News Column

Unilever announces 1st Quarter Results

Apr 25 2013 12:00AM



LONDON and ROTTERDAM, THE NETHERLANDS -- (Marketwired) -- 04/25/13 --

UNILEVER TRADING STATEMENT FIRST QUARTER 2013 FIRST QUARTER: GROWTH MOMENTUM CONTINUESFirst quarter highlights* Underlying sales growth 4.9% with emerging markets up 10.4%* Underlying volume growth 2.2%; pricing up 2.6%* Turnover increased 0.2% to EUR12.2 billion including a negative currency impact of (3.5)%* Disposals reduced turnover by (1.1)% reflecting the disposal of Skippy and the US Frozen Food business* Quarterly dividend up 10.7% to EUR0.2690Paul Polman: Chief Executive Officer statement"We maintained goodgrowth momentum in the first quarter despite challenging economiesand the tough competitive environment. This performance is furtherevidence that Unilever is becoming fit to win and capable of deliveringconsistent growth ahead of our markets. Our strategy is working.Emerging markets delivered double digit growth for the eighthsuccessive quarter and represented over 57% of our turnover. Thisstrong performance reflects the impact of our successful innovations,the introduction of our brands into new markets, improved productquality and competitive in-market execution.Developed markets growth remained sluggish. Europe faced a particularlystrong prior year comparator and whilst the overall performance wassolid, the reported growth was held back by the slow start to the icecream season and weakness in spreads.The Unilever Sustainable Living Plan is becoming embedded across thebusiness and increasingly driving our day-to-day decisions and actions,helping to drive increased sales whilst reducing costs and risks.Brands like Lifebuoy, Dove, Domestos, Knorr and Signal that have madesustainability central to their brand proposition continue to performwell. At the same time we have focused on eco-efficiencies in ourfactories. By reducing our usage of energy, water and materials, and bydriving down waste, we release funds to invest in our brands andfurther drive growth.We remain focused on achieving another year of profitable volume growthahead of our markets, steady and sustainable core operating marginimprovement and strong cash flow."25 April 2013 OPERATIONAL REVIEW: CATEGORIES First Quarter 2013 (unaudited) Turnover USG UVG UPG EURbn % % %Unilever Total 12.2 4.9 2.2 2.6Personal Care 4.4 8.3 5.6 2.6Foods 3.4 (0.5) (1.4) 0.9Home Care 2.3 9.4 5.2 3.9Refreshment 2.1 2.2 (1.6) 3.9Our markets: Growth remained solid in emerging markets despite thecontinuing macro-economic headwinds, whilst developed markets remainedsluggish.Unilever overall performance: In this context Unilever deliveredanother quarter of good growth led by emerging markets which grew by10.4% with a good balance between volume and price. Developed marketsdeclined in the quarter against a high prior year comparator. We sawcontinued strong growth from Home Care and Personal Care and modestgrowth from Refreshment, despite a much slower start to the ice creamseason in Europe. Foods performance was mixed and whilst savoury anddressings held up well, the spreads category continued to be underpressure.Personal CareGrowth in hair care was underpinned by a strong innovation programmeand the continued introduction of our brands into new markets. ForDove, the successful Dove Damage Therapy range, the extension of theDove Men+Care hair range and the launch of Dove hair products in Mexicocontinued to drive growth. TRESemme continued to make excellentprogress, building on last year's success in Brazil, and we saw a goodearly response to the launches in India and Indonesia. Clear continuedto make good progress in the highly competitive US market and deliveredstrong growth in the emerging markets. Toni&Guy is now present in 17countries and we have successfully launched the Nexxus Youth Renewalrange in the United States.Skin cleansing and care enjoyed good growth driven by innovation acrossthe brands and geographies. Lifebuoy benefited from market developmentactivities to encourage hand washing. Lifebuoy clini-care 10, whichoffers improved germ protection and skin care, was extended toIndonesia, Ghana and Kenya. Dove performance reflected the continuingsuccess of Dove Nutrium Moisture shower gels and the growth of DoveMen+Care, including the launch of a range of male face products inEurope and North America. Innovations under the Vaseline brand includedthe Spray & Go moisturizer in North America and a new range of facialwashes in South East Asia. In face care, activities include the launchof Pond's Flawless White BB+ and the extension of Axe to male face carein North America.Deodorants started the year particularly strongly, powered by thesuccess of the Axe Apollo launch which has been supported by bothtraditional and digital media in 60 countries and 45 languages. Rexonais making good progress assisted by the 'Do: More' campaign whichintegrates the new Lotus F1 Team variant. Dove remains a key growthdriver through the success of Dove Men+Care deodorants and the DoveMaximum Protection range. Despite heightened competition we saw bettergrowth in oral care driven by our strong programme of productinnovation. Signal Expert Protection continues to make excellentprogress. Close-Up 3 times fresher breath has been rolled out to morethan 40 markets and White Now Triple Gold has been launched in Chinaand Europe.FoodsIn Foods we continue to position our business for long term growth byenhancing the nutritional value of our products and seeking to improvefood security, whilst at the same time strengthening the portfoliothrough the accelerated divestment of non-core food brands such asSkippy. Savoury and dressings continued to grow in the first quarter,underpinned by innovations such as Knorr jelly bouillon variants, nowin more than 35 markets, and baking bags, now in more than 40 markets.In dressings, Hellmann's growth was driven by market developmentactivities encouraging new uses of mayonnaise and the launch in Europeof a superior squeeze pack. Hellmann's celebrates its 100th birthday inthe United States this year with activities to strengthen the brand's'real mayonnaise' credentials.Spreads declined, driven by lower volumes in a tough promotionalenvironment. Market dynamics are not currently in our favour withconsumers switching to alternatives. Despite the success of recentinnovations such as Flora Buttery and liquid margarines, which have nowbeen launched in Turkey under the Becel brand, we have more to do tocommunicate the improved taste and health benefits of our margarines toconsumers.Home CareLaundry delivered broad-based growth ahead of our markets despiteintense competition. This performance reflected our strong innovatonprogramme, including the introduction of improved Brilhante in Brazil,offering superior cleaning and whiteness, the new Surf super-sensorialsrange and the Philippines launch of Breeze in the 'Dirt is Good'position. Fabric conditioners made a good contribution to the growth,helped by the launch of Comfort anti-bacterial in Thailand and thesuccess of the super-sensorial range.Household care started the year well, growing ahead of the market withstrong performances from our dishwash brands in Asia and Europe. Thehousehold cleaners brands benefitted from impactful innovations such asthe introduction of the Cif easy lift technology for streak-free shine,the launch of Domestos toilet blocks in Turkey and Domestos toiletstrips in Central Europe. Both Cif and Domestos were launched in Brazilduring the quarter.RefreshmentIce cream was up slightly despite a high prior year comparator and theextremely cold weather conditions which prevailed in much of Europe.Magnum, now a EUR1 billion brand, continued to make good progresssupported by the rollout of Magnum Gold?! to the United States, therollout of the '5 kisses' limited editions and the new pint format inEurope, and the launch of Magnum Pink and Magnum Black in Mexico andTurkey. Cornetto was relaunched in Europe, Mexico and South East Asiaand we introduced a new Cornetto mini variant in Europe whilst Fruttarewas launched in the United States.The turnaround in tea which began last year continued with mid-singledigit growth in the first quarter. Improved product quality, strongermixes and improved in-market execution drove this performance. LiptonYellow Label again drove growth in Russia, benefiting from patentedtechnology to re-incorporate tea essence and deliver improved taste.This innovation was rolled out to Pakistan and the Middle East duringthe quarter. The Brooke Bond range of brands performed well in Indiaand PG Tips in the UK grew in a strongly promotional market. OPERATIONAL REVIEW: GEOGRAPHICAL AREA First Quarter 2013 (unaudited) Turnover USG UVG UPG EURbn % % %Unilever Total 12.2 4.9 2.2 2.6Asia/AMET/RUB 5.0 9.2 5.4 3.7The Americas 4.1 6.1 2.0 4.0Europe 3.1 (3.1) (2.1) (1.0)Asia/AMET/RUBAAR achieved EUR5 billion turnover in the first quarter. The stronggrowth performance was broad-based and driven by volume. We sawparticularly good performances in Indonesia, Vietnam, Thailand, Chinaand Turkey. Australia returned to growth despite tough markets.Following the successful SAP implementation in Russia during the fourthquarter of 2012, the regional SAP platform is now widely deployed andoperating successfully. The Kalina beauty brands acquired at the end of2011 continued to make excellent progress.The AmericasNorth America was stable, up 0.3%, with Personal Care growth ahead ofour markets largely offset by a decline in spreads. The majorinnovations introduced in recent years, Magnum, Clear and Simplecontinue to make good progress. The disposal of Skippy in North Americawas completed during the quarter.Latin America delivered another quarter of double-digit growth at12.3%, driven by strong performances in Brazil and Argentina, where wewere able to maintain volume growth whilst taking necessary priceincreases.EuropeThe performance in the first quarter reflected continued difficultmarkets and the strong prior year comparator, particularly in ice creamwhere the early spring weather in the prior year was not repeated.Southern Europe remains particularly difficult and consumer confidencein northern Europe continues to be eroded by fiscal tightening and thecontinuing impact of the financial crisis. FINANCIAL POSITIONThere has been no material change to Unilever's financial positionsince the published 2012 Group financial statements. DIVIDENDSThe Boards have declared a quarterly interim dividend for Q1 2013 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 0.2690Per Unilever PLC ordinary share: GBP 0.2291Per Unilever N.V. New York share: US$ 0.3494Per Unilever PLC American Depositary Receipt: US$ 0.3494The 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 April 2013.US dollar cheques for the quarterly interim dividend will be mailed on11 June 2013 to holders of record at the close of business on 10 May2013. In the case of the NV New York shares, Netherlands withholdingtax will be deducted.The quarterly dividend calendar for the remainder of 2013 will be asfollows: Announcement Ex-Dividend Record Payment Date Date Date DateQuarterly dividend - 25 April 8 May 10 May 12 Junefor Q1 2013 2013 2013 2013 2013*Quarterly dividend - 25 July 7 August 9 August 11 Septemberfor Q2 2013 2013 2013 2013 2013Quarterly dividend - 24 October 6 November 8 November 11 Decemberfor Q3 2013 2013 2013 2013 2013* Please note that within the Financial calendar section on page 144 ofour printed version of the 2012 Annual Report and Accounts, the paymentdate for the quarterly dividend announced with the Quarter 1 2013results was incorrectly stated as 2 June 2013. The correct payment datefor the interim dividend in respect of the first quarter of 2013 is 12June 2013 as noted in the table above. CAUTIONARY STATEMENTThis announcement may 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', 'looks', 'believes','vision',or the negative of these terms and other similar expressionsof future performance or results, and their negatives, are intended toidentify such forward-looking statements. These forward-lookingstatements are based upon current expectations and assumptionsregarding anticipated developments and other factors affecting theGroup. They are not historical facts, nor are they guarantees of futureperformance.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 cause actual results to differmaterially are: Unilever's global brands not meeting consumerpreferences; increasing competitive pressures; Unilever's investmentchoices in its portfolio management; inability to find sustainablesolutions to support long-term growth; customer relationships; therecruitment and retention of talented employees; disruptions in oursupply chain; the cost of raw materials and commodities; secure andreliable IT infrastructure; successful execution of acquisitions,divestitures and business transformation projects; economic andpolitical risks and natural disasters; the debt crisis in Europe;financial risks; failure to meet high product safety and ethicalstandards; and managing regulatory, tax and legal matters. Furtherdetails of potential risks and uncertainties affecting the Group aredescribed in the Group's filings with the London Stock Exchange,Euronext Amsterdam and the US Securities and Exchange Commission,including the Group's Annual Report on Form 20-F for the year ended 31December 2012 and the Annual Report and Accounts 2012. Theseforward-looking statements speak only as of the date of thisannouncement. Except as required by any applicable law or regulation,the Group expressly disclaims any obligation or undertaking to releasepublicly any updates or revisions to any forward-looking statementscontained herein to reflect any change in the Group's expectations withregard thereto or any change in events, conditions or circumstances onwhich any such statement is based. ENQUIRIESMedia: Media Relations Team Investors: Investor Relations TeamUK +44 20 7822 6719 +44 20 7822 investor.relations@unilever.comNL +31 10 2174844flip.dotsch@unilever.comThere will be a web cast of the results presentation available web cast can also be viewed from the Unilever Investor Relationsapp which you can download from: SEGMENT INFORMATION - CATEGORIES(unaudited) Personal Home First Quarter Care Foods Care Refreshment TotalTurnover (EUR million) 2012 4,260 3,568 2,198 2,118 12,144 2013 4,416 3,374 2,274 2,100 12,164 Change (%) 3.6 (5.4) 3.5 (0.9) 0.2 Impact of: Exchange rates (%) (4.1) (1.9) (5.3) (3.0) (3.5) Acquisitions (%) - - - - - Disposals (%) (0.3) (3.2) (0.1) (0.1) (1.1) Underlying sales growth (%) 8.3 (0.5) 9.4 2.2 4.9 Price (%) 2.6 0.9 3.9 3.9 2.6 Volume (%) 5.6 (1.4) 5.2 (1.6) 2.2 SEGMENT INFORMATION - GEOGRAPHICAL AREA(unaudited) Asia / First Quarter AMET / The Europe Total RUB Americas Turnover (EUR million) 2012 4,823 4,091 3,230 12,144 2013 5,029 4,029 3,106 12,164 Change (%) 4.2 (1.5) (3.8) 0.2 Impact of: Exchange rates (%) (4.5) (4.7) (0.3) (3.5) Acquisitions (%) - - 0.1 - Disposals (%) (0.1) (2.6) (0.6) (1.1) Underlying sales growth (%) 9.2 6.1 (3.1) 4.9 Price (%) 3.7 4.0 (1.0) 2.6 Volume (%) 5.4 2.0 (2.1) 2.2 Additional geographical information(unaudited) First Quarter Turnover USG UVG UPG EURm % % % Unilever Total 12,164 4.9 2.2 2.6 Developed markets 5,155 (1.9) (1.2) (0.7) Emerging markets 7,009 10.4 5.0 5.1 First Quarter Turnover USG UVG UPG EURm % % %The Americas 4,029 6.1 2.0 4.0North America 1,999 0.3 0.1 0.2Latin America 2,030 12.3 4.0 7.9 This information is provided by RNS The company news service from the London Stock ExchangeEND

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