News Column

3rd Quarter Results

Oct 25 2012 12:00AM



LONDON and ROTTERDAM, THE NETHERLANDS -- (Marketwire) -- 10/25/12 --

UNILEVER TRADING STATEMENT THIRD QUARTER 2012 SUSTAINED GROWTH MOMENTUM DRIVEN BY EMERGING MARKETSThird quarter highlights* Turnover increased by 10.3% to EUR13.4 billion with a positiveimpact of 4.1% from FX and 0.1% from M&A* Underlying sales growth 5.9% with emerging markets up 12.1%* Underlying volume growth 3.4% ahead of our markets; pricing up2.4%Nine months highlights* Turnover increased by 11.1% to EUR38.8 billion with a positiveimpact of 2.6% from FX and 1.5% from M&A* Underlying sales growth 6.6% with emerging markets up 11.7%* Underlying volume growth 3.0% ahead of our markets; pricing up3.5%Paul Polman: Chief Executive Officer statement"I am pleased that we haveagain reported good quality growth, withvolumes ahead of our markets. This consistent performance, despitecontinued high levels of competitive intensity, depressed economies andincreasing global imbalances and uncertainty, shows that the Unilevertransformation is well on track and is being embedded deeply in thebusiness.The Compass strategy and the Unilever Sustainable Living Plan aredriving aligned actions across the business. We are seeing a steadyimprovement in the quality of our innovation, meeting the needs ofconsumers wherever they are. The organisational structure that weannounced last year is already paying off and we are seeing benefits interms of our agility and discipline in operational execution.I am particularly pleased with the progress that we have made inattracting and retaining the best talent. This is increasingly beingrecognised externally. For example we have won awards for diversity inChina and Europe and we were recently ranked as the world's fifth mostdesirable company to work for in a survey by the Linkedin professionalnetworking site. This is an area where we see that a sociallyresponsible approach brings a tangible business benefit.Looking forward, it is clear that the environment will remainchallenging. Commodity cost inflation is high and remains volatile andthere is no sign that the level of competition will ease. In thischallenging environment there is no change to our objectives, whichremain: profitable volume growth ahead of our markets, steady andsustainable core operating margin improvement and strong cash flow. For2012 we remain on track to deliver a modest improvement in coreoperating margin"25 October 2012 OPERATIONAL REVIEW: CATEGORIES Third Quarter 2012 Nine Months 2012(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG EURbn % % % EURbn % % %Unilever Total 13.4 5.9 3.4 2.4 38.8 6.6 3.0 3.5Personal Care 4.7 8.0 5.6 2.3 13.4 9.5 6.3 3.1Foods 3.6 (0.4) (1.4) 1.0 10.7 2.0 (1.2) 3.2Home Care 2.4 11.0 7.0 3.8 6.8 10.2 5.9 4.1Refreshment 2.7 6.8 3.3 3.4 7.9 5.5 1.4 4.1Markets: Third quarter market growth was driven largely by higherprices. Market volumes continued to grow in emerging markets whilstvolumes in developed markets remained below prior year.Unilever Performance: Against this overall market backdrop we saw solidgrowth with a good balance between volume and price. Our emergingmarkets businesses delivered another quarter of double digit growth,taking year to date growth to 11.7%. Developed markets declined in thequarter but are up 0.8% year to date.Personal CareHair performance reflected the success of a strong programme ofactivities across the brands. Tresemme did well in its traditionalmarkets, made strong headway in Brazil and has recently been launchedin Indonesia and India. The Clear launch in the United States isperforming well, confirming that the proposition is strong anddifferentiated, and the brand is also making inroads into other newmarkets such as Australia. Dove Damage Therapy continues to drivegrowth across many markets and Dove Men+Care hair was launched inBrazil. Axe hair has established a good platform in Europe and waslaunched in Turkey.Deodorants grew ahead of our markets with a broad-based, goodperformance across the key brands and geographies. Dove continued todeliver strong growth and Rexona was underpinned by the extension ofthe MotionSense technology to Rexona for Men. Axe benefited from strongdigital campaigns and Axe Anarchy, which offers fragrances for both himand her, continues to do well.Dove continues to drive skin cleansing growth with the continuingsuccess of Dove Nutrium Moisture and Dove Men+Care. Lifebuoy isprogressing well driven by the '10 seconds germ-removal' hand washcampaign supporting the launch of Lifebuoy Clini-Care 10 in India andSouth Africa. Lux continues to deliver double digit growth helped bythe recent Fresh re-stage. Both Radox and