2024 First Half
Results
Innovation and brand investment driving faster volume
growth
|
Underlying performance
|
|
|
|
GAAP
measures
|
|
(unaudited)
|
2024
|
vs 2023
|
|
|
|
|
2024
|
vs 2023
|
First Half
|
|
|
|
|
|
|
|
|
|
Underlying sales growth
(USG)
|
|
4.1%
|
|
|
|
Turnover
|
€31.1bn
|
2.3%
|
|
Beauty & Wellbeing
|
|
7.1%
|
|
|
|
Beauty & Wellbeing
|
€6.5bn
|
5.1%
|
|
Personal Care
|
|
5.6%
|
|
|
|
Personal Care
|
€7.0bn
|
0.6%
|
|
Home Care
|
|
3.3%
|
|
|
|
Home Care
|
€6.3bn
|
2.0%
|
|
Nutrition
|
|
3.2%
|
|
|
|
Nutrition
|
€6.7bn
|
1.3%
|
|
Ice Cream
|
|
0.6%
|
|
|
|
Ice Cream
|
€4.6bn
|
2.8%
|
|
Underlying operating
profit
|
€6.1bn
|
17.1%
|
|
|
|
Operating profit
|
€5.9bn
|
7.8%
|
|
Underlying operating
margin
|
19.6%
|
250bps
|
|
|
|
Operating margin
|
19.1%
|
100bps
|
|
Underlying earnings per
share
|
€1.62
|
16.3%
|
|
|
|
Diluted earnings per
share
|
€1.47
|
5.4%
|
|
Free cash flow
|
€2.2bn
|
€(0.3)bn
|
|
|
|
Net profit
|
€4.0bn
|
3.5%
|
|
Second Quarter
|
|
|
|
|
|
|
|
|
|
USG
|
|
3.9%
|
|
|
|
Turnover
|
€16.1bn
|
2.2%
|
|
Quarterly dividend payable in
September 2024
|
|
|
|
€0.4396
|
per share(a)
|
3.0%
|
|
(a) See note 9 for more information
on dividends
First half highlights
•
Underlying sales
growth of 4.1%, with volumes up 2.6%
•
Power
Brands (~75% of turnover) leading
growth with 5.7% USG and volumes up 4.0%
•
Turnover
increased 2.3% to €31.1 billion with
(1.1)% impact from currency and (0.7)% from net
disposals
•
Underlying
operating margin up 250bps to 19.6%, with gross margin up
420bps
•
Brand and
marketing investment up 180bps to 15.1%, focused on Power Brands
•
Underlying EPS
increased 16.3%, diluted EPS up
5.4%
•
Quarterly
dividend raised by 3%; €1.5bn share buyback
commenced
•
Free cash flow of
€2.2 billion, reflecting seasonal
working capital outflow
•
Productivity
programme underway and separation of Ice Cream on
track
Chief Executive Officer
statement
"We are focused on driving
high-quality sales growth and gross margin expansion, led by our
Power Brands. Over the first half, we made progress on those
ambitions.
Underlying sales grew 4.1%, driven
by a third consecutive quarter of positive, improving volume
growth, while pricing continued to moderate in line with our
expectations. Strong gross margin progression fuelled increased
investment behind our innovations, and resulted in a step-up of our
profitability.
We continue to embed the Growth
Action Plan, doing fewer things, better and with greater impact.
The implementation of a comprehensive productivity programme and
the separation of Ice Cream are key to delivering on that
commitment and we are progressing at pace.
There is much to do, but we remain
focused on transforming Unilever into a consistently higher
performing business."
Hein Schumacher
We continue to expect underlying
sales growth (USG) for 2024 to be within our multi-year range of 3%
to 5%, with the majority of the growth being driven by
volume.
Underlying operating margin for the
full year is expected to be at least 18%, with increasing
investment behind our brands. We expect the year-on-year margin
progression in the second half to be smaller than in the first
half.
Our very strong gross margin
progression in the first half reflects positive contributions from
volume leverage, mix and net productivity but also factors that
will not repeat in the second half such as, a low prior year
comparator affected by high input costs, and carry-over pricing
from a period of higher inflation.
First
Half Review: Unilever Group
|
Growth
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
First Half
|
€31.1bn
|
4.1%
|
2.6%
|
1.6%
|
(0.7)%
|
(1.1)%
|
2.3%
|
Second Quarter
|
€16.1bn
|
3.9%
|
2.9%
|
1.0%
|
(0.6)%
|
(1.0)%
|
2.2%
|
Underlying sales growth in the first
half was 4.1%, led by volume of 2.6% and price of 1.6%. We
delivered our third consecutive quarter of positive, improving
volume growth, with UVG up 2.9% in Q2, increasing from 2.2% in Q1
and 1.8% in Q4 2023. Four of our five business groups delivered
positive volume growth in Q2. As expected, underlying price growth
continued to moderate from 2.8% in Q4 2023 to 1.0% in
Q2.
The Power Brands performed strongly
with 5.7% underlying sales growth, driven by volume growth of 4.0%
in H1. Our other brands also saw a sequential volume improvement to
(1.1)% in Q2, up from (2.0)% in Q1.
As expected, our turnover-weighted
market share movement*, which measures our competitive performance
within the footprint in which we operate, remained largely
unchanged on a rolling 12 month-basis. We expect a sequential
improvement of the share trend over time reflecting increasing
benefit from the Growth Action Plan.
Beauty & Wellbeing grew
underlying sales by 7.1%, with volume growth of 5.5% driven by
continued double-digit growth from Health & Wellbeing and
Prestige Beauty combined. In Q2, particularly strong growth in
Health & Wellbeing more than offset softer growth in Prestige
that reflected a slowdown in the US beauty market. Personal Care
grew 5.6% with 2.9% from volume, led by continued strong sales
growth of Deodorants. Home Care underlying sales increased 3.3%,
with 4.6% volume growth more than offsetting the negative price
growth linked to commodity cost deflation in some emerging markets.
Nutrition grew underlying sales by 3.2%, driven by price with flat
volume for the first half. Nutrition returned to positive volumes
in Q2 at 0.4%, up from (0.4)% in Q1. Ice Cream continued to focus
on operational improvements. Underlying sales growth was 0.6% with
volume down (1.0)%, driven by weak sales in China and a softer
start to the summer season in Europe.
Emerging markets (59% of Group
turnover) grew underlying sales 5.1%, with 3.8% from volume and
1.3% from price. India grew 1.2%, with stronger volumes partially
offset by price. Lower input costs led to negative price, while
volumes in India sequentially improved throughout the first half,
reaching 3.8% in Q2. Latin America grew 8.8%, with continued strong
volume growth across the region. Africa and Turkey delivered
broad-based, double-digit growth, driven by strong volume and
price. Growth in South East Asia was adversely impacted by a sales
decline of (5.7)% in Indonesia, where some consumers avoided the
brands of multi-national companies in response to the geopolitical
situation in the Middle East. China declined mid single-digit, due
to market weakness across all categories apart from food
service.
Developed markets (41% of Group
turnover) grew underlying sales 2.8% with 0.8% from volume and 2.0%
from price. The return to positive volume growth reflected a
continued resilient performance in North America and a marked
volume improvement in Europe, up 2.2% in Q2. As expected, price
growth continued to moderate from the peak in Q2 2023.
Turnover was €31.1 billion, up 2.3%
versus the prior year, including (1.1)% from currency and (0.7)%
from disposals net of acquisitions.
*Turnover-weighted market share
movement: global aggregate of Unilever value market share changes,
weighted by the turnover of the category-country
combinations
Profitability
(unaudited)
|
UOP
|
UOP
growth
|
UOM%
|
Change in
UOM
|
OP
|
OP
growth
|
OM%
|
Change in
OM
|
First Half
|
€6.1bn
|
17.1%
|
19.6%
|
250bps
|
€5.9bn
|
7.8%
|
19.1%
|
100bps
|
Underlying operating profit was €6.1
billion, up 17.1% versus the prior year. Underlying operating
margin increased 250bps to 19.6%.
We improved gross margin by 420bps
to 45.7%. Accelerating gross margin is a key focus for the
business. We started to rebuild gross margin in the second half of
2023, with an improvement of 330bps and continued that momentum
into the first half of 2024. The first half improvement reflects
positive contributions from volume leverage, mix and net
productivity but also factors that will not repeat in the second
half such as, a low prior year comparator affected by high input
costs, and carry-over pricing from a period of higher inflation.
Improved gross margin supported a further step-up in brand and
marketing investment behind a strong and focused innovation
programme. Investment was up 180bps to 15.1% of turnover, an
increase of €0.7 billion. Overheads reduced by 10bps, benefiting
from a focus on tighter cost control.
Operating profit of €5.9 billion
increased 7.8% against a prior year comparator that was boosted by
higher profit on disposal.
Progress on productivity programme
and Ice Cream separation
In March, we announced the
separation of Ice Cream and the launch of a major productivity
programme to strengthen the company and substantially improve our
efficiency and effectiveness. Separation activity is underway and
on track to complete by the end of 2025. We are working at pace on
the legal entity set up, the standalone operating model and
carve-out financials. In July, we communicated internally on the
planned changes to simplify our business and further evolve our
category-focused operating model. We have started consultations
with the respective works councils.
Capital allocation
In February 2024, we announced a
share buyback programme of up to €1.5 billion to be conducted
during 2024. The first tranche of up to €850 million commenced in
May.
As a result of the strong first half
performance, the Board increased the quarterly interim dividend for
Q2 by 3.0% to €0.4396, the first increase since Q4 2020.
We continued to reshape our
portfolio, acquiring K18, a
premium biotech hair care brand, in February, and completing the
disposal of Elida Beauty in June. In July we announced agreements
to sell our water purification businesses Pureit, to A.O. Smith,
and stake in Qinyuan Group, to Yong Chao Venture Capital Co., Ltd.
The deals are expected to complete in the second half of the
year.
Following the release of this
trading statement on 25 July 2024 at 7:00 AM (UK time), there will
be a live webcast at 8:00 AM available on the website
www.unilever.com/investor-relations/results-and-presentations/latest-results.
A replay of the webcast and the
slides of the presentation will be made available after the live
meeting.
