Unilever Second Quarter and Half Year Results 2004; Unaudited, Constant 2003 Average Exchange Rates, Unless Stated.ENGLEWOOD CLIFFS, N.J. -- EPS (beia (BE Internet Appliance) See Be.*) increased 11% in the quarter despite flat sales of leading brands in competitive markets. We have a fully funded programme for the second half and maintain our outlook for full year earnings. FINANCIAL HIGHLIGHTS - EUR millions Second Quarter 2004 Half Year 2004 ---------------------- --------------- 10,835 - 3 % Turnover 20,623 - 3 % 1,613 - 2 % Operating profit -beia(*) 3,068 - 1 % 1,170 + 19 % Pre-tax profit 2,101 + 5 % 770 + 34 % Net profit 1,300 + 8 % 1,036 + 10 % Net profit -beia(*) 1,887 + 9 % 1.07 + 11 % EPS NV -beia (*)(Euros) 1.94 + 10 % 16.02 + 11 % EPS PLC - beia(*)(Euro cents)29.12 + 10 % (*) Before exceptional items and amortisation of goodwill and intangible assets At current rates of exchange EPS (beia) was higher by 10% in the quarter and by 6% for the half year. EPS was 34% higher in the quarter, helped by higher profits on disposals, and was ahead by 6% for the half year. KEY FEATURES OF THE QUARTER --Sales of the leading brands were flat, with a further slowdown in market growth and poor ice cream and ready-to-drink tea sales in Europe. --Operating margin (beia) moved ahead by 10 basis points to 14.9% with cost savings continuing to underpin the funding of intensified competitive activity. --With strong cash flow, net debt at quarter end exchange rates was EUR 13.0 billion, down by EUR 3.1 billion over the last twelve months. Net borrowing costs and pension financing costs reduced by 25% and 41% respectively. --We continue to reduce our tax rate as a result of initiatives taken within the Path to Growth strategy. --EPS (beia) grew by 11% after absorbing 3 percentage points of short-term dilution from disposals. CHAIRMEN'S COMMENT We continue to implement our plans to turn around underperforming businesses. This includes completion of the restructuring of the prestige fragrance business together with a focused innovation programme, and completing a full revamp of the Slim--Fast range. In frozen foods we are making good progress with reshaping the portfolio and we are relaunching the brands with a clear and differentiated position. Consumer confidence remains weak and a number of our key markets are still growing at below their historical rates with a further slowdown this quarter. In Europe, home care markets have declined throughout this year and we now see the same in personal care with price competition driving developments in both cases. Furthermore there is still no sustained upturn in US consumer spending in our categories and here too home and personal care markets have declined. Against this background our volumes in Home & Personal Care continue to grow. In all regions we are taking the actions necessary to protect our market position and these are fully funded. In Foods, improved momentum in spreads and cooking products and in savoury and dressings was offset by poor sales in Europe of ice cream and ready-to-drink tea which diluted overall leading brands growth by nearly 2 percentage points against a tough prior year comparator. Importantly our business continues to demonstrate its resilience and ability to finance the necessary investment in our brands through cost savings in every area. This is a result of the Path to Growth strategy. Thus we have continued to grow EPS (beia) 11% in this quarter and by 10% in the half year, and this also enables us to maintain our outlook of low double digit EPS (beia) growth for the year. N W A FitzGerald A Burgmans Chairman, Unilever PLC Chairman, Unilever N.V. 28 July 2004 SECOND QUARTER AND HALF YEAR FINANCIAL RESULTS (at constant exchange rates) Notes: Unilever uses 'constant rate', 'underlying' and 'beia' measures primarily for internal performance analysis and targeting purposes. Unilever believes that the use of such measures provides additional information for shareholders on underlying business performance trends. Such measures are not defined under UK, Netherlands or US GAAP and are not intended to be a substitute for GAAP measures of turnover and profit. Fuller definitions and reconciliations between such measures and the equivalent GAAP measures are available on our website: www.unilever.com. Underlying sales declined by 0.7% in the quarter. Within this, leading brands declined by 0.2% in markets that have grown below their historical rate and which have further slowed in this quarter. Sales performance continues to be affected by the loss of market share in Slim--Fast and prestige during 2003 while in Europe, ice cream and ready-to-drink tea sales were lower against a tough comparator in the prior year. Overall prices are 0.3% below last year, with Home and Personal Care categories particularly affected by market price declines. In Home and Personal Care our underlying volume growth, at nearly 4%, and just over 3% for the year to date, was strong, however this was partially offset by price declines of 2.5% in the quarter and nearly 2% in the half year. For the half year underlying sales declined by 0.2%, while leading brands grew by 0.5%. As part of the reshaping of our portfolio within Path to Growth we have continued to pursue an active programme of business disposals. Including the impact of these disposals, turnover declined by 2.9% in the quarter and by 2.6% in the half year. Operating margin (beia) was 14.9% in the quarter, an increase of 10 basis points. We continue to generate savings from our procurement and restructuring programmes and there was another healthy improvement in mix notwithstanding the adverse effect of lower ice cream sales in Europe and slower growth in Personal Care compared with last year. These benefits, along with a redirection of brand investment, have enabled an increase in consumer related price promotions accounted for within price of around 200 basis points as we protect our market positions. Overheads increased by 20 basis points as brand disposals have resulted in short term unrecovered fixed costs which are being restructured out of the business. A planned step-up in restructuring activity in the second half of the year will further improve the overheads ratio. Operating margin (beia) was 14.9% for the half year, an increase of 20 basis points. Operating profit (beia), was 2% lower than last year in the quarter and 1% lower for the half year, additionally reflecting the loss of contribution from businesses sold. A gain of EUR 20 million in fixed investments in the quarter includes the sale of shares in Elizabeth Arden. Net borrowing costs were 25% lower than last year in the quarter and 24% lower in the half year through a lower level of net debt and lower interest rates as we pay off older borrowings at higher fixed rates. Pension financing costs were reduced by 41% in the quarter and by 45% in the half year. In the quarter, net exceptional gains within operating profit were EUR 3 million, including restructuring charges of EUR 86 million more than offset by profits on disposals of EUR 89 million. This compares with net exceptional charges of EUR 87 million in the prior year which included profits on disposals of EUR 12 million. For the half year, net exceptional charges are EUR 64 million, compared with EUR 20 million last year. The beia tax rate was 25% in the quarter, which includes the benefits from the completion of a number of projects as part of our ongoing actions to realise the full benefits of Path to Growth. This programme supports the lower sustainable tax rate set out in Unilever 2010. For the half year the beia tax rate is 27%, compared with 30% in the prior year, contributing 4 percentage points to EPS beia. For the full year we now expect a beia tax rate of around 28%. The effective tax rate was 30% in the quarter and 33% in the half year, reflecting the non-tax-deductibility of Bestfoods goodwill amortisation. Net profit (beia) was up by 10% in the quarter to EUR 1,036 million and by 9% for the half year to EUR 1,887 million. Net profit was up 34% in the quarter, with the additional benefit of higher after tax profits on disposals, and 8% higher in the half year. Earnings per share (beia) rose by 11% in the quarter, and by 10% in the half year, after 3 percentage points of dilution from disposals. Earnings per share were 36% higher in the quarter and 10% higher in the half year. When expressed at current rates of exchange, earnings per share (beia) in the quarter increased by 10% in Euros, by 5% in GBP Sterling and by 17% in US $. For the half year, earnings per share (beia) increased by 6% in Euros, by 4% in GBP Sterling and by 18% in US $. Turnover, including the impact of disposals and expressed at current rates of exchange, decreased by 6% in Euros for the quarter and by 7% for the half year. SECOND QUARTER PERFORMANCE BY REGION (at constant exchange rates) Note: The following regional commentary is based on operating profit before exceptional items and amortisation of goodwill and intangible assets. Sales growth is stated on an underlying basis, excluding the effects of acquisitions and disposals. Turnover includes the impact of acquisitions and disposals. EUROPE Market conditions weakened further in the quarter with price declines in both home and personal care. Foods markets were held back by lower consumption of ice cream and ready-to-drink tea. Conditions in Germany, France and the Netherlands have been particularly difficult. Against this background, our underlying sales declined by 5%, with two thirds of this coming from ice cream and ready-to-drink tea. Turnover was 7% lower than last year, including the impact of planned disposals. Lower sales in Home and Personal Care reflect an increased level of consumer related price promotions, with price down by 2.3%. In laundry our actions have led to a stabilisation of market shares against continued strong competition and we are now rolling out the successful global 'dirt is good' advertising. A programme of launches is under way in household care. Our skin, hair and deodorants brands gained further market share. Key innovations include Dove firming products and shampoo for coloured hair, the re-launch of Lux soap bars and bath and shower products and the roll-out of Axe in Central and Eastern Europe. Sales in prestige fragrances showed an expected decline from the loss of share during the course of last year as we refocused the business. In Foods, spreads returned to growth with 'healthy heart' leading the way through pro--activ, including the launch in the quarter of yoghurt and milk products which are now in 12 countries, while pro--activ spread is in 20. Family brands grew for the first time in a quarter since 2002 through the Cremefine dairy cream alternative line. There was good growth in dressings, especially with Bertolli and in Russia under the Calve brand. Knorr, however, showed a small decline due to specific competitive activities and the timing of our own promotions. Ice cream and ready-to-drink sales were markedly down against a strong comparator last year, particularly in June. We have however continued to invest in the long-term development of the business with a programme of seasonal innovations. In frozen foods we are continuing to reshape the product portfolio towards higher growth and profitable segments, but with sales reduced in the short term as a result. Knorr frozen is now well established in a number of countries, while in the later part of this year we have a full relaunch of the Iglo, Birds Eye and Findus brands. Operating margin at 15.8% was 90 basis points lower than last year through the impact of lower sales in ice cream. NORTH AMERICA Underlying sales grew by 4%, including 2.4% in volume, against a low base last year. Turnover, including the impact of disposals, grew by 1.9%. Markets remain weak, with low growth in Foods and an overall decline in Home and Personal Care. Axe continues to perform strongly, gaining market share, and our US business is now the largest Axe market in the world. Hair care remains a very competitive category and while Dove has been successfully established in shampoo some of our weaker hair care brands have lost share. A new leadership team in prestige fragrances has made good progress with restructuring and the focus is now on this year's more extensive innovation. We have already launched Vera Wang for men in the US, Cerrutti Si in Europe, and a summer edition of cK One. We have further innovations planned for the remainder of the year including cK Eternity Moment endorsed by Scarlett Johansson. While in the second quarter there is still a year on year decline, these initiatives, and a lower comparator, are expected to lead to an improved performance in the second half. In laundry, we have stabilised market share having focused our brand portfolio around the Surf/all brand, Wisk liquid and Snuggle fabric conditioners. Unilever Bestfoods had another strong quarter including the launch of a further 14 products in the Carb Options range. Spreads growth was driven by Country Crock, I Can't Believe It's Not Butter! and Skippy, including snack bars and Carb Options launches. Low-carbohydrate products now account for 50% of the still-growing weight management market. As part of our plan to stabilise sales of Slim--Fast and then return them to growth, we have launched a range of 17 low-carbohydrate products within the overall Slim--Fast programme and these now represent over 20% of sales. Market shares have stabilised over the last six months, although year on year sales are still down because of the progressive share loss through last year. In the second half we will be addressing the decline of the 'Classic' products through a major relaunch, 'Classic Optima'. This has 50% less sugar and will complete the relaunch of the entire Slim--Fast range. Ice cream continues to perform strongly, with a further gain in market share. The Breyers, Klondike and Ben & Jerry's brands all grew well, particularly through the health range of products including low-carbohydrate and light alternatives. The move to warehouse distribution for Ben & Jerry's has been successfully completed with an increase in retail coverage. The regional operating margin, at 15.4%, was 170 basis points higher than last year. AFRICA, MIDDLE EAST AND TURKEY Underlying sales grew 4% with volumes ahead by 6%, but with lower prices as we adjust to strengthening currencies in Turkey and South Africa. This was a good performance against a stretching comparator of 9% underlying sales growth in the second quarter of last year. Turnover, including the impact of disposals, declined by 0.2%. The launch of Omo multiactive powder in Nigeria and good performances in Turkey, South Africa and Algeria drove growth in laundry. Household care also grew well following the launch of a new white variant of Domestos, and the price repositioning of Cif in Turkey. Growth in hair care was led by Sunsilk, including new shampoo variants in Turkey and Arabia and grooming products in Morocco and Algeria. Dove performed strongly through the beauty bar, the launch of face care and through classic bodywash products. Highlights in Foods were a recovery in Ghana, good growth in savoury in Nigeria with Royco bouillon cubes, and the launch of Lipton Black Sea Tea and Sana Dalmatian cream cheese spreads in Turkey. This was partly offset by lower sales in leaf tea in Arabia. The regional operating margin, 13.9%, was 180 basis points ahead of last year with a strong improvement in gross margins. ASIA AND PACIFIC Underlying sales grew 0.7%. Volume grew by 3.1% but lower pricing to protect market positions, particularly in Japan and India, impacted the top line. Turnover, including the net impact of disposals and acquisitions, declined by 2.4%. In Home and Personal Care there was strong growth in Indonesia, Thailand, China and Vietnam across key categories. However the increased competition that we saw in the first quarter in India and Japan has continued into this quarter. In India volumes continue to grow well, but we have reduced prices to protect our market positions in laundry, hair and oral care. In laundry, Surf and Rin supreme are performing well and we are maintaining market share, whilst we see some small share loss in hair care, primarily to local competition. In Japan, the hair care market is declining in value and we have lost share. However, action is being taken, including innovations in styling and colourants under the mod's hair brand and further initiatives in the category are in our plans for the second half of the year. The Japanese skin care market category has remained very competitive. In Foods, Brooke Bond tea in India has returned to good growth but sales in Pakistan have been held back by a combination of trade de-stocking and sharply increased promotional activity by local competition. China and South East Asia grew well through Knorr including Foodsolutions, through Lipton and in ice cream. Overall growth continues to be affected by our actions to reduce the tail of non-leading brands by managing some brands for value through a harvest strategy or disposal. The regional operating margin at 12.6% was 150 basis points lower than last year, largely through the mix impact of lower sales in hair care and from the determined actions we are taking to defend our market positions. Margins in the second half year will benefit from the exit from the low margin fertilisers business which was completed late in the second quarter. LATIN AMERICA Underlying sales grew by 2.7%, on top of 10% growth in the second quarter last year. After the impact of disposals, turnover declined by 0.2%. While there are some encouraging signs of a return of economic growth in most countries, consumer demand remains weak, particularly in Brazil. In Foods, Knorr moved ahead strongly with the extension of low unit price cubes from the Caribbean to Brazil, and the successful migration of CICA to Knorr. Hellmann's performed well in Chile and Brazil. There was good growth in the nutritional brands such as Maizena and AdeS, while Slim--Fast is doing very well in Mexico and a regional roll-out is being evaluated. In Home & Personal Care, we are growing well in Argentina, as our strong category positions benefit from the economic recovery. Although in Brazil sales were down following a strong first quarter, importantly, overall market shares remain firm. Personal care produced good progress in deodorants, notably Axe and Rexona, and strong broad-based launches within the Lux range. Operating margin, at 14.4%, is 290 basis points ahead of last year through the benefits of savings programmes and a better mix in Foods from an improved portfolio. CASH FLOW (at current exchange rates) Cash flow from group operating activities in the half year was EUR 2.6 billion, an increase of EUR 0.1 billion on the corresponding period last year. Operating profit (beia) at current rates of exchange was EUR 0.2 billion lower, which was more than offset by lower seasonal working capital outflows and lower cash restructuring compared to the same period last year. Returns on investment and servicing of finance were EUR 0.2 billion lower as a result of lower interest costs. Capital expenditure and financial investment was EUR 0.1 billion lower, reflecting the sale of shares in Elizabeth Arden and lower purchases of own shares to hedge our share option programmes. Net debt at the half year was EUR 13.0 billion, an increase of EUR 0.5 billion since the start of the year, primarily arising from currency movements particularly the effect of a stronger US dollar on our US dollar-denominated debt. BALANCE SHEET (at current exchange rates) Goodwill and intangible assets decreased by EUR 0.2 billion in the half year, with the effect of amortisation and disposals (EUR 0.6 billion) offset by currency movements (EUR 0.4 billion). Higher stocks, trade debtors and trade creditors reflect seasonal movements, with an offsetting reduction in creditors through payment of the final 2003 dividend. Provisions are EUR 0.1 billion lower due to Path to Growth restructuring payments. Capital and reserves have increased by EUR 0.9 billion in the half year. Net profits added EUR 1.3 billion, and the credit in respect of share options EUR 0.1 billion. This was offset by movements in pension assets and liabilities and purchases of own shares to hedge share option plans (EUR 0.5 billion). EURO REPORTING Information in sterling and US dollars is available as a supplement to this Euro report. SAFE HARBOUR STATEMENT: This announcement may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES
(unaudited)
Note: A description of the exchange rate conventions used is given
on page 13.
EUR Millions- constant rates
Second Quarter Half Year
---------------------- ---------------------
%Incr./ 2004 2003 % Incr./
2004 2003 (Decr.) (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
Less: Share of
turnover of
(55) (58) joint ventures (100) (130)
---------------------------- --------------
10,780 11,105 (3)% Group turnover 20,523 21,037 (2)%
---------------------------- --------------
Group operating
1,322 1,242 6 % profit 2,418 2,505 (3)%
Add: Share of
operating
profit of
joint
12 13 ventures 22 25
1,334 1,255 6 % OPERATING PROFIT 2,440 2,530 (4)%
----------------------------------------------------------------------
Operating profit
1,613 1,648 (2)% beia (*) 3,068 3,113 (1)%
3 (87) Exceptional items (64) (20)
Amortisation
of goodwill
and intangible
(282) (306) assets (564) (563)
----------------------------------------------------------------------
Share of operating
12 15 profit of associates 22 4
Other income from
20 (14) fixed investments 22 (11)
(172) (230) Interest (337) (441)
Other finance
income/(cost)
- pensions
and similar
(24) (41) obligations (46) (84)
PROFIT BEFORE
1,170 985 19 % TAXATION 2,101 1,998 5%
(347) (367) Taxation (695) (687)
PROFIT AFTER
823 618 33 % TAXATION 1,406 1,311 7%
(53) (45) Minority interests (106) (112)
770 573 34 % NET PROFIT 1,300 1,199 8%
Net profit
1,036 940 10 % beia(*) 1,887 1,738 9%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED EARNINGS PER
SHARE (Constant rates)
- per EUR 0.51 ordinary NV
0.79 0.58 36 % share (Euros) 1.33 1.22 10 %
- per 1.4p ordinary PLC
11.86 8.72 36 % share (Euro cents) 19.98 18.25 10 %
- per EUR0.51 ordinary NV
share - beia (*)
1.07 0.96 11 % (Euros) 1.94 1.77 10 %
- per 1.4p ordinary PLC
share - beia * (Euro
16.02 14.41 11 % cents) 29.12 26.58 10 %
- per EUR 0.51
ordinary NV share -
0.76 0.56 36 % diluted (Euros) 1.29 1.18 9 %
- per 1.4p
ordinary PLC share -
11.50 8.46 36 % diluted (Euro cents) 19.38 17.71 9 %
----------------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets 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 periods have been translated at the exchange rates prevailing during the period. For further details of the results at current exchange rates and impact of exchange rate movements see notes on page 13.
EUR Millions-current rates
Second Quarter Half Year
--------------- -------------
%Incr./ %Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
749 564 33 % NET PROFIT 1,264 1,201 5 %
1,012 932 9 % Net profit beia (*) 1,834 1,747 5 %
COMBINED EARNINGS PER SHARE
(Current rates)
- per EUR0.51 ordinary
0.77 0.57 34 % NV share (Euros) 1.30 1.22 6 %
- per 1.4p ordinary
11.55 8.59 34 % PLC share (Euro cents) 19.44 18.28 6 %
- per EUR 0.51 ordinary
NV share - beia (*)
1.05 0.95 10 % (Euros) 1.89 1.78 6 %
- per 1.4p ordinary
PLC share - beia (*)
15.65 14.27 10 % (Euro cents) 28.30 26.71 6 %
- per EUR 0.51
ordinary NV share
0.75 0.55 35 % -diluted (Euros) 1.26 1.18 6 %
- per 1.4p
ordinary PLC
share -diluted (Euro
11.21 8.32 35 % cents) 18.86 17.74 6 %
----------------------------------------------------------------------
(*) Before exceptional items and amortisation of goodwill and intangible assets STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
EUR Millions - current rates Half Year
--------------
2004 2003
Restated
Net profit 1,264 1,201
Pensions - actuarial gains / (losses) net of tax (41) (53)
Currency retranslation (105) 452
--------------
Total recognised gains since last annual accounts 1,118 1,600
--------------
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
EUR Millions - current rates Half Year
--------------
2004 2003
Restated
Shareholders' equity as at 1 January 5,920 4,702
Net profit 1,264 1,201
Dividends 10 10
Goodwill written back on disposals 5 10
Change in number of shares or certificates of shares
held in connection with share options (366) (382)
Actuarial gains / (losses) on pension schemes net of tax (41) (53)
Share option credit 121 84
Currency retranslation (134) 495
--------------
Shareholders' equity as at the end of the period 6,779 6,067
--------------
SUMMARY BALANCE SHEET (unaudited)
EUR Millions - current rates As at As at As at
26 31 28
June December June
2004 2003 2003
------------------------
Restated
Goodwill and intangible assets 17,529 17,713 19,478
Other fixed assets 6,919 6,854 7,538
Stocks 4,322 4,175 4,735
Debtors 6,582 5,881 7,232
Cash and current investments 3,485 3,345 2,922
Trade and other creditors (9,932) (10,304)(10,583)
------------------------
28,905 27,664 31,322
------------------------
Borrowings 16,359 15,900 19,064
Provisions for liabilities and charges
(excluding pensions and similar obligations) 1,502 1,645 1,918
Net pension asset for funded schemes in
surplus (574) (490) (376)
Net pension liability for funded schemes in
deficit 1,746 1,629 1,380
Net pension liability for unfunded schemes 2,705 2,620 2,847
Minority interests 388 440 422
Capital and reserves 6,779 5,920 6,067
------------------------
28,905 27,664 31,322
------------------------
Amounts for June 2003 have been restated following a number of reclassifications, principally the presentation of net pension assets for funded schemes in surplus. CASH FLOW STATEMENT (unaudited)
EUR Millions - current rates Half Year
-------------
2004 2003
Cash flow from group operating activities 2,551 2,490
Dividends from joint ventures 3 10
Returns on investments and servicing of finance (358) (523)
Taxation (576) (652)
Capital expenditure and financial investment (673) (736)
Acquisitions and disposals (6) 20
Dividends paid on ordinary share capital (962)(1,068)
-------------
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF LIQUID
RESOURCES AND FINANCING (21) (459)
Management of liquid resources (878) 353
Financing 420 (472)
-------------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (479) (578)
-------------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
EUR Millions - current rates Half Year
----------------
2004 2003
NET DEBT AT 1 JANUARY (12,555)(16,966)
----------------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (479) (578)
Cash flow from (increase) / decrease in borrowings (276) 472
Cash flow from sale and leaseback transaction (144) -
Cash flow from increase / (decrease) in liquid
resources 878 (353)
----------------
Change in net debt resulting from cash flows (21) (459)
Borrowings within group companies acquired - (26)
Borrowings within group companies sold 41 5
Liquid resources within group companies sold (2) (3)
Non cash movements (631) 272
Currency retranslation 150 1,035
----------------
MOVEMENT IN NET DEBT IN THE PERIOD (463) 824
----------------
----------------
NET DEBT AT PERIOD END (13,018)(16,142)
----------------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
Second Quarter EUR Millions - Half Year
constant rates
------------------------ ---------------------
% %
Incr./ Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
----------------------------------------------------------------------
4,580 4,909 (7)% Europe 8,585 9,114 (6)%
2,560 2,512 2 % North America 4,831 4,880 (1)%
Africa, Middle
846 848 0 % East and Turkey 1,573 1,598 (2)%
1,766 1,810 (2)% Asia and Pacific 3,444 3,471 (1)%
1,083 1,084 0 % Latin America 2,190 2,104 4 %
----------------------------------------------------------------------
1,613 1,648 (2)% OPERATING PROFIT - beia* 3,068 3,113 (1)%
----------------------------------------------------------------------
724 820 (12)% Europe 1,348 1,498 (10)%
394 344 14 % North America 689 654 5 %
Africa, Middle
117 102 15 % East and Turkey 205 184 11 %
222 256 (13)% Asia and Pacific 464 513 (9)%
156 126 24 % Latin America 362 264 37 %
----------------------------------------------------------------------
14.9% 14.8% OPERATING MARGIN - beia * 14.9% 14.7%
---------------------------------------------------------------
15.8% 16.7% Europe 15.7% 16.4%
15.4% 13.7% North America 14.3% 13.4%
Africa, Middle
13.9% 12.1% East and Turkey 13.0% 11.5%
12.6% 14.1% Asia and Pacific 13.5% 14.8%
14.4% 11.5% Latin America 16.5% 12.5%
---------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets OPERATIONAL ANALYSIS (at constant rates - unaudited)
Second Quarter EUR Millions - Half Year
constant rates
------------------------ ---------------------
% %
Incr./ Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
10,835 11,163 (3)% TURNOVER 20,623 21,167 (3)%
----------------------------------------------------------------------
6,244 6,547 (5)% Foods 11,598 12,084 (4)%
----------------------------------------------------------------------
2,191 2,171 1 % Savoury and dressings 4,216 4,171 1 %
Spreads and cooking
1,163 1,240 (6)% products 2,269 2,447 (7)%
Health & wellness
858 935 (8)% and beverages 1,681 1,793 (6)%
Ice cream and frozen
2,032 2,201 (8)% foods 3,432 3,673 (7)%
----------------------------------------------------------------------
1,734 1,798 (4)% Home care 3,486 3,583 (3)%
2,789 2,758 1 % Personal care 5,393 5,357 1 %
68 60 12 % Other operations 146 143 2 %
----------------------------------------------------------------------
1,613 1,648 (2)% OPERATING PROFIT-beia* 3,068 3,113 (1)%
----------------------------------------------------------------------
979 1,037 (6)% Foods 1,746 1,775 (2)%
----------------------------------------------------------------------
365 295 24 % Savoury and dressings 719 642 12 %
Spreads and cooking
175 180 (2)% products 361 363 0 %
Health & wellness
114 109 3 % and beverages 230 229 0 %
Ice cream and frozen
325 453 (28)% foods 436 541 (19)%
----------------------------------------------------------------------
181 232 (22)% Home care 426 462 (8)%
456 373 22 % Personal care 902 877 3 %
(3) 6 (159)% Other operations (6) (1) (464)%
----------------------------------------------------------------------
14.9% 14.8% OPERATING MARGIN - beia* 14.9% 14.7%
---------------------------------------------------------------
15.7% 15.8% Foods 15.1% 14.7%
---------------------------------------------------------------
16.7% 13.6% Savoury and dressings 17.1% 15.4%
Spreads and cooking
15.1% 14.5% products 15.9% 14.8%
Health & wellness
13.2% 11.7% and beverages 13.7% 12.8%
Ice cream and frozen
16.0% 20.6% foods 12.7% 14.7%
---------------------------------------------------------------
10.4% 12.9% Home care 12.2% 12.9%
16.4% 13.5% Personal care 16.7% 16.4%
(4.9)% 9.2% Other operations (4.4)% (0.8)%
---------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets NOTES Exchange rate conventions and impact of movements in exchange rates The following exchange rate conventions have been applied: In the profit and loss account information given on page 7 and the segmental analysis on pages 11 and 12, the results for 2004 and the comparative figures for 2003 have been translated at constant exchange rates, being the annual average exchange rates for 2003. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated, and is the basis on which we measure our operational performance internally. It also forms the basis for target setting and the annual outlook statement. For our reporting currencies these rates were EUR 1 = GBP 0.69 = US $1.13. The results and earnings per share on page 8 and the cash flow statement on page 10 are translated at rates current in each period. For our reporting currencies these rates were EUR 1 = GBP 0.67 = US $1.23 for the first six months of 2004 and EUR 1 = GBP 0.69 = US $1.10 for the first six months of 2003. The lower Euro EPS and turnover at current rates of exchange reflects the progressive strengthening of the Euro through 2003, particularly against the US $. For illustrative purposes, if the first half year 2004 exchange rates were to remain in place through the remainder of the year, then growth for the year would be around 4% lower at current rates than at constant rates. The balance sheet figures have been translated at period-end rates of exchange. For our reporting currencies these were EUR 1 = GBP 0.67 = US $1.21 at 26 June 2004, EUR 1 = GBP 0.71 = US $1.26 at 31 December 2003 and EUR 1 = GBP 0.69 = US $1.14 at 28 June 2003. Results at current rates of exchange
Second Quarter EUR Millions Half Year
- current
rates
-------------------------- ----------------------
2004 2003 % Incr. 2004 2003 % Incr.
/(Decr.) /(Decr.)
10,516 11,148 (6)% Turnover 19,873 21,330 (7)%
------------------ --------------
Operating
1,289 1,242 4 % profit 2,346 2,544 (8)%
----------------------------------------------------------------------
Operating
1,567 1,639 (4)% profit beia* 2,959 3,135 (6)%
----------------------------------------------------------------------
Share of
operating
profit of
associates &
income from
fixed
30 3 investments 41 (6)
Interest
(including
net interest
on pension
scheme
assets and
(184) (272) liabilities) (355) (534)
(335) (365) Taxation (668) (690)
Minority
(51) (44) interests (100) (113)
------------------ --------------
749 564 33 % Net profit 1,264 1,201 5 %
------------------ --------------
----------------------------------------------------------------------
Net profit
1,012 932 9 % beia * 1,834 1,747 5 %
----------------------------------------------------------------------
The impact of exchange rate movements on the six months results at current exchange rates in Euros, GBP Sterling and US $ is given below, along with the year on year percentage change at constant rates.
Half Year - Constant At current rates of exchange
Millions rates
---------------------------------------------
% Incr. EUR % Incr. GBP % Incr. US $ % Incr.
/(Decr.) 2004 /(Decr.) 2004 /(Decr.) 2004 /(Decr.)
Turnover (3)% 19,873 (7)% 13,398 (8)% 24,384 4 %
----------------------------------------------------------------------
Operating profit
beia * (1)% 2,959 (6)% 1,995 (7)% 3,630 5 %
----------------------------------------------------------------------
Net profit 8 % 1,264 5 % 852 4 % 1,551 17 %
----------------------------------------------------------------------
Net profit beia * 9 % 1,834 5 % 1,237 3 % 2,251 17 %
----------------------------------------------------------------------
% Change in EPS 10 % 6 % 5 % 18 %
----------------------------------------------------------------------
% Change in EPS -
beia * 10 % 6 % 4 % 18 %
----------------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets Preference shares On 24 March 2004, Unilever made the following announcement: "Unilever announced today that it intends to exercise its option to convert its EUR 0.05* N.V. preference shares into ordinary Unilever N.V. shares during the first quarter of 2005. The conversion will follow the terms stipulated in the original information memorandum and in Unilever's Articles of Association. "The conversion will be met out of existing shares and will not involve the issue of any new shares. The maximum number of ordinary Unilever N.V. shares involved is 18.9 million. "The preference shares were offered to holders of ordinary Unilever N.V. shares at the time of the special dividend payment in 1999. "The decision to convert reflects the current ordinary Unilever N.V. share price, respects the interests of all Unilever shareholders, and is consistent with the conditions of the original issue. "The conversion timing takes into account fiscal considerations reflecting changes to Dutch taxation in recent years and allows for the purchase of ordinary N.V. shares from the market to the extent that this is required for the conversion. "Unilever will discuss with Euronext an extension of the listing of the preference shares beyond 31 December 2004 and until the conversion. "Following conversion, the preference shares will retain a EUR 0.05 residual notional value, which Unilever intends to redeem for cash in 2005, subject to approval at the 2005 AGM of Unilever N.V. "The normal preference dividend will accrue up to the date of conversion and thereafter will accrue on the residual notional value until its redemption." On 26 March 2004 Unilever added, "It has been agreed with Euronext that the listing of Prefs will be continued until, at the latest, the moment of redemption. The listing of the Prefs originally ended on 31 December 2004." Since then, a request has been submitted to the Enterprise Chamber of the Amsterdam Court of Appeal by a group of shareholders representing approximately 10% of the preference shares outstanding, for an inquiry into the company's policy on the preference shares. In order to ensure an orderly course of affairs Unilever has decided not to take the definitive decision to convert until after the court session, which will take place on 6 September 2004. Unilever's intentions as regards to the preference shares as described above have not changed. * This amount is a representation in euros on the basis of Article 67c Book 2 of the Dutch Civil Code, rounded to two decimal places, of underlying Dutch guilders, as these have not been converted into euros in Unilever N.V.'s Articles of Association. 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 with the Equalisation Agreement. The diluted earnings per share 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 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 half year
Constant rates Current rates
----------------------------------------
2004 2003 2004 2003
Thousands of units
Average number of combined
share units of EUR 0.51 965,018 971,433 965,018 971,433
Average number of combined
share units of 1.4p 6,433,454 6,476,222 6,433,454 6,476,222
COMBINED EPS EUR Millions
------------
Net profit 1,300 1,199 1,264 1,201
Less: Preference dividends (14) (17) (14) (17)
----------------------------------------
Net profit attributable to
ordinary capital 1,286 1,182 1,250 1,184
----------------------------------------
----------------------------------------
Combined EPS per EUR 0.51
(Euros) 1.33 1.22 1.30 1.22
Combined EPS per 1.4p (Euro
cents) 19.98 18.25 19.44 18.28
----------------------------------------
COMBINED EPS - beia * EUR Millions
---------------------
Net profit 1,300 1,199 1,264 1,201
Add back exceptional items net
of tax 52 1 58 1
Add back amortisation of
goodwill / intangible assets
net of tax 535 538 512 545
----------------------------------------
Net profit beia * 1,887 1,738 1,834 1,747
Less: Preference dividends (14) (17) (14) (17)
----------------------------------------
Net profit attributable to
ordinary capital - beia * 1,873 1,721 1,820 1,730
----------------------------------------
----------------------------------------
Combined EPS - beia* per EUR
0.51 (Euros) 1.94 1.77 1.89 1.78
Combined EPS - beia* per 1.4p
(Euro cents) 29.12 26.58 28.30 26.71
----------------------------------------
COMBINED EPS - Diluted Thousands of units
----------------------
Adjusted average combined
share units of EUR 0.51 994,858 1,000,970 994,858 1,000,970
Adjusted average combined
share units of 1.4p 6,632,384 6,673,136 6,632,384 6,673,136
EUR Millions
Net profit attributable to
ordinary capital 1,286 1,182 1,250 1,184
----------------------------------------
----------------------------------------
Combined diluted EPS per EUR
0.51 (Euros) 1.29 1.18 1.26 1.18
Combined diluted EPS per 1.4p
(Euro cents) 19.38 17.71 18.86 17.74
----------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets Dates The results for the third quarter and announcement of interim dividends will be published on Wednesday 27 October 2004. ENQUIRIES: UNILEVER PRESS OFFICE +44 (0) 20 7822 6805 Internet: http://www.unilever.com E-mail: press-office.london@unilever.com 28 July 2004 CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited) Note: A description of the exchange rate conventions used is given on page 13.
Second Quarter US $ Millions - Half Year
constant rates
------------------------------ ---------------------
% %
Incr./ Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
12,199 12,569 (3)% TURNOVER 23,221 23,834 (3)%
Less: Share of
turnover of
(61) (66) joint ventures (112) (147)
-------------------- --------------
12,138 12,503 (3)% Group turnover 23,109 23,687 (2)%
-------------------- --------------
Group operating
1,489 1,398 6% profit 2,723 2,820 (3)%
Add: Share of
operating profit
of joint
12 15 ventures 24 28
-------------------- --------------
1,501 1,413 6% OPERATING PROFIT 2,747 2,848 (4)%
----------------------------------------------------------------------
Operating profit
1,815 1,855 (2)% beia * 3,454 3,505 (1)%
3 (98) Exceptional items (72) (23)
Amortisation of
goodwill and
(317) (344) intangible assets (635) (634)
----------------------------------------------------------------------
Share of
operating profit
14 17 of associates 24 5
Other income
from fixed
23 (16) investments 25 (13)
(192) (259) Interest (378) (496)
Other finance
income / (cost) -
pensions and
similar
(28) (47) obligations (52) (95)
-------------------- --------------
PROFIT BEFORE
1,318 1,108 19% TAXATION 2,366 2,249 5%
(392) (412) Taxation (783) (773)
--------------------- --------------
PROFIT AFTER
926 696 33% TAXATION 1,583 1,476 7%
Minority
(60) (51) interests (120) (126)
--------------------- --------------
866 645 34% NET PROFIT 1,463 1,350 8%
--------------------- --------------
----------------------------------------------------------------------
Net profit
1,167 1,059 10% beia * 2,125 1,957 9%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED
EARNINGS PER
SHARE
(Constant rates)
- per EUR
0.51
ordinary
NV share
0.89 0.65 (US $) 1.50 1.37
- per 5.6p
ordinary
PLC share
0.53 0.39 (US $) 0.90 0.82
- per EUR
0.51
ordinary
NV share -
beia *
1.21 1.09 (US $) 2.19 2.00
- per 5.6p
ordinary
PLC share
- beia *
0.72 0.65 (US $) 1.31 1.20
- per EUR
0.51
ordinary
NV share -
diluted
0.87 0.64 (US $) 1.46 1.33
- per 5.6p
ordinary
PLC share
- diluted
0.52 0.38 (US $) 0.87 0.80
----------------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets
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 on page 13.
US $ Millions
Second Quarter - current rates Half Year
---------------------- -------------------------
%Incr./ %Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
907 641 41% NET PROFIT 1,551 1,324 17%
----------------------------------------------------------------------
1,224 1,053 16% Net profit beia (*) 2,251 1,927 17%
----------------------------------------------------------------------
----------------------------------------------------------------------
COMBINED EARNINGS
PER SHARE
(Current rates)
0.93 0.65 - per EUR 0.51 ordinary 1.59 1.34
NV share (US $)
0.56 0.39 - per 5.6p ordinary PLC 0.95 0.81
share (US $)
1.26 1.07 - per EUR 0.51 ordinary 2.31 1.96
NV share - beia (*)
(US $)
0.76 0.65 - per 5.6p ordinary PLC 1.39 1.18
share - beia (*)
(US $)
0.90 0.63 - per EUR 0.51 ordinary 1.54 1.30
NV share - diluted
(US $)
0.55 0.38 - per 5.6p ordinary PLC 0.93 0.78
share - diluted
(US $)
----------------------------------------------------------------------
(*) Before exceptional items and amortisation of goodwill and
intangible assets
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited)
US $ Millions - current rates Half Year
---------- ----------
2004 2003
Restated
Net profit 1,551 1,324
Pensions - actuarial gains / (losses)
net of tax (50) (58)
Currency retranslation (444) 994
---------- ----------
Total recognised gains since last
annual accounts 1,057 2,260
---------- ----------
MOVEMENTS IN SHAREHOLDERS' EQUITY (unaudited)
US $ Millions - current rates Half Year
------------- ------------
2004 2003
Restated
Shareholders' equity as at 1 January 7,465 4,932
Net profit 1,551 1,324
Dividends 12 11
Goodwill written back on disposals 6 11
Change in number of shares or certificates
of shares held in connection with share
options (450) (422)
Actuarial gains / (losses) on pension
schemes net of tax (50) (58)
Share option credit 148 93
Currency retranslation (460) 1,038
------------- ------------
Shareholders' equity as at the end of
the period 8,222 6,929
------------- ------------
SUMMARY BALANCE SHEET (unaudited)
US $ Millions - current rates As at 26 As at 31 As at 28
June December June
2004 2003 2003
----------- ------------- -------------
Restated
Goodwill and intangible assets 21,263 22,336 22,244
Other fixed assets 8,393 8,642 8,608
Stocks 5,243 5,265 5,407
Debtors 7,984 7,416 8,259
Cash and current investments 4,227 4,218 3,337
Trade and other creditors (12,048) (12,993) (12,086)
----------- ------------- -------------
35,062 34,884 35,769
----------- ------------- -------------
Borrowings 19,844 20,050 21,771
Provisions for liabilities and
charges (excluding pensions
and similar obligations) 1,822 2,074 2,190
Net pension asset for funded
schemes in surplus (696) (618) (429)
Net pension liability for
funded schemes in deficit 2,118 2,054 1,576
Net pension liability for
unfunded schemes 3,281 3,304 3,251
Minority interests 471 555 481
Capital and reserves 8,222 7,465 6,929
------------ ------------- -------------
35,062 34,884 35,769
------------ ------------- -------------
Amounts for June 2003 have been restated following a number of
reclassifications, principally the presentation of net pension assets
for funded schemes in surplus.
CASH FLOW STATEMENT (unaudited)
US $ Millions - current rates Half Year
--------------------------
2004 2003
Cash flow from group operating activities 3,130 2,746
Dividends from joint ventures 4 11
Returns on investments and servicing
of finance (438) (576)
Taxation (707) (719)
Capital expenditure and financial
investment (827) (813)
Acquisitions and disposals (7) 22
Dividends paid on ordinary share capital (1,180) (1,177)
------------ -------------
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT
OF LIQUID RESOURCES AND FINANCING (25) (506)
Management of liquid resources (1,077) 389
Financing 515 (520)
------------ -------------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (587) (637)
------------ -------------
RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET DEBT (unaudited)
US $ Millions - current rates Half Year
--------------------------
2004 2003
NET DEBT AT 1 JANUARY (15,832) (17,797)
------------ -------------
INCREASE / (DECREASE) IN CASH IN THE PERIOD (587) (637)
Cash flow from (increase) / decrease
in borrowings (339) 520
Cash flow from sale and leaseback
transaction (177) -
Cash flow from increase / (decrease)
in liquid resources 1,077 (389)
------------ -------------
Change in net debt resulting from cash flows (26) (506)
Borrowings within group companies acquired - (28)
Borrowings within group companies sold 50 5
Liquid resources within group companies sold (3) (3)
Non cash movements (774) 300
Currency retranslation 794 (405)
------------ -------------
MOVEMENT IN NET DEBT IN THE PERIOD 41 (637)
------------ -------------
------------ -------------
NET DEBT AT PERIOD END (15,791) (18,434)
------------ -------------
GEOGRAPHICAL ANALYSIS (at constant rates - unaudited)
US $ Millions
Second Quarter - constant rates Half Year
------------------------- ------------------------
%Incr./ %Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
12,199 12,569 (3)% TURNOVER 23,221 23,834 (3)%
----------------------------------------------------------------------
5,157 5,527 (7)% Europe 9,667 10,262 (6)%
2,882 2,828 2% North America 5,439 5,494 (1)%
Africa, Middle East
953 954 0% and Turkey 1,771 1,799 (2)%
1,988 2,039 (2)% Asia and Pacific 3,878 3,909 (1)%
1,219 1,221 0% Latin America 2,466 2,370 4%
----------------------------------------------------------------------
1,815 1,855 (2)% OPERATING 3,454 3,505 (1)%
PROFIT - beia (*)
----------------------------------------------------------------------
815 924 (12)% Europe 1,518 1,687 (10)%
442 387 14% North America 775 736 5%
Africa, Middle East
132 115 15% and Turkey 231 208 11%
251 288 (13)% Asia and Pacific 523 577 (9)%
175 141 24% Latin America 407 297 37%
----------------------------------------------------------------------
14.9% 14.8% OPERATING MARGIN 14.9% 14.7%
- beia (*)
----------------------------------------------------------------------
15.8% 16.7% Europe 15.7% 16.4%
15.4% 13.7% North America 14.3% 13.4%
Africa, Middle East
13.9% 12.1% and Turkey 13.0% 11.5%
12.6% 14.1% Asia and Pacific 13.5% 14.8%
14.4% 11.5% Latin America 16.5% 12.5%
----------------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible
assets
OPERATIONAL ANALYSIS (at constant rates - unaudited)
US $ Millions
Second Quarter - constant rates Half Year
----------------------- ----------------------
% %
Incr./ Incr./
2004 2003 (Decr.) 2004 2003 (Decr.)
12,199 12,569 (3)% TURNOVER 23,221 23,834 (3)%
----------------------------------------------------------------------
7,031 7,372 (5)% Foods 13,060 13,607 (4)%
----------------------------------------------------------------------
Savoury and
2,467 2,445 1% dressings 4,747 4,697 1%
Spreads and
1,309 1,397 (6)% cooking products 2,555 2,756 (7)%
Health & wellness
967 1,052 (8)% and beverages 1,893 2,018 (6)%
Ice cream and
2,288 2,478 (8)% frozen foods 3,865 4,136 (7)%
----------------------------------------------------------------------
1,952 2,024 (4)% Home care 3,925 4,034 (3)%
3,140 3,105 1% Personal care 6,072 6,032 1%
76 68 12% Other operations 164 161 2%
----------------------------------------------------------------------
OPERATING PROFIT -
1,815 1,855 (2)% beia * 3,454 3,505 (1)%
----------------------------------------------------------------------
1,102 1,168 (6)% Foods 1,966 1,999 (2)%
----------------------------------------------------------------------
Savoury and
411 332 24% dressings 810 723 12%
Spreads and
198 202 (2)% cooking products 407 408 0%
Health & wellness
127 124 3% and beverages 258 259 0%
Ice cream and
366 510 (28)% frozen foods 491 609 (19)%
----------------------------------------------------------------------
203 260 (22)% Home care 479 520 (8)%
513 420 22% Personal care 1,016 987 3%
(3) 7 (159)% Other operations (7) (1) (464)%
----------------------------------------------------------------------
OPERATING MARGIN -
14.9% 14.8% beia * 14.9% 14.7%
---------------------------------------------------------------
15.7% 15.8% Foods 15.1% 14.7%
---------------------------------------------------------------
Savoury and
16.7% 13.6% dressings 17.1% 15.4%
Spreads and
15.1% 14.5% cooking products 15.9% 14.8%
Health & wellness
13.2% 11.7% and beverages 13.7% 12.8%
Ice cream and
16.0% 20.6% frozen foods 12.7% 14.7%
---------------------------------------------------------------
10.4% 12.9% Home care 12.2% 12.9%
16.4% 13.5% Personal care 16.7% 16.4%
(4.9)% 9.2% Other operations (4.4)% (0.8)%
---------------------------------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets Earnings per share in US Dollars for the half year
Constant rates Current rates
----------------------------------------
2004 2003 2004 2003
Thousands of units
Average number of combined
share units of EUR 0.51 965,018 971,433 965,018 971,433
Average number of combined
share units of 5.6p 1,608,363 1,619,055 1,608,363 1,619,055
COMBINED EPS US $ Millions
------------
Net profit 1,463 1,350 1,551 1,324
Less: Preference dividends (15) (19) (17) (19)
----------------------------------------
Net profit attributable to
ordinary capital 1,448 1,331 1,534 1,305
----------------------------------------
----------------------------------------
Combined EPS per EUR 0.51 $1.50 $1.37 $1.59 $1.34
Combined EPS per 5.6p $0.90 $0.82 $0.95 $0.81
----------------------------------------
COMBINED EPS - beia * US $ Millions
---------------------
Net profit 1,463 1,350 1,551 1,324
Add back exceptional items net
of tax 60 2 72 2
Add back amortisation of
goodwill / intangible assets
net of tax 602 605 628 601
----------------------------------------
Net profit beia * 2,125 1,957 2,251 1,927
Less: Preference dividends (15) (19) (17) (19)
----------------------------------------
Net profit attributable to
ordinary capital - beia * 2,110 1,938 2,234 1,908
----------------------------------------
----------------------------------------
Combined EPS - beia* per EUR
0.51 $2.19 $2.00 $2.31 $1.96
Combined EPS - beia* per 5.6p $1.31 $1.20 $1.39 $1.18
----------------------------------------
COMBINED EPS - Diluted Thousands of units
----------------------
Adjusted average combined
share units of EUR 0.51 994,858 1,000,970 994,858 1,000,970
Adjusted average combined
share units of 5.6p 1,658,096 1,668,284 1,658,096 1,668,284
US $ Millions
Net profit attributable to
ordinary capital 1,448 1,331 1,534 1,305
----------------------------------------
----------------------------------------
Combined diluted EPS per EUR
0.51 $1.46 $1.33 $1.54 $1.30
Combined diluted EPS per 1.4p $0.87 $0.80 $0.93 $0.78
----------------------------------------
* Before exceptional items and amortisation of goodwill and intangible assets |
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