FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
Dated February
08, 2024
Commission
File Number: 001-04546
UNILEVER PLC
(Translation
of registrant's name into English)
UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(1):_____
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(7):_____
Indicate
by check mark whether the registrant by furnishing the
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in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No .X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- _______
Exhibit
99 attached hereto is incorporated herein by
reference.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
UNILEVER
PLC
|
|
|
|
/S/ M VARSELLONA
|
BY M VARSELLONA
|
CHIEF LEGAL OFFICER AND GROUP SECRETARY
|
Date:
08 February, 2024
EXHIBIT
INDEX
------------------------
EXHIBIT
NUMBER
|
EXHIBIT
DESCRIPTION
|
99
|
Notice
to London Stock Exchange dated 08 February 2024
|
|
Final
Results
|
Exhibit
99
2023 Full Year Results
Implementing Growth Action Plan at pace
|
Underlying performance
|
|
|
|
GAAP measures
|
(unaudited)
|
2023
|
vs 2022
|
|
|
|
|
2023
|
vs 2022
|
Full Year
|
|
|
|
|
|
|
|
|
Underlying sales growth (USG)
|
|
7.0%
|
|
|
|
Turnover
|
€59.6bn
|
(0.8)%
|
Beauty
& Wellbeing
|
|
8.3%
|
|
|
|
Beauty
& Wellbeing
|
€12.5bn
|
1.8%
|
Personal
Care
|
|
8.9%
|
|
|
|
Personal
Care
|
€13.8bn
|
1.4%
|
Home
Care
|
|
5.9%
|
|
|
|
Home
Care
|
€12.2bn
|
(1.8)%
|
Nutrition
|
|
7.7%
|
|
|
|
Nutrition
|
€13.2bn
|
(5.0)%
|
Ice
Cream
|
|
2.3%
|
|
|
|
Ice
Cream
|
€7.9bn
|
0.5%
|
Underlying operating profit
|
€9.9bn
|
2.6%
|
|
|
|
Operating profit
|
€9.8bn
|
(9.3)%
|
Underlying operating margin
|
16.7%
|
60bps
|
|
|
|
Operating margin
|
16.4%
|
(150)bps
|
Underlying earnings per share
|
€2.60
|
1.4%
|
|
|
|
Diluted earnings per share
|
€2.56
|
(14.2)%
|
Free cash flow
|
€7.1bn
|
€1.9bn
|
|
|
|
Net profit
|
€7.1bn
|
(13.7)%
|
Fourth Quarter
|
|
|
|
|
|
|
|
|
USG
|
|
4.7%
|
|
|
|
Turnover
|
€14.2bn
|
(3.0)%
|
Quarterly dividend payable in March 2024
|
|
|
|
€0.4268
|
per share (a)
|
(a)
See note 11 for more information on dividends
Financial and operational highlights
●
Underlying sales growth of 7.0% with
positive volumes, up 0.2% for the FY and 1.8% in
Q4
●
Turnover of €59.6 billion with
(5.7)% impact from currency and (1.7)% from net
disposals
●
Underlying operating margin up 60bps to 16.7%, with
gross margin up 200bps for the year and up 330bps in the second
half
●
Underlying EPS increased 1.4% with
(9.6)% of adverse currency, up 11% on a constant
basis
●
Diluted EPS down (14.2)% against
prior year that included €2.3 billion profit on disposal for
the Tea business
●
Strong cash conversion of 111% with
free cash flow up €1.9 billion to €7.1
billion
●
New €1.5 billion share buyback to
commence in Q2
●
Progress against Growth Action plan, including:
● New
leadership team has embedded the plan across the
organisation
● 30
Power Brands (~75% of turnover) accretive to growth and margin,
with underlying sales up 8.6%
● Brand
and marketing investment up 130bps to 14.3%, focused on 30 Power
Brands
● Active
portfolio optimisation into premium segments, announced
acquisitions of K18 and Yasso and disposals of Elida Beauty, Dollar
Shave Club, Suave in North America
Chief Executive Officer statement
"Today's results show an improving financial performance, with the
return to volume growth and margins rebuilding. However, our
competitiveness remains disappointing and overall performance needs
to improve. We are working to address this by improving our
execution to unlock Unilever's full potential.
In October, we set out a Growth Action Plan focused on three
priorities: delivering higher-quality growth, stepping up
productivity and simplicity, and adopting a strong performance
focus.
The new leadership team has embedded the action plan at pace. We
have increased investment behind our 30 Power Brands, accelerated
portfolio transformation, and are driving a sharper performance
focus with clear and stretching targets across the whole
organisation.
We are at the early stages of this work and there is much to do but
we are moving with speed and urgency to transform Unilever into a
consistently higher performing business."
Hein Schumacher
We expect underlying sales growth (USG) for 2024 to be within our
multi-year range of 3% to 5%, with more balance between volume and
price.
We anticipate a modest improvement in underlying operating margin
for the full year. We will deliver this through gross margin
expansion, driven by a step-up in productivity and net material
inflation back to more normal levels.
Growth Action Plan Update
|
In October 2023, we set out a Growth Action Plan to drive improved
performance and competitiveness. During the fourth quarter, we
moved at pace to embed it across the business.
The plan is divided into three elements but is underpinned by one
simple premise: the need to do fewer things, better, with greater
impact. The operational impacts will build throughout
2024.
Faster growth
1. Focus
on 30 Power Brands: These gross
margin accretive brands represented around 75% of Group turnover
with underlying sales growth of 8.6% in 2023 and 6.5% in the fourth
quarter. This is where we have concentrated our incremental brand
and marketing investment, which will continue in
2024.
2. Drive
unmissable brand superiority:
We developed a new quantitative methodology to measure brands'
consumer appeal across multiple dimensions and have validated it in
29 strategic cells. During the first half of 2024, this will be
rolled out across all 30 Power Brands in key geographies to
identify performance gaps and improve
competitiveness.
3. Scale
multi-year innovation: We have
identified multi-year, scalable innovation programmes to drive
market development and premiumisation. The programmes at least
double the average 2022 project size, with launches from
2025.
4. Increase
brand investment and returns:
In 2023, we reinvested more than half of our gross margin expansion
into incremental brand and marketing investment, up 130bps to
14.3%. We will continue to step up investment in areas that drive
impact and support improved competitiveness.
5. Selectively
optimise the portfolio: We
continue to reshape the portfolio, with the announced acquisitions
of Yasso and K18 and the disposals of Elida Beauty, Dollar Shave
Club and Suave.
Productivity & simplicity
6. Build
back gross margin: We
accelerated recovery in the second half of 2023 with a 330bps gross
margin improvement, driving a 200bps improvement for the year to
42.2%. In 2024, a tight grip on costs, measured by improved net
productivity, will fuel further gross margin
expansion.
7. Focus
our sustainability commitments: We are honing our sustainability efforts
around four critical platforms: Climate, Plastic, Nature and
Livelihoods. We have set exacting, short-term targets, to drive
progress against our longer-term commitments.
8. Drive
benefits of the organisation: The category-focused Business Groups are now
fully implemented with end-to-end responsibility for strategy and
performance. In 2024, this will enable sharper choices to
accelerate growth and digitalisation.
Performance culture
9. Renewed
team: Since October, over half
of our executive leadership team has changed. Our new leaders are
addressing the 2024 opportunities and challenges with urgency and
decisiveness.
We
are announcing today that our Chief People & Transformation
Officer Nitin Paranjpe has decided to retire from Unilever later
this year. Nitin has had a distinguished 37-year career with
Unilever, including as CEO of Hindustan Unilever, President Home
Care, President Foods & Refreshment and Chief Operating Officer
of Unilever. We are pleased to announce the appointment of
Mairéad Nayager as our new Chief People Officer, effective 1
June. Mairéad is currently Chief Human Resources Officer
(CHRO) of Haleon PLC, having previously served as CHRO of Diageo
PLC between 2015 and 2022.
10. Drive and reward
outperformance: We have
implemented a new reward framework across the organisation with
metrics more closely aligned to value creation. A new Directors'
remuneration policy proposal has been extensively consulted on with
our largest shareholders and will be voted on at the 2024
AGM.
Full Year Review: Unilever Group
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€59.6bn
|
7.0%
|
0.2%
|
6.8%
|
(1.7)%
|
(5.7)%
|
(0.8)%
|
16.7%
|
60bps
|
Fourth Quarter
|
€14.2bn
|
4.7%
|
1.8%
|
2.8%
|
(0.7)%
|
(6.7)%
|
(3.0)%
|
|
|
Performance
Underlying sales growth in the full year was 7.0%, with positive
volumes of 0.2% and 6.8% from price. Growth from the 30 Power
Brands was accretive at 8.6%. Beauty & Wellbeing and Personal
Care delivered strong volume growth throughout the year and Home
Care returned to positive volume growth in the second half. Volume
growth for the Group accelerated to 1.8% in the fourth quarter,
with 3.9% volume growth from the 30 Power Brands.
Underlying price growth decelerated from 10.7% in the first quarter
to 2.8% in the fourth quarter, reflecting lower net material
inflation in the second half. Nutrition and Ice Cream faced the
highest input cost inflation in 2023 which translated into higher
pricing.
The percentage of our business winning market share* on a rolling
12 month-basis was disappointing at 37%. This poor performance
reflects share losses to private label in Europe, consumer shifts
to super-premium segments in North America where we currently under
index and a significant reduction of unprofitable SKUs globally.
Our competitiveness is not good enough and we are moving quickly to
address it.
Beauty & Wellbeing grew underlying sales by 8.3%, with strong
volume growth of 4.4%. Prestige Beauty and Health & Wellbeing
continued to grow double-digit and now account for a quarter of
Beauty & Wellbeing's turnover. Personal Care grew underlying
sales 8.9%, with 3.2% from volume and 5.5% from price, led by
strong sales growth of Deodorants. Home Care grew underlying sales
5.9%, driven by 6.8% from price and (0.9)% from volume, with
positive volumes in emerging markets offset by a double-digit
decline in Europe. Nutrition grew underlying sales 7.7%, with 10.1%
from price and volumes down (2.2)% as we responded to higher input
costs and a challenging European market. Ice Cream's underlying
sales growth was disappointing at 2.3%, with price growth of 8.8%
and a volume decline of (6.0)%, reflecting the impact of
downtrading in the in-home channels.
Emerging markets (58% of Group turnover) grew underlying sales
8.5%, with 1.6% from volume and 6.9% from price. Latin America,
Turkey and Africa delivered double-digit growth. India grew
mid-single digit led by volume, with lower input costs that led to
negative pricing in the fourth quarter. Sales in China grew
low-single digit led by volume while the market recovery continued
to be uneven and slower than expected. Growth in South East Asia
was impacted by a sales decline in Indonesia in the fourth quarter
as consumers avoided the brands of multinational companies in
response to the geopolitical situation in the Middle
East.
Underlying sales in developed markets (42% of Group turnover) grew
4.8% in the full year with 6.7% from price and (1.8)% from volume.
North America delivered strong growth of 5.8% with 2.5% from volume
and 3.3% from price, with continued double-digit underlying sales
growth in Prestige Beauty and Health & Wellbeing. Volume growth
in North America accelerated throughout the year leading to volume
growth of 6.3% in the fourth quarter. In Europe, underlying
sales growth was 4.1%, driven by 12.8% from price given its higher
exposure to categories with significant cost inflation, and a
volume decline of (7.7)%.
Turnover was €59.6 billion, down (0.8)% versus the prior
year, including (5.7)% adverse foreign exchange translation and
(1.7)% from disposals net of acquisitions. Underlying operating
profit was €9.9 billion, up 2.6% versus the prior year.
Underlying operating margin increased 60bps to 16.7%. We improved
gross margin by 200bps to 42.2% with an improvement of 330bps in
the second half. We more than mitigated net material inflation of
around €1.8 billion through improved productivity, price and
mix while stepping up brand and marketing investment by €0.7
billion, a 130bps increase as a percentage of turnover. Overheads
increased by 10bps, as we continued to invest in the expansion of
our Prestige Beauty and Health & Wellbeing
businesses.
Capital allocation
We continue to reshape the portfolio, allocating capital to premium
segments through selective bolt-on acquisitions and divesting
lower-growth businesses while balancing investment in the business
and shareholder returns.
Adding to our portfolio of premium brands, we announced the
acquisitions of Yasso Holdings, Inc., a premium frozen Greek yogurt
brand in the United States, which completed on 1 August, and K18, a
premium biotech haircare brand, which completed on 1 February
2024.
We announced three disposals during the year: the Suave beauty and
personal care brand in North America, which completed on 1 May;
Dollar Shave Club, which completed on 1 November; and Elida Beauty,
which comprises more than 20 personal care brands. It is expected
to complete by mid-2024.
In 2023, we returned €5.9 billion to shareholders through
dividends and share buybacks. We completed the final two €750
million tranches of our €3 billion share buyback programme.
The quarterly interim dividend for the Fourth Quarter is maintained
at €0.4268.
Reflecting the Group's continued strong cash generation, the Board
has approved a share buyback programme of up to €1.5 billion
to be conducted during 2024, which we expect to commence in the
second quarter.
*Competitiveness % Business Winning measures the aggregate turnover
of the portfolio components (country/category cells) gaining value
market share as a % of the total turnover measured by market data.
As such, it assesses what percentage of our revenue is being
generated in areas where we are gaining market share
Following the release of this trading statement on 8 February 2024
at 7:00 AM (UK time), there will be a webcast at 8:00 AM available
on the website
www.unilever.com/investor-relations/results-and-presentations/latest-results.
A replay of the webcast and the slides of the presentation will be
made available after the live meeting.
Full Year Review: Business Groups
|
|
Full Year 2023
|
Fourth Quarter 2023
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
UOM
|
Change in UOM
|
Turnover
|
USG
|
UVG
|
UPG
|
Unilever
|
€59.6bn
|
7.0%
|
0.2%
|
6.8%
|
16.7%
|
60bps
|
€14.2bn
|
4.7%
|
1.8%
|
2.8%
|
Beauty
& Wellbeing
|
€12.5bn
|
8.3%
|
4.4%
|
3.8%
|
18.7%
|
0bps
|
€3.2bn
|
7.9%
|
6.3%
|
1.5%
|
Personal
Care
|
€13.8bn
|
8.9%
|
3.2%
|
5.5%
|
20.2%
|
60bps
|
€3.4bn
|
6.4%
|
2.5%
|
3.8%
|
Home
Care
|
€12.2bn
|
5.9%
|
(0.9)%
|
6.8%
|
12.3%
|
150bps
|
€3.0bn
|
1.7%
|
0.8%
|
0.9%
|
Nutrition
|
€13.2bn
|
7.7%
|
(2.2)%
|
10.1%
|
18.6%
|
100bps
|
€3.4bn
|
4.7%
|
(1.1)%
|
5.9%
|
Ice
Cream
|
€7.9bn
|
2.3%
|
(6.0)%
|
8.8%
|
10.8%
|
(90)bps
|
€1.2bn
|
(0.4)%
|
(0.8)%
|
0.4%
|
Beauty & Wellbeing (21%
of Group turnover)
In Beauty & Wellbeing, we are focused on three key priorities
that will drive the unmissable superiority of our brands: elevating
our core Hair Care and Skin Care brands to increase premiumisation;
fuelling the growth of Prestige Beauty and Health & Wellbeing
with selective international expansion; and continuing to
strengthen our beauty and wellbeing capabilities.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€12.5bn
|
8.3%
|
4.4%
|
3.8%
|
0.1%
|
(6.2)%
|
1.8%
|
18.7%
|
0bps
|
Fourth Quarter
|
€3.2bn
|
7.9%
|
6.3%
|
1.5%
|
(2.1)%
|
(7.5)%
|
(2.3)%
|
|
|
Beauty & Wellbeing delivered a strong full year performance,
with underlying sales up 8.3%, balanced between volume
at 4.4% and price at 3.8%. Volume growth accelerated
through the year to 6.3% in the fourth quarter, with good volumes
in Hair Care and very strong volumes in Health &
Wellbeing.
The full year performance reflects continued strong growth in
Prestige Beauty and Health & Wellbeing, which now account for a
quarter of Beauty & Wellbeing's turnover, as well as successful
relaunches of some of our core Hair Care and Skin Care brands. The
relaunches were powered by our science and technology capabilities
and were supported by increased investment across our key markets
to elevate their superiority credentials.
Hair Care grew mid-single digit through a combination of price and
volume growth, with strong growth in Latin America and
Turkey. Sunsilk delivered double-digit growth for the year
following a successful relaunch of the
brand. Clear delivered mid-single digit growth driven by
breakthrough innovation - our first clinically proven anti-dandruff
formula powered by niacinamide concentrate to repair and strengthen
the scalp's skin barrier. Following the successful relaunch in
China last year, the mix has now been expanded to Thailand, Turkey
and Brazil.
Core Skin Care grew low-single digit driven by
price. Vaseline delivered double-digit growth, reaching
€1 billion of turnover in 2023. Following the launch of our
successful Gluta-Hya range in South East Asia two years ago, we
further expanded the platform with the launch of serums and a
Pro-Age range, tapping into a larger consumer pool by extending the
patented technology to more products and new markets such as India.
In North Asia, AHC declined double-digit as we reset the
cross-border trade channel.
Our US-centric Prestige Beauty and Health & Wellbeing
portfolios, built over several years through carefully selected
bolt-on acquisitions, continued to grow ahead of the market
delivering double-digit growth for the year. This was supported by
strong performances from Hourglass, Dermalogica and Paula's
Choice which launched a
Vitamin C range, using our core science and technology
capabilities. In Health & Wellbeing, Liquid I.V. and Nutrafol performed strongly.
Liquid
I.V. added sugar-free and
kids variants to the range, without compromising flavour or
function. The brand extended its presence outside of the United
States for the first time with a successful launch in Canada, and
further international roll outs planned.
Underlying operating margin was flat with gross margin improvement
reinvested in marketing and overheads.
Personal Care (23%
of Group turnover)
In Personal Care, we are focused on winning with science-led brands
that deliver unmissable superiority to our consumers across
Deodorants, Skin Cleansing, and Oral Care. Our priorities include
developing superior technology and multi-year innovation platforms,
leveraging partnerships with our customers, and expanding into
premium areas and digital channels.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€13.8bn
|
8.9%
|
3.2%
|
5.5%
|
(0.9)%
|
(6.1)%
|
1.4%
|
20.2%
|
60bps
|
Fourth Quarter
|
€3.4bn
|
6.4%
|
2.5%
|
3.8%
|
(1.8)%
|
(7.5)%
|
(3.4)%
|
|
|
Personal Care grew underlying sales 8.9% for the year, with growth
balanced between price and volume, underpinned by continued
strength in Deodorants. In the fourth quarter all three categories
drove positive volumes.
Personal Care's full year growth was led by its Power Brands and
science-backed innovations. These innovations offer functional
benefits but also deliver enhanced health, hygiene, and superior
skin cleansing. Personal Care supported these innovations with a
step-up in marketing investment, including strategic sponsorships
such as our first sponsorship deal with FIFA.
Deodorants grew double-digit led by strong volume growth,
particularly in Europe and Latin America. Rexona grew double-digit and its range of products
with 72-hour sweat and odour protection technology is now in over
100 markets. Dove delivered double-digit growth with the
successful launch of Dove Advanced Care for women and the launch of
a new range of Dove
Men+Care antiperspirant. Axe grew
high-single digit following the launch of its new, long-lasting
fine fragrance collection.
Skin Cleansing delivered mid-single digit growth with positive
volumes. Lux grew double-digit driven by elevated skin
care benefits in soap bars from its ProGlow technology. In the
United States, Dove grew mid-single digit supported by its Body
Wash relaunch with new packaging and 24-hour renewing MicroMoisture
technology.
Oral Care grew mid-single digit led by
price. Close Up grew double-digit
and Pepsodent grew mid-single digit, having expanded its
premium offerings in therapeutics and
whitening.
The Dove Personal Care portfolio achieved
double-digit growth with balanced price and volume
growth.
Underlying operating margin increased by 60bps, driven by a strong
gross margin improvement that was partly re-invested in increased
brand and marketing investment.
Home Care (21%
of Group turnover)
In Home Care, we focus on delivering for consumers who want
superior products that are sustainable and great value. We drive
growth through unmissable superiority in our biggest brands, in our
key markets and across channels. We have a resilient business that
spans price points and grows the market by premiumising and trading
consumers up to additional benefits.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€12.2bn
|
5.9%
|
(0.9)%
|
6.8%
|
-%
|
(7.2)%
|
(1.8)%
|
12.3%
|
150bps
|
Fourth Quarter
|
€3.0bn
|
1.7%
|
0.8%
|
0.9%
|
-%
|
(7.5)%
|
(5.9)%
|
|
|
Home Care grew underlying sales 5.9% for the full year, with 6.8%
from price and (0.9)% from volume. Volumes were positive in the
second half, with a sharp price growth deceleration in emerging
markets reflecting commodity cost deflation.
In Home Care we stepped up investments in brand and marketing and
R&D to drive unmissable superiority of our biggest brands and
deliver innovations that enhance the efficacy and sustainability of
our products.
Fabric Cleaning grew mid-single digit for the year. This was led by
high-single digit growth in Latin America where we
launched OMO Branco Absoluto that restores the whiteness
of clothes. South Asia delivered balanced high-single digit growth
as we continued to develop the market by offering a full range of
products to consumers, from entry-level products such as
our Wheel laundry soap bar to
mid-tier Rin, to premium Surf Excel liquid detergent. Growth in Europe was
flat with double-digit price growth offset by volume declines. We
expanded plastic-free packaging for OMO capsules to more countries across Europe and
drove premiumisation through next generation innovation such as
laundry sheets, a convenient and sustainable alternative to liquids
and capsules.
We leveraged our cross-category science and technology platforms by
using fragrance innovation from Beauty & Wellbeing in Fabric
Enhancers where we launched Comfort Beauty Perfume in Vietnam. Fabric enhancers
delivered mid-single digit growth driven by price with low-single
digit volume decline. Turkey continued to lead growth with
double-digit price and volume growth.
Home & Hygiene grew mid-single digit led by strong growth in
Latin America and South Asia which was partially offset by a
decline in South East Asia. In the United Kingdom, we
launched Domestos Power Foam - an unmissably superior
innovation that is designed to spray upside down for improved
cleaning performance as well as convenience. High store penetration
and availability coupled with product superiority make this a
blueprint for future rollouts.
Underlying operating margin increased by 150bps driven by the
strong gross margin improvement and a step-up in brand and
marketing investment.
Nutrition (22%
of Group turnover)
In Nutrition, our strategy is to deliver consistent, competitive
growth by offering unmissably superior products through our biggest
brands. We do this by reaching more consumers and focusing on top
dishes and high consumption seasons to satisfy consumer's
preferences on taste, health and sustainability; while delivering
productivity and resilience in our supply chain.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€13.2bn
|
7.7%
|
(2.2)%
|
10.1%
|
(6.9)%
|
(5.2)%
|
(5.0)%
|
18.6%
|
100bps
|
Fourth Quarter
|
€3.4bn
|
4.7%
|
(1.1)%
|
5.9%
|
(0.4)%
|
(5.6)%
|
(1.5)%
|
|
|
Nutrition grew underlying sales 7.7% for the year, with 10.1% from
price and (2.2)% from volume. Growth continued to be price-led as
we responded to higher input costs of food ingredients. In the
fourth quarter, we saw an improvement in volumes, with our two
largest brands, Hellmann's and Knorr, returning to positive volume
growth.
Growth in Nutrition was driven primarily
by Knorr and Hellmann's,
which together accounted for 60% of Nutrition's turnover in 2023.
We sharpened our focus on offering holistically superior products
and unmissable marketing campaigns in key seasons, supported by
increased marketing and R&D investment. Our business in Europe
remained challenging as a result of continued cost inflation, the
targeted exit of unprofitable SKUs, and private label share gains,
impacting both volumes and profitability.
Scratch Cooking Aids grew high-single digit, led
by Knorr, which achieved €5 billion in turnover in
2023. North America grew mid-single digit, supported by the
'Knorr Taste Combos' campaign and the launch
of Knorr ready-to-eat snack pots which provide
consumers with a nutritious meal while saving time. Latin America
grew double-digit and Europe grew mid-single digit as we developed
targeted campaigns to inspire healthier diets. Africa grew
double-digit, supported by fortified products that help address
malnutrition in the region.
Dressings grew double-digit driven by price. With strong
foundations in taste, sustainable ingredients and recyclable
bottles, Hellmann's grew double-digit with positive volume
driven by Latin America. The performance was helped by further roll
outs of our vegan and flavoured mayonnaise range. We stepped up
brand marketing investment to target high consumption occasions
such as Thanksgiving, Christmas or the summer BBQ season. 2023 was
our third consecutive US Super Bowl 'Make Taste, Not Waste'
campaign with nearly 10 billion earned media impressions and we
partnered with the NBA in Brazil.
Unilever Food Solutions, now 20% of Nutrition's sales, grew
double-digit with positive volume and price growth driven by our
strong presence in Europe, North America and North Asia. Our focus
on customer service and digital selling has enabled us to serve
more operators and improve productivity. As the food service market
in China fully reopened, we grew double-digit, helped by market
making innovation such as extending Knorr bouillon to more flavours, tapping into
evolving consumer preferences.
Functional Nutrition returned to growth while growing penetration
and market share through its core proposition for kids as well as
premium innovation tailored for women and people with
diabetes.
Underlying operating margin increased by 100bps, driven by gross
margin improvement which funded an increase in brand and marketing
investment.
Ice Cream (13%
of Group turnover)
In Ice Cream, our immediate strategic priority is to expand
operating profit and global market share. We will do this by
building the unmissable superiority of our brands, accelerating
market development in emerging markets, continuing to lead the
industry on innovation and premiumisation, and by stepping up our
performance and productivity.
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
A&D
|
Currency
|
Turnover change
|
UOM%
|
Change in UOM
|
Full Year
|
€7.9bn
|
2.3%
|
(6.0)%
|
8.8%
|
0.9%
|
(2.7)%
|
0.5%
|
10.8%
|
(90)bps
|
Fourth Quarter
|
€1.2bn
|
(0.4)%
|
(0.8)%
|
0.4%
|
4.0%
|
(3.6)%
|
(0.2)%
|
|
|
Ice Cream grew underlying sales by 2.3%, with 8.8% from price and
(6.0)% from volume. Volumes were impacted throughout the year by
high price elasticities with consumers downtrading to value formats
and less favourable summer weather versus last year, mainly in
Europe. In the fourth quarter, price growth slowed significantly
after double-digit price growth in the first half of the
year.
Ice Cream had a disappointing year with declining market share and
profitability. We continued to invest behind our Power Brands,
including Magnum and Cornetto, which generated almost 85% of the Business
Group's turnover. These brands remain well positioned to meet
consumer's desire for superior and indulgent ice cream.
Emerging markets delivered mid-single digit growth, driven by a
strong performance in Turkey. In the fourth quarter, we made
additional investments in promotions, particularly in North
America, to address competitiveness and volume
decline.
In the full year, there was a marginal decline in In-home Ice Cream
(around 60% of the business), with volumes down high-single digit
broadly offset by pricing. Inflation remained high and private
label gained share as consumers looked for value propositions in
this discretionary category. In the United States,
our Talenti brand expanded from pints into new formats
with mini gelato and sorbetto bars.
Out-of-home Ice Cream (around 40% of the business) grew high-single
digit, driven by strong pricing partially offset by some volume
decline. Our limited-edition Magnum innovation, Starchaser and Sunlover,
performed well and became Magnum's biggest ever innovation.
Underlying operating margin declined 90bps, driven by lower gross
margin as a result of continued cost inflation and volume
deleverage outstripping pricing, while brand and marketing
investment increased.
Full Year Review: Geographical Areas
|
|
Full Year 2023
|
Fourth Quarter 2023
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Unilever
|
€59.6bn
|
7.0%
|
0.2%
|
6.8%
|
€14.2bn
|
4.7%
|
1.8%
|
2.8%
|
Asia
Pacific Africa
|
€26.2bn
|
6.5%
|
1.1%
|
5.3%
|
€6.1bn
|
1.9%
|
0.7%
|
1.1%
|
The
Americas
|
€21.5bn
|
9.3%
|
3.4%
|
5.7%
|
€5.4bn
|
9.6%
|
7.4%
|
2.0%
|
Europe
|
€11.9bn
|
4.1%
|
(7.7)%
|
12.8%
|
€2.7bn
|
2.5%
|
(6.3)%
|
9.4%
|
|
Full Year 2023
|
Fourth Quarter 2023
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
Turnover
|
USG
|
UVG
|
UPG
|
Emerging
markets
|
€34.7bn
|
8.5%
|
1.6%
|
6.9%
|
€8.3bn
|
4.6%
|
2.3%
|
2.2%
|
Developed
markets
|
€24.9bn
|
4.8%
|
(1.8)%
|
6.7%
|
€5.9bn
|
4.9%
|
1.1%
|
3.7%
|
North
America
|
€13.1bn
|
5.8%
|
2.5%
|
3.3%
|
€3.2bn
|
7.0%
|
6.3%
|
0.7%
|
Latin
America
|
€8.4bn
|
14.9%
|
4.8%
|
9.6%
|
€2.2bn
|
13.4%
|
9.1%
|
4.0%
|
Asia Pacific Africa (44%
of Group turnover)
Underlying sales growth was 6.5% with price growth of 5.3% and
volume growth of 1.1%.
India grew mid-single digit through balanced price and volume
growth. Sales were flat in the fourth quarter as pricing turned
negative, mainly driven by price reductions in Fabric Cleaning and
Skin Cleansing bars as a result of commodity movements. We are
focused on driving competitive volume growth while pricing is
expected to remain marginally negative if current commodity prices
persist.
China grew low single-digit in a deflationary market with low
consumer confidence. Growth was driven by a strong performance in
Unilever Food Solutions and growth in Beauty & Wellbeing, while
Home Care, Personal Care and Ice Cream declined.
In Indonesia, sales declined double-digit in the fourth quarter as
consumers avoided the brands of multinational companies in response
to the geopolitical situation in the Middle East. We have since
seen some improvement to customer and consumer uptake in January.
Growth in the Philippines was broad-based with a mix of price and
volume growth while Thailand and Vietnam saw mid-single and
low-single digit growth respectively, led by price.
Turkey delivered double-digit volume growth in a hyperinflationary
environment with all Business Groups growing volumes.
Africa grew double-digit driven by price as volume growth turned
positive in the second half.
The Americas (36%
of Group turnover)
Underlying sales growth in North America was strong at 5.8% with
2.5% from volume growth, which accelerated to 6.3% in the fourth
quarter, and 3.3% from price. Beauty & Wellbeing grew
double-digit led by Prestige and Health & Wellbeing. Personal
Care grew mid-single digit and Nutrition grew high-single digit,
with strong performances from Dove and Hellmann's respectively. Positive volume growth in
Beauty and Wellbeing, Nutrition, and Personal Care was partially
offset by a volume decline in Ice Cream.
Latin America grew 14.9% with 4.8% from volume growth and 9.6% from
price. Growth was broad-based with double-digit growth in Brazil,
Mexico, and Argentina. Personal Care led growth through
double-digit volume growth driven by Rexona. Brazil growth was led by Personal Care and
Nutrition where Hellmann's Supreme became the market leader in the
premium Squeeze segment. Argentina grew volumes double-digit
despite challenging macro-economic and market conditions,
particularly in the fourth quarter.
Europe (20%
of Group turnover)
Underlying sales growth was 4.1% with price at 12.8% and volume at
(7.7)%.
Price growth remained elevated in all Business Groups to at least
partially recover the impact from high input cost inflation.
Personal Care and Beauty & Wellbeing delivered strong growth
with slightly positive volume. Nutrition grew mid-single digit,
while growth in Ice Cream and Home Care was muted due to
double-digit volume declines. Private label gained share across
most categories as consumer looked for value propositions in a high
inflation environment.
Price-led growth was broad-based across most of the region. Eastern
Europe and the United Kingdom grew underlying sales strongly, while
France declined.
Additional commentary on the financial statements - Full
Year
|
Finance costs and tax
Net finance costs reduced by €7 million to €486 million
in 2023. This was driven by higher interest income across several
markets and a higher interest credit from pensions, which more than
offset the higher cost of debt on bonds and commercial paper. Net
finance costs were 2.1% on average net debt. For 2024, we expect
net finance costs to be between 2.5% to 3% on average net debt.
This reflects the impact of refinancing maturing debt at higher
rates, and lower finance income and pension credits versus
2023.
The underlying effective tax rate for 2023 increased to 25.6%
(2022: 24.1%), due to a number of factors including an increase in
non-deductible interest and irrecoverable withholding tax, as well
as lower benefits from tax settlements and other one-off items. Our
guidance for the underlying effective tax rate remains around 25%.
The effective rate was 24.1% and included a benefit related to the
disposal of the Dollar Shave Club. This compares with 20.4% in the
prior year, which included a significant favourable impact related
to the disposal of the global tea business which benefited from the
participation exemption in the Netherlands.
Joint ventures, associates and other income from non-current
investments
Net profit from joint ventures and associates increased €23
million to €231 million, largely driven by the Pepsi-Lipton
JVs. Other income from non-current investments was €(22)
million, versus €24 million in the prior year.
Earnings per share
Underlying earnings per share increased 1.4% to €2.60,
including (9.6)% of adverse currency. Constant underlying earnings
per share increased by 11.0%, reflecting a strong operational
performance. The reduction in the average number of shares as a
result of the share buyback programme contributed 1.1%. Diluted
earnings per share of €2.56 decreased by 14.2% versus the
prior year that included the €2.3 billion profit on disposal
for the Tea business.
Free cash flow
We delivered strong cash conversion of 111%. Free cash flow
increased €1.9 billion to €7.1 billion (2022:
€5.2 billion). This increase was largely driven by higher
underlying operating profit, significantly improved working
capital, and included €0.4 billion linked to a tax refund in
India.
Underlying return on invested capital
Underlying return on invested capital improved to 16.2% (2022:
16.0%). This reflected the working capital improvement that reduced
total invested capital.
Net debt
Closing net debt was €23.7 billion in line with 31 December
2022. Capital returns of €4.4 billion in dividends and
€1.5 billion in share buyback to PLC shareholders, as well as
net spend on acquisition and disposal activity, were fully funded
by the free cash flow delivery of €7.1 billion. Net debt to
underlying EBITDA was 2.1x as at 31 December 2023, in line with the
prior year and our guidance of around 2x.
Pensions
Pension assets net of liabilities were in surplus of €2.4
billion at 31 December 2023 versus a surplus of €2.6 billion
at the end of 2022. The decrease was primarily driven by reductions
in interest rates increasing liabilities more than
assets.
Financial implications and impairment risk in Russia
Our Russia business employs approximately 3,000 people in Russia
and in 2023 the business represented around 1% of the Group's
turnover and net profit. As at 31 December 2023, our Russia
business had net assets of around €600 million, including
four factories. During 2023 we reviewed our position and concluded
that the containment actions we put in place at the beginning of
the war minimise our economic contribution to the Russian
state.
We will continue to review and disclose the financial implications
from the conflict. While the potential impacts remain uncertain,
there remains a risk that our operations in Russia are unable to
continue, leading to loss of turnover, profit and a write-down of
assets.
Share buyback programme
On 18 October 2023, we completed the fourth and final €750
million tranche of our share buyback programme of up to €3
billion, initiated on 10 February 2022. The total consideration
paid for the repurchase of 16,181,572 shares is recorded within
other reserves and the shares are held by Unilever as treasury
shares. Under the first three tranches of the programme, a total of
49,770,289 ordinary Unilever PLC shares were purchased, and
subsequently cancelled on 2 August 2023.
Reflecting the Group's continued strong cash generation and
anticipated proceeds from the sale of Elida Beauty, the Board has
approved a share buyback programme of up to €1.5 billion to
be conducted during 2024, which we expect to commence in the second
quarter.
Finance and liquidity
In 2023, the following notes matured and were repaid:
● February:
€600 million 0.375% fixed rate notes
● March:
$550 million 3.125% fixed rate notes
● June:
€500 million 1.00% fixed rate notes
● August:
€500 million 0.50% fixed rate notes
● September:
$500 million 0.375% fixed rate notes
The following notes were issued:
● February:
€500 million 3.25% fixed rate notes maturing in February 2031
and €500 million 3.50% fixed rate notes due February
2035
● June:
€550 million 3.30% fixed rate notes due June 2029 and
€700 million 3.40% fixed rate notes due June
2033
● September:
$700 million 4.875% fixed rate notes due September 2028 and $800
million 5.00% fixed rate notes due December
2033
On 31 December 2023, Unilever had undrawn revolving 364-day
bilateral credit facilities in aggregate of $5,200 million and
€2,600 million with a 364-day term out.
Competition Investigations
|
As previously disclosed, Unilever is involved in a number of
ongoing investigations by national competition authorities. These
proceedings and investigations are at different stages and concern
different product markets. Where appropriate, provisions are made
and contingent liabilities disclosed in relation to such
matters.
Ongoing compliance with competition laws is of key importance to
Unilever. It is Unilever's policy to co-operate fully with
competition authorities whenever questions or issues arise. At the
same time, we are vigorously defending Unilever when we feel that
allegations are unwarranted. The Group continues to reinforce and
enhance its internal competition law compliance programme on an
ongoing basis.
Functional Currency of Unilever PLC
|
Effective from 1 January 2024, the functional currency of Unilever
PLC ("PLC"), the Group's ultimate parent company, has changed from