Date
|
Events
|
24 October 2024
|
Q3 2024 trading statement
|
22 November 2024
|
Capital Markets Day in
London
|
13 February 2025
|
Q4 and FY 2024 results
|
First
Half Review: Business Groups
|
|
First Half
2024
|
Second
Quarter 2024
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
UOM%
|
Change in
UOM
|
Turnover
|
USG
|
UVG
|
UPG
|
Unilever
|
€31.1bn
|
4.1%
|
2.6%
|
1.6%
|
19.6%
|
250bps
|
€16.1bn
|
3.9%
|
2.9%
|
1.0%
|
Beauty & Wellbeing
|
€6.5bn
|
7.1%
|
5.5%
|
1.5%
|
20.0%
|
110bps
|
€3.4bn
|
6.8%
|
5.4%
|
1.3%
|
Personal Care
|
€7.0bn
|
5.6%
|
2.9%
|
2.6%
|
23.0%
|
300bps
|
€3.5bn
|
6.4%
|
4.4%
|
1.9%
|
Home Care
|
€6.3bn
|
3.3%
|
4.6%
|
(1.3)%
|
16.3%
|
400bps
|
€3.1bn
|
3.4%
|
4.9%
|
(1.4)%
|
Nutrition
|
€6.7bn
|
3.2%
|
-%
|
3.2%
|
22.3%
|
390bps
|
€3.3bn
|
2.7%
|
0.4%
|
2.2%
|
Ice Cream
|
€4.6bn
|
0.6%
|
(1.0)%
|
1.6%
|
14.6%
|
(40)bps
|
€2.8bn
|
(0.5)%
|
(1.1)%
|
0.6%
|
Beauty & Wellbeing
(21% of Group turnover)
In
Beauty & Wellbeing, we focus on three key priorities that will
drive the unmissable superiority of our brands: elevating our core
Hair Care and Skin Care brands to increase premiumisation; fuelling
the growth of Prestige Beauty and Health & Wellbeing with
selective international expansion; and continuing to strengthen our
beauty and wellbeing capabilities.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change in
UOM
|
First Half
|
€6.5bn
|
7.1%
|
5.5%
|
1.5%
|
(0.8)%
|
(1.2)%
|
5.1%
|
20.0%
|
110bps
|
Second Quarter
|
€3.4bn
|
6.8%
|
5.4%
|
1.3%
|
0.2%
|
(0.6)%
|
6.3%
|
|
|
Beauty & Wellbeing delivered
another strong performance, with underlying sales up 7.1%, driven
by volume up 5.5% and price up 1.5%. Power Brands led this growth
with underlying sales growth of 11.3%.
Hair Care delivered mid-single digit
growth with positive volume and price. Our largest hair care brand,
Sunsilk grew double-digit
supported by combing cream innovations across Latin America and the
continued success of its 2023 relaunch. Dove grew high-single digit led by
volume growth following the launch of Scalp + Hair Therapy, for
improved scalp health and hair density. Clear and TRESemmé grew well with the continued
expansion of our patented anti-dandruff shampoo and our new
Lamellar Shine range.
Core Skin Care grew mid-single digit
led by strong volume growth in our top brands. Vaseline grew strong double-digit
supported by its premium ranges, including Radiant X and Gluta Hya,
which continue to be rolled out to new markets. Pond's continued to deliver high-single
digit growth led by volume, following its 2023 relaunch.
Health & Wellbeing and Prestige
Beauty combined delivered double-digit growth for the
14th consecutive quarter. This was led by very strong growth in
Health & Wellbeing, while softer growth in Prestige Beauty
reflected a slowdown in the US beauty market. Liquid IV grew strong double-digit with
the continued success of its sugar-free variant, launch of new
flavours supported by prominent social media campaigns, and ongoing
international roll-out. Olly and Nutrafol contributed double-digit
volume growth. In H1, Nutrafol extended into skin care with a
daily supplement designed to address the root causes of acne and
Olly drove good growth in
China supported by its focus on female health supplements.
Tatcha and Hourglass grew double-digit, while
Paula's Choice was affected
by the market slowdown.
Underlying operating profit was €1.3
billion, up 11% versus prior year. Underlying operating margin
increased 110bps to 20.0% driven by gross margin improvement, which
supported a step-up in brand and marketing investment.
Personal Care (22% of Group turnover)
In
Personal Care, we focus on winning with science-led brands that
deliver unmissable superiority to our consumers across Deodorants,
Skin Cleansing, and Oral Care. Our priorities include developing
superior technology and multi-year innovation platforms, leveraging
partnerships with our customers, and expanding into premium areas
and digital channels
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change in
UOM
|
First Half
|
€7.0bn
|
5.6%
|
2.9%
|
2.6%
|
(3.4)%
|
(1.4)%
|
0.6%
|
23.0%
|
300bps
|
Second Quarter
|
€3.5bn
|
6.4%
|
4.4%
|
1.9%
|
(4.1)%
|
(1.6)%
|
0.3%
|
|
|
Personal Care delivered balanced
growth with underlying sales up 5.6%, 2.9% from volume and 2.6%
from price. Performance was led by the Power Brands with 7.0%
underlying sales growth.
Deodorants continued to deliver
double-digit growth, with high-single digit volume growth led by
Europe and Latin America. Dove grew double-digit with strong
volumes and expanded into the Whole Body deodorants
market.
Rexona and Axe contributed strong volume growth
with continued momentum from our multi-year innovation platforms
and our Fine Fragrance range.
Skin Cleansing grew low-single digit
with positive volume growth and price. Growth was tempered by
deflation in India and market challenges in Indonesia. Dove delivered high-single digit growth
with good growth in Dove
Men+Care. Europe grew double-digit with mid-single digit
volume supported by Dove's
Body Wash relaunch. In the United States, we launched a premium
range of Dove Body Wash
infused with skin care serums including hyaluronic acid, collagen
and vitamin C.
Oral Care continued to grow
mid-single digit with positive volume and price. Close Up grew high-single digit with
positive volume.
Underlying operating profit was €1.6
billion, up 16% versus prior year. Underlying operating margin
increased 300bps driven by gross margin recovery, supporting a
step-up in marketing investment. This investment includes strategic
sponsorships such as our official partnership with UEFA EURO 2024™
and CONMEBOL Copa América USA 2024™.
Home Care (20% of Group turnover)
In
Home Care, we focus on delivering for consumers who want superior
products that are sustainable and great value. We drive growth
through unmissable superiority in our biggest brands, in our key
markets and across channels. We have a resilient business that
spans price points and grows the market by premiumising and trading
consumers up to additional benefits.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change in
UOM
|
First Half
|
€6.3bn
|
3.3%
|
4.6%
|
(1.3)%
|
-%
|
(1.3)%
|
2.0%
|
16.3%
|
400bps
|
Second Quarter
|
€3.1bn
|
3.4%
|
4.9%
|
(1.4)%
|
-%
|
(1.5)%
|
1.8%
|
|
|
Home Care delivered underlying sales
growth of 3.3%, with continued good volume growth of 4.6%,
partially offset by (1.3)% price, driven primarily by emerging
markets. Underlying sales growth of the Power Brands was up
3.7%.
Fabric Cleaning grew low-single
digit with low-single digit volume and negative price. Growth was
supported by the launch of Persil Wonder Wash, with our patented
Pro-S technology, the first ever detergent designed for short cycle
washes. This significant innovation has now been introduced in the
UK, France and China and is on track to be rolled out to other key
markets over the next 18 months. Europe grew double-digit with
strong volumes. India and Brazil grew volume while price declined
reflecting commodity deflation, notably in our powders
portfolio.
Home & Hygiene grew high-single
digit with mid-single digit volume and slightly positive price.
Cif and Domestos grew double-digit with
double-digit volume. In H1, we expanded Domestos Power Foam to new markets and
extended the range to include specialist solutions with
long-lasting fragrance and limescale removal. Cif was supported by strong
performances across Latin America in its cream and sprays
portfolio.
Fabric Enhancers grew high-single
digit led by volume, slightly offset by negative price.
Comfort grew high-single
digit supported by the launch of our new, Botanicals and Elixir
ranges, with our patented CrystalFresh technology, delivering 10
times more fragrance.
Underlying operating profit was €1.0
billion, up 35% versus prior year. Underlying operating margin
increased 400bps as commodity deflation supported a strong gross
margin recovery, funding an increase in brand and marketing
investment.
Nutrition (22% of Group turnover)
In
Nutrition, our strategy is to deliver consistent, competitive
growth by offering unmissably superior products through our biggest
brands. We do this by reaching more consumers and focusing on top
dishes and high consumption seasons to satisfy consumer's
preferences on taste, health and sustainability; while delivering
productivity and resilience in our supply chain.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change in
UOM
|
First Half
|
€6.7bn
|
3.2%
|
-%
|
3.2%
|
(0.4)%
|
(1.4)%
|
1.3%
|
22.3%
|
390bps
|
Second Quarter
|
€3.3bn
|
2.7%
|
0.4%
|
2.2%
|
(0.3)%
|
(1.5)%
|
0.9%
|
|
|
Nutrition underlying sales grew 3.2%
in the first half, driven by price with flat volumes. Volume growth
turned positive in Q2, up 0.4%. Power Brands, including
Knorr and Hellmann's, which represented nearly
65% of Nutrition turnover, grew 5.2%. This performance was
partially offset by volume declines of our smaller
brands.
Scratch Cooking Aids grew mid-single
digit with positive volume and price, led by Knorr. Growth was supported by
double-digit performance in Latin America where Knorr's innovation and marketing focus
on local top dishes continues to drive growth across the
portfolio.
Dressings delivered low-single digit
growth with positive volume and price. Hellmann's grew mid-single digit with
the continued strong performance of flavoured mayo that launched in
additional markets and added new variants in North America and
Europe. Brazil grew double-digit which was enhanced by strategic
partnerships, including our second year as a sponsor of the
National Basketball Association in Brazil.
Unilever Food Solutions grew
high-single digit with mid-single digit volume, led by double-digit
growth in China. Growth was driven by the latest edition of our
Future Menu's Trend report, sparking inspiration and sales in
professional kitchens, and continued gains from our digital selling
programme.
Underlying operating profit was €1.5
billion, up 23% versus prior year. Underlying operating margin
increased 390bps with a strong recovery in gross margin driven by
normalising commodity costs and SKU optimisation. Gross margin
improvement supported an increase in brand and marketing
investment.
Ice Cream (15% of Group turnover)
In
Ice Cream, our immediate strategic priority is to expand operating
profit and global market share. We will do this by building the
unmissable superiority of our brands, accelerating market
development in emerging markets, continuing to lead the industry on
innovation and premiumisation, and by stepping up our performance
and productivity. In March, we announced the planned separation of
Ice Cream which we expect to be completed by the end of 2025. The
separation will create a world-leading business, operating in a
highly attractive category with five of the top 10 selling global
ice cream brands.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover
change
|
UOM%
|
Change in
UOM
|
First Half
|
€4.6bn
|
0.6%
|
(1.0)%
|
1.6%
|
1.9%
|
0.3%
|
2.8%
|
14.6%
|
(40)bps
|
Second Quarter
|
€2.8bn
|
(0.5)%
|
(1.1)%
|
0.6%
|
1.9%
|
0.5%
|
2.0%
|
|
|
Ice Cream had a disappointing start
to its key season, with underlying sales up 0.6%. 1.6% underlying
price growth was partially offset by negative volume of
(1.0)%.
