4th Quarter & Final Results
Unilever PLC
Unilever NV
8 February 2001
UNILEVER FOURTH QUARTER AND ANNUAL RESULTS 2000
(Unaudited and provisional)
Path to Growth on track. Faster growth in leading brands and record operating
margin. Bestfoods integration proceeds smoothly. Fourth quarter reflects
planned restructuring costs. Strong growth in underlying operating profits
for the year.
FINANCIAL HIGHLIGHTS
Constant exchange rates Current exchange rates
(1999 average)
Fourth Quarter euro Millions Full Year 2000 Full Year 2000
2000
12,206 +19% Turnover 43,793 +7% 47,582 +16%
Operating profit -
1,430 +31% before exceptional 5,313 +16% 5,729 +25%
items & amortisation
of goodwill/intangibles
(beia)
(620) (164)% Pre-tax profit/ (loss) 2,667 (39)% 2,723 (37)%
(828) (232)% Net profit / (loss) 1,151 (58)% 1,105 (60)%
678 (5)% Net profit (beia) 3,046 +2% 3,223 +8%
Per NV share (Fl.1.12), Euro*
(0.85) (235)% EPS 1.12 (57)% 1.07 (59)%
0.67 (5)% EPS (beia) 3.04 +7% 3.21 +14%
Per PLC share (1.4p),Eurocent*
(12.74) (235)% EPS 16.78 (57)% 16.08 (59)%
10.04 (5)% EPS (beia) 45.52 +7% 48.20 +14%
KEY FEATURES FOR THE YEAR
* Continuing momentum in sales growth of the leading brands, reaching 4.9% in
the quarter, and leading to growth in the year of 3.8%, excluding
acquisitions.
* Gross margins continue to improve, allowing a significant increase in
marketing investment and a record operating margin of 12.1% beia.
* Operating profit (beia) advanced by 16% and by 10% before the contribution
from Bestfoods.
* 10.5% growth in earnings per share (bei), on a basis consistent with our
outlook statement on 22 February, exceeded our forecast.
* Strong cashflow from operations at euro6.7 billion.
* The fourth quarter loss reflects planned Path to Growth restructuring of
euro1.3 billion.
* Proposed final dividend of euro0.95 per NV ordinary share and 8.67p per PLC
ordinary share, increasing the total dividend per share by 13% for NV and by
5% for PLC.
CHAIRMEN'S COMMENT & OUTLOOK
Our focus on stronger and faster growing brands, combined with restructuring
of the supply chain and global procurement, is already having a positive
impact on margins and cash flow. Restructuring in 2000 was ahead of plan with
a full year investment of euro1.8 billion.
We are planning for continued momentum in the growth of our leading brands,
reinforced by the acquisitions of Bestfoods, Slim*Fast and Ben & Jerry's.
Their integration is proceeding well and synergy will be delivered on time
and in full.
Our new divisional organisation of Foods and Home & Personal Care will speed
execution and strengthen our global capability to deliver more big hit
innovations. These provide the fuel for brand growth.
For 2001 we plan that these factors will combine to deliver low double-digit
growth in earnings per share, before exceptional items and goodwill
amortisation.
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
8th February, 2001
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS (at constant exchange rates)
Operating profit, before exceptional items and amortisation of goodwill and
intangibles (beia), increased by 31% in the quarter and by 16% for the year.
Excluding the contribution from Bestfoods the increases were 9% and 10%
respectively. Operating margin excluding Bestfoods was 12.0%, an increase of
80 bps over last year.
Amortisation of goodwill and intangibles was euro316 million in the quarter,
and euro386 million for the year. Amortisation of goodwill for Bestfoods was
euro266 million in the quarter.
Interest paid was euro504 million higher than last year, reflecting the
increased level of borrowings related to acquisitions which have been partly
offset by the continuing strong cash flow from operations.
Exceptional items for the year were euro1.8 billion of which euro1.7 billion
relates to the planned net investment in Path to Growth restructuring
programme. The balance is in respect of Bestfoods integration restructuring
and the achievement of planned synergy benefits. Associated costs included in
operating profit (beia) were euro173 million for the year. Of this euro103
million relates to Path to Growth and euro70 million to Bestfoods
integration. The latter has been included within the Bestfoods operating
profit (beia).
The effective tax rate for the year is 49%, an increase of 18 percentage
points over the previous year. This reflects the inclusion of Bestfoods
goodwill amortisation, which is not tax deductible, and a tax rate of 14% on
exceptional items because tax relief was obtained in prior years on the
businesses disposed. The underlying rate of tax for normal trading operations
is as anticipated 34% for the year before the inclusion of Bestfoods goodwill
amortisation.
The inclusion of the exceptional items and the goodwill amortisation from the
Bestfoods acquisition has led to the net results decreasing, against the
comparative period, by euro1,454 million for the quarter to give a net loss
of euro828 million, and by euro1,620 million for the year to give a net
profit of euro1,151 million. Excluding exceptional items and goodwill
amortisation, net profit declined euro34 million in the quarter and increased
by euro69 million for the year.
Earnings per share (beia) declined by 5% in the quarter but rose by 7% for
the full year. Earnings per share fell by 235% in the quarter and by 57% for
the full year.
When expressed in current rates of exchange, earnings per share (beia) were
up 14% for the full year. Earnings per share fell by 258% in the quarter and
by 59% for the full year.
FULL YEAR PERFORMANCE BY REGION (at constant exchange rates)
The following regional commentary is based on operating profit before
exceptional items and amortisation of goodwill and intangibles and excludes
Bestfoods. We include a commentary on Bestfoods performance on page 5.
EUROPE: Good progress in the leading brands but overall sales held back
by a poor ice cream season and exit from tail businesses.
In our Western Europe home and personal care business we achieved sales
growth of 5% for the quarter and 3% for this year. Dove grew by 18% and in
the second half of the year further impetus to growth came from a strong
innovation programme building on launches of colour laundry tablets, Domestos
and Cif easy to use wipes, Easy Iron fabric conditioner and Axe/Lynx and Dove
range extensions.
Foods in Western Europe had a mixed year as ice cream and beverages sales
suffered from a poor summer season. It was a more encouraging story in the
other categories. In spreads and cooking products volumes developed
favourably during the year with the introduction of Proactiv cholesterol
lowering spread and blended olive oil spreads under the Bertolli brand adding
momentum in the second half of the year. Lower raw material costs were
largely passed on to consumers, reducing selling prices in the commodity oil
businesses but with some margin benefit in leading brands.
Our culinary business performed well led by Sizzle & Stir cooking sauces and
the sales of Amora Maille were 7% ahead of last year. In frozen foods our
'Quattro salti in Padella' range of high quality ready meals, are bringing
innovation, excitement and growth to this sector. Our planned exit from low
margin commodity businesses reduced sales but improved margins. Our tea
business grew with the roll out of Pyramid tea bags and Lipton Tchae.
The overall sales level also reflects our rapid withdrawal from tail
businesses through disposals, including the sale of our European Bakery
business.
There was a modest improvement in overall market conditions in Central and
Eastern Europe, however the impact of the financial crisis in Turkey held
back sales in the fourth quarter. Personal care achieved high single digit
volume growth, driven by deodorants and hair. Lower price held back sales
growth as we passed on lower edible oil input costs, repositioned our spreads
and tea brands in Russia, and responded to competitive pressures in spreads
and laundry in Poland and Turkey.
NORTH AMERICA: Good sales and margin growth in both foods and home & personal
care.
Sales rose by 9% for the year, with a strong contribution from the
acquisitions of Slim*Fast and Ben & Jerry's. Operating margins for the year
showed a significant increase as the benefits of restructuring, portfolio
improvement and procurement savings came through.
In our foods business, ice cream, tea and culinary all performed well. The
most significant contributions came from Breyers Parlour take-home and
Popsicle and Pokemon novelties in ice cream, Wishbone dressing in culinary
and Lipton Cold Brew in tea, contributing to mid single digit sales growth in
these categories. Brummel & Brown Creamy Fruity spreads were successfully
launched in the US.
In home and personal care volumes grew 4% as a result of an active and
strongly supported innovation programme. Dove, Caress and Suave lead growth
in personal care and, in hair, the relaunch of Salon Selectives was a
success. Our fabric care business maintained its overall market position
despite price competition and the launch of laundry tablets has begun well.
In our prestige fragrance business the year's highlights were the sale of
much of the Elizabeth Arden business and the launch of Nautica and Calvin
Klein's Truth.
AFRICA AND MIDDLE EAST:A resilient performance in a challenging
economic environment.
Overall sales for the year were up 3% with profits increasing by 9%, in a
year again characterised by mixed economic conditions.
The momentum in Africa was driven by progress across all our key categories
with particularly strong performances from laundry, oral care, deodorants and
culinary products. We increased the direct coverage of outlets with the roll
out of a distribution model based on our experience in India. Our innovation
programme in South Africa was concentrated on the launch of laundry tablets
but there were also introductions of, Omo liquid bleach, Flora pro-activ, and
Lipton Ice Tea.
In the Middle East sales stagnated in adverse business conditions and we have
concentrated on maintaining market positions.
ASIA AND PACIFIC: Another year of strong growth and increased profit.
Sales in the year were 7% ahead of 1999, driven by excellent performances in
South East Asia and Japan. Profitability rose significantly across the region
whilst at the same time we maintained a high level of marketing support.
Our businesses in South East Asia and Japan generated double digit sales
growth throughout each quarter. Progress was broad based in respect of both
category and geography. Innovation and strong support levels were the key to
progress in skincare and hair. Brand successes included Dove, Pond's, Mods
and Lux in Japan, and Vaseline shampoo in the Philippines. In Australasia
sales growth was good in ice cream and we gained share in laundry.
In China the repositioning of Omo was well received as were the new variants
of the Zhonghua toothpastes, where both achieved volume growth above 20%. In
Taiwan Dove shampoo is vying for the number one market position.
Sales of our consumer brands in India made further progress during the year
as our renewed focus on building share in the mass markets began to have an
impact. Surf continued to perform well at the premium end of the laundry
market. Overall sales revenues were impacted by our exit from the imported
fertiliser business and by the impact of lower edible oil prices.
LATIN AMERICA: Encouraging performance against a background of recovering
economies.