Duschdas, brands acquiredfrom Sara Lee, are performing well. In skin care, Vaseline Daily CareTotal Moisture maintained good momentum whilst a Dove Men+Care facerange was launched in the United Kingdom. The acquired Kalina brands inRussia performed strongly.Oral improved its growth rate in the third quarter driven by therollout of Expert Protection in Signal / Pepsodent, our most advancedcomplete protection toothpaste and '3x fresher breath' proposition forClose-up. Pepsodent 123 was launched in Indonesia and Vietnam and welaunched Pepsodent in South Africa.FoodsOverall Foods growth was slightly negative. Knorr jelly bouilloncontinues to do well in savoury, with the recent extension to marketssuch as Australia and Russia and the introduction of new variants suchas Herbs & Spices in Germany and Borsch Soup in Russia. Knorr bakingbags have gained share in most key countries. During the third quarterwe launched our first soup made from 100% sustainable tomatoes inFrance.Spreads volumes suffered from high relative pricing in key markets butwe have already taken action in some markets to ensure that our pricesare competitive and our volume market shares are improving as a result.Liquid margarines continue to do well and Becel Gold, a premium variantoffering a healthy spread with a great creamy taste was launched inEurope. Hellmann's mayonnaise is progressing well driven by thecampaign to inspire new uses of mayonnaise and the 50th anniversarycampaign in Brazil.Home CareStrong growth in laundry reflected volume growth ahead of our markets.This includes the impact of improved product formulations, sustainedinnovation delivery and effective brand communication. New Omo offeringfast stain removal has now been rolled out to more than 20 markets andis performing well. Surf growth was driven by improved fragrances andits value for money positioning. Comfort is building on the success ofrecent launches in Australia, New Zealand and South Africa whilstComfort Anti-Bacterial was launched in Indonesia and Vietnam.Household cleaners delivered double digit growth driven by a strongSunlight hand dishwash performance in South and South East Asiasupported by the improved degreasing formulation. Domestos continued todeliver robust growth benefiting from the launches in Saudi Arabia, theGulf and Argentina, the successful Toilet System advertising in Europeand the joint promotion with UNICEF to improve access to sanitationacross nine countries. Cif Power Naturals was launched in Turkey andCif Cream pouches were introduced in South East Asia to provide Cifcleaning performance at an affordable unit price.RefreshmentIce cream delivered strong growth, with positive volume and price.Magnum growth accelerated as the brand was successfully launched in thePhilippines and Malaysia and it continues to do well in the UnitedStates and Indonesia. Magnum Infinity has been rolled out acrossEurope, Turkey, Mexico and Australia. Cornetto also had a good quarter,driven by growth in Asia, and Ben & Jerry's benefited from the GreekFrozen Yogurt launch in North America and Core Concoctions in Europe.Beverages growth improved in the third quarter but still lags marketgrowth. Lipton delivered double digit growth in the Middle East and therelaunch of Lipton Yellow Label in Russia with improved taste is doingwell and is now being rolled out to Poland. Growth in India wasunderpinned by a strong performance of Brooke Bond. Ades soy-baseddrinks continued to make good progress in Latin America with successfulnew flavours supported by impactful advertising. OPERATIONAL REVIEW: GEOGRAPHIES Third Quarter 2012 Nine Months 2012(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG EURbn % % % EURbn % % %Unilever Total 13.4 5.9 3.4 2.4 38.8 6.6 3.0 3.5Asia/AMET/RUB 5.3 10.7 6.2 4.3 15.3 10.9 5.7 4.9The Americas 4.3 4.7 1.2 3.4 12.8 6.6 1.8 4.8Europe 3.7 0.9 2.1 (1.2) 10.6 1.0 0.9 0.1Asia/AMET/RUBStrong growth in the quarter, ahead of our markets, with particularlygood performances in Vietnam, Pakistan, India and Indonesia. Ourbusiness in Thailand is making good progress following the floodinglast year. The investments to build our businesses in China and Russiaare delivering good results. Whilst we saw good growth in South Africaand Ghana, overall performance across Africa was mixed reflectingdifficult economic situations in markets such as Nigeria and CoteD'Ivoire.The AmericasNorth America, adjusting for the impact of the sales brought forwardinto the third quarter 2011, saw modest underlying sales growth with agood performance in ice cream. The disposal of the North Americanfrozen foods business was completed on 20th August.Latin America grew by 13.7%, the fifth successive quarter of doubledigit growth, with a good balance between price and volume growth. Allthe major countries delivered strong growth with particularly goodperformances from Brazil, Argentina and Chile. The integration of theacquired laundry business in Colombia continues to progress well.EuropeEurope delivered 0.9% growth in the quarter, consistent with the growthrate in the first half year. Volume growth was again ahead of ourmarkets. Underlying price growth was negative largely as a result ofthe intensely competitive, promotionally-driven markets. We areresponding to the needs of hard-pressed consumers in Europe, forexample in Greece we have launched a range of value priced productsunder the locally well-known Elais brand. FINANCIAL POSITIONThere has been no material change to Unilever's financial positionsince the published 2012 interim financial statements. DIVIDENDSThe Boards have declared a quarterly interim dividend for Q3 2012 atthe following rates which are equivalent in value at the rate ofexchange applied under the terms of the Equalisation Agreement betweenthe two companies:Per Unilever N.V. ordinary share: EUR 0.2430Per Unilever PLC ordinary share: GBP 0.1977Per Unilever N.V. New York share: US$ 0.3160Per Unilever PLC American Depositary Receipt: US$ 0.3160The quarterly interim dividends have been determined in euros andconverted into equivalent sterling and US dollar amounts using exchangerates issued by the European Central Bank on 23 October 2012.The quarterly interim dividends will be payable as from 12 December2012, to shareholders registered at close of business on 9 November2012. The shares will go ex-dividend on 7 November 2012.US dollar checks for the quarterly interim dividend will be mailed on11 December 2012 to holders of record at the close of business on 9November 2012. In the case of the N.V. New York shares, Netherlandswithholding tax will be deducted. CAUTIONARY STATEMENTThisannouncementmay contain forward-looking statements, including'forward-looking statements' within the meaning of the United StatesPrivate Securities Litigation Reform Act of 1995. Words such as'will','aim', 'expects', 'anticipates', 'intends', 'believes', 'vision', orthe negative of these terms and other similar expressions of futureperformance or results, and their negatives, are intended to identifysuch forward-looking statements. These forward-looking statements arebased upon current expectations and assumptions regarding anticipateddevelopments and other factors affecting the Group. They are nothistorical facts, nor are they guarantees of future performance.Because these forward-looking statements involve risks anduncertainties, there are important factors that could cause actualresults to differ materially from those expressed or implied by theseforward-looking statements. Among other risks and uncertainties, thematerial or principal factors which could cause actual results todiffer materially are: Unilever's global brands not meeting consumerpreferences; increasing competitive pressures; Unilever's investmentchoices in its portfolio management; finding sustainable solutions tosupport long-term growth; customer relationships; the recruitment andretention of talented employees; disruptions in our supply chain; thecost of raw materials and commodities; secure and reliable ITinfrastructure; successful execution of acquisitions, divestitures andbusiness transformation projects; economic and political risks andnational disasters; the sovereign debt crisis in Europe; financialrisks; failure to meet high product safety and ethical standards; andmanaging regulatory, tax and legal matters. Further details ofpotential risks and uncertainties affecting the Group are described inthe Group's filings with the London Stock Exchange, Euronext Amsterdamand the US Securities and Exchange Commission, including the Group'sAnnual Report on Form 20-F for the year ended 31 December 2011 and theAnnual Report and Accounts 2011. These forward-looking statements speakonly as of the date of this announcement. Except as required by anyapplicable law or regulation, the Group expressly disclaims anyobligation or undertaking to release publicly any updates or revisionsto any forward-looking statements contained herein to reflect anychange in the Group's expectations with regard thereto or any change inevents, conditions or circumstances on which any such statement isbased.Click on, or paste the following link into your web browser, to view theassociated PDF document. This information is provided by RNS The company news service from the London Stock ExchangeEND

Email Contact

Source: Marketwire

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters