12,535 13,436
Other fixed assets 4,607 4,850 5,199
Stocks 2,877 2,955 3,266
Debtors 4,382 4,162 4,989
Cash and current
investments 2,320 2,367 2,016
Trade and other creditors (6,612) (7,292) (7,300)
-------- -------- --------
19,243 19,577 21,606
-------- -------- --------
Borrowings 10,890 11,252 13,150
Provisions for liabilities
and charges (excluding
pensions and similar 1,000 1,164 1,323
obligations)
Net pension asset for
funded schemes in surplus (382) (347) (259)
Net pension liability for
funded schemes in deficit 1,163 1,153 952
Net pension liability for
unfunded schemes 1,801 1,854 1,964
Minority interests 258 311 291
Capital and reserves 4,513 4,190 4,185
-------- -------- --------
19,243 19,577 21,606
-------- -------- --------
Amounts for June 2003 have been restated following a number of
reclassifications, principally the presentation of net pension assets for funded
schemes in surplus.
CASH FLOW STATEMENT (unaudited)
£ Millions - current rates Half Year
-------------
2004 2003
Cash flow from group operating activities 1,720 1,705
Dividends from joint ventures 2 7
Returns on investments and servicing of finance (241) (358)
Taxation (388) (447)
Capital expenditure and financial investment (454) (504)
Acquisitions and disposals (4) 13
Dividends paid on ordinary share capital (649) (731)
CASH INFLOW/(OUTFLOW) BEFORE MANAGEMENT OF LIQUID (14) (315)
RESOURCES AND FINANCING
Management of liquid resources (592) 242
Financing 283 (322)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (323) (395)
-------- --------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
£ Millions - current rates Half Year
-------------
2004 2003
NET DEBT AT 1 JANUARY (8,885) (11,036)
-------- --------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (323) (395)
Cash flow from (increase)/decrease in borrowings (186) 322
Cash flow from sale and leaseback transaction (97) -
Cash flow from increase/(decrease) in liquid 592 (242)
resources -------- --------
Change in net debt resulting from cash flows (14) (315)
Borrowings within group companies acquired - (18)
Borrowings within group companies sold 28 3
Liquid resources within group companies sold (1) (2)
Non cash movements (425) 186
Currency retranslation 630 48
-------- --------
MOVEMENT IN NET DEBT IN THE PERIOD 218 (98)
-------- --------
-------- --------
NET DEBT AT PERIOD END (8,667) (11,134)
-------- --------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
Second Quarter £ Millions - constant Half Year
---------------- rates ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
7,488 7,716 (3)% TURNOVER 14,254 14,631 (3)%
------- ------- ------ ---------------------------- ------- ------- ------
3,165 3,393 (7)% Europe 5,933 6,299 (6)%
1,769 1,736 2% North America 3,339 3,373 (1)%
585 586 0% Africa, Middle East and 1,087 1,105 (2)%
Turkey
1,221 1,251 (2)% Asia and Pacific 2,381 2,399 (1)%
748 750 0% Latin America 1,514 1,455 4%
------- ------- ------ ---------------------------- ------- ------- ------
1,115 1,138 (2)% OPERATING PROFIT - beia * 2,121 2,151 (1)%
------- ------- ------ ---------------------------- ------- ------- ------
501 568 (12)% Europe 932 1,036 (10)%
272 238 14% North America 476 452 5%
81 70 15% Africa, Middle East and 142 127 11%
Turkey
154 176 (13)% Asia and Pacific 321 354 (9)%
107 86 24% Latin America 250 182 37%
------- ------- ------ ---------------------------- ------- ------- ------
14.9% 14.8% OPERATING MARGIN - beia * 14.9% 14.7%
------- ------- ------ ---------------------------- ------- -------
15.8% 16.7% Europe 15.7% 16.4%
15.4% 13.7% North America 14.3% 13.4%
13.9% 12.1% Africa, Middle East and 13.0% 11.5%
Turkey
12.6% 14.1% Asia and Pacific 13.5% 14.8%
14.4% 11.5% Latin America 16.5% 12.5%
------- ------- ------ --- ---------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangible assets
OPERATIONAL ANALYSIS (at constant rates - unaudited)
Second Quarter £ Millions - constant Half Year
---------------- rates ----------------
2004 2003 % Incr./ 2004 2003 % Incr./
(Decr.) (Decr.)
7,488 7,716 (3)% TURNOVER 14,254 14,631 (3)%
------- ------- ------ ---------------------------- ------- ------- ------
4,316 4,526 (5)% Foods 8,017 8,353 (4)%
------- ------- ------ ---------------------------- ------- ------- ------
1,514 1,501 1% Savoury and dressings 2,914 2,883 1%
803 858 (6)% Spreads and cooking 1,568 1,692 (7)%
products
594 646 (8)% Health & wellness and 1,162 1,239 (6)%
beverages
1,405 1,521 (8)% Ice cream and frozen foods 2,373 2,539 (7)%
------- ------- ------ ---------------------------- ------- ------- ------
1,198 1,242 (4)% Home care 2,409 2,476 (3)%
1,927 1,906 1% Personal care 3,727 3,703 1%
47 42 12% Other operations 101 99 2%
------- ------- ------ ---------------------------- ------- ------- ------
1,115 1,138 (2)% OPERATING PROFIT - beia * 2,121 2,151 (1)%
------- ------- ------ ---------------------------- ------- ------- ------
676 717 (6)% Foods 1,207 1,227 (2)%
------- ------- ------ ---------------------------- ------- ------- ------
252 203 24% Savoury and dressings 497 443 12%
121 124 (2)% Spreads and cooking 250 251 0%
products
78 76 3% Health & wellness and 158 159 0%
beverages
225 314 (28)% Ice cream and frozen foods 302 374 (19)%
------- ------- ------ ---------------------------- ------- ------- ------
125 160 (22)% Home care 294 319 (8)%
316 258 22% Personal care 624 606 3%
(2) 3 (159)% Other operations (4) (1) (464)%
------- ------- ------ ---------------------------- ------- ------- ------
14.9% 14.8% OPERATING MARGIN - beia * 14.9% 14.7%
------- ------- ------ ---------------------------- ------- -------
15.7% 15.8% Foods 15.1% 14.7%
------- ------- ------ ---------------------------- ------- -------
16.7% 13.6% Savoury and dressings 17.1% 15.4%
15.1% 14.5% Spreads and cooking 15.9% 14.8%
products
13.2% 11.7% Health & wellness and 13.7% 12.8%
beverages
16.0% 20.6% Ice cream and frozen foods 12.7% 14.7%
------- ------- ------ --- ---------------------------- ------- -------
10.4% 12.9% Home care 12.2% 12.9%
16.4% 13.5% Personal care 16.7% 16.4%
(4.9)% 9.2% Other operations (4.4)% (0.8)%
------- ------- ------ --- ---------------------------- ------- -------
* Before exceptional items and amortisation of goodwill and intangible assets
Earnings per share in Sterling for the half year
Constant rates Current rates
2004 2003 2004 2003
Thousands of units
Average number of combined 6,433,454 6,476,222 6,433,454 6,476,222
share units of 1.4p
COMBINED EPS £ Millions
--------------
Net profit 898 828 853 823
Less: Preference dividends (10) (12) (9) (12)
Net profit attributable to 888 816 844 811
ordinary capital
Combined EPS per 1.4p 13.81 12.61 13.11 12.52
COMBINED EPS - beia * £ Millions
-----------------------
Net profit 898 828 853 823
Add back exceptional items 36 1 39 1
net of tax
Add back amortisation of
goodwill / intangible
assets net of tax 370 372 345 373
Net profit beia * 1,304 1,201 1,237 1,197
Less: Preference dividends (10) (12) (9) (12)
Net profit attributable to 1,294 1,189 1,228 1,185
ordinary capital - beia*
Combined EPS - beia * per 1.4p 20.13 18.37 19.08 18.30
COMBINED EPS - Diluted Thousands of units
------------------------
Adjusted average combined 6,632,384 6,673,136 6,632,384 6,673,136
share units of 1.4p
£ Millions
Net profit attributable to 888 816 844 811
ordinary capital
Combined diluted EPS per 1.4p 13.40 12.24 12.71 12.15
* Before exceptional items and amortisation of goodwill and intangible assets
This information is provided by RNS
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