Sales growth for the year of 5% reflects a significant contribution from
acquisitions. There were encouraging signs of growth in Brazil, and Mexico
continued to perform strongly. Recovery is slower in Argentina and North
Latin America.
In laundry, volume growth progressed during the year with share gains in
Brazil and Argentina. We also continued to see excellent progress from our
Brazilian personal care business, demonstrating the continuing benefits of
brand focus.
Growth in foods came from an excellent performance in our Mexican business in
ice cream, spreads and culinary. Our Brazilian business also achieved good
growth in spreads, and culinary products and there were the first signs of a
recovery in our ice cream operations.
BESTFOODS: Integration issues decisively addressed.
Everything we have seen in the Bestfoods business confirms our confidence in
the quality of the brands, the management and the business system. We remain
confident in our ability to create value through this acquisition. We have
moved swiftly to address integration issues.
Although sales in the quarter were just over euro100 million short of our
expectations, this was largely as a result of action we have taken to reduce
trade inventories in the US, in both the retail and foodservice channels.
Market shares have been maintained and have grown in key market segments.
Operating profit includes euro70 million of associated costs in the quarter.
These, together with the integration exceptional items previously mentioned,
are part of the US$1.1 billion investment required to achieve the acquisition
synergy announced to the market at the time of acquisition.
FINAL DIVIDEND
The Boards will recommend to the Annual General Meetings, to be held on 9 May
2001, a final dividend of euro0.95 per Fl. 1.12 ordinary share of Unilever
N.V., an increase of 10% over last year and a final dividend of 8.67p per
1.4p ordinary share of Unilever PLC, an increase of 1% over last year. This
will bring the total dividend to euro1.43 per ordinary share of Fl. 1.12, an
increase of 13% over last year and 13.07p per ordinary share of 1.4p, an
increase of 5% over last year.
CASH FLOW
Cash flow from operations for the year 2000 was euro6.7 billion compared with
euro5.7 billion in 1999. This is the result of strong underlying cash
generation and due to improvements in working capital, notably stocks.
The disposal of the European bakery business and the purchase of Bestfoods,
Slim*Fast, Amora Maille, Ben & Jerry's, Cressida and other acquisitions,
resulted in a cash outflow of some euro27.4 billion.
Net returns from investment were lower following payment of the special
dividend in 1999 and the funding of acquisitions made in 2000. The increase
in financing directly reflects this funding.
BALANCE SHEET
Net debt at euro26.5 billion compares to net funds of euro0.7 billion at the
end of 1999.
Goodwill/intangibles and acquired businesses held for resale have increased
by euro27.5 billion through the above acquisitions. All balance sheet items
have been significantly impacted by the acquisitions. The key underlying
movements are a reduction in stock balances following the elimination of Y2K
stocks held at the end of 1999 and an increase in provisions for liabilities
and charges as a result of Path to Growth restructuring.
Capital and reserves increased by euro0.4 billion to euro8.2 billion.
EURO REPORTING
Information in sterling and US dollars is available as a supplement to this
Euro report.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited)
In the profit and loss account given below, the results in both years have
been translated at constant exchange rates, being the annual average exchange
rates for 1999. This reporting convention facilitates comparisons since the
impact of exchange rate fluctuations is eliminated.
Fourth Quarter euro Millions - Full Year
constant
2000 1999 %Incr./ 2000 1999 % Incr.
(Decr.) /(Decr.)
12,206 10,228 19 % TURNOVER 43,793 40,977 7 %
(248) 984 (125)% OPERATING PROFIT /(LOSS) 3,137 4,303 (27)%
1,430 1,092 31 % Operating Profit BEIA 5,313 4,595 16 %
(1,362) (100) Exceptional items (1,790) (269)
(316) (8) Amortisation of goodwill (386) (23)
and intangibles
17 12 Total income from fixed 48 52
investments
(389) (29) Interest (518) (14)
(620) 967 (164)% PROFIT/(LOSS)BEFORE TAXATION 2,667 4,341 (39)%
(150) (288) Taxation (1,318) (1,369)
(770) 679 (213)% PROFIT/(LOSS) AFTER TAXATION 1,349 2,972 (55)%
(58) (53) Minority Interests (198) (201)
NET PROFIT / (LOSS)
(828) 626 (232)% AT CONSTANT 1999 EXCHANGE 1,151 2,771 (58)%
RATES
Net Profit before exceptional
678 712 (5)% items & amortisation 3,046 2,977 2 %
of Goodwill and Intangibles
* Operating profit and Net profit before exceptional items and amortisation
of goodwill and intangibles. See note on page 16 on 'Goodwill and
intangibles'.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CURRENT EXCHANGE RATES (unaudited)
The profit and loss account given below is stated at current exchange rates
i.e. the results in both years have been translated at the exchange rates
prevailing during the appropriate period; further information is given on
page 16. The reported results are therefore impacted by exchange rate
movements between the periods.
Fourth Quarter euro Millions - current Full Year
2000 1999 % Incr./ 2000 1999 % Incr.
(Decr.) /(Decr.)