Performance remains below our
ambition, having been impacted by a soft start to the European key
season and challenging market dynamics in China. In-home Ice Cream
delivered flat price and volume, while out-of-home Ice Cream grew
low-single digit driven by price.
Wall's grew mid-single digit
with positive volume and price, Ben & Jerry's was slightly up,
while sales of Cornetto
were adversely affected by the decline in China. Magnum launched its new 'Pleasure
Express' range with 3 variants: Euphoria, Wonder and
Chill.
Ice Cream continues to focus on
operational improvements, including service and optimising
promotions, while continuing to drive investment behind our brands
and innovations.
Underlying operating profit was €0.7
billion, flat versus prior year. Underlying operating margin
declined (40)bps as gross margin improvement was offset by an
increase in brand and marketing investment. Cost inflation of key
commodities continued, driven by cocoa and sugar.
First
Half Review: Geographical Areas
|
|
First
Half 2024
|
Second
Quarter 2024
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Unilever
|
€31.1bn
|
4.1%
|
2.6%
|
1.6%
|
€16.1bn
|
3.9%
|
2.9%
|
1.0%
|
Asia Pacific Africa
|
€13.4bn
|
3.5%
|
2.4%
|
1.0%
|
€6.7bn
|
3.4%
|
2.4%
|
0.9%
|
The Americas
|
€11.4bn
|
5.4%
|
3.9%
|
1.5%
|
€5.9bn
|
5.0%
|
3.8%
|
1.1%
|
Europe
|
€6.3bn
|
3.5%
|
0.5%
|
2.9%
|
€3.5bn
|
3.0%
|
2.2%
|
0.8%
|
|
First
Half 2024
|
Second
Quarter 2024
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Emerging markets
|
€18.2bn
|
5.1%
|
3.8%
|
1.3%
|
€9.2bn
|
4.8%
|
3.7%
|
1.1%
|
Developed markets
|
€12.9bn
|
2.8%
|
0.8%
|
2.0%
|
€6.9bn
|
2.6%
|
1.8%
|
0.8%
|
North America
|
€6.7bn
|
3.4%
|
2.0%
|
1.4%
|
€3.5bn
|
3.2%
|
2.5%
|
0.7%
|
Latin America
|
€4.7bn
|
8.8%
|
7.0%
|
1.6%
|
€2.4bn
|
8.0%
|
6.0%
|
1.9%
|
Asia Pacific Africa
(43% of Group turnover)
Underlying sales growth was 3.5%
with 2.4% from volume and 1.0% from price.
India grew 1.2% as volume
sequentially improved in Q2 to 3.8%. Volume was partially offset by
negative price linked to lower commodity costs in several
categories. China declined reflecting weaker market growth in most
of our categories and low consumer confidence. Despite the overall
market dynamic, Unilever Food
Solutions delivered double-digit growth in China, building
on its double-digit growth in H1 2023. Underlying sales
declined (5.7)% in Indonesia, with negative
price and volume. This largely reflects the ongoing impact of some
Indonesian consumers avoiding multinational brands and the need for
operational improvements.
Africa grew double-digit with
positive price and volume. Turkey delivered strong double-digit
volume growth in a hyperinflationary environment.
The Americas (37% of Group turnover)
Underlying sales grew 3.4% in North
America with 2.0% from volume and 1.4% from price. Beauty &
Wellbeing delivered volume-led high-single digit growth, driven by
a strong performance in Health & Wellbeing. Personal Care grew
low-single digit driven by price as we lapped a particularly strong
prior year comparator in Deodorants. Nutrition grew low-single
digit with positive volume and price, led by continued growth in
Dressings. Ice Cream was flat with positive volume and negative
price as we optimised promotions.
Underlying sales in Latin America
grew 8.8% with 7.0% volume and 1.6% price. Growth was broad-based
with all Business Groups. Personal Care and Beauty & Wellbeing
grew double-digit with strong volumes and positive price. Home Care
contributed high-single digit volume growth, which was largely
offset by negative price. Nutrition grew high-single digit with
positive price and volume led by Knorr and Hellmann's. Brazil grew high-single
digit led by volume, with strong volume growth in Deodorants,
Dressings, and Home Care categories. Price was negative largely due
to commodity deflation in Home Care. Mexico grew double-digit with
all Business Groups growing volume and price. Argentina performed
well in a challenging environment, delivering double-digit volume
growth despite hyperinflationary pricing.
Europe (20%
of Group turnover)
Underlying sales grew 3.5% with 2.9%
price and 0.5% volume growth. Helped by strong innovations and a
step-up in brand support, Europe delivered 2.2% volume growth in
Q2. It was the first positive UVG since Q2 2021 despite a soft
start of the key ice cream season. Home Care and Personal Care grew
double-digit led by volume growth, which was supported by strong
innovations across Domestos, Persil, and Dove. Nutrition declined low-single
digit but returned to growth in Q2 with positive volume. Ice Cream
declined low-single digit impacted by poor weather. The United
Kingdom, Germany and Eastern Europe grew well with positive
volumes.
Additional commentary on the financial statements - First
Half
|
Finance costs and tax
Net finance costs increased by €99
million to €358 million in 2024. This was largely driven by the
higher cost of debt on bonds, a lower interest credit from
pensions, partially offset by a slightly higher interest income. As
a result, net finance costs were 2.9% on average net debt. For full
year 2024, we now expect net finance costs of around 3% on average
net debt.
The underlying effective tax rate
for the first half increased to 26.0% from 24.2% in the prior year,
due to a number of factors including lower benefits from tax
settlements and other one-off items. For full year 2024, we raise
our guidance for the underlying effective tax rate to around 26%,
from around 25% previously. The effective tax rate was 28.6%, up
from 26.9% in the prior year.
Joint ventures, associates and other
income from non-current investments
Net profit from joint ventures and
associates was €138 million, an increase of €20 million compared to
2023, mainly driven by the Pepsi-Lipton JVs. Other income from
non-current investments was negative at €(5) million, versus €(10)
million in the prior year.
Earnings per share
Underlying earnings per share
increased 16.3% to €1.62, including (1.0)% of adverse currency. The
increase primarily reflects a strong operational performance and a
reduction in the average number of shares as a result of the share
buyback programme, which contributed 1.0%. These were partially
offset by higher tax and net finance costs. Diluted earnings per
share of €1.47 increased by 5.4% versus the prior year that was
boosted by profits on disposal.
Restructuring costs
Restructuring costs were €248
million in the first half, up from €184 million in the prior year.
For full year 2024, we anticipate restructuring costs of around
1.2% of Group turnover, with the step-up in the second half driven
by cost related to the implementation of the productivity
programme.
Free cash flow
Free cash flow in the first half of
2024 was €2.2 billion versus €2.5 billion delivered in the first
half of 2023. The increase in operating profit was more than offset
by a higher seasonal outflow in working capital, a step-up in
capital expenditure, and higher income tax paid.
Net debt
Closing net debt was €25.2 billion
compared to €23.7 billion as at 31 December 2023. This translated
into a net debt / Underlying EBITDA ratio of 2.0x. The increase in
net debt was driven by dividends paid, €375 million of the share
buyback programme executed during the first half, partially offset
by free cash flow delivery.
Pensions
Pension assets net of liabilities
were in surplus of €2.7 billion at 30 June 2024 versus a surplus of
€2.4 billion at the end of 2023. The increase was primarily driven
by strong investment returns in the first half.
Financial implications and
impairment risk in Russia
Our Russia business employs
approximately 3,000 people in Russia and in the first six months of
2024 the business represented around 1% of the Group's turnover and
net profit. As at 30 June 2024, our Russia business had net assets
of around €600 million, including four factories. We continually
review our position and still conclude that the containment actions
we put in place at the beginning of the war minimise our economic
contribution to the Russian state.
We will continue to review and
disclose the financial implications from the conflict. While the
potential impacts remain uncertain, there remains a risk that our
operations in Russia are unable to continue, leading to loss of
turnover, profit and a write-down of assets.
Share buyback programme
On 8 February 2024, we announced a
share buyback programme of up to €1.5 billion to be completed over
2024. The first tranche of up to €850 million commenced on 17 May.
In the first half of 2024, we repurchased 7,315,036 ordinary shares
which are held by Unilever as treasury shares. Consideration paid
for the repurchase of shares including transaction costs was €375
million which is recorded within other reserves. The first tranche
is expected to complete on or before 30 August 2024.
Finance and liquidity
In the first six months of 2024, the
following notes matured and were repaid:
•
March: $500 million 3.25% fixed rate notes
•
April: €500 million 0.50% fixed rate notes
• May:
$1,000 million 2.60% fixed rate notes
The following notes were
issued:
• February: €600 million 3.25% fixed rate notes due 15 February
2032 and €600 million 3.50% fixed rate notes due
15 February 2037
• March: €100 million 3.25% fixed rate notes to be consolidated
and form a single series with the €600 million 3.25% fixed rate
notes issued in February and due 15 February 2032
• June: $170 million 4.75% fixed rate notes due 27 June
2031
On 30 June 2024, Unilever had
undrawn revolving 364-day bilateral credit facilities in aggregate
of $5,200 million and €2,600 million with a 364-day term
out.
Certain discussions and analyses set
out in this announcement include measures which are not defined by
generally accepted accounting principles (GAAP) such as IFRS. We
believe this information, along with comparable GAAP measurements,
is useful to investors because it provides a basis for measuring
our operating performance, ability to retire debt and invest in new
business opportunities. Our management uses these financial
measures, along with the most directly comparable GAAP financial
measures, in evaluating our operating performance and value
creation. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
presented in compliance with GAAP. Wherever appropriate and
practical, we provide reconciliations to relevant GAAP
measures.
Unilever uses 'constant rate', and
'underlying' measures primarily for internal performance analysis
and targeting purposes. We present certain items, percentages and
movements, using constant exchange rates, which exclude the impact
of fluctuations in foreign currency exchange rates. We calculate
constant currency values by translating both the current and the
prior period local currency amounts using the prior year average
exchange rates into euro, except for the local currency of entities
that operate in hyperinflationary economies. These currencies are
translated into euros using the prior year closing exchange rate
before the application of IAS 29.
The table below shows exchange rate
movements in our key markets.
|
Half year
average rate in 2024
|
Half year
average rate in 2023
|
Brazilian Real (€1 = BRL)
|
5.478
|
5.493
|
Chinese Yuan (€1 = CNY)
|
7.732
|
7.475
|
Indian Rupee (€1 = INR)
|
90.004
|
88.860
|
Indonesia Rupiah (€1 =
IDR)
|
17,180
|
16,277
|
Philippine Peso (€1 =
PHP)
|
61.459
|
59.674
|
UK Pound Sterling (€1 =
GBP)
|
0.855
|
0.877
|
US Dollar (€1 = US $)
|
1.082
|
1.081
|
Underlying sales growth
(USG)
Underlying sales growth (USG) refers
to the increase in turnover for the period, excluding any change in
turnover resulting from acquisitions, disposals, changes in
currency and price growth in excess of 26% in hyperinflationary
economies. Inflation of 26% per year compounded over three years is
one of the key indicators within IAS 29 to assess whether an
economy is deemed to be hyperinflationary. We believe this measure
provides valuable additional information on the underlying sales
performance of the business and is a key measure used internally.
The impact of acquisitions and disposals is excluded from USG for a
period of 12 calendar months from the applicable closing date.
Turnover from acquired brands that are launched in countries where
they were not previously sold is included in USG as such turnover
is more attributable to our existing sales and distribution network
than the acquisition itself.
The reconciliation of changes in the
GAAP measure of turnover to USG is as follows:
(unaudited)
|
Beauty
& Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
Second Quarter (%)
|
|
|
|
|
|
|
Turnover growth
|
6.3
|
0.3
|
1.8
|
0.9
|
2.0
|
2.2
|
Effect of acquisitions
|
1.0
|
-
|
-
|
-
|
1.9
|
0.5
|
Effect of disposals
|
(0.8)
|
(4.1)
|
-
|
(0.3)
|
-
|
(1.1)
|
Effect of currency-related items, of
which:
|
(0.6)
|
(1.6)
|
(1.5)
|
(1.5)
|
0.5
|
(1.0)
|
Exchange rates changes
|
(2.3)
|
(3.2)
|
(4.9)
|
(3.3)
|
(1.5)
|
(3.1)
|
Extreme price growth in hyperinflationary
markets*
|
1.7
|
1.6
|
3.5
|
1.9
|
2.1
|
2.1
|
Underlying sales growth
|
6.8
|
6.4
|
3.4
|
2.7
|
(0.5)
|
3.9
|
First Half (%)
|
|
|
|
|
|
|
Turnover growth
|
5.1
|
0.6
|
2.0
|
1.3
|
2.8
|
2.3
|
Effect of acquisitions
|
0.9
|
-
|
-
|
-
|
1.9
|
0.5
|
Effect of disposals
|
(1.6)
|
(3.4)
|
-
|
(0.4)
|
-
|
(1.2)
|
Effect of currency-related items, of
which:
|
(1.2)
|
(1.4)
|
(1.3)
|
(1.4)
|
0.3
|
(1.1)
|
Exchange rates changes
|
(2.7)
|
(3.2)
|
(4.5)
|
(3.1)
|
(1.6)
|
(3.1)
|
Extreme price growth in hyperinflationary
markets*
|
1.6
|
1.9
|
3.4
|
1.7
|
2.0
|
2.1
|
Underlying sales growth
|
7.1
|
5.6
|
3.3
|
3.2
|
0.6
|
4.1
|
*Underlying price growth in excess
of 26% per year in hyperinflationary economies has been excluded
when calculating the underlying sales growth in the tables above,
and an equal and opposite amount is shown as extreme price growth
in hyperinflationary markets.
(unaudited)
|
Asia
Pacific Africa
|
The
Americas
|
Europe
|
Total
|
Second Quarter (%)
|
|
|
|
|
Turnover growth
|
0.5
|
3.9
|
2.9
|
2.2
|
Effect of acquisitions
|
-
|
1.5
|
-
|
0.5
|
Effect of disposals
|
(0.2)
|
(2.5)
|
(0.7)
|
(1.1)
|
Effect of currency-related items, of
which:
|
(2.6)
|
-
|
0.5
|
(1.0)
|
Exchange rates changes
|
(4.2)
|
(3.8)
|
0.5
|
(3.1)
|
Extreme price growth in hyperinflationary
markets*
|
1.8
|
3.9
|
-
|
2.1
|
Underlying sales growth
|
3.4
|
5.0
|
3.0
|
3.9
|
First Half (%)
|
|
|
|
|
Turnover growth
|
(0.4)
|
4.6
|
3.8
|
2.3
|
Effect of acquisitions
|
-
|
1.3
|
-
|
0.5
|
Effect of disposals
|
(0.2)
|
(2.8)
|
(0.4)
|
(1.2)
|
Effect of currency-related items, of
which:
|
(3.5)
|
0.9
|
0.7
|
(1.1)
|
Exchange rates changes
|
(4.9)
|
(3.0)
|
0.7
|
(3.1)
|
Extreme price growth in hyperinflationary
markets*
|
1.5
|
4.1
|
-
|
2.1
|
Underlying sales growth
|
3.5
|
5.4
|
3.5
|
4.1
|
*Underlying price growth in excess
of 26% per year in hyperinflationary economies has been excluded
when calculating the underlying sales growth in the tables above,
and an equal and opposite amount is shown as extreme price growth
in hyperinflationary markets.
Underlying price growth
(UPG)
Underlying price growth (UPG) is
part of USG and means, for the applicable period, the increase in
turnover attributable to changes in prices during the period. UPG
therefore excludes the impact to USG due to (i) the volume of
products sold; and (ii) the composition of products sold during the
period. In determining changes in price, we exclude the impact of
price growth in excess of 26% per year in hyperinflationary
economies as explained in USG above.
Underlying volume growth
(UVG)
Underlying volume growth (UVG) is
part of USG and means, for the applicable period, the increase in
turnover in such period calculated as the sum of (i) the increase
in turnover attributable to the volume of products sold; and (ii)
the increase in turnover attributable to the composition of
products sold during such period. UVG therefore excludes any impact
on USG due to changes in prices.
Non-underlying items
Several non-GAAP measures are
adjusted to exclude items defined as non-underlying due to their
nature and/or frequency of occurrence:
• Non-underlying items within operating profit
are: gains or losses on business disposals,
acquisition and disposal related costs, restructuring costs,
impairments and other items within operating profit classified here
due to their nature and frequency.
• Non-underlying items not in operating profit but within net
profit are: net monetary gain/(loss)
arising from hyperinflationary economies and significant and
unusual items in net finance cost, share of profit/(loss) of joint
ventures and associates and taxation.
• Non-underlying items are both
non-underlying items within operating profit and those
non-underlying items not in operating profit but within net
profit.
Restructuring costs are charges
associated with activities planned by management that significantly
change either the scope of the business or the manner in which it
is conducted.
The breakdown of non-underlying
items is shown below:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Non-underlying items within
operating profit before tax
|
(152)
|
308
|
Acquisition and disposal-related
costs(a)
|
(58)
|
(52)
|
Gain on disposal of group
companies(b)
|
155
|
528
|
Restructuring
costs(c)
|
(248)
|
(184)
|
Impairments(d)
|
-
|
(1)
|
Other
|
(1)
|
17
|
Tax on non-underlying items within
operating profit
|
(51)
|
(111)
|
Non-underlying items within
operating profit after tax
|
(203)
|
197
|
Non-underlying items not in
operating profit but within net profit before tax
|
(160)
|
(103)
|
Interest related to the UK tax audit
of intangible income and centralised services
|
(3)
|
(5)
|
Net monetary loss arising from
hyperinflationary economies
|
(157)
|
(98)
|
Tax impact of non-underlying items
not in operating profit but within net profit:
|
(4)
|
(80)
|
Taxes related to the separation of
the Tea business
|
4
|
(6)
|
Taxes related to the UK tax audit of
intangible income and centralised services
|
1
|
1
|
Hyperinflation adjustment for
Argentina and Turkey deferred tax
|
(9)
|
(75)
|
Non-underlying items not in
operating profit but within net profit after tax
|
(164)
|
(183)
|
Non-underlying items after
tax(e)
|
(367)
|
14
|
Attributable to:
|
|
|
Non-controlling interests
|
(1)
|
-
|
Shareholders' equity
|
(366)
|
14
|
(a) 2024 includes a charge of €36
million relating to the acquisition of Yasso, €11 million relating
to the disposal of Elida Beauty, €6 million (2023:
€4 million) relating to the disposal of the Tea business and
other acquisition and disposal activities.
(b) 2024 includes a gain of
€151 million related to the disposal of Elida Beauty. 2023
includes a gain of €497 million related to the disposal of
Suave business in North America.
(c) Restructuring costs are
comprised of organisational change programmes (including Compass)
and various technology and supply chain optimisation
projects.
(d) Impairments include write downs
of leased land and building assets.
(e) Non-underlying items after tax
is calculated as non-underlying items within operating profit after
tax plus non-underlying items not in operating profit but within
net profit after tax.
Underlying operating profit (UOP)
and underlying operating margin (UOM)
Underlying operating profit and
underlying operating margin mean operating profit and operating
margin before the impact of non-underlying items within operating
profit. Underlying operating profit represents our measure of
segment profit or loss as it is the primary measure used for making
decisions about allocating resources and assessing performance of
the segments. The reconciliation of operating profit to underlying
operating profit is as follows:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Operating profit
|
5,948
|
5,516
|
Non-underlying items within
operating profit
|
152
|
(308)
|
Underlying operating
profit
|
6,100
|
5,208
|
Turnover
|
31,117
|
30,428
|
Operating margin (%)
|
19.1
|
18.1
|
Underlying operating margin
(%)
|
19.6
|
17.1
|
Underlying effective tax
rate
The underlying effective tax rate is
calculated by dividing taxation excluding the tax impact of
non-underlying items by profit before tax excluding the impact of
non-underlying items and share of net (profit)/loss of joint
ventures and associates. This measure reflects the underlying tax
rate in relation to profit before tax excluding non-underlying
items before tax and share of net profit/(loss) of joint ventures
and associates. Tax impact on non-underlying items within operating
profit is the sum of the tax on each non-underlying item, based on
the applicable country tax rates and tax treatment. This is shown
in the following table:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Taxation
|
1,550
|
1,385
|
Tax impact of:
|
|
|
Non-underlying items within
operating profit(a)
|
(51)
|
(111)
|
Non-underlying items not in
operating profit but within net profit(a)
|
(4)
|
(80)
|
Taxation before tax impact of
non-underlying items
|
1,495
|
1,194
|
Profit before taxation
|
5,566
|
5,267
|
Share of net (profit)/loss of joint
ventures and associates
|
(138)
|
(118)
|
Profit before tax excluding share of
net profit/(loss) of joint ventures and associates
|
5,428
|
5,149
|
Non-underlying items within
operating profit before tax(a)
|
152
|
(308)
|
Non-underlying items not in
operating profit but within net profit before tax
|
160
|
103
|
Profit before tax excluding
non-underlying items before tax and share of net profit/(loss) of
joint ventures and associates
|
5,740
|
4,944
|
Effective tax rate (%)
|
28.6
|
26.9
|
Underlying effective tax rate
(%)
|
26.0
|
24.2
|
(a) See page 12.
Underlying earnings per
share
Underlying earnings per share
(underlying EPS) is calculated as underlying profit attributable to
shareholders' equity divided by the diluted average number of
ordinary shares. In calculating underlying profit attributable to
shareholders' equity, net profit attributable to shareholders'
equity is adjusted to eliminate the post-tax impact of
non-underlying items. This measure reflects the underlying earnings
for each share unit of the Group. Refer to note 6 for
reconciliation of net profit attributable to shareholders' equity
to underlying profit attributable to shareholders'
equity.
The reconciliation of net profit
attributable to shareholders' equity to underlying profit
attributable to shareholders' equity is as follows:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Net profit
|
4,016
|
3,882
|
Non-controlling interest
|
(315)
|
(334)
|
Net profit attributable to
shareholders' equity - used for basic and diluted earnings per
share
|
3,701
|
3,548
|
Post-tax impact of non-underlying
items attributable to shareholders' equity
|
366
|
(14)
|
Underlying profit attributable to
shareholders' equity - used for basic and diluted earnings per
share
|
4,067
|
3,534
|
Adjusted average number of shares
(millions of share units)
|
2,511.0
|
2,536.8
|
Diluted EPS (€)
|
1.47
|
1.40
|
Underlying EPS - diluted
(€)
|
1.62
|
1.39
|
Constant underlying EPS
Constant underlying earnings per
share (constant underlying EPS) is calculated as underlying profit
attributable to shareholders' equity at constant exchange rates and
excluding the impact of both translational hedges and price growth
in excess of 26% per year in hyperinflationary economies divided by
the diluted average number of ordinary shares. This measure
reflects the underlying earnings for each share unit of the Group
in constant exchange rates.
The reconciliation of underlying
profit attributable to shareholders' equity to constant underlying
earnings attributable to shareholders' equity and the calculation
of constant underlying EPS is as follows:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Underlying profit attributable to
shareholders' equity
|
4,067
|
3,534
|
Impact of translation from current
to constant exchange rates and translational hedges
|
75
|
(104)
|
Impact of price growth in excess of
26% per year in hyperinflationary economies
|
(159)
|
-
|
Constant underlying earnings
attributable to shareholders' equity
|
3,983
|
3,430
|
Diluted average number of share
units (millions of units)
|
2,511.0
|
2,536.8
|
Constant underlying EPS
(€)
|
1.59
|
1.35
|
Net debt
Net debt is a measure that provides
valuable additional information on the summary presentation of the
Group's net financial liabilities and is a measure in common use
elsewhere. Net debt is defined as the excess of total financial
liabilities, excluding trade payables and other current
liabilities, over cash, cash equivalents and other current
financial assets, excluding trade and other current receivables,
and non-current financial asset derivatives that relate to
financial liabilities.
The reconciliation of total
financial liabilities to net debt is as follows:
€ million
|
As at 30
June 2024
|
As at 31
December 2023
|
As at 30
June 2023
|
(unaudited)
|
Total financial
liabilities
|
(31,654)
|
(29,622)
|
(30,708)
|
Current financial
liabilities
|
(7,643)
|
(5,087)
|
(6,715)
|
Non-current financial
liabilities
|
(24,011)
|
(24,535)
|
(23,993)
|
Cash and cash equivalents as per
balance sheet
|
4,970
|
4,159
|
4,994
|
Cash and cash equivalents as per
cash flow statement
|
4,854
|
4,045
|
4,870
|
Add: bank overdrafts deducted
therein
|
116
|
116
|
124
|
Less: cash and cash equivalents held
for sale
|
-
|
(2)
|
-
|
Other current financial
assets
|
1,445
|
1,731
|
1,376
|
Non-current financial asset
derivatives that relate to financial liabilities
|
39
|
75
|
31
|
Net debt
|
(25,200)
|
(23,657)
|
(24,307)
|
Free cash flow (FCF)
Within the Unilever Group, free cash
flow (FCF) is defined as cash flow from operating activities, less
income taxes paid, net capital expenditure and net interest
payments. It does not represent residual cash flows entirely
available for discretionary purposes; for example, the repayment of
principal amounts borrowed is not deducted from FCF. FCF reflects
an additional way of viewing our liquidity that we believe is
useful to investors because it represents cash flows that could be
used for distribution of dividends, repayment of debt or to fund
our strategic initiatives, including acquisitions, if
any.
The reconciliation of cash flow from
operating activities to FCF is as follows:
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Cash flow from operating
activities
|
4,679
|
4,377
|
Income tax paid
|
(1,315)
|
(1,011)
|
Net capital expenditure
|
(710)
|
(548)
|
Net interest paid
|
(502)
|
(364)
|
Free cash flow
|
2,152
|
2,454
|
Net cash flow (used in)/from
investing activities
|
(392)
|
(200)
|
Net cash flow (used in)/from
financing activities
|
(2,154)
|
(2,489)
|
This document represents Unilever's
half-yearly report for the purposes of the Disclosure Guidance and
Transparency Rules (DTR) issued by the UK Financial Conduct
Authority (DTR 4.2) and the Dutch Act on Financial Supervision,
section 5:25d (8)/(9) (Half-yearly financial reports). In this
context: (i) the condensed consolidated financial statements can be
found on pages 19 to 28; (ii)
pages 2 to
15 comprise the interim
management report; and (iii) the Directors' responsibility
statement can be found on page 17. This report has been reviewed in
accordance with ISRE 2410 by our external auditors. No material
related party transactions have taken place in the first six months
of the year.
On pages 71 to 78 of our 2023 Annual
Report and Accounts we set out our assessment of the principal risk
issues that would face the business under the headings: brand
preference; portfolio management; climate change; plastic
packaging; customer; talent; supply chain; safe and high quality
products; systems and information; business transformation;
economic and political instability; treasury and tax; ethical; and
legal and regulatory. In our view, the nature and potential impact
of such risks remain essentially unchanged as regards our
performance over the second half of 2024.
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, concerning the financial condition,
results of operations and businesses of the Unilever Group (the
'Group'). All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements. Words and
terminology such as 'will', 'aim', 'expects', 'anticipates',
'intends', 'looks', 'believes', 'vision', 'ambition', 'target',
'goal', 'plan', 'potential', 'work towards', 'may', 'milestone',
'objectives', 'outlook', 'probably', 'project', 'risk', 'seek',
'continue', 'projected', 'estimate', 'achieve' or the negative of
these terms, and other similar expressions of future performance,
results, actions or events, and their negatives, are intended to
identify such forward-looking statements. Forward-looking
statements also include, but are not limited to, statements and
information regarding Unilever's acceleration of its Growth Action
Plan, Unilever's portfolio optimisation towards global or scalable
brands, the capabilities and potential of such brands, the various
aspects of the separation of Ice Cream and its future operational
model, strategy, growth potential, performance and returns,
Unilever's productivity programme, its impacts and cost savings
over the next three years and operation dis-synergies from the
separation of Ice Cream, the Group's emissions reduction targets
and other climate change related matters (including actions,
potential impacts and risks associated therewith). Forward-looking
statements can be made in writing but also may be made verbally by
directors, officers and employees of the Group (including during
management presentations) in connection with this announcement.
These forward-looking statements are based upon current beliefs,
expectations and assumptions regarding anticipated developments and
other factors affecting the Group. They are not historical facts,
nor are they guarantees of future performance or outcomes. All
forward-looking statements contained in this announcement are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements.
Because these forward-looking
statements involve known and unknown risks and uncertainties, a
number of which may be beyond the Group's control, there are
important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking
statements. Among other risks and uncertainties, the material or
principal factors which could cause actual results to differ
materially from the forward-looking statements expressed in this
announcement are: Unilever's ability to successfully separate Ice
Cream and realise the anticipated benefits of the separation;
Unilever's ability to successfully execute and consummate its
productivity programme in line with expected costs to achieve
expected savings; Unilever's global brands not meeting consumer
preferences; Unilever's ability to innovate and remain competitive;
Unilever's investment choices in its portfolio management; the
effect of climate change on Unilever's business; Unilever's ability
to find sustainable solutions to its plastic packaging; significant
changes or deterioration in customer relationships; the recruitment
and retention of talented employees; disruptions in Unilever's
supply chain and distribution; increases or volatility in the cost
of raw materials and commodities; the production of safe and high
quality products; secure and reliable IT infrastructure; execution
of acquisitions, divestitures and business transformation projects;
economic, social and political risks and natural disasters;
financial risks; failure to meet high and ethical standards; and
managing regulatory, tax and legal matters.
The forward-looking statements speak
only as of the date of this announcement. Except as required by any
applicable law or regulation, the Group expressly disclaims any
intention, 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. New risks and uncertainties
arise over time, and it is not possible for us to predict those
events or how they may affect us. In addition, we cannot assess the
impact of each factor on our business or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements.
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 in the Annual
Report on Form 20-F 2023 and the Unilever Annual Report and
Accounts 2023.
Directors' Responsibility Statement
|
The Directors declare that, to the
best of their knowledge:
•
these condensed consolidated financial statements, which have been
prepared in accordance with IAS 34 'Interim Financial Reporting',
as issued by the International Accounting Standard Board and
endorsed and adopted by the UK and the EU gives a true and fair
view of the assets, liabilities, financial position and profit or
loss of Unilever; and
• the
interim management report gives a fair review of the information
required pursuant to regulations 4.2.7 and 4.2.8 of the Disclosure
Guidance and Transparency Rules (DTR) issued by the UK Financial
Conduct Authority and section 5:25d (8)/(9) of the Dutch Act on
Financial Supervision (Wet op het financieel toezicht).
Unilever's Directors are listed in
the Annual Report and Accounts for 2023.
Details of all current Directors are
available on our website at www.unilever.com
By order of the Board
Hein
Schumacher
Fernando Fernandez
Chief Executive Officer
Chief Financial Officer
25 July 2024
Media: Media
Relations Team
|
Investors: Investor Relations Team
|
UK
|
+44 78 2527 3767
|
lucila.zambrano@unilever.com
|
investor.relations@unilever.com
|
or
|
+44 77 7999 9683
|
jonathan.sibun@teneo.com
|
|
|
NL
|
+31 62 191 3705
|
kiran.hofker@unilever.com
|
|
|
or
|
+31 61 500 8293
|
fleur-van.bruggen@unilever.com
|
|
|
After the conference call on 25 July
2024 at 8:00 AM (UK time), the webcast of the presentation will be
available at:
www.unilever.com/investor-relations/results-and-presentations/latest-results.
This Results Presentation has been
submitted to the FCA National Storage Mechanism and is available
for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Independent Review Report to Unilever PLC
|
Conclusion
We have been engaged by Unilever PLC
("the Company") to review the condensed consolidated financial
statements of Unilever PLC and its subsidiaries ("Group") in the
2024 First Half Results for the six months ended 30 June 2024 which
comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated statement of
changes in equity, the consolidated balance sheet, the consolidated
cash flow statement and the related explanatory
notes.
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
consolidated financial statements in the 2024 First Half Results
for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with IAS 34 Interim Financial Reporting as adopted
for use in the UK and the Disclosure Guidance and Transparency
Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK
FCA").
Basis for conclusion
We conducted our review in
accordance with International Standard on Review Engagements (UK)
2410 Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity ("ISRE (UK) 2410") issued for use in the UK. A
review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the 2024
First Half Results and consider whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed consolidated financial statements.
A review is substantially less in
scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusions relating to going
concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that
the directors have inappropriately adopted the going concern basis
of accounting, or that the directors have identified material
uncertainties relating to going concern that have not been
appropriately disclosed.
This conclusion is based on the
review procedures performed in accordance with ISRE (UK) 2410.
However, future events or conditions may cause the Group to cease
to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
Directors'
responsibilities
The 2024 First Half Results is the
responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the 2024 First Half Results
in accordance with the DTR of the UK FCA.
As disclosed in note 1, the annual
financial statements of the Group are prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB) and UK-adopted
international accounting standards.
The directors are responsible for
preparing the condensed consolidated financial statements included
in the 2024 First Half Results in accordance with IAS 34 as adopted
for use in the UK.
In preparing the condensed
consolidated financial statements, the directors are responsible
for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to
the Company a conclusion on the condensed consolidated financial
statements in the 2024 First Half Results based on our review. Our
conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for conclusion section of
this report.
The purpose of our review work and
to whom we owe our responsibilities
This report is made solely to the
Company in accordance with the terms of our engagement to assist
the Company in meeting the requirements of the DTR of the UK FCA.
Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report
and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than
the Company for our review work, for this report, or for the
conclusions we have reached.
Jonathan Mills
for and on behalf of KPMG
LLP
Chartered Accountants
15 Canada Square
London, E14 5GL
25 July 2024
Consolidated income statement
|
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Change
|
Turnover
|
31,117
|
30,428
|
2.3%
|
Operating profit
|
5,948
|
5,516
|
7.8%
|
Net finance costs
|
(358)
|
(259)
|
|
Pensions and similar
obligations
|
35
|
50
|
|
Finance income
|
217
|
208
|
|
Finance costs
|
(610)
|
(517)
|
|
Net monetary gain/(loss) arising
from hyperinflationary economies
|
(157)
|
(98)
|
|
Share of net profit/(loss) of joint
ventures and associates
|
138
|
118
|
|
Other income/(loss) from non-current
investments and associates
|
(5)
|
(10)
|
|
Profit before taxation
|
5,566
|
5,267
|
5.7%
|
Taxation
|
(1,550)
|
(1,385)
|
|
Net profit
|
4,016
|
3,882
|
3.5%
|
|
|
|
|
Attributable to:
|
|
|
|
Non-controlling interests
|
315
|
334
|
|
Shareholders' equity
|
3,701
|
3,548
|
4.3%
|
Earnings per share
|
|
|
|
Basic earnings per share
(euros)
|
1.48
|
1.41
|
5.3%
|
Diluted earnings per share
(euros)
|
1.47
|
1.40
|
5.4%
|
Consolidated statement of comprehensive income
|
€ million
|
First
Half
|
(unaudited)
|
2024
|
2023
|
Net profit
|
4,016
|
3,882
|
Other comprehensive
income
|
|
|
Items that will not be reclassified
to profit or loss, net of tax:
|
|
|
Gains/(losses) on equity instruments
measured at fair value through other comprehensive
income
|
31
|
(34)
|
Remeasurement of defined benefit
pension plans
|
201
|
(47)
|
Items that may be reclassified
subsequently to profit or loss, net of tax:
|
|
|
Gains/(losses) on cash flow
hedges
|
58
|
(22)
|
Currency retranslation
gains/(losses)
|
756
|
(555)
|
Total comprehensive
income
|
5,062
|
3,224
|
|
|
|
Attributable to:
|
|
|
Non-controlling interests
|
379
|
284
|
Shareholders' equity
|
4,683
|
2,940
|
Consolidated statement of changes in equity
|
(unaudited)
|
|
|
|
|
|
|
|
|
€ million
|
Called
up
share
capital
|
Share
premium
account
|
Unification
reserve
|
Other
reserves
|
Retained
profit
|
Total
|
Non-
controlling
interest
|
Total
equity
|
First half - 2024
|
|
|
|
|
|
|
|
|
1 January 2024
|
88
|
52,844
|
(73,364)
|
(8,518)
|
47,052
|
18,102
|
2,662
|
20,764
|
Profit or loss for the
period
|
-
|
-
|
-
|
-
|
3,701
|
3,701
|
315
|
4,016
|
Other comprehensive income, net of
tax:
|
|
|
|
|
|
|
|
|
Gains/(losses) on:
|
|
|
|
|
|
|
|
|
Equity instruments
|
-
|
-
|
-
|
31
|
-
|
31
|
-
|
31
|
Cash flow hedges
|
-
|
-
|
-
|
58
|
-
|
58
|
-
|
58
|
Remeasurements of defined benefit
pension plans
|
-
|
-
|
-
|
-
|
200
|
200
|
1
|
201
|
Currency retranslation
gains/(losses)(d)
|
-
|
-
|
-
|
10
|
683
|
693
|
63
|
756
|
Total comprehensive
income
|
-
|
-
|
-
|
99
|
4,584
|
4,683
|
379
|
5,062
|
Dividends on ordinary
capital
|
-
|
-
|
-
|
-
|
(2,136)
|
(2,136)
|
-
|
(2,136)
|
Repurchase of
shares(a)
|
-
|
-
|
-
|
(375)
|
-
|
(375)
|
-
|
(375)
|
Movements in treasury
shares(b)
|
-
|
-
|
-
|
25
|
(100)
|
(75)
|
-
|
(75)
|
Share-based payment
credit(c)
|
-
|
-
|
-
|
-
|
164
|
164
|
-
|
164
|
Dividends paid to non-controlling
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(354)
|
(354)
|
Hedging gain/(loss) transferred to
non-financial assets
|
-
|
-
|
-
|
1
|
-
|
1
|
-
|
1
|
Other movements in
equity(e)
|
-
|
-
|
-
|
(59)
|
3
|
(56)
|
28
|
(28)
|
30 June 2024
|
88
|
52,844
|
(73,364)
|
(8,827)
|
49,567
|
20,308
|
2,715
|
23,023
|
|
|
|
|
|
|
|
|
|
First half - 2023
|
|
|
|
|
|
|
|
|
1 January 2023
|
92
|
52,844
|
(73,364)
|
(10,804)
|
50,253
|
19,021
|
2,680
|
21,701
|
Profit or loss for the
period
|
-
|
-
|
-
|
-
|
3,548
|
3,548
|
334
|
3,882
|
Other comprehensive income, net of
tax:
|
|
|
|
|
|
|
|
|
Gains/(losses) on:
|
|
|
|
|
|
|
|
|
Equity instruments
|
-
|
-
|
-
|
(33)
|
-
|
(33)
|
(1)
|
(34)
|
Cash flow hedges
|
-
|
-
|
-
|
(22)
|
-
|
(22)
|
-
|
(22)
|
Remeasurements of defined benefit
pension plans
|
-
|
-
|
-
|
-
|
(48)
|
(48)
|
1
|
(47)
|
Currency retranslation
gains/(losses)(d)
|
-
|
-
|
-
|
(736)
|
231
|
(505)
|
(50)
|
(555)
|
Total comprehensive
income
|
-
|
-
|
-
|
(791)
|
3,731
|
2,940
|
284
|
3,224
|
Dividends on ordinary
capital
|
-
|
-
|
-
|
-
|
(2,172)
|
(2,172)
|
-
|
(2,172)
|
Repurchase of
shares(a)
|
-
|
-
|
-
|
(753)
|
-
|
(753)
|
-
|
(753)
|
Movements in treasury
shares(b)
|
-
|
-
|
-
|
69
|
(68)
|
1
|
-
|
1
|
Share-based payment
credit(c)
|
-
|
-
|
-
|
-
|
159
|
159
|
-
|
159
|
Dividends paid to non-controlling
interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(276)
|
(276)
|
Hedging loss transferred to
non-financial assets
|
-
|
-
|
-
|
78
|
-
|
78
|
-
|
78
|
Other movements in equity
|
-
|
-
|
-
|
5
|
(22)
|
(17)
|
(24)
|
(41)
|
30 June 2023
|
92
|
52,844
|
(73,364)
|
(12,196)
|
51,881
|
19,257
|
2,664
|
21,921
|
(a) Repurchase of shares reflects
the cost of acquiring ordinary shares as part of the share buyback
program announced on 10 February 2022 and 8 February
2024.
(b) Includes purchases and sales of
treasury shares, other than the share buyback programme and the
transfer from treasury shares to retained profit of share-settled
schemes arising from prior years and differences between purchase
and grant price of share awards.
(c) The share-based payment credit
relates to the non-cash charge recorded against operating profit in
respect of the fair value of share options and awards granted to
employees.
(d) 2024 includes a hyperinflation
adjustment of €680 million (2023: €247 million) in
relation to Argentina and Turkey.
(e) Includes the following items
related to the acquisition of K18: €(59) million
non-controlling interest purchase option in other reserves and
€28 million non-controlling interest recognised on
acquisition.
Consolidated balance sheet
|
(unaudited)
|
|
|
|
€ million
|
As at 30
June 2024
|
As at 31
December 2023
|
As at 30
June 2023
|
Non-current assets
|
|
|
|
Goodwill
|
22,009
|
21,109
|
21,299
|
Intangible assets
|
19,092
|
18,357
|
18,664
|
Property, plant and
equipment
|
11,098
|
10,707
|
10,590
|
Pension asset for funded schemes in
surplus
|
3,837
|
3,781
|
4,244
|
Deferred tax assets
|
1,055
|
1,113
|
1,084
|
Financial assets
|
1,506
|
1,386
|
1,220
|
Other non-current assets
|
1,014
|
911
|
952
|
|
59,611
|
57,364
|
58,053
|
Current assets
|
|
|
|
Inventories
|
5,621
|
5,119
|
5,668
|
Trade and other current
receivables
|
7,999
|
5,775
|
8,046
|
Current tax assets
|
168
|
427
|
254
|
Cash and cash equivalents
|
4,970
|
4,159
|
4,994
|
Other financial assets
|
1,445
|
1,731
|
1,376
|
Assets held for sale
|
18
|
691
|
18
|
|
20,221
|
17,902
|
20,356
|
|
|
|
|
Total assets
|
79,832
|
75,266
|
78,409
|
|
|
|
|
Current liabilities
|
|
|
|
Financial liabilities
|
7,643
|
5,087
|
6,715
|
Trade payables and other current
liabilities
|
17,209
|
16,857
|
17,367
|
Current tax liabilities
|
721
|
851
|
891
|
Provisions
|
557
|
537
|
634
|
Liabilities held for sale
|
-
|
175
|
-
|
|
26,130
|
23,507
|
25,607
|
Non-current liabilities
|
|
|
|
Financial liabilities
|
24,011
|
24,535
|
23,993
|
Non-current tax
liabilities
|
494
|
384
|
280
|
Pensions and post-retirement
healthcare liabilities:
|
|
|
|
Funded schemes in deficit
|
144
|
351
|
431
|
Unfunded schemes
|
1,002
|
1,029
|
1,040
|
Provisions
|
581
|
563
|
547
|
Deferred tax liabilities
|
4,263
|
3,995
|
4,410
|
Other non-current
liabilities
|
184
|
138
|
180
|
|
30,679
|
30,995
|
30,881
|
|
|
|
|
Total liabilities
|
56,809
|
54,502
|
56,488
|
|
|
|
|
Equity
|
|
|
|
Shareholders' equity
|
20,308
|
18,102
|
19,257
|
Non-controlling interests
|
2,715
|
2,662
|
2,664
|
Total equity
|
23,023
|
20,764
|
21,921
|
|
|
|
|
Total liabilities and
equity
|
79,832
|
75,266
|
78,409
|
Consolidated cash flow statement
|
(unaudited)
|
First
Half
|
€ million
|
2024
|
2023
|
Net profit
|
4,016
|
3,882
|
Taxation
|
1,550
|
1,385
|
Share of net (profit)/loss of joint
ventures/associates and other (income)/loss from non-current
investments and associates
|
(133)
|
(108)
|
Net monetary (gain)/loss arising
from hyperinflationary economies
|
157
|
98
|
Net finance costs
|
358
|
259
|
Operating profit
|
5,948
|
5,516
|
|
|
|
Depreciation, amortisation and
impairment
|
794
|
754
|
Changes in working
capital
|
(2,127)
|
(1,331)
|
Inventories
|
(435)
|
100
|
Trade and other
receivables
|
(2,159)
|
(1,229)
|
Trade payables and other
liabilities
|
467
|
(202)
|
Pensions and similar obligations
less payments
|
36
|
(103)
|
Provisions less payments
|
35
|
(122)
|
Elimination of (profits)/losses on
disposals
|
(135)
|
(507)
|
Non-cash charge for share-based
compensation
|
164
|
159
|
Other adjustments
|
(36)
|
11
|
Cash flow from operating
activities
|
4,679
|
4,377
|
Income tax paid
|
(1,315)
|
(1,011)
|
Net cash flow from operating
activities
|
3,364
|
3,366
|
|
|
|
Interest received
|
189
|
139
|
Purchase of intangible
assets
|
(98)
|
(92)
|
Purchase of property, plant and
equipment
|
(617)
|
(478)
|
Disposal of property, plant and
equipment
|
5
|
22
|
Acquisition of businesses and
investments in joint ventures and associates
|
(797)
|
(67)
|
Disposal of businesses, joint
ventures and associates
|
489
|
419
|
Acquisition of other non-current
investments
|
(108)
|
(202)
|
Disposal of other non-current
investments
|
47
|
37
|
Dividends from joint ventures,
associates and other non-current investments
|
94
|
98
|
(Purchase)/sale of financial
assets
|
404
|
(76)
|
Net cash flow (used in)/from
investing activities
|
(392)
|
(200)
|
|
|
|
Dividends paid on ordinary share
capital
|
(2,136)
|
(2,202)
|
Interest paid
|
(691)
|
(503)
|
Net change in short-term
borrowings
|
850
|
158
|
Additional financial
liabilities
|
3,016
|
3,511
|
Repayment of financial
liabilities
|
(2,297)
|
(2,242)
|
Capital element of lease rental
payments
|
(191)
|
(197)
|
Repurchase of shares
|
(375)
|
(753)
|
Other financing
activities
|
(330)
|
(261)
|
Net cash flow (used in)/from
financing activities
|
(2,154)
|
(2,489)
|
|
|
|
Net increase/(decrease) in cash and
cash equivalents
|
818
|
677
|
|
|
|
Cash and cash equivalents at the
beginning of the period
|
4,045
|
4,225
|
|
|
|
Effect of foreign exchange rate
changes
|
(9)
|
(32)
|
|
|
|
Cash and cash equivalents at the end
of the period
|
4,854
|
4,870
|
Notes to
the condensed consolidated financial statements
|
(unaudited)
1. Accounting
information and policies
|
These condensed consolidated
financial statements are prepared in accordance with IAS 34
'Interim Financial Reporting' as issued by the International
Accounting Standards Board (IASB) and as adopted for use in the
UK.
As required by the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority,
the condensed consolidated financial statements have been prepared
applying the accounting policies and presentation that were applied
in the preparation of the Group's published consolidated financial
statements for the year ended 31 December 2023. In preparing these
condensed consolidated financial statements, judgements and
estimates that affect the application of accounting policies used
by management have remained consistent with those applied in the
consolidated financial statements for the year ended 31 December
2023.
These condensed consolidated
financial statements have been reviewed by our independent auditor
KPMG LLP.
Management have produced forecasts
which have been modelled for different plausible scenarios. These
scenarios confirm the Group is able to generate profits and cash in
the year ended 31 December 2024 and beyond. As a result, the
Directors have a reasonable expectation that the Group has adequate
resources to meet its obligations as they fall due for a period of
at least 12 months from the date of signing these condensed
consolidated financial statements. Accordingly, they continue to
adopt the going concern basis in preparing the half year condensed
consolidated financial statements.
The condensed consolidated financial
statements are shown at current exchange rates with year-on-year
changes shown to facilitate comparison. The consolidated income
statement on page 19, the consolidated statement of comprehensive income on
page 19, the
consolidated statement of changes in equity on page
20 and the consolidated
cash flow statement on page 22
are translated at exchange rates current in each
period. The consolidated balance sheet on page 21 is translated at period-end rates
of exchange.
The condensed consolidated financial
statements attached do not constitute the full financial statements
within the meaning of section 434 of the UK Companies Act 2006. The
comparative figures for the financial year ended 31 December 2023
are not Unilever PLC's statutory accounts for that financial year.
The annual financial statements of the Group are prepared in
accordance with international financial reporting standards (IFRS)
as issued by the International Accounting Standards Board (IASB)
and UK adopted international accounting standards and in accordance
with the requirements of the UK Companies Act 2006. Those accounts
for the year ended 31 December 2023 have been reported on by the
Group's auditor and delivered to the Registrar of Companies. The
report of the auditor on these accounts was (i) unqualified, (ii)
did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 498 (2) or (3)
of the UK Companies Act 2006.
Recent accounting developments
adopted by the Group
The Group adopted the amendments to
IAS 7 and IFRS 7 "Supplier Finance Arrangements" from reporting
period beginning 1 January 2024. The amendments introduce
additional disclosure requirements for companies that enter
supplier finance arrangements. The company will apply these
amendments in the 2024 Annual Report.
All other standards or amendments to
the standards that have been issued by the IASB and were effective
1 January 2024 were not applicable or material to
Unilever.
2. Segment information -
Business Groups
|
Second Quarter
|
Beauty
& Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
Turnover (€ million)
|
|
|
|
|
|
|
2023
|
3,143
|
3,519
|
3,057
|
3,260
|
2,760
|
15,739
|
2024
|
3,343
|
3,531
|
3,113
|
3,289
|
2,815
|
16,091
|
Change (%)
|
6.3
|
0.3
|
1.8
|
0.9
|
2.0
|
2.2
|
First Half
|
Beauty
& Wellbeing
|
Personal
Care
|
Home
Care
|
Nutrition
|
Ice
Cream
|
Total
|
Turnover (€ million)
|
|
|
|
|
|
|
2023
|
6,225
|
6,911
|
6,205
|
6,601
|
4,486
|
30,428
|
2024
|
6,539
|
6,953
|
6,328
|
6,687
|
4,610
|
31,117
|
Change (%)
|
5.1
|
0.6
|
2.0
|
1.3
|
2.8
|
2.3
|
|
|
|
|
|
|
|
Operating profit (€
million)
|
|
|
|
|
|
|
2023
|
1,237
|
1,691
|
731
|
1,213
|
644
|
5,516
|
2024
|
1,269
|
1,696
|
963
|
1,423
|
597
|
5,948
|
Underlying operating profit (€
million)
|
|
|
|
|
|
|
2023
|
1,179
|
1,381
|
763
|
1,214
|
671
|
5,208
|
2024
|
1,305
|
1,601
|
1,031
|
1,491
|
672
|
6,100
|
Turnover growth is made up of
distinct individual growth components namely underlying sales,
currency impact, acquisitions and disposals. Turnover growth is
arrived at by multiplying these individual components on a
compounded basis as there is a currency impact on each of the other
components. Accordingly, turnover growth is more than just the sum
of the individual components.
Underlying operating profit
represents our measure of segment profit or loss as it is the
primary measure used for the purpose of making decisions about
allocating resources and assessing performance of
segments.
3. Segment information -
Geographical area
|
Second Quarter
|
Asia
Pacific Africa
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2023
|
6,699
|
5,700
|
3,340
|
15,739
|
2024
|
6,732
|
5,924
|
3,435
|
16,091
|
Change (%)
|
0.5
|
3.9
|
2.9
|
2.2
|
First Half
|
Asia
Pacific Africa
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2023
|
13,421
|
10,956
|
6,051
|
30,428
|
2024
|
13,370
|
11,463
|
6,284
|
31,117
|
Change (%)
|
(0.4)
|
4.6
|
3.8
|
2.3
|
The effective tax rate for the first
half is 28.6% compared with 26.9% in 2023. The tax rate is
calculated by dividing the tax charge by pre-tax profit excluding
the contribution of joint ventures and associates.
Tax effects of components of other
comprehensive income were as follows:
|
First
half
|
|
2024
|
2023
|
€ million
|
Before
tax
|
Tax
(charge)/credit
|
After
tax
|
Before
tax
|
Tax
(charge)/credit
|
After
tax
|
Gains/(losses) on:
|
|
|
|
|
|
|
Equity instruments at fair value
through other comprehensive income
|
31
|
-
|
31
|
(34)
|
-
|
(34)
|
Cash flow hedges
|
63
|
(5)
|
58
|
(20)
|
(2)
|
(22)
|
Remeasurements of defined benefit
pension plans
|
242
|
(41)
|
201
|
(90)
|
43
|
(47)
|
Currency retranslation
gains/(losses)
|
772
|
(16)
|
756
|
(535)
|
(20)
|
(555)
|
Other comprehensive
income
|
1,108
|
(62)
|
1,046
|
(679)
|
21
|
(658)
|
The earnings per share calculations
are based on the average number of share units representing the
ordinary shares of PLC in issue during the period, less the average
number of shares held as treasury shares.
In calculating diluted earnings per
share, a number of adjustments are made to the number of shares,
principally the exercise of share plans by employees.
Earnings per share for total
operations for the six months were calculated as
follows:
|
First
Half
|
|
2024
|
2023
|
EPS - Basic
|
|
|
Net profit attributable to
shareholders' equity (€ million)
|
3,701
|
3,548
|
Average number of shares (millions
of share units)
|
2,499.9
|
2,523.9
|
EPS - basic (€)
|
1.48
|
1.41
|
|
|
|
EPS - Diluted
|
|
|
Net profit attributable to
shareholders' equity (€ million)
|
3,701
|
3,548
|
Adjusted average number of shares
(millions of share units)
|
2,511.0
|
2,536.8
|
EPS - diluted (€)
|
1.47
|
1.40
|
During the period the following
movements in shares have taken place:
|
Millions
|
Number of shares at 31 December 2023
(net of treasury shares)
|
2,499.0
|
Shares repurchased under the share
buyback programme
|
(7.3)
|
Net movements in shares under
incentive schemes
|
3.7
|
Number of shares at 30 June 2024
(net of treasury shares)
|
2,495.4
|
6. Acquisitions and
disposals
|
In the first half of 2024, the Group
completed the following business acquisitions and
disposals:
Deal completion date
|
Acquired/disposed
business
|
1 February 2024
|
Acquired 91.88% of K18, a U.S. based
premium hair care brand. The acquisition complements Unilever's
existing Beauty and Wellbeing portfolio, with a range of
high-quality, hair care products.
|
1 June 2024
|
Sold Elida Beauty to Yellow Wood
Partners LLC. Elida Beauty comprises more than 20 beauty and
personal care brands, such as Q-Tips, Caress, Timotei and
TIGI.
|
On 1 June 2024, Unilever completed
the disposal of the Elida Beauty business to Yellow Wood Partners
LLC for consideration of €588 million. Profit on this disposal
is €151 million, recognised as a non-underlying
item.
In July we announced agreements to
sell our water purification businesses Pureit, to A.O. Smith, and
stake in Qinyuan Group, to Yong Chao Venture Capital Co., Ltd. The
deals are expected to complete in the second half of the
year.
On 8 February 2024, Unilever PLC
announced a programme to buy back shares with an aggregate market
value equivalent of up to €1.5 billion, to be completed during
2024. On 17 May 2024, Unilever announced the commencement of the
first tranche of the buyback programme (the "First Tranche") for an
aggregate market value equivalent of up to €850 million. As at
30 June 2024, 7,315,036 shares had been purchased for €375
million, which will be held as Treasury stock until
cancellation.
The Group's Treasury function aims
to protect the Group's financial investments, while maximising
returns. The fair value of financial assets is the same as the
carrying amount for 2024 and 2023. The Group's cash resources
and
other financial assets are shown below.
|
30 June
2024
|
31
December 2023
|
30 June
2023
|
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Cash at bank and in hand
|
3,601
|
-
|
3,601
|
2,862
|
-
|
2,862
|
2,790
|
-
|
2,790
|
Short-term
deposits(a)
|
981
|
-
|
981
|
1,181
|
-
|
1,181
|
1,804
|
-
|
1,804
|
Other cash
equivalents(b)
|
388
|
-
|
388
|
116
|
-
|
116
|
400
|
-
|
400
|
|
4,970
|
-
|
4,970
|
4,159
|
-
|
4,159
|
4,994
|
-
|
4,994
|
Other financial assets
|
|
|
|
|
|
|
|
|
|
Financial assets at amortised
cost(c)
|
835
|
560
|
1,395
|
961
|
454
|
1,415
|
727
|
352
|
1,079
|
Financial assets at fair value
through other comprehensive income(d)
|
61
|
525
|
586
|
151
|
458
|
609
|
-
|
438
|
438
|
Financial assets at fair value
through profit or loss:
|
|
|
|
|
|
|
|
|
|
Derivatives
|
79
|
39
|
118
|
37
|
75
|
112
|
36
|
31
|
67
|
Other(e)
|
470
|
382
|
852
|
582
|
399
|
981
|
613
|
399
|
1,012
|
|
1,445
|
1,506
|
2,951
|
1,731
|
1,386
|
3,117
|
1,376
|
1,220
|
2,596
|
Total financial
assets(f)
|
6,415
|
1,506
|
7,921
|
5,890
|
1,386
|
7,276
|
6,370
|
1,220
|
7,590
|
(a) Short-term deposits typically
have maturity of up to 3 months.
(b) Other cash equivalents include
investments in overnight funds and marketable
securities.
(c) Current financial assets at
amortised cost include short term deposits with banks with
maturities longer than three months excluding deposits which are
part of a recognised cash management process and loans to joint
venture entities. Non-current financial assets at amortised cost
include judicial deposits of €212 million (31 December 2023: €227
million; 30 June 2023: €228 million).
(d) Included within non-current
financial assets at fair value through other comprehensive income
are equity investments.
(e) Other financial assets at fair
value through profit or loss include money market funds, marketable
securities, other capital market instruments
and investments in companies and financial institutions in North
America, North Asia, South Asia and Europe.
(f) Financial assets exclude trade
and other current receivables.
The Group is exposed to the risks of
changes in fair value of its financial assets and liabilities. The
following tables summarise the fair values and carrying amounts of
financial instruments and the fair value calculations by
category.
€ million
|
Fair
value
|
Carrying
amount
|
|
As at 30
June 2024
|
As at 31
December 2023
|
As at 30
June 2023
|
As at 30
June 2024
|
As at 31
December 2023
|
As at 30
June 2023
|
Financial assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
4,970
|
4,159
|
4,994
|
4,970
|
4,159
|
4,994
|
Financial assets at amortised
cost
|
1,395
|
1,415
|
1,079
|
1,395
|
1,415
|
1,079
|
Financial assets at fair value
through other comprehensive income
|
586
|
609
|
438
|
586
|
609
|
438
|
Financial assets at fair value
through profit and loss:
|
|
|
|
|
|
|
Derivatives
|
118
|
112
|
67
|
118
|
112
|
67
|
Other
|
852
|
981
|
1,012
|
852
|
981
|
1,012
|
|
7,921
|
7,276
|
7,590
|
7,921
|
7,276
|
7,590
|
Financial liabilities
|
|
|
|
|
|
|
Bank loans and overdrafts
|
(460)
|
(506)
|
(606)
|
(460)
|
(506)
|
(606)
|
Bonds and other loans
|
(27,836)
|
(26,112)
|
(26,265)
|
(28,729)
|
(26,692)
|
(27,599)
|
Lease liabilities
|
(1,358)
|
(1,395)
|
(1,428)
|
(1,358)
|
(1,395)
|
(1,428)
|
Derivatives
|
(537)
|
(494)
|
(618)
|
(537)
|
(494)
|
(618)
|
Other financial
liabilities
|
(570)
|
(535)
|
(457)
|
(570)
|
(535)
|
(457)
|
|
(30,761)
|
(29,042)
|
(29,374)
|
(31,654)
|
(29,622)
|
(30,708)
|
€ million
|
As at 30
June 2024
|
As at 31
December 2023
|
As at 30
June 2023
|
|
Level
1
|
Level
2
|
Level
3
|
Level
1
|
Level
2
|
Level
3
|
Level
1
|
Level
2
|
Level
3
|
Assets at fair value
|
|
|
|
|
|
|
|
|
|
Financial assets at fair value
through other comprehensive income
|
70
|
4
|
512
|
163
|
4
|
442
|
14
|
3
|
421
|
Financial assets at fair value
through profit or loss:
|
|
|
|
|
|
|
|
|
|
Derivatives(a)
|
-
|
192
|
-
|
-
|
149
|
-
|
-
|
142
|
-
|
Other
|
470
|
-
|
382
|
582
|
-
|
399
|
613
|
-
|
399
|
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
Derivatives(b)
|
-
|
(586)
|
-
|
-
|
(559)
|
-
|
-
|
(718)
|
-
|
Contingent consideration
|
-
|
-
|
(8)
|
-
|
-
|
(157)
|
-
|
-
|
(123)
|
(a) Includes €74 million (31
December 2023: €37 million; 30 June 2023: €75 million) derivatives,
reported within trade receivables, that hedge trading
activities.
(b) Includes €(49) million (31
December 2023: €(65) million; 30 June 2023: €(100) million)
derivatives, reported within trade creditors, that hedge trading
activities.
There were no significant changes in
classification of fair value of financial assets and financial
liabilities since
31 December 2023. There were also no significant movements between
the fair value hierarchy classifications since 31 December
2023.
The fair value of trade receivables
and payables is considered to be equal to the carrying amount of
these items due to their short-term nature. The fair value of
financial assets and financial liabilities (excluding listed bonds)
is considered to be same as the carrying amount for 2024 and
2023.
Calculation of fair
values
The fair values of the financial
assets and liabilities are defined as the price that would be
received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date. Methods and assumptions used to estimate the fair values are
consistent with those used in the year ended 31 December
2023.
The Board has declared a quarterly
interim dividend for Q2 2024 of £0.3696 per Unilever PLC ordinary
share or €0.4396 per Unilever PLC ordinary share at the applicable
exchange rate issued by WM/Reuters on 23 July 2024.
The following amounts will be paid
in respect of this quarterly interim dividend on the relevant
payment date:
Per Unilever PLC ordinary share
(traded on the London Stock Exchange):
|
£0.3696
|
Per Unilever PLC ordinary share
(traded on Euronext in Amsterdam):
|
€0.4396
|
Per Unilever PLC American Depositary
Receipt:
|
US$0.4773
|
The euro and US dollar amounts above
have been determined using the applicable exchange rates issued by
WM/Reuters on 23 July 2024.
US dollar cheques for the quarterly
interim dividend will be mailed on 6 September 2024 to holders
of record at the close of business on 9 August
2024.
The quarterly dividend calendar for
the remainder of 2024 will be as follows:
|
Announcement Date
|
Ex-Dividend Date
|
Record
Date
|
Payment
Date
|
Q2 2024 Dividend
|
25 July
2024
|
08 August
2024
|
09 August
2024
|
06
September 2024
|
Q3 2024 Dividend
|
24
October 2024
|
07
November 2024
|
08
November 2024
|
06
December 2024
|
10. Events after the balance
sheet date
|
There are no material post balance
sheet events other than those mentioned elsewhere in this
report.