CONSISTENT PERFORMANCE SUSTAINED DESPITE CHALLENGING MARKETS
|
·
|
Turnover up 11.5% at €25.4 billion with a positive impact from foreign exchange of 1.9% and acquisitions net of disposals of 2.2%.
|
·
|
First half underlying sales growth 7.0% comprising volume growth of 2.8% and price growth of 4.1%. Second quarter underlying sales growth of 5.8%.
|
·
|
Emerging markets underlying sales growth up 11.4% in the first half; up 11.0% in the second quarter.
|
·
|
Core operating margin flat; increased advertising and promotions investment behind our brands.
|
·
|
Core earnings per share up 6% at €0.76; free cash flow at €1.5 billion.
|
Paul Polman: Chief Executive Officer statement
|
Key Financials (unaudited)
Current Rates
|
First Half 2012
|
|
Underlying Sales Growth (*)
|
7.0%
|
|
Turnover
|
€25.4bn
|
+11.5%
|
Operating Profit
|
€3.4bn
|
+4%
|
Net Profit
|
€2.4bn
|
+1%
|
Core earnings per share (*)
|
€0.76
|
+6%
|
Diluted earnings per share
|
€0.75
|
-3%
|
Quarterly dividend payable in September 2012 €0.243 per share
|
OPERATIONAL REVIEW: CATEGORIES
|
Second Quarter 2012
|
First Half 2012
|
||||||||
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Change in core operating
margin
|
€bn
|
%
|
%
|
%
|
€bn
|
%
|
%
|
%
|
bps
|
|
Unilever Total
|
13.3
|
5.8
|
2.2
|
3.5
|
25.4
|
7.0
|
2.8
|
4.1
|
0
|
Personal Care
|
4.5
|
10.4
|
7.2
|
3.0
|
8.7
|
10.4
|
6.7
|
3.5
|
(140)
|
Foods
|
3.6
|
0.6
|
(2.4)
|
3.1
|
7.1
|
3.2
|
(1.0)
|
4.2
|
50
|
Home Care
|
2.2
|
9.6
|
5.9
|
3.5
|
4.4
|
9.8
|
5.3
|
4.3
|
50
|
Refreshment
|
3.1
|
3.2
|
(1.4)
|
4.7
|
5.2
|
4.9
|
0.3
|
4.5
|
70
|
OPERATIONAL REVIEW: GEOGRAPHIES
|
Second Quarter 2012
|
First Half 2012
|
||||||||
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Change in
core operating
margin
|
€bn
|
%
|
%
|
%
|
€bn
|
%
|
%
|
%
|
bps
|
|
Unilever Total
|
13.3
|
5.8
|
2.2
|
3.5
|
25.4
|
7.0
|
2.8
|
4.1
|
0
|
Asia/AMET/RUB
|
5.2
|
10.7
|
5.8
|
4.7
|
10.0
|
11.0
|
5.4
|
5.3
|
80
|
The Americas
|
4.4
|
7.5
|
2.7
|
4.7
|
8.5
|
7.7
|
2.0
|
5.6
|
(30)
|
Europe
|
3.7
|
(2.2)
|
(2.7)
|
0.5
|
6.9
|
1.1
|
0.3
|
0.7
|
(80)
|
ADDITIONAL COMMENTARY ON THE FINANCIAL STATEMENTS - FIRST HALF 2012
|
CAUTIONARY STATEMENT
|
ENQUIRIES
|
Media: Media Relations Team
|
Investors: Investor Relations Team
|
UK +44 20 7822 6719 trevor.gorin@unilever.com
|
+44 20 7822 6830 investor.relations@unilever.com
|
NL +31 10 217 4844 flip.dotsch@unilever.com
|
INCOME STATEMENT
|
€ million
|
First Half
|
|||
2012
|
2011
|
Increase/
(Decrease)
|
||
Current
rates
|
Constant
rates
|
|||
Turnover
|
25,398
|
22,788
|
11.5%
|
9.3%
|
Operating profit
|
3,429
|
3,308
|
4%
|
2%
|
After (charging)/crediting non-core items
|
(38)
|
194
|
||
Net finance costs
|
(206)
|
(165)
|
||
Finance income
|
82
|
42
|
||
Finance costs
|
(283)
|
(237)
|
||
Pensions and similar obligations
|
(5)
|
30
|
||
Share of net profit/(loss) of joint ventures and associates
|
60
|
64
|
||
Other income/(loss) from non-current investments
|
(11)
|
23
|
||
Profit before taxation
|
3,272
|
3,230
|
1%
|
0%
|
Taxation
|
(837)
|
(825)
|
||
Net profit
|
2,435
|
2,405
|
1%
|
0%
|
Attributable to:
|
||||
Non-controlling interests
|
254
|
170
|
||
Shareholders' equity
|
2,181
|
2,235
|
(2)%
|
(4)%
|
Combined earnings per share
|
||||
Basic earnings per share (euros)
|
0.77
|
0.79
|
(3)%
|
(4)%
|
Diluted earnings per share (euros)
|
0.75
|
0.77
|
(3)%
|
(4)%
|
STATEMENT OF COMPREHENSIVE INCOME
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Net profit
|
2,435
|
2,405
|
Other comprehensive income
|
||
Fair value gains/(losses) on financial instruments net of tax
|
(69)
|
(57)
|
Actuarial gains/(losses) on pension schemes net of tax
|
(722)
|
95
|
Currency retranslation gains/(losses) net of tax
|
(204)
|
(270)
|
Total comprehensive income
|
1,440
|
2,173
|
Attributable to:
|
||
Non-controlling interests
|
242
|
132
|
Shareholders' equity
|
1,198
|
2,041
|
STATEMENT OF CHANGES IN EQUITY
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Equity at 1 January
|
14,921
|
15,078
|
Total comprehensive income for the period
|
1,440
|
2,173
|
Dividends on ordinary capital
|
(1,323)
|
(1,221)
|
Movement in treasury stock
|
31
|
(43)
|
Share-based payment credit
|
66
|
66
|
Dividends paid to non-controlling interests
|
(99)
|
(93)
|
Currency retranslation gains/(losses) net of tax
|
1
|
(10)
|
Other movements in equity
|
(89)
|
(94)
|
Equity at the end of the period
|
14,948
|
15,856
|
BALANCE SHEET
|
€ million
|
As at
30 June
2012
|
As at
31 December
2011
|
As at
30 June
2011
|
Non-current assets
|
|||
Goodwill
|
15,012
|
14,896
|
14,133
|
Intangible assets
|
7,249
|
7,017
|
6,124
|
Property, plant and equipment
|
9,113
|
8,774
|
8,018
|
Pension asset for funded schemes in surplus
|
599
|
1,003
|
1,130
|
Deferred tax assets
|
366
|
421
|
235
|
Financial assets
|
574
|
478
|
493
|
Other non-current assets
|
562
|
632
|
548
|
33,475
|
33,221
|
30,681
|
|
Current assets
|
|||
Inventories
|
5,003
|
4,601
|
4,633
|
Trade and other current receivables
|
5,462
|
4,513
|
5,421
|
Current tax assets
|
702
|
219
|
231
|
Cash and cash equivalents
|
4,097
|
3,484
|
2,332
|
Other financial assets
|
564
|
1,453
|
568
|
Non-current assets held for sale
|
143
|
21
|
169
|
15,971
|
14,291
|
13,354
|
|
Total assets
|
49,446
|
47,512
|
44,035
|
Current liabilities
|
|||
Financial liabilities
|
6,564
|
5,840
|
3,153
|
Trade payables and other current liabilities
|
11,977
|
10,971
|
10,849
|
Current tax liabilities
|
1,474
|
725
|
650
|
Provisions
|
352
|
393
|
395
|
Liabilities associated with assets held for sale
|
-
|
-
|
32
|
20,367
|
17,929
|
15,079
|
|
Non-current liabilities
|
|||
Financial liabilities
|
7,248
|
7,878
|
7,852
|
Non-current tax liabilities
|
188
|
258
|
200
|
Pensions and post-retirement healthcare liabilities:
|
|||
Funded schemes in deficit
|
2,685
|
2,295
|
932
|
Unfunded schemes
|
1,981
|
1,911
|
1,746
|
Provisions
|
962
|
908
|
887
|
Deferred tax liabilities
|
725
|
1,125
|
1,219
|
Other non-current liabilities
|
342
|
287
|
264
|
14,131
|
14,662
|
13,100
|
|
Total liabilities
|
34,498
|
32,591
|
28,179
|
Equity
|
|||
Shareholders' equity
|
14,234
|
14,293
|
15,275
|
Non-controlling interests
|
714
|
628
|
581
|
Total equity
|
14,948
|
14,921
|
15,856
|
Total liabilities and equity
|
49,446
|
47,512
|
44,035
|
CASH FLOW STATEMENT
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Net profit
|
2,435
|
2,405
|
Taxation
|
837
|
825
|
Share of net profit of joint ventures/associates and other income
|
||
from non-current investments
|
(49)
|
(87)
|
Net finance costs
|
206
|
165
|
Operating profit
|
3,429
|
3,308
|
Depreciation, amortisation and impairment
|
582
|
505
|
Changes in working capital
|
(488)
|
(1,191)
|
Pensions and similar obligations less payments
|
(163)
|
(240)
|
Provisions less payments
|
38
|
97
|
Elimination of (profits)/losses on disposals
|
(128)
|
(132)
|
Non-cash charge for share-based compensation
|
66
|
66
|
Other adjustments
|
4
|
10
|
Cash flow from operating activities
|
3,340
|
2,423
|
Income tax paid
|
(801)
|
(552)
|
Net cash flow from operating activities
|
2,539
|
1,871
|
Interest received
|
81
|
43
|
Net capital expenditure
|
(826)
|
(906)
|
Acquisitions and disposals
|
(94)
|
(1,381)
|
Other investing activities
|
996
|
(43)
|
Net cash flow (used in)/from investing activities
|
157
|
(2,287)
|
Dividends paid on ordinary share capital
|
(1,324)
|
(1,220)
|
Interest and preference dividends paid
|
(257)
|
(204)
|
Change in financial liabilities
|
(13)
|
1,695
|
Other movements on treasury stock
|
31
|
(48)
|
Other financing activities
|
(85)
|
(208)
|
Net cash flow (used in)/from financing activities
|
(1,648)
|
15
|
Net increase/(decrease) in cash and cash equivalents
|
1,048
|
(401)
|
Cash and cash equivalents at the beginning of the period
|
2,978
|
1,966
|
Effect of foreign exchange rate changes
|
(260)
|
161
|
Cash and cash equivalents at the end of the period
|
3,766
|
1,726
|
NOTES TO THE FINANCIAL STATEMENTS
|
1 ACCOUNTING INFORMATION AND POLICIES
|
2 NON-GAAP MEASURES
|
3 SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Acquisition and disposal related costs
|
(48)
|
(101)
|
Gain/(loss) on disposal of group companies
|
10
|
144
|
Impairments and other one-off items
|
-
|
151
|
Non-core items before tax
|
(38)
|
194
|
Tax impact of non-core items
|
11
|
(30)
|
Non-core items after tax
|
(27)
|
164
|
Attributable to:
|
||
Non-controlling interests
|
-
|
-
|
Shareholders' equity
|
(27)
|
164
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Net profit attributable to shareholders' equity
|
2,181
|
2,235
|
Post tax impact of non-core items
|
27
|
(164)
|
Core profit attributable to shareholder's equity
|
2,208
|
2,071
|
4 SEGMENT INFORMATION - CATEGORIES
|
Second Quarter
|
Personal
Care
|
Foods
|
Home
Care
|
Refreshment
|
Total
|
|
Turnover (€ million)
|
||||||
2011
|
3,711
|
3,452
|
2,005
|
2,763
|
11,931
|
|
2012
|
4,455
|
3,563
|
2,180
|
3,056
|
13,254
|
|
Change (%)
|
20.0
|
3.2
|
8.7
|
10.6
|
11.1
|
|
Impact of:
|
||||||
Exchange rates (%)
|
3.1
|
3.3
|
(0.5)
|
5.4
|
3.1
|
|
Acquisitions (%)
|
5.9
|
0.0
|
1.1
|
1.0
|
2.4
|
|
Disposals (%)
|
(0.4)
|
(0.8)
|
(1.4)
|
0.6
|
(0.4)
|
|
Underlying sales growth (%)
|
10.4
|
0.6
|
9.6
|
3.2
|
5.8
|
|
Price (%)
|
3.0
|
3.1
|
3.5
|
4.7
|
3.5
|
|
Volume (%)
|
7.2
|
(2.4)
|
5.9
|
(1.4)
|
2.2
|
First Half
|
Personal Care
|
Foods
|
Home
Care
|
Refreshment
|
Total
|
|
Turnover (€ million)
|
||||||
2011
|
7,236
|
6,834
|
4,018
|
4,700
|
22,788
|
|
2012
|
8,715
|
7,131
|
4,378
|
5,174
|
25,398
|
|
Change (%)
|
20.4
|
4.3
|
9.0
|
10.1
|
11.5
|
|
Impact of:
|
||||||
Exchange rates (%)
|
2.1
|
2.2
|
(0.6)
|
3.4
|
1.9
|
|
Acquisitions (%)
|
7.4
|
0.0
|
1.0
|
0.8
|
2.8
|
|
Disposals (%)
|
(0.4)
|
(1.1)
|
(1.2)
|
0.6
|
(0.5)
|
|
Underlying sales growth (%)
|
10.4
|
3.2
|
9.8
|
4.9
|
7.0
|
|
Price (%)
|
3.5
|
4.2
|
4.3
|
4.5
|
4.1
|
|
Volume (%)
|
6.7
|
(1.0)
|
5.3
|
0.3
|
2.8
|
|
Operating profit (€ million)
|
||||||
2011
|
1,216
|
1,384
|
215
|
493
|
3,308
|
|
2012
|
1,406
|
1,264
|
219
|
540
|
3,429
|
|
Core operating profit (€ million)
|
||||||
2011
|
1,302
|
1,176
|
178
|
458
|
3,114
|
|
2012
|
1,448
|
1,264
|
215
|
540
|
3,467
|
|
Operating margin (%)
|
||||||
2011
|
16.8
|
20.3
|
5.4
|
10.5
|
14.5
|
|
2012
|
16.1
|
17.7
|
5.0
|
10.4
|
13.5
|
|
Core operating margin (%)
|
||||||
2011
|
18.0
|
17.2
|
4.4
|
9.7
|
13.7
|
|
2012
|
16.6
|
17.7
|
4.9
|
10.4
|
13.7
|
|
5 SEGMENT INFORMATION - GEOGRAPHIES
|
Second Quarter
|
Asia /
AMET /
RUB
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
||||
2011
|
4,444
|
3,783
|
3,704
|
11,931
|
2012
|
5,154
|
4,388
|
3,712
|
13,254
|
Change (%)
|
16.0
|
16.0
|
0.2
|
11.1
|
Impact of:
|
||||
Exchange rates (%)
|
3.1
|
4.9
|
1.0
|
3.1
|
Acquisitions (%)
|
1.8
|
3.3
|
2.1
|
2.4
|
Disposals (%)
|
(0.2)
|
(0.4)
|
(0.7)
|
(0.4)
|
Underlying sales growth (%)
|
10.7
|
7.5
|
(2.2)
|
5.8
|
Price (%)
|
4.7
|
4.7
|
0.5
|
3.5
|
Volume (%)
|
5.8
|
2.7
|
(2.7)
|
2.2
|
First Half
|
Asia /
AMET /
RUB
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
||||
2011
|
8,697
|
7,368
|
6,723
|
22,788
|
2012
|
9,977
|
8,479
|
6,942
|
25,398
|
Change (%)
|
14.7
|
15.1
|
3.3
|
11.5
|
Impact of:
|
||||
Exchange rates (%)
|
1.7
|
3.2
|
0.6
|
1.9
|
Acquisitions (%)
|
1.9
|
4.3
|
2.3
|
2.8
|
Disposals (%)
|
(0.3)
|
(0.7)
|
(0.7)
|
(0.5)
|
Underlying sales growth (%)
|
11.0
|
7.7
|
1.1
|
7.0
|
Price (%)
|
5.3
|
5.6
|
0.7
|
4.1
|
Volume (%)
|
5.4
|
2.0
|
0.3
|
2.8
|
Operating profit (€ million)
|
||||
2011
|
1,080
|
1,146
|
1,082
|
3,308
|
2012
|
1,337
|
1,115
|
977
|
3,429
|
Core operating profit (€ million)
|
||||
2011
|
1,098
|
1,016
|
1,000
|
3,114
|
2012
|
1,341
|
1,148
|
978
|
3,467
|
Operating margin (%)
|
||||
2011
|
12.4
|
15.6
|
16.1
|
14.5
|
2012
|
13.4
|
13.2
|
14.1
|
13.5
|
Core operating margin (%)
|
||||
2011
|
12.6
|
13.8
|
14.9
|
13.7
|
2012
|
13.4
|
13.5
|
14.1
|
13.7
|
Additional geographical information
|
First Half 2012
|
First Half 2011
|
|||||||
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
€m
|
%
|
%
|
%
|
€m
|
%
|
%
|
%
|
|
Unilever Total
|
25,398
|
7.0
|
2.8
|
4.1
|
22,788
|
5.7
|
2.2
|
3.5
|
Developed markets
|
11,550
|
1.9
|
(0.1)
|
2.0
|
10,544
|
0.8
|
(0.9)
|
1.6
|
Emerging markets
|
13,848
|
11.4
|
5.4
|
5.8
|
12,244
|
10.3
|
4.9
|
5.1
|
First Half 2012
|
First Half 2011
|
|||||||
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
|
€m
|
%
|
%
|
%
|
€m
|
%
|
%
|
%
|
|
The Americas
|
8,479
|
7.7
|
2.0
|
5.6
|
7,368
|
5.3
|
0.3
|
5.0
|
North America
|
4,471
|
4.1
|
(0.5)
|
4.6
|
3,766
|
1.5
|
(1.5)
|
3.1
|
Latin America
|
4,008
|
11.6
|
4.7
|
6.6
|
3,602
|
9.7
|
2.4
|
7.1
|
6 TAXATION
|
€ million
|
First Half 2012
|
First Half 2011
|
||||
Before
tax
|
Tax
(charge)/
credit
|
After
tax
|
Before
tax
|
Tax
(charge)/
credit
|
After
tax
|
|
Fair value gains/(losses) on financial instruments
|
(74)
|
5
|
(69)
|
(66)
|
9
|
(57)
|
Actuarial gains/(losses) on pension schemes
|
(935)
|
213
|
(722)
|
145
|
(50)
|
95
|
Currency retranslation gains/(losses)
|
(208)
|
4
|
(204)
|
(278)
|
8
|
(270)
|
Other comprehensive income
|
(1,217)
|
222
|
(995)
|
(199)
|
(33)
|
(232)
|
7 FREE CASH FLOW
|
€ million
|
First Half
|
|
2012
|
2011
|
|
Cash flow from operating activities
|
3,340
|
2,423
|
Income tax paid
|
(801)
|
(552)
|
Net capital expenditure
|
(826)
|
(906)
|
Net interest and preference dividends paid
|
(176)
|
(161)
|
Free cash flow
|
1,537
|
804
|
8 NET DEBT
|
€ million
|
As at
30 June
2012
|
As at
31 December
2011
|
As at
30 June
2011
|
Total financial liabilities
|
(13,812)
|
(13,718)
|
(11,005)
|
Current financial liabilities
|
(6,564)
|
(5,840)
|
(3,153)
|
Non-current financial liabilities
|
(7,248)
|
(7,878)
|
(7,852)
|
Cash and cash equivalents as per balance sheet
|
4,097
|
3,484
|
2,332
|
Cash and cash equivalents as per cash flow statement
|
3,766
|
2,978
|
1,726
|
Add bank overdrafts deducted therein
|
331
|
506
|
606
|
Other financial assets
|
564
|
1,453
|
568
|
Net debt
|
(9,151)
|
(8,781)
|
(8,105)
|
9 COMBINED EARNINGS PER SHARE
|
2012
|
2011
|
|
Combined EPS - Basic
|
||
Net profit attributable to shareholders' equity (€ million)
|
2,181
|
2,235
|
Average number of combined share units (millions of units)
|
2,826.9
|
2,814.2
|
Combined EPS - basic (€)
|
0.77
|
0.79
|
Combined EPS - Diluted
|
||
Net profit attributable to shareholders' equity (€ million)
|
2,181
|
2,235
|
Adjusted average number of combined share units (millions of units)
|
2,916.8
|
2,906.3
|
Combined EPS - diluted (€)
|
0.75
|
0.77
|
Core EPS
|
||
Core profit attributable to shareholder's equity (see note 3) (€ million)
|
2,208
|
2,071
|
Adjusted average number of combined share units (millions of units)
|
2,916.8
|
2,906.3
|
Core EPS - diluted (€)
|
0.76
|
0.71
|
Millions
|
||
Number of shares at 31 December 2011 (net of treasury stock)
|
2,820.4
|
|
Net movements in shares under incentive schemes
|
9.4
|
|
Number of shares at 30 June 2012
|
2,829.8
|
10 ACQUISITIONS AND DISPOSALS
|
11 DIVIDENDS
|
Per Unilever N.V. ordinary share:
|
€ 0.2430
|
Per Unilever PLC ordinary share:
|
£ 0.1892
|
Per Unilever N.V. New York share:
|
US$ 0.2938
|
Per Unilever PLC American Depositary Receipt:
|
US$ 0.2938
|
Announcement Date
|
Ex-Dividend Date
|
Record Date
|
Payment Date
|
|
Quarterly dividend - for Q2 2012
|
26 July 2012
|
8 August 2012
|
10 August 2012
|
12 September 2012
|
Quarterly dividend - for Q3 2012
|
25 October 2012
|
7 November 2012
|
9 November 2012
|
12 December 2012
|
12 EVENTS AFTER THE BALANCE SHEET DATE
|
RESPONSIBILITIES OF DIRECTORS
|
|
· this condensed set of interim financial statements, which have been prepared in accordance with IAS 34 'Interim Financial Reporting', 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 UK DTR regulations 4.2.7 and 4.2.8 and section 5:25d (8)/(9) of the Dutch Act on Financial Supervision (Wet op het financieel
toezicht). |
UNILEVER PLC
|
/S/ T.E. LOVELL
By T.E. LOVELL
SECRETARY
|