13,618 10,356 31 % TURNOVER 47,582 40,977 16 %
(296) 999 (130)% OPERATING PROFIT/(LOSS) 3,302 4,303 (23)%
1,590 1,108 43% Operating Profit BEIA* 5,729 4,595 25%
(1,528) (101) Exceptional items (1,992) (269)
(358) (8) Amortisation of goodwill
and intangibles (435) (23)
19 12 Total income from fixed
investments 53 52
(469) (30) Interest (632) (14)
(746) 981 (176)% PROFIT/(LOSS) BEFORE
TAXATION 2,723 4,341 (37)%
(174) (291) Taxation (1,403) (1,369)
(920) 690 (233)% PROFIT/(LOSS) AFTER
TAXATION 1,320 2,972 (56)%
(64) (54) Minority Interest (215) (201)
NET PROFIT/(LOSS) AT EXCHANGE
RATES
(984) 636 (255)% CURRENT IN EACH PERIOD 1,105 2,771 (60)%
Net Profit before exceptional
items & amortisation of
716 723 (1)% Goodwill and Intangibles * 3,223 2,977 8%
COMBINED EARNINGS PER SHARE**
(Current rates)
(1.01) 0.63 (258)% - per Fl.1.12 ordinary share
(Euros) 1.07 2.63 (59)%
(0.98) 0.62 (258)% - per F1.1.12 ordinary share
- diluted (Euros) 1.05 2.57 (59)%
(15.10) 9.55 (258)% - per 1.4p ordinary share
(Eurocents) 16.08 39.48 (59)%
(14.72) 9.32 (258)% - per 1.4p ordinary share
- diluted (Eurocents) 15.69 38.50 (59)%
Preference dividends (44) (20)
Dividends on ordinary
capital (1,414) (1,245)
Profit/(loss) of the year
retained (353) 1,506
* Operating profit and Net profit before exceptional items and amortisation
of goodwill and intangibles. See note on page 16 on 'Goodwill and
intangibles'.
** See note on page 16 on 'Share consolidation'.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
euro Millions Full Year
2000 1999
Net profit 1,105 2,771
Currency retranslation (237) 380
Total recognised gains 868 3,151
SUMMARY BALANCE SHEET (unaudited)
euro Millions
As at 31st December
2000 1999
Goodwill and Acquired businesses held for resale 28,133 643
Fixed assets 10,996 8,963
Stocks 5,421 5,124
Debtors 9,817 7,685
Cash and current investments 3,273 5,473
Trade & other creditors (12,708) (10,177)
44,932 17,711
Borrowings 29,741 4,789
Provisions for liabilities and charges 6,404 4,582
Minority interests 618 579
Capital and reserves 8,169 7,761
44,932 17,711
CASH FLOW STATEMENT (unaudited)
euro Millions Full Year
2000 1999
Cash flow from operating activities * 6,738 5,654
Dividends from joint ventures 38 28
Returns on investments and servicing of finance (798) (156)
Taxation (1,734) (1,443)
Capital expenditure and financial investment (1,061) (1,501)
Acquisitions and disposals (27,373) (362)
Dividends paid on ordinary share capital (1,365) (7,359)
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING (25,555) (5,139)
Management of liquid resources 2,464 5,675
Financing 22,902 (146)
INCREASE/(DECREASE) IN CASH IN THE PERIOD (189) 390
RECONCILIATION OF CASH FLOW MOVEMENT IN NET FUNDS(DEBT) (unaudited)
NET FUNDS AT 1 JANUARY 684 5,778
INCREASE/(DECREASE) IN CASH IN THE PERIOD (189) 390
Cash flow from (increase)/decrease in borrowings (22,920) 150
Cash flow from increase/(decrease) in liquid resources (2,464) (5,675)
Change in net funds/(debt) resulting from cash flows (25,573) (5,135)
Borrowings within group companies acquired (3,113) (29)
Borrowings within group companies sold 2 4
Liquid resources within group companies acquired 13 3
Liquid resources within group companies sold - -
Non cash movements 455 (211)
Currency retranslation 1,064 274
MOVEMENT IN NET FUNDS/(DEBT) IN THE PERIOD (27,152) (5,094)
NET FUNDS/(DEBT) AT 31 DECEMBER (26,468) 684
*Includes payments of euro 550 million to settle share option and similar
obligations in Bestfoods consequent to the change of control.
TOTAL UNILEVER
GEOGRAPHICAL ANALYSIS (unaudited)
Fourth Quarter euro Millions Full Year
% Incr./ % Incr./
2000* 1999* (Decr.)* 2000** 2000* 1999* (Decr.)*
Turnover
5,078 4,432 15% Europe 19,816 19,219 18,790 2 %
2,931 2,238 31% North America 11,631 10,027 8,838 13%
647 606 7% Africa and Middle
East 2,447 2,369 2,298 3%
1,900 1,778 7% Asia and Pacific 8,038 7,228 6,723 7%
1,650 1,174 40% Latin America 5,650 4,950 4,328 14%
12,206 10,228 19% TURNOVER 47,582 43,793 40,977 7%
Operating profit -
before exceptional
items and amortisation
of goodwill and intangibles
481 431 12 % Europe 2,459 2,415 2,270 6 %
445 332 34 % North America 1,476 1,269 974 30 %
83 49 69 % Africa and Middle 281 273 251 9 %
East
200 138 45 % Asia and Pacific 901 822 669 23 %
221 142 56 % Latin America 612 534 431 24 %
1,430 1,092 31 % OPERATING PROFIT BEIA 5,729 5,313 4,595 16 %
(1,362) (100) Exceptional items (1,992) (1,790) (269)
(316) (8) Amortisation of (435) (386) (23)
goodwill and
intangibles
(248) 984 (125)% OPERATING PROFIT/ 3,302 3,137 4,303 (27)%
(LOSS)
Operating margin -before exceptional
items and amortisation of goodwill
and intangibles
9.5 % 9.7 % Europe 12.4 % 12.6 % 12.1 %
15.2 % 14.8 % North America 12.7 % 12.7 % 11.0 %
12.8 % 8.1 % Africa and 11.5 % 11.5 % 10.9 %
Middle East
10.5 % 7.8 % Asia and 11.2 % 11.4 % 9.9 %
Pacific
13.4 % 12.0 % Latin America 10.8 % 10.8 % 10.0 %
11.7 % 10.7 % OPERATING 12.0 % 12.1 % 11.2 %
MARGIN BEIA
(2.0)% 9.6 % OPERATING 6.9 % 7.2 % 10.5 %
MARGIN
* at constant 1999 annual average exchange rates.
** at exchange rates current in the year.
BESTFOODS
GEOGRAPHICAL ANALYSIS (unaudited)
euro Millions Fourth Quarter and Full Year
2000** 2000*
Turnover
Europe 787 765
North America 532 434
Africa and Middle East - -
Asia and Pacific 27 24
Latin America 452 387
TURNOVER 1,798 1,610
Operating profit - before exceptional items and amortisation of goodwill
and intangibles
Europe*** 70 71
North America 129 105
Africa and Middle East - -
Asia and Pacific (1) (1)
Latin America 82 70
OPERATING PROFIT BEIA 280 245
Operating margin - before exceptional items and amortisation of goodwill
and intangibles
Europe*** 8.9% 9.3%
North America 24.2% 24.2%
Africa and Middle East -% -%
Asia and Pacific (5.5)% (5.8)%
Latin America 18.3% 18.1%
OPERATING PROFIT BEIA 15.6% 15.2%
* at constant 1999 annual average exchange rates
** at exchange rates current in the period
*** after charging euro 70m (constant) of costs associated with integration
UNILEVER EXCLUDING BESTFOODS
GEOGRAPHICAL ANALYSIS (unaudited)
Fourth Quarter euro Millions Full Year
% Incr./ % Incr./
2000* 1999* (Decr.)* 2000** 2000* 1999* (Decr.)*
Turnover
4,313 4,432 (3)% Europe 19,029 18,454 18,790 (2)%
2,497 2,238 12% North America 11,099 9,593 8,838 9%
647 606 7% Africa and Middle
East 2,447 2,369 2,298 3%
1,876 1,778 6% Asia and Pacific 8,011 7,204 6,723 7%
1,263 1,174 7% Latin America 5,198 4,563 4,328 5%
10,596 10,228 4% TURNOVER 45,784 42,183 40,977 3%
Operating profit -before exceptional
items and amortisation of goodwill
and intangibles
410 431 (5)% Europe 2,389 2,344 2,270 3 %
340 332 3 % North America 1,347 1,164 974 20 %
83 49 69 % Africa and Middle 281 273 251 9 %
East
201 138 46 % Asia and Pacific 902 823 669 23 %
151 142 6 % Latin America 530 464 431 8 %
1,185 1,092 9 % OPERATING PROFIT 5,449 5,068 4,595 10 %
BEIA
Operating margin - before exceptional items and
amortisation of goodwill and intangibles
9.5 % 9.7% Europe 12.6% 12.7% 12.1%
13.6% 14.8% North America 12.1% 12.1% 11.0%
12.8% 8.1% Africa and Middle 11.5% 11.5% 10.9%
East
10.7% 7.8% Asia and Pacific 11.3% 11.4% 9.9%
11.9% 12.0% Latin America 10.2% 10.2% 10.0%
11.2% 10.7% OPERATING MARGIN 11.9% 12.0% 11.2%
BEIA
* at constant 1999 annual average exchange rates.
** at exchange rates current in the year.
TOTAL UNILEVER
OPERATIONAL ANALYSIS (unaudited)
Fourth Quarter euro Millions Full Year
% Incr./ % Incr./
2000* 1999* (Decr.)* 2000 ** 2000 * 1999 * (Decr.)*
TURNOVER
6,556 4,763 38 % Foods 23,898 22,254 20,339 9 %
2,195 1,923 14 % Oil and dairy based 7,930 7,420 7,278 2 %
foods and bakery
1,367 1,126 21 % Ice cream and 7,601 7,002 6,637 5 %
beverages
2,994 1,714 74 % Culinary and frozen 8,367 7,832 6,424 22 %
products (1)
2,401 2,293 5 % Home Care and 10,258 9,439 9,106 4 %
Professional Cleaning
3,040 2,855 6 % Personal Care 12,567 11,321 10,675 6 %
209 317 (33)% Other Operations (1) 859 779 857 (9)%
12,206 10,228 19 % TURNOVER 47,582 43,793 40,977 7 %
OPERATING PROFIT -before exceptional
items and amortisation of goodwill
and intangibles
676 428 58% Foods 2,749 2,582 2,047 26%
297 249 19% Oil and diary based
foods and bakery 1,044 988 783 26%
(90) (22)(299)% Ice cream and
beverages 647 608 601 1%
469 201 133% Culinary and frozen
products (1) 1,058 986 663 49%
194 185 5% Home Care and Professional
Cleaning 917 856 858 -%
545 436 25% Personal Care 2,034 1,846 1,582 17%
15 43 (65)% Other Operations (1) 29 29 108 (73)%
1,430 1,092 31% OPERATING PROFIT BEIA 5,729 5,313 4,595 16%
(1,362) (100) Exceptional items (1,992) (1,790) (269)
(316) (8) Amortisation of
goodwill and
intangibles (435) (386) (23)
(248) 984 (125)% OPERATING
PROFIT/(LOSS) 3,302 3,137 4,303 (27)%
OPERATING MARGIN -before exceptional
items and amortisation of goodwill
and intangibles
10.3% 9.0% Foods 11.5% 11.6% 10.1%
13.6% 13.0% Oil and diary based
foods and bakery 13.2% 13.3% 10.8%
(6.6)% (2.0)% Ice cream and
beverages 8.5% 8.7% 9.0%
15.6% 11.7% Culinary and frozen
products (1) 12.6% 12.6% 10.3%
8.1% 8.1% Home Care and Professional
Cleaning 8.9% 9.1% 9.4%
17.9 % 15.2 % Personal Care 16.2 % 16.3 % 14.8 %
7.4 % 13.8 % Other Operations (1) 3.3 % 3.8 % 12.7 %
11.7 % 10.7 % OPERATING MARGIN BEIA 12.0 % 12.1 % 11.2 %
(2.0)% 9.6 % OPERATING MARGIN 6.9 % 7.2 % 10.5 %
* at constant 1999 annual average exchange rates
** at exchange rates current in the year
(1) Includes a prior year restatement, euro165m of turnover and euro0m of
operating profit for the year, relating to a reclassification of Indian food
categories which have been transferred from Culinary and frozen products to
Other Operations.
BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
euro Millions Fourth Quarter and Full Year
2000 ** 2000 *
TURNOVER
Foods 1,798 1,610
Oil and dairy based foods and bakery 358 305
Ice cream and beverages 84 73
Culinary and frozen products 1,356 1,232
Home Care and Professional Cleaning - -
Personal Care - -
Other Operations - -
TURNOVER 1,798 1,610
OPERATING PROFIT / (LOSS) - before exceptional items and
amortisation of goodwill and intangibles
Foods 315 280
Oil and dairy based foods and bakery 33 29
Ice cream and beverages 6 5
Culinary and frozen products 276 246
Home Care and Professional Cleaning - -
Personal Care - -
Other Operations*** (35) (35)
OPERATING PROFIT BEIA 280 245
OPERATING MARGIN - before exceptional items and
amortisation of goodwill and intangibles
Foods 17.5 % 17.4 %
Oil and dairy based foods and bakery 9.2 % 9.4 %
Ice cream and beverages 6.6 % 7.1 %
Culinary and frozen products 20.4 % 19.9 %
Home Care and Professional Cleaning - % - %
Personal Care - % - %
Other Operations - % - %
OPERATING MARGIN BEIA 15.6 % 15.2%
* at constant 1999 annual average exchange rates
** at exchange rates current in the period
*** after charging integration costs associated with exceptional items
UNILEVER EXCLUDING BESTFOODS
OPERATIONAL ANALYSIS (unaudited)
Fourth Quarter euro Millions Full Year
% Incr./ % Incr./
2000* 1999* (Decr.)* 2000 ** 2000 * 1999 * (Decr.)*
TURNOVER
4,946 4,763 4 % Foods 22,100 20,644 20,339 1 %
1,890 1,923 (2)% Oil and dairy based 7,572 7,115 7,278 (2) %
foods and bakery
1,294 1,126 15 % Ice cream and 7,517 6,929 6,637 4 %
beverages
1,762 1,714 3 % Culinary and frozen 7,011 6,600 6,424 3 %
products (1)
2,401 2,293 5 % Home Care and 10,258 9,439 9,106 4 %
Professional Cleaning
3,040 2,855 6 % Personal Care 12,567 11,321 10,675 6 %
209 317 (33)% Other Operations (1) 859 779 857 (9)%
10,596 10,228 4 % TURNOVER 45,784 42,183 40,977 3 %
OPERATING PROFIT -before exceptional
items and amortisation of goodwill
and intangibles
396 428 (7)% Foods 2,434 2,302 2,047 12%
268 249 8% Oil and diary based
foods and bakery 1,011 959 783 22%
(95) (22)(322)% Ice cream and
beverages 641 603 601 -%
223 201 11% Culinary and frozen
products (1) 782 740 663 12%
194 185 5% Home Care and Professional
Cleaning 917 856 858 -%
545 436 25% Personal Care 2,034 1,846 1,582 17%
50 43 16% Other Operations (1) 64 64 108 (40)%
1,185 1,092 9% OPERATING PROFIT BEIA 5,449 5,068 4,595 10%
OPERATING MARGIN - before
exceptional items
and amortisation of goodwill and
intangibles
8.0 % 9.0 % Foods 11.0 % 11.2 % 10.1%
14.2 % 13.0 % Oil and dairy based 13.4 % 13.5 % 10.8%
foods and bakery
(7.4)% (2.0)% Ice cream and beverages 8.5 % 8.7 % 9.0%
12.6 % 11.7 % Culinary and frozen 11.2 % 11.2 % 10.3%
products (1)
8.1 % 8.1 % Home Care and
Professional 8.9 % 9.1 % 9.4%
Cleaning
17.9 % 15.2 % Personal Care 16.2 % 16.3 % 14.8%
24.0 % 13.8 % Other Operations (1) 7.4 % 8.3 % 12.7%
11.2 % 10.7 % OPERATING MARGIN BEIA 11.9 % 12.0 % 11.2%
* at constant 1999 annual average exchange rates
** at exchange rates current in the year
(1) Includes a prior year restatement, euro165m of turnover and euro0m of
operating profit for the year, relating to a reclassification of Indian food
categories which have been transferred from Culinary and frozen products to
Other Operations.
NOTES
Acquisitions
In 2000 the effect on turnover and operating profit beia of acquisitions made
in the year was euro2,636 million and euro278 million respectively. This
included turnover and operating profit beia in respect of Bestfoods of
euro1,610 million and euro245 million respectively. On the basis of 1999's
results the impact of disposals completed in 2000, principally the European
Bakery Business, was a reduction in turnover of approximately euro500 million.
On 29 January we announced an agreement to sell our dry soup and sauces
businesses in Europe for a debt free price of euro1 billion. The sale is
conditional on approval by the European Commission Mergers Task Force and
subject to consultative procedures before completion. Annual sales of the
business total approximately euro435 million. The businesses are being
divested as a result of undertakings given to the European Commission in
connection with the acquisition of Bestfoods which was completed in October
2000.
Exchange Rates
The results for 2000 and the comparative figures for 1999 have been translated
at constant average rates of exchange, being the annual average rates for 1999.
For our reporting currencies these were euro1 = £0.66 = US $1.07. In addition,
the results, earnings per share and cash flow statement have been translated at
rates current in each period. For our reporting currencies these were:
Fourth Quarter Full Year
2000 euro1 = £0.61 = US £0. 86 eurol = £0.61 = US 50.92
1999 eurol = £0.64 = US $1.04 eurol = £0.66 = US $1.07
The Bestfoods results were translated at the average rates of exchange for the
fourth quarter 2000 which were euro1 = £0.60 = US $0.87.
The balance sheet figures have been translated at year-end rates of exchange.
For our reporting currencies these were euro1 = £0.62 = US $0.93 (31 December
1999: £ 1 = £0.62 = US $ 1.00).
Share Consolidation
On 10th May 1999 the 1.25p ordinary shares of PLC and the Fl. 1 ordinary
shares of NV were consolidated, so that every 112 ordinary shares were replaced
by 100 1.4p PLC ordinary, shares or 100 Fl. 1. 12 NV ordinary shares. This
consolidation was associated with the payment on 9th June 1999, of a special
dividend of 66.13p per 1.25p share and Fl. 14.50 per Fl. 1 share, so that the
economic impact was that of a share buy back at fair value at that date and
therefore, in accordance with UK Accounting Standard FRS 14, earnings per share
for prior periods have not been restated.
Goodwill and intangibles
In accordance with FRS 10, goodwill and identifiable intangible assets purchased
as from 1st January 1998 are capitalised and amortised in operating profit over
the period of their expected useful life.
Acquired businesses held for resale
A number of Bestfoods businesses are expected to be sold within a year from the
purchase date. The assets and liabilities of those businesses, after adjustment
to their estimated net proceeds of sale, have been included within 'Goodwill and
Acquired businesses held for resale'.
Sale of Elizabeth Arden
On 3lst October 2000 Unilever announced the signing of a definitive agreement to
sell its Elizabeth Arden business, brands and certain assets to FFI Fragrances
based in Miami Lakes, Florida, USA, for a consideration of approximately $225
million (euro244 million approx.). The transaction completed on 24th January,
2001. The cash inflow, after tax, on disposal is $160 million (euro174 million
approx.). As a result of of the write-back of$830 million (euro902
million approx.) of goodwill which was charged direct to shareholders funds on
the acquisition of the business in 1989, the loss on disposal, after tax, will
be $791 million (euro859 million approx.). This loss has been included in
Unilever's fourth quarter results and falls within the restructuring charges
of euro5 billion announced in February 2000 as part of Unilever's Path to Growth
strategy.
DIVIDENDS
The Boards have resolved to recommend to the Annual General Meetings to be
held on 9 May 2001 the declaration of final dividends in respect of 2000 on
the Ordinary capitals at the following rates which are equivalent in value at
the rate of exchange applied in terms of the Equalisation Agreement between
the two companies:
N.V. euro 0.95 per ordinary share (1999: euro 0.87*), bringing the total
of N.V.'s dividend for 2000 to euro 1.43 per ordinary share (1999: euro
1.27*).
PLC 8.67p per ordinary share (1999: 8.57p), bringing the total of PLC's
dividend for 2000 to 13.07p per ordinary share (1999:12.50p).
* In 1999, the N.V. dividends were declared and paid in guilders. For
comparative purposes, guilder values have been converted into euros using the
official rate of euro1= Fl. 2.20371.
The N.V. final dividend will be paid on 21 May 2001, to shareholders
registered at close of business on 10 May 2001.
The PLC final dividend will be paid on 21 May 2001, to shareholders
registered at close of business on 27 April 2001.
DIVIDENDS ON NEW YORK SHARES OF N.V.
US Dollar checks for the final dividend on the New York Shares of Fl. 1.12
nominal amount after deduction of Netherlands withholding tax at the
appropriate rate, converted at the Euro/Dollar rate of exchange in Amsterdam
on May 9, 2001 will be mailed on May 25, 2001, to holders of record at the
close of business on May 16, 2001. If converted at the Euro/Dollar rate of
exchange at noon on February 7, 2001 the final dividend would be US$ 0.8852
per New York share (1999 final dividend: US$ 0.7725 actual payment) before
deduction of Netherlands withholding tax. With the interim dividend in
respect of 2000 of US$ 0.4150 at the actual Euro/Dollar conversion rate,
already paid, this would result in a total for interim and final dividends in
respect of 2000 of US$ 1.3002 per New York Share (1999: US$ 1.1881 actual
payment).
DIVIDENDS ON AMERICAN SHARES OF PLC
US Dollar checks for the final dividend on the American shares in PLC
converted at the sterling/dollar rate of exchange current in London on May
21, 2001 will be mailed on May 25, 2001, to holders of record at the close of
business on April 27, 2001. Each American Share in PLC represents four 1.4p
ordinary shares in PLC. The PLC final dividend will therefore be 34.68p per
American Share. If converted at the sterling/dollar rate of exchange at noon
on February 7, 2001, the PLC final dividend would be US$ 0.5067 per American
Share (1999 final dividend: US$ 0.5050 actual payment). With the interim
dividend in respect of 2000 of US$ 0.2573 at the actual sterling/dollar
conversion rate, already paid, this would result in a total for interim and
final dividends in respect of 2000 of US$ 0.7640 per American Share (1999:
US$ 0.7565 actual payment).
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 = Fl. 12, in accordance with the
Equalisation Agreement, taking into account the share consolidation.
The diluted earnings per share are based on the average number of share units,
plus all shares under option, together with certain PLC shares which may be
issued in 2038 under the arrangements for the variation of the Leverhulme
Trust. The number of shares is reduced, in accordance with FRS 14, by the number
of shares that could be purchased at fair value with the expected proceeds from
the exercise of options by employees.
Earnings per share in Euro for the year
Constant rates Current rates
2000 1999 2000 1999
Thousands of units
Average number of combined
share units of F1. 1. 12 989,217 1,045,183 989,217 1,045,183
Average number of combined share
units of 1.4p 6,594,782 6,967,884 6,594,782 6,967,884
COMBINED EPS
Net profit 1,151 2,771 1,105 2,771
Less: Preference dividends 44 20 44 20
Net profit attributable to
ordinary capital 1,107 2,751 1,061 2,751
Combined EPS per Fl. 1. 12 (Euros) 1.12 2.63 1.07 2.63
Combined EPS per 1.4p (Eurocents) 16.78 39.48 16.08 39.48
COMBINED EPS - BEIA
Net profit 1,151 2,771 1,105 2,771
Add back exceptional items
net of tax 1,532 185 1,709 185
Add back amortisation of goodwill/
intangibles net of tax 363 21 409 21
Net profit beia 3,046 2,977 3,223 2,977
Less: Preference dividends 44 20 44 20
Net profit attributable beia 3,002 2,957 3,179 2,957
Combined EPS beia per F1.1.12 (Euros) 3.04 2.83 3.21 2.83
Combined EPS beia per
1.4p (Eurocents) 45.52 42.44 48.20 42.44
COMBINED EPS - Diluted
Thousands of units
Adjusted average combined share 1,014,275 1,071,712 1,014,275 1,071,712
units of Fl. 1.12
Adjusted average combined share 6,761,833 7,144,743 6,761,833 7,144,743
units of 1.4p
Net profit attributable to 1,107 2,751 1,061 2,751
ordinary capital
Combined diluted EPS 1.09 2.57 1.05 2.57
per Fl. 1.12 (Euros)
Combined diluted EPS 16.37 38.50 15.69 38.50
per 1.4p (Eurocents)
Dates
The Annual Review and Accounts 2000 will be published on 28th March, 2001.
The provisional results for the first quarter 2001 will be published on
Friday, 27th April, 2001.
Salient figures for the above results will be published in the Financial
Times and Daily Telegraph on Friday 9 February 2001.
ENQUIRIES: UNILEVER PRESS OFFICE 020 7822 6805
8th February, 2001
Internet: http://www.unilever.com
E-mail: press-office.london@unilever.com
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