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Unilever Announces 1st Quarter Results
Thursday, May 07, 2009 3:53 AM


(Source: MARKETWIRE)tracking
 SOLID START TO 2009 WITH 4.8% ORGANIC GROWTH Key Financials (unaudited, at current rates)         First Quarter 2009 Turnover (EUR million)                              9,505            -1% Operating profit (EUR million)                      1,234           -32% Operating profit before RDIs* (EUR million)         1,392            -2% Net profit (EUR million)                              803           -43% Net profit before RDIs* (EUR million)                 917           -13% Earnings per share (EUR)                             0.26           -44% Earnings per share before RDIs* (EUR)                0.30           -13% * RDIs: Restructuring, disposals and other one-off items Note: operating profit in the first quarter of 2008 included profits on disposal of EUR 517 million pre-tax. Highlights   - Underlying sales growth of 4.8% with 6.8% coming from carry-over     pricing and volumes lower by 1.8%.     Turnover 0.7% below last year including currency movements (-2.0%)     and disposals/acquisitions (-3.3%).   - All categories grew, with the top 13 'billion euro' brands showing     faster pick-up, being among the first to benefit from the     increased customer and consumer focus.   - Developing and Emerging markets holding up, with double-digit     growth. Improved performance in the US.  Underlying     sales down in Western Europe in continued challenging market     conditions.   - Operating margin before RDIs down by 30 basis points     reflecting the dilution from the impact of disposals. Gross margin     down by 190 basis points as a result of commodity cost increases,     including currency effects. Advertising and promotions lower by 110     basis points, driven by efficiencies and, especially, innovation     phasing. Overheads reduced by 50 basis points, boosted by     accelerating savings programmes.   - Earnings per share before RDIs down 13%, mainly reflecting dilution     from disposals, the finance charge for pensions and a higher tax     rate compared with a particularly low rate last year.   - Strong A+ balance sheet allowed for issuance of USD 1.5 billion and     GBP 0.35 billion of bonds at very competitive rates. Paul Polman, Chief Executive Officer:  "First quarter results were solid given today's trading environment, with growth of 4.8% and underlying margins maintained, before dilution from disposals. We have made good progress implementing plans to reignite volume growth, building on existing strengths and correcting competitive gaps. We will further step up innovation and brand support from the second quarter and expect this to drive an improved volume performance.  This will be achieved while protecting cash and margins for the year." 7 May 2009 In the following commentary we report underlying sales growth (abbreviated to 'USG' or 'growth') at constant exchange rates, excluding the effects of acquisitions and disposals. Turnover includes the impact of exchange rates, acquisitions and disposals. Unilever uses'constant rate' and 'underlying' measures primarily for internal performance analysis and targeting purposes. We also comment on trends in operating margins before RDIs (restructuring, disposals, and other one-off items).  We may also discuss net debt, for which we provide an analysis in the notes to the financial statements.  Unilever believes that such measures provide additional information for shareholders on underlying business performance trends. Such measures are not defined under IFRS and are not intended to be a substitute for GAAP measures of turnover, operating margin, profit, EPS and cash flow. Please refer also to note 2 to the financial statements. Further information about certain of these measures is available on our website at www.unilever.com/investorrelations OPERATIONAL REVIEW                                     Underlying                           Turnover       Sales                       EUR millions    Growth %        Volume %  Price % Asia Africa CEE              3,575        9.5%           -0.9%    10.5% Americas                     3,156        7.2%           -1.0%     8.3% Western Europe               2,774       -2.8%           -3.7%     1.0% Unilever Total               9,505        4.8%           -1.8%     6.8% Savoury, dressings & spreads 3,312        2.9% Ice cream & beverages        1,664        4.3% Personal care                2,807        4.0% Home care & other            1,722       10.7% Unilever Total               9,505        4.8% REGIONS Asia Africa CEE  + 9.5%:  Underlying sales growth was again broad-based across all major developing and emerging countries. Despite the strong price increases taken last year, and slowing economies, consumption of our categories has continued to grow in both volume and value. There was further trade de-stocking in the quarter in a number of countries. We have begun the implementation of a regional supply chain centre, based in Singapore, following the successful model adopted for Europe.


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