Unilever First Quarter Results 2003 -Unaudited-.Business Editors/Retail Writers NEW YORK--(BUSINESS WIRE)--May 2, 2003 Outlook for the year confirmed despite a slower than expected start to the year.
FINANCIAL HIGHLIGHTS
EUR Millions (constant 2002 average exchange rates)
First Quarter 2003
----------------------
Turnover 11,124 (4) %
----------------------
Operating profit - beia (a) 1,623 (2) %
----------------------
Pre-tax profit 1,095 22 %
----------------------
Net profit 670 57 %
----------------------
Net profit - beia (a) 865 2 %
----------------------
----------------------
EPS NV - beia (a) (Euros) 0.88 4 %
----------------------
EPS PLC - beia (a) (Euro cents) 13.22 4 %
----------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
When expressed at current rates of exchange, earnings per share (beia) were 7% lower than the prior year. KEY FEATURES FOR THE QUARTER -- Sales growth of our leading brands was 5.5% for the last twelve months, and 3.0% in the first quarter, with continued excellent growth of 6.8% in Home & Personal Care but a slow start in Foods which was flat against last year. -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (beia) of 14.6% was 30 basis points ahead of last year, and is after a 180 basis points increase in advertising and promotions. -- Savings from restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). continue to be delivered fully in line with our Path to Growth programme. -- Interest on net debt was reduced by 13% through continued cash flow from operations, proceeds of disposals and lower rates. -- Earnings per share (beia) grew by 4%. CHAIRMEN'S COMMENT "Overall, we have seen a slower than expected start to the year in terms of sales Terms of sale Conditions under which a firm proposes to sell its goods or services for cash or credit. . In addition to known phasing effects including a later Easter Easter [A.S. Eastre, name of a spring goddess], chief Christian feast, commemorating the resurrection of Jesus after his crucifixion. In the West, Easter is celebrated on the Sunday following the full moon next after the vernal equinox (see calendar); thus, it , we faced a number of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. developments in the business environment in the latter part of the quarter. In combination, these have particularly affected Foods and our businesses in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . However, a strengthening performance in developing and
emerging markets and an excellent performance in personal care have
contributed to another quarter of strong growth in Home & Personal
Care."Savings from restructuring and portfolio mix improvements continue to be delivered in line with the Path to Growth programme. These provide the fuel for investment behind our brands and support our plan for the year which is built upon a step up in the level of innovation and market place activities for Foods, and a sustained rate for Home & Personal Care. "While we face a more challenging operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. , our business, strengthened by the Path to Growth programme, is naturally resilient See resiliency. and we remain comfortable that our plans will deliver the targets we have given for leading brand and earnings growth."
N W A FitzGerald A Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.
2nd May 2003
FIRST QUARTER FINANCIAL RESULTS (at constant exchange rates) Note: These results include the previously announced changes in accounting for share options and pensions in both the prior and current years. Further details are given in the notes on page 13. The impact of share options and pensions is to dilute di·lute v. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. before exceptional items and goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. (beia) growth by 6 percentage points in 2003 which is included in the outlook for the year. Underlying sales grew by 2%. The impact of our disposal programme as we reshape the portfolio under Path to Growth led to sales in the quarter being 4% lower than last year. Operating margin (beia) at 14.6% was ahead of last year by 30 basis points. The improved margin, on a smaller base through the impact of disposals, led to operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (beia) 2% lower than last year. Amortisation of goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. was EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 291 million in the quarter. Interest on net borrowings was EUR 257 million, 13% down from EUR 294 million in the same period last year, as we benefited from continued cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , proceeds of business disposals, and lower interest rates. Financing of pension fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. and liabilities represented a net charge of EUR 48 million which compares with a credit of EUR 27 million in the prior year. Exceptional items were a profit of EUR 78 million in operating profit and a charge of EUR 28 million in associated companies associated company associate n → Partnerfirma f associated company n → società collegata . The exceptional items in operating profit include profits on disposals of EUR 150 million and restructuring investment costs Those program costs required beyond the development phase to introduce into operational use a new capability; to procure initial, additional, or replacement equipment for operational forces; or to provide for major modifications of an existing capability. of EUR 72 million. The effective tax rate was 32% and reflects the non-tax-deductibility of Bestfoods goodwill amortisation largely offset this quarter by a net tax credit on exceptional items of EUR 32 million arising from the mix of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and profits on disposals. The underlying, or beia, rate of tax was 30%, in line with our expectation of a structurally lower rate for the full year. Net profit (beia) was up 2% to EUR 865 million. Net profit, at EUR 670 million, increased by 57% due to profits on disposal and lower restructuring costs as we move into the latter part of the programme. Earnings per share (beia) rose by 4%, while earnings per share was ahead by 61%. As a result of the strengthening of the Euro, earnings per share (beia), expressed at current rates of exchange, were 7% lower than last year while earnings per share on this basis rose by 48%. FIRST QUARTER PERFORMANCE BY REGION (at constant exchange rates) The following regional commentary is based on operating profit before exceptional items and amortisation of goodwill and intangibles. Sales growth is stated on an underlying basis, excluding the effects of acquisitions and disposals. Turnover includes the impact of acquisitions and disposals. EUROPE Turnover was 7% lower than last year, primarily reflecting the disposal of businesses as part of reshaping the portfolio within the Path to Growth programme. Underlying sales were 1% below the prior year from phasing effects, including a later Easter which affected our spreads, ice cream and dressings businesses. In Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , Becel/Flora continued to grow well, particularly through pro-activ cholesterol lowering spread. We also introduced a range of innovations under the Knorr Knorr can refer to:
geographic pertaining to geography. expansion of meal-kits and Vie vegetable vegetable, term originally used for any plant, now the name for many food plants, most of them annuals, and for their edible parts. There is no clear botanical distinction between vegetables and fruits. rich soups A list of different types of soup/stew. Broths (stocks, bouillons) Strained liquid from cooking things in water Consommés Clarified meat or fish broth
named after the Mediterranean Sea or region. Mediterranean coast fever see theileriaannulata infection in cattle. Mediterranean fever see malta fever. lifestyle" position through a range of sauces and salad dressings in key countries. Overall growth was affected by the end of a contract to supply edible oils and a tough comparator comparator Instrument for comparing something with a similar thing or with a standard measure, in particular to measure small displacements in mechanical devices. In astronomy, the blink comparator is used to examine photographic plates for signs of moving bodies. for Slim-Fast with geographic roll-outs in the prior year. In Home & Personal Care in Western Europe, laundry Laundry can be:
Before industrialization grew in a competitive market, particularly through the Aloe Vera aloe vera n. 1. A species of aloe (Aloe vera) native to the Mediterranean region. 2. The mucilaginous juice or gel obtained from the leaves of this plant, used in pharmaceutical preparations for its soothing and healing variant variant /var·i·ant/ (var´e-ant) 1. something that differs in some characteristic from the class to which it belongs. 2. exhibiting such variation. var·i·ant adj. and with a good contribution from new perfume perfume, aroma produced by the essential oils of plants and by synthetic aromatics. The burning of incense that accompanied the religious rites of ancient China, Palestine, and Egypt led gradually to the personal use of perfume. varieties in fabric conditioners Conditioners used on leather take many shapes and forms. They are used mostly to keep leather from drying out and deteriorating. A very old and widely used conditioner is dubbin. . Dove continued to show its strength across several categories with further progress for Dove shampoo shampoo a cleaning agent, usually liquid, for hair; usually consists of a detergent and perfume. Some, usually referred to as medicated shampoos, contain therapeutic substances such as parasiticides, antimicrobials, ketatolytic agents, and antiseborrheic compounds such as selenium , in the heartland personal wash bar and with a range of shower products. Axe also performed well with the introduction of new fragrances and a further extension of its shower gel shower gel shower n → gel m douche range. In hair, we started the roll-out of Sunsilk which is now available in six European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries. In Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , strong growth in personal care, especially in hair and skin, was offset by our Foods business which was particularly impacted by Easter given our strong presence in the spreads and dressings categories. Operating margins at 16.1% are 270 basis points ahead of last year reflecting the benefits of savings programmes, partly re-invested in advertising and promotions which were ahead by 80 basis points. NORTH AMERICA Turnover was 9% lower than last year, again mainly reflecting the impact of disposals. Underlying sales were lower by 2%. As well as the phasing effects including the later Easter we saw additional short-term disruptions to the operating environment, particularly in the latter part of the quarter. These included sharp trade de-stocking, the impact of financial difficulties experienced by some retailers and distributors and weak out-of-home markets. Our Unilever Unilever Either of two linked companies, Unilever PLC (based in London) and Unilever NV (based in Rotterdam). They are the holding companies for more than 500 firms worldwide that manufacture and sell soaps, foods, and other products. Bestfoods business shows a more encouraging underlying trend as we move from the focus on integration to one of innovation and growth. In particular there were good performances from Lipton For people named Lipton, see . Lipton is one of the world's best-known and best-selling brands of both hot leaf and ready-to-drink tea. It forms part of the Unilever portfolio. Asian side dishes side dish n. A dish served as an accompaniment to the main course. Noun 1. side dish - a dish that is served with, but is subordinate to, a main course entremets, side order , Ragu RAGU Restate Answer Give Support Use Details (method of answering short responses/extended response) Rich and Meaty, Skippy, Bertolli pasta sauces, in both Lipton ready-to-drink tea and ready-to-drink lemonade and Becel Becel is a brand of margarine, produced by Unilever and sold in many territories world wide. It is sold in the United Kingdom, Ireland, Poland and Australia under the name Flora. in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Slim-Fast sales declined in the quarter through the impact of changes in promotional plans and timing. In addition there has been a rapid growth of low carbohydrate carbohydrate, any member of a large class of chemical compounds that includes sugars, starches, cellulose, and related compounds. These compounds are produced naturally by green plants from carbon dioxide and water (see photosynthesis). diets. However the more recent Slim-Fast innovations continue to do well and we have successfully launched Slim-Fast ice cream. A range of other new Slim-Fast products will follow later in the year. The reach of the Slim-Fast and Ben & Jerry's brands has been broadened through expansion into the food service channel. In Home & Personal Care underlying sales were flat with a strong performance in personal care offset by lower sales in home care where we have been focussing on segments which have the greatest opportunity for future profitable growth. Axe has continued to make good progress and together with innovation under the Degree brand has given us a strengthened market position. There has been a promising start by Dove shampoo and further innovations behind the Dove and Vaseline Vas·e·line A trademark for a brand of petroleum jelly. Vaseline trademark for white petrolatum (USP), petroleum jelly. brands have improved our positions in skin care. Operating margin at 13.1% is 220 basis points lower than last year after a 370 basis points increase in advertising and promotions to support our recent product launches. AFRICA Africa (ăf`rĭkə), second largest continent (1997 est. pop. 743,000,000), c.11,677,240 sq mi (30,244,050 sq km) including adjacent islands. Broad to the north (c.4,600 mi/7,400 km wide), Africa straddles the equator and stretches c. , MIDDLE EAST AND TURKEY Turnover was 11% ahead of last year with underlying sales growth of 9% and a net gain from acquisitions and disposals. Notwithstanding difficult economies in a number of countries and uncertainty in the Middle East the region made excellent progress. Laundry performed especially well through the Surf and Omo OMO On My Own OMO Open Market Operations OMO Odd Man Out OMO Om Shanti Om (movie, India) OMO One Man Operated (now replaced by OPO) OMO Other Military Operations OMO Old Mother Owl OMO Old Man Out brands and Home & Personal Care was further boosted in the skin, oral and hair care markets through activities behind Dove, Lux, Sunsilk and Signal. In Foods, Knorr has been extended across the north of the region including the launch of the brand in Arabia Arabia (ərā`bēə), peninsula (1991 est. pop. 35,000,000), c.1,000,000 sq mi (2,590,000 sq km), SW Asia. It is bordered on the W by the Gulf of Aqaba and the Red Sea, on the S by the Gulf of Aden and the Arabian Sea, on the E by the and the launch of seasonings and meal-makers in Turkey. Lipton also grew strongly especially in tea in Arabia and Egypt Egypt (ē`jĭpt), Arab. Misr, biblical Mizraim, officially Arab Republic of Egypt, republic (2005 est. pop. 77,506,000), 386,659 sq mi (1,001,449 sq km), NE Africa and SW Asia. and ready-to-drink tea in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . Operating margin at 11.4% is ahead by 270 basis points with advertising and promotional spending at the same rate as last year. ASIA Asia (ā`zhə), the world's largest continent, 17,139,000 sq mi (44,390,000 sq km), with about 3.3 billion people, nearly three fifths of the world's total population. AND PACIFIC Turnover was ahead by 2% including the impact of disposals. Underlying sales grew by 5% with excellent volume growth partially offset by price declines as we enhanced our competitive position in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . In Foods there was good growth in our leading brands. However, overall Foods was flat as we continued to manage the tail of brands for value, particularly in beverages and spreads and cooking products. Royco, Bango
Brooke Bond & Company was founded by Arthur Brooke who was born at 6 George Street, Ashton under Lyne, Lancashire, England in 1845. He opened his first Tea Shop in Manchester, Lancashire. boilable tea bags. In Home & Personal Care there was excellent growth from personal care which was broad based by category and geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. . In skin, innovations behind Pond's, Lifebuoy lifebuoy n → bouée f de sauvetage , Lux and Fair & Lovely led the way whilst in hair there was another strong performance by Dove further boosted by a good contribution from Clear and Lifebuoy. In home care Omo led healthy growth in laundry across all major countries. The SARS virus is clearly affecting economies in the region, but has had a limited impact on our business. Operating margin at 15.5% was 120 basis points below the prior year reflecting a 250 basis points increase in advertising and promotions. LATIN AMERICA Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. Turnover was ahead by 6% including the impact of disposals while underlying sales grew by 10%. In the north of the region volumes grew strongly, while in the south pricing continued to be the main driver as we recovered devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. led cost increases, and both consumption and our volumes have been affected as a result. In Home & Personal Care growth was underpinned by a strong performance from personal care. Dove shampoo was launched in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. and Andina and continued to grow well in skin cleansing and deodorants. Sunsilk was boosted by new variants across the region and the introduction last year into Andina and the Caribbean. Rexona Rexona is a deodorant brand manufactured by Anglo Dutch company Unilever. It was developed in 1908 by an Australian pharmacist and his wife. Currently, Rexona has at least 8 lines of deodorant. Each line features a specific quality sought in deodorants. was relaunched in a number of countries and new fragrances of Axe were introduced in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , Andina and Chile, while the brand made its debut in Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. . Lux performed well including the introduction in Brazil of a variant for the care of dark skin. In Foods growth was again broad based across categories and with good contribution from innovations, especially in Brazil and Mexico. These included Knorr noodle cups in Mexico, Becel pro-activ and Becel de Capullo in Brazil and Mexico respectively and strong growth of AdeS soy-based drinks in Mexico following a relaunch Relaunch can refer to several things:
Operating margin at 13.5% is 100 basis points below last year after an increase in advertising and promotions of 170 basis points. CASH FLOW Cash flow from operations in the quarter was EUR 0.8 billion compared with EUR 1.1 billion during the corresponding period last year. Operating profit (beia) at current exchange rates was EUR 250 million lower, mainly through the impact of currency movements. In addition, restructuring cash outflows were higher as we implemented the Path to Growth cost savings programme. Net interest paid was EUR 171 million lower, reflecting reduced debt levels and the timing of interest payments. Capital expenditure and financial investment was EUR 88 million lower mainly through reduced expenditure on fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . The net cash effect of acquisition and disposal activity this quarter was broadly neutral. Net debt decreased by EUR 685 million in the quarter. EUR 297 million of the reduction was from cash flow with the balance from currency effects, particularly on our U.S. dollar debt. BALANCE SHEET Capital and reserves increased by EUR 526 million in the quarter. Net profits of EUR 637 million and positive currency retranslation of EUR 124 million were partially offset by a EUR 264 million balance sheet movement in net pension assets and liabilities. This was reflected in reserves under the rules of FRS FRS abbr. Fellow of the Royal Society FRS, n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. 17, our new accounting policy for pensions. Further information is given later on. EURO REPORTING Information in sterling and U.S. dollars is available as a supplement to this Euro report. SAFE HARBOUR STATEMENT: This announcement may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that the actual results could materially differ from the results anticipated in any forward-looking statements which may be contained in this announcement. Factors which might cause forward-looking statements to differ materially from actual results include, among other things, the overall economic, political, social and business conditions, the demand for our goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , competition in the market, fluctuations in interest rates and foreign currencies, the impact and other uncertainties of future acquisitions and disposals and any changes in the tax laws and other legislation and regulation, in the jurisdictions in which we operate. We do not undertake any obligation to update any forward-looking statements contained in or incorporated in this announcement to reflect actual results, changes in assumptions or in other factors which may affect any forward-looking statements.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES
(unaudited)
Note: A description of the exchange rate conventions used is given in
the notes section.
EUR Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 11,124 11,551 (4)%
Less: Share of turnover of joint ventures (82) (142)
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Group turnover 11,042 11,409 (3)%
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Group operating profit 1,396 1,148 22%
Add: Share of operating profit of joint
ventures 14 14
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OPERATING PROFIT 1,410 1,162 21%
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Operating profit beia (a) 1,623 1,648 (2)%
Exceptional items 78 (168)
Amortisation of goodwill and intangibles (291) (318)
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Share of operating profit of associates (13) -
Other income from fixed investments 3 (1)
Interest (excluding pension related
amounts) (257) (294)
Net interest cost/return on pension scheme
assets and liabilities (48) 27
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PROFIT BEFORE TAXATION 1,095 894 22%
Taxation (348) (406)
------------------
PROFIT AFTER TAXATION 747 488 53%
Minority interests (77) (63)
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NET PROFIT 670 425 57%
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Net profit beia (a) 865 846 2%
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----------------------------------------------------------------------
COMBINED EARNINGS PER SHARE (Constant rates)
- per EUR 0.51 ordinary NV share (Euros) 0.68 0.42 61%
- per 1.4p ordinary PLC share (Euro
cents) 10.21 6.32 61%
- per EUR 0.51 ordinary NV share - beia
(a) (Euros) 0.88 0.85 4%
- per 1.4p ordinary PLC share - beia (a)
(Euro cents) 13.22 12.73 4%
- per EUR 0.51 ordinary NV share - diluted
(Euros) 0.66 0.41 61%
- per 1.4p ordinary PLC share - diluted
(Euro cents) 9.92 6.15 61%
----------------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in our accounting policy for share option costs (see notes section).
NET PROFIT AND EARNINGS PER SHARE - CURRENT EXCHANGE RATES (unaudited)
Net profit and earnings per share given below are stated at current
exchange rates i.e. the results in both years have been translated at
the exchange rates prevailing during the appropriate period.
For further details of the results at current exchange rates and
impact of exchange rate movements see notes section.
EUR Millions - current rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
NET PROFIT 637 441 45%
----------------------------------------------------------------------
Net profit beia (a) 815 886 (8)%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED EARNINGS PER SHARE (Current rates)
- per EUR 0.51 ordinary NV share (Euros) 0.65 0.44 48%
- per 1.4p ordinary PLC share (Euro
cents) 9.69 6.54 48%
- per EUR 0.51 ordinary NV share - beia
(a) (Euros) 0.83 0.89 (7)%
- per 1.4p ordinary PLC share - beia (a)
(Euro cents) 12.44 13.34 (7)%
- per EUR 0.51 ordinary NV share -
diluted (Euros) 0.63 0.42 48%
- per 1.4p ordinary PLC share - diluted
(Euro cents) 9.42 6.36 48%
----------------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
EUR Millions - current rates First Quarter
-------------
2002
2003 Restated
------------------
Net profit 637 441
Currency retranslation 112 (304)
------------------
Total recognised gains for the year 749 137
Pension gains and losses net of tax (264) (91)
------------------
Total recognised gains / (losses) since last annual
accounts 485 46
------------------
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in our accounting policy for share option costs (see notes section).
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
EUR Millions - current rates First Quarter
-------------
2002
2003 Restated
------------------
Shareholders' equity as at 1 January (1) 4,629 8,437
Net profit 637 441
Dividends (6) (10)
Goodwill movements 10 1
Currency retranslation 124 (307)
Change in number of shares or certificates of
shares held in connection with share options (4) (17)
Pension gains and losses net of tax (264) (91)
Adjustment to cost of share options 29 15
------------------
Shareholders' equity as at the end of the period 5,155 8,469
------------------
SUMMARY BALANCE SHEET (unaudited)
EUR Millions - current rates As at As at As at
29th 31st 30th
March Dec. March
2003 2002 2002
---------------------------
Restated Restated
------------------
Goodwill and intangibles 20,268 20,274 24,586
Other fixed assets 7,694 8,115 10,014
Stocks 4,818 4,500 5,506
Debtors 7,668 6,951 9,891
Cash and current investments 3,619 3,478 2,182
Trade and other creditors (11,986) (11,732) (12,913)
---------------------------
32,081 31,586 39,266
---------------------------
Borrowings 19,900 20,444 25,220
Provisions for liabilities and charges 6,376 5,894 4,845
Minority interests 650 619 732
Capital and reserves 5,155 4,629 8,469
---------------------------
32,081 31,586 39,266
---------------------------
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in the accounting policy for share option costs (see notes section).
EUR Millions - current rates As at As at
1st 1st
Jan. Jan.
2003 2002
------------------
(1) Shareholders' equity as previously reported 5,867 6,993
Change in accounting policy - pensions (1,238) 1,444
------------------
Shareholders' equity as restated 4,629 8,437
------------------
CASH FLOW STATEMENT (unaudited)
EUR Millions - current rates First Quarter
-------------
2003 2002
------------------
Cash flow from group operating activities 823 1,138
Dividends from joint ventures 3 6
Returns on investments and servicing of finance (99) (275)
Taxation (255) (295)
Capital expenditure and financial investment (160) (248)
Acquisitions and disposals (15) 90
------------------
CASH INFLOW BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING 297 416
Management of liquid resources 225 34
Financing (317) (278)
------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD 205 172
------------------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
EUR Millions - current rates First Quarter
-------------
2003 2002
------------------
NET DEBT AT 1 JANUARY (16,966) (23,199)
------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD 205 172
Cash flow from (increase)/decrease in borrowings 317 276
Cash flow from increase/(decrease) in liquid
resources (225) (34)
------------------
Change in net funds resulting from cash flows 297 414
Borrowings within group companies acquired (26) -
Borrowings within group companies sold - 14
Liquid resources within group companies acquired - -
Liquid resources within group companies sold (3) -
Non cash movements (123) (15)
Currency retranslation 540 (252)
------------------
MOVEMENT IN NET DEBT IN THE PERIOD 685 161
------------------
------------------
NET DEBT AT PERIOD END (16,281) (23,038)
------------------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
EUR Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 11,124 11,551 (4)%
----------------------------------------------------------------------
Europe 4,323 4,670 (7)%
North America 2,811 3,075 (9)%
Africa, Middle East and Turkey 778 699 11%
Asia and Pacific 1,887 1,855 2%
Latin America 1,325 1,252 6%
----------------------------------------------------------------------
OPERATING PROFIT - beia (a) 1,623 1,648 (2)%
----------------------------------------------------------------------
Europe 694 626 11%
North America 369 470 (21)%
Africa, Middle East and Turkey 89 61 46%
Asia and Pacific 293 310 (6)%
Latin America 178 181 (2)%
----------------------------------------------------------------------
OPERATING MARGIN - beia (a) 14.6% 14.3%
-------------------------------------------------------------
Europe 16.1% 13.4%
North America 13.1% 15.3%
Africa, Middle East and Turkey 11.4% 8.7%
Asia and Pacific 15.5% 16.7%
Latin America 13.5% 14.5%
-------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
OPERATIONAL ANALYSIS (at constant rates - unaudited)
EUR Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 11,124 11,551 (4)%
----------------------------------------------------------------------
Foods 6,062 6,348 (5)%
----------------------------------------------------------------------
Savoury and dressings 2,197 2,243 (2)%
Spreads and cooking products 1,298 1,510 (14)%
Health & wellness and beverages 976 994 (2)%
Ice cream and frozen foods 1,591 1,601 (1)%
----------------------------------------------------------------------
Home care and professional cleaning 1,985 2,330 (15)%
Personal care 2,982 2,755 8%
Other operations 95 118 (20)%
----------------------------------------------------------------------
OPERATING PROFIT - beia (a) 1,623 1,648 (2)%
----------------------------------------------------------------------
Foods 799 799 - %
----------------------------------------------------------------------
Savoury and dressings 374 305 22%
Spreads and cooking products 191 224 (15)%
Health & wellness and beverages 136 172 (21)%
Ice cream and frozen foods 98 98 - %
----------------------------------------------------------------------
Home care and professional cleaning 247 258 (4)%
Personal care 583 578 1%
Other operations (6) 13 (147)%
----------------------------------------------------------------------
OPERATING MARGIN - beia (a) 14.6% 14.3%
-------------------------------------------------------------
Foods 13.2% 12.6%
-------------------------------------------------------------
Savoury and dressings 17.0% 13.6%
Spreads and cooking products 14.7% 14.8%
Health & wellness and beverages 13.9% 17.3%
Ice cream and frozen foods 6.1% 6.1%
-------------------------------------------------------------
Home care and professional cleaning 12.5% 11.1%
Personal care 19.6% 21.0%
Other operations (6.4)% 10.9%
-------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
NOTES Exchange rate conventions and impact of movements in exchange rates Consistent with our previous practice, the following exchange rate conventions have been applied: In the profit and loss account information given on page 6 and the segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. analysis on pages 10 and 11, the results for 2003 and the comparative figures for 2002 have been translated at constant exchange rates, being the annual average exchange rates for 2002. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated, and is the basis on which we measure our annual operational performance internally. It also forms the basis for target setting and the annual outlook statement. For our reporting currencies Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. these rates were EUR 1 = GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.63 = U.S. $0.94. The quarterly results, earnings per share and cash flow are translated at rates current in each period. For our reporting currencies these rates were EUR 1 = GBP 0.67 = U.S. $1.07 for first quarter 2003 and EUR 1 = GBP 0.61 = U.S. $0.88 for first quarter 2002. Thus the two conventions apply different exchange rates to the individual quarters for the prior year comparator. Over the year this evens out, so that the full year numbers for the comparator are identical under both conventions. The Euro strengthened progressively through 2002 against a basket basket filled with treats, representative of feast on Easter Sunday. [Folklore: Misc.] See : Easter of currencies. As a result, the current rate results in the first quarter of last year represent a particularly high base for comparison compared with results at average exchange rates for the year. This effect will reverse over the remainder of the year. As a result of the strengthening Euro, the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. for turnover and net profit beia were 13% and 10% lower at current exchange rates than at constant rates, of which 5% relates to the phasing of the exchange rate movement during 2002 as described above. For illustrative il·lus·tra·tive adj. Acting or serving as an illustration. il·lus  tra·tive·ly adv.Adj. 1. purposes, if the first quarter 2003 exchange rates were to remain in place through the remainder of the year, then growth in net profit beia for the year would be around 5% lower at current rates than at constant rates.
Results at current rates of exchange
EUR Millions - current rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
Turnover 10,182 12,238 (17)%
------------------
Operating profit 1,302 1,232 6%
----------------------------------------------------------------------
Operating profit beia (a) 1,496 1,746 (14)%
----------------------------------------------------------------------
Share of operating profit of associates &
income from investments (9) -
Interest (including net interest
cost/return on pension scheme assets and
liabilities) (262) (296)
Taxation (325) (428)
Minority interests (69) (67)
------------------
Net profit 637 441 45%
------------------
----------------------------------------------------------------------
Net profit beia (a) 815 886 (8)%
----------------------------------------------------------------------
The impact of exchange rate movements on the results at current exchange rates in Euros, GBP sterling and U.S. dollars is given below, along with the year on year percentage change at constant rates.
First Quarter - Constant At current rates
Millions rates of exchange
----------------------------------------------------
% Incr. EUR % Incr. GBP % Incr. U.S.$ % Incr.
----------------------------------------------------
/(Decr.) 2003 /(Decr.) 2003 /(Decr.) 2003 /(Decr.)
----------------------------------------------------
Turnover (4)% 10,182 (17)% 6,812 (9)% 10,915 2%
Operating profit
beia (a) (2)% 1,496 (14)% 1,000 (7)% 1,603 5%
Net profit 57% 637 45% 426 57% 683 77%
----------------------------------------------------------------------
Net profit beia
(a) 2% 815 (8)% 545 -% 874 13%
----------------------------------------------------------------------
% Change in EPS 61% 48% 61% 81%
----------------------------------------------------------------------
% Change in EPS -
beia (a) 4% (7)% 1% 14%
----------------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
The balance sheet figures have been translated at period-end rates of exchange. For our reporting currencies these were EUR 1 = GBP 0.69 = U.S. $1.07 at 31 March 2003, EUR 1 = GBP 0.65 = U.S. $1.05 at 31 December December: see month. 2002 and EUR 1 = GBP 0.61 = U.S. $0.87 at 31 March 2002. Acquisitions and Disposals On 18 February February: see month. 2003, we announced an agreement to acquire the remaining unheld shares in CPC/Aji Asia, a joint venture with activities in six countries, from Ajinomoto Ajinomoto Co., Inc. (味の素株式会社 Co. Inc., Japan. The acquisition is in two parts with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one half of Ajinomoto's holding transferred on 25 March 2003 and the balance scheduled for transfer in March 2004. Unilever will pay a total of U.S. $381 million for Ajinomoto's holding. Unilever has full management control of the business with effect from 25 March 2003, and accordingly the business was fully consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in the balance sheet at 29 March 2003. On 28 March 2003, we completed the sale of Frigedoc, our mobile home-vending frozen foods and ice cream business in France, to Toupargel. FRS 17 From 1 January January: see month. 2003 we have adopted United Kingdom Financial Reporting Standard 17 (FRS 17) "Retirement Benefits" which requires that pension assets and liabilities be stated at fair values. The impact of adoption of this standard has been reflected in all periods covered by this announcement by means of prior period adjustments to the balance sheets and profit and loss accounts. The implementation of FRS 17 has resulted in a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of EUR 1,238 million reduction in the opening capital and reserves for 2003 (2002: increase of EUR 1,444 million). In the 2003 opening balance sheet pension liabilities Pension liabilities Future liabilities resulting from pension commitments made by a corporation. Accounting for pension liabilities varies widely by country. have increased by EUR 1,752 million (2002: decrease of EUR 628 million). Deferred tax within liabilities has been reduced by EUR 1,785 million (2002: reduction of EUR 1,383 million). The change in debtors because of changes in pension assets and deferred tax is a net reduction of EUR 1,280 million in the 2003 opening balance (2002: reduction of EUR 561 million). Minority interests have also been reduced by EUR 9 million (2002: increase of EUR 6 million). In the profit and loss account for the first quarter of 2002 operating profit has decreased by EUR 16 million and interest has increased by EUR 27 million. Total recognised gains and losses for the first quarter of 2002 have reduced by EUR 91 million for actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin gains and losses and differences between actual and expected return Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: on pensions plan assets. Share Options In line with recommendations of various standard setting bodies, from 1 January 2003 we changed our accounting policy for share options. The impact of adoption of this change has been reflected in all periods covered by this announcement by means of prior period adjustments to the balance sheets and profit and loss accounts. We have been hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. our existing share option programmes by buying shares at the time of grant and taking the financing cost within interest. The accounting change is to include an additional non cash charge against operating profit to reflect the value to the employee of the share options granted. In determining this charge we are applying a Black-Scholes based valuation spread over the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: period of the option. In the profit and loss account for the first quarter of 2002 operating profit has been reduced by EUR 15 million, and in the first quarter of 2003 a charge of EUR 29 million has been included in operating profit. Combined Earnings Per Share The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the year, less the average number of shares held to meet options granted under various employee share plans. The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of GBP 1 = EUR 5.445, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Equalisation Noun 1. equalisation - the act of making equal or uniform equalization, leveling human action, human activity, act, deed - something that people do or cause to happen Agreement. The diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of are based on the average number of share units, plus all shares under option, together with certain PLC shares which may be issued in 2038 under the arrangements for the variation of the Leverhulme Trust The Leverhulme Trust is a research and educational charity based in London, England. Founded in 1925 after the death of the Victorian entrepreneur William Hesketh Lever to continue his philanthropic work, the Trust was originally endowed with a shareholding in Lever . The number of shares is reduced, in accordance with FRS 14, by the number of shares that could be purchased at fair value with the expected proceeds from the exercise of options by employees.
Earnings Per Share in Euro for the Quarter
Constant rates Current rates
-------------- -------------
2003 2002 2003 2002
---- ---- ---- ----
Restated Restated
-------- --------
Thousands of units
Average number of combined
share units of EUR 0.51 973,339 981,988 973,339 981,988
Average number of combined
share units of 1.4p 6,488,927 6,546,584 6,488,927 6,546,584
COMBINED EPS EUR Millions
------------
Net profit 670 425 637 441
Less: Preference dividends (8) (13) (8) (13)
----------------------------------------
Net profit attributable to
ordinary capital 662 412 629 428
----------------------------------------
----------------------------------------
Combined EPS per EUR 0.51
(Euros) 0.68 0.42 0.65 0.44
Combined EPS per 1.4p (Euro
cents) 10.21 6.32 9.69 6.54
----------------------------------------
COMBINED EPS - BEIA (a) EUR Millions
-------------------
Net profit 670 425 637 441
Add back exceptional items net
of tax (82) 116 (74) 121
Add back amortisation of
goodwill/intangibles net of
tax 277 305 252 324
----------------------------------------
Net profit beia (a) 865 846 815 886
Less: Preference dividends (8) (13) (8) (13)
----------------------------------------
Net profit attributable to
ordinary capital - beia 857 833 807 873
----------------------------------------
----------------------------------------
Combined EPS - beia (a) per
EUR 0.51 (Euros) 0.88 0.85 0.83 0.89
Combined EPS - beia (a) per
1.4p (Euro cents) 13.22 12.73 12.44 13.34
----------------------------------------
COMBINED EPS - Diluted Thousands of units
----------------------
Adjusted average combined
share units of EUR 0.51 1,002,138 1,009,836 1,002,138 1,009,836
Adjusted average combined
share units of 1.4p 6,680,920 6,732,239 6,680,920 6,732,239
EUR Millions
Net profit attributable to
ordinary capital 662 412 629 428
----------------------------------------
----------------------------------------
Combined diluted EPS per EUR
0.51 (Euros) 0.66 0.41 0.63 0.42
Combined diluted EPS per 1.4p
(Euro cents) 9.92 6.15 9.42 6.36
----------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
Dates The results for the second quarter and first half-year 2003 will be announced on 30 July July: see month. 2003. ENQUIRIES: UNILEVER PRESS OFFICE +44 (0) 20 7822 6805 Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : http://www.unilever.com E-mail: press-office.london London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. @unilever.com 2 May 2003
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES
(unaudited)
Note: A description of the exchange rate conventions used is given
in the notes section.
US $ Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 10,458 10,859 (4)%
Less: Share of turnover of joint ventures (77) (133)
------------------
Group turnover 10,381 10,726 (3)%
------------------
Group operating profit 1,313 1,079 22%
Add: Share of operating profit of joint
ventures 13 14
------------------
OPERATING PROFIT 1,326 1,093 21%
----------------------------------------------------------------------
Operating profit beia (a) 1,526 1,550 (2)%
Exceptional items 73 (158)
Amortisation of goodwill and intangibles (273) (299)
----------------------------------------------------------------------
Share of operating profit of associates (12) -
Other income from fixed investments 3 -
Interest (excluding pension related
amounts) (242) (276)
Net interest cost/return on pension scheme
assets and liabilities (45) 25
------------------
PROFIT BEFORE TAXATION 1,030 842 22%
Taxation (327) (382)
------------------
PROFIT AFTER TAXATION 703 460 53%
Minority interests (72) (59)
------------------
NET PROFIT 631 401 57%
------------------
----------------------------------------------------------------------
Net profit beia (a) 814 796 2%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED EARNINGS PER SHARE (Constant rates) $ $
- per EUR 0.51 ordinary NV share 0.64 0.40 61%
- per 5.6p ordinary PLC share 0.38 0.24 61%
- per EUR 0.51 ordinary NV share - beia
(a) 0.83 0.80 4%
- per 5.6p ordinary PLC share - beia (a) 0.50 0.48 4%
- per EUR 0.51 ordinary NV share -
diluted 0.62 0.39 61%
- per 5.6p ordinary PLC share - diluted 0.37 0.23 61%
----------------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in our accounting policy for share option costs (see notes section).
NET PROFIT AND EARNINGS PER SHARE - CURRENT EXCHANGE RATES (unaudited)
Net profit and earnings per share given below are stated at current
exchange rates i.e. the results in both years have been translated at
the exchange rates prevailing during the appropriate period.
For further details of the results at current exchange rates and
impact of exchange rate movements see notes section.
US $ Millions - current rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
NET PROFIT 683 386 77%
----------------------------------------------------------------------
Net profit beia (a) 874 777 13%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED EARNINGS PER SHARE (Current rates) $ $
- per EUR 0.51 ordinary NV share 0.69 0.38 81%
- per 5.6p ordinary PLC share 0.42 0.23 81%
- per EUR 0.51 ordinary NV share - beia
(a) 0.89 0.78 14%
- per 5.6p ordinary PLC share - beia (a) 0.53 0.47 14%
- per EUR 0.51 ordinary NV share -
diluted 0.67 0.37 81%
- per 5.6p ordinary PLC share - diluted 0.40 0.22 81%
----------------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
US $ Millions - current rates First Quarter
-------------
2003 2002
---- ----
Restated
--------
Net profit 683 386
Currency retranslation 234 (356)
------------------
Total recognised gains for the year 917 30
Pension gains and losses net of tax (283) (80)
------------------
Total recognised gains/(losses) since last annual
accounts 634 (50)
------------------
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in our accounting policy for share option costs (see notes section).
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
US $ Millions - current rates First Quarter
-------------
2002
2003 Restated
------------------
Shareholders' equity as at 1 January (1) 4,856 7,470
Net profit 683 386
Dividends (7) (9)
Goodwill movements 11 1
Currency retranslation 248 (384)
Change in number of shares or certificates of shares
held in connection with share options (4) (15)
Pension gains and losses net of tax (283) (80)
Adjustment to cost of share options 32 13
------------------
Shareholders' equity as at the end of the period 5,536 7,382
------------------
SUMMARY BALANCE SHEET (unaudited)
US $ Millions - current rates As at As at As at
29th 31st 30th
March Dec. March
2003 2002 2002
---------------------------
Restated Restated
------------------
Goodwill and intangibles 21,768 21,268 21,432
Other fixed assets 8,263 8,513 8,729
Stocks 5,175 4,721 4,800
Debtors 8,235 7,292 8,622
Cash and current investments 3,886 3,649 1,902
Trade and other creditors (12,873) (12,308) (11,256)
---------------------------
34,454 33,135 34,229
---------------------------
Borrowings 21,372 21,446 21,985
Provisions for liabilities and charges 6,848 6,183 4,223
Minority interests 698 650 639
Capital and reserves 5,536 4,856 7,382
---------------------------
34,454 33,135 34,229
---------------------------
Restatements relate to the implementation of United Kingdom Financial Reporting Standard 17 "Retirement Benefits" and changes in our accounting policy for share option costs (see notes section).
US $ Millions - current rates As at As at
1st 1st
Jan. Jan.
2003 2002
------------------
(1) Shareholders' equity as previously reported 6,154 6,192
Change in accounting policy - pensions (1,298) 1,278
------------------
Shareholders' equity as restated 4,856 7,470
------------------
CASH FLOW STATEMENT (unaudited)
US $ Millions - current rates First Quarter
-------------
2003 2002
------------------
Cash flow from group operating activities 883 998
Dividends from joint ventures 3 5
Returns on investments and servicing of finance (107) (241)
Taxation (273) (258)
Capital expenditure and financial investment (172) (216)
Acquisitions and disposals (16) 78
------------------
CASH INFLOW BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING 318 366
Management of liquid resources 240 30
Financing (340) (244)
------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD 218 152
------------------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
US $ Millions - current rates First Quarter
-------------
2003 2002
------------------
NET DEBT AT 1 JANUARY (17,797) (20,540)
------------------
INCREASE/(DECREASE) IN CASH IN THE PERIOD 218 152
Cash flow from (increase)/decrease in borrowings 340 242
Cash flow from increase/(decrease) in liquid
resources (240) (30)
------------------
Change in net funds resulting from cash flows 318 364
Borrowings within group companies acquired (28) -
Borrowings within group companies sold - 12
Liquid resources within group companies acquired - -
Liquid resources within group companies sold (3) -
Non cash movements (131) (13)
Currency retranslation 155 94
------------------
MOVEMENT IN NET DEBT IN THE PERIOD 311 457
------------------
------------------
NET DEBT AT PERIOD END (17,486) (20,083)
------------------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
US $ Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 10,458 10,859 (4)%
----------------------------------------------------------------------
Europe 4,064 4,391 (7)%
North America 2,643 2,890 (9)%
Africa, Middle East and Turkey 732 657 11%
Asia and Pacific 1,774 1,744 2%
Latin America 1,245 1,177 6%
----------------------------------------------------------------------
OPERATING PROFIT - beia (a) 1,526 1,550 (2)%
----------------------------------------------------------------------
Europe 653 590 11%
North America 347 442 (21)%
Africa, Middle East and Turkey 83 57 46%
Asia and Pacific 275 291 (6)%
Latin America 168 170 (2)%
----------------------------------------------------------------------
OPERATING MARGIN - beia (a) 14.6% 14.3%
-------------------------------------------------------------
Europe 16.1% 13.4%
North America 13.1% 15.3%
Africa, Middle East and Turkey 11.4% 8.7%
Asia and Pacific 15.5% 16.7%
Latin America 13.5% 14.5%
-------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
OPERATIONAL ANALYSIS (at constant rates - unaudited)
US $ Millions - constant rates First Quarter
-------------
2002 % Incr./
2003 Restated (Decr.)
---------------------------
TURNOVER 10,458 10,859 (4)%
----------------------------------------------------------------------
Foods 5,699 5,968 (5)%
----------------------------------------------------------------------
Savoury and dressings 2,066 2,109 (2)%
Spreads and cooking products 1,220 1,420 (14)%
Health & wellness and beverages 917 934 (2)%
Ice cream and frozen foods 1,496 1,505 (1)%
----------------------------------------------------------------------
Home care and professional cleaning 1,866 2,190 (15)%
Personal care 2,804 2,590 8%
Other operations 89 111 (20)%
----------------------------------------------------------------------
OPERATING PROFIT - beia (a) 1,526 1,550 (2)%
----------------------------------------------------------------------
Foods 751 752 - %
----------------------------------------------------------------------
Savoury and dressings 352 288 22%
Spreads and cooking products 180 211 (15)%
Health & wellness and beverages 127 161 (21)%
Ice cream and frozen foods 92 92 - %
----------------------------------------------------------------------
Home care and professional cleaning 233 242 (4)%
Personal care 548 544 1%
Other operations (6) 12 (147)%
----------------------------------------------------------------------
OPERATING MARGIN - beia (a) 14.6% 14.3%
-------------------------------------------------------------
Foods 13.2% 12.6%
-------------------------------------------------------------
Savoury and dressings 17.0% 13.6%
Spreads and cooking products 14.7% 14.8%
Health & wellness and beverages 13.9% 17.3%
Ice cream and frozen foods 6.1% 6.1%
-------------------------------------------------------------
Home care and professional cleaning 12.5% 11.1%
Personal care 19.6% 21.0%
Other operations (6.4)% 10.9%
-------------------------------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
Earnings Per Share in US Dollars for the Quarter
Constant rates Current rates
-------------- -------------
2003 2002 2003 2002
---- ---- ---- ----
Restated Restated
-------- --------
Thousands of units
Average number of combined
share units of EUR 0.51 973,339 981,988 973,339 981,988
Average number of combined
share units of 5.6p 1,622,232 1,636,646 1,622,232 1,636,646
COMBINED EPS US $ Millions
------------
Net profit 631 401 683 386
Less: Preference dividends (8) (12) (9) (11)
----------------------------------------
Net profit attributable to
ordinary capital 623 389 674 375
----------------------------------------
----------------------------------------
Combined EPS per EUR 0.51 $0.64 $0.40 $0.69 $0.38
Combined EPS per 5.6p $0.38 $0.24 $0.42 $0.23
----------------------------------------
COMBINED EPS - BEIA (a) US $ Millions
-------------------
Net profit 631 401 683 386
Add back exceptional items net
of tax (77) 109 (80) 106
Add back amortisation of
goodwill/intangibles net of
tax 260 286 271 285
----------------------------------------
Net profit beia (a) 814 796 874 777
Less: Preference dividends (8) (12) (9) (11)
----------------------------------------
Net profit attributable to
ordinary capital - beia 806 784 865 766
----------------------------------------
----------------------------------------
Combined EPS - beia (a) per
EUR 0.51 $0.83 $0.80 $0.89 $0.78
Combined EPS - beia (a) per
5.6p $0.50 $0.48 $0.53 $0.47
----------------------------------------
COMBINED EPS - Diluted Thousands of units
----------------------
Adjusted average combined
share units of EUR 0.51 1,002,138 1,009,836 1,002,138 1,009,836
Adjusted average combined
share units of 5.6p 1,670,230 1,683,060 1,670,230 1,683,060
US $ Millions
Net profit attributable to
ordinary capital 623 389 674 375
----------------------------------------
----------------------------------------
Combined diluted EPS per EUR
0.51 $0.62 $0.39 $0.67 $0.37
Combined diluted EPS per 5.6p $0.37 $0.23 $0.40 $0.22
----------------------------------------
(a) Before exceptional items and amortisation of goodwill and
intangibles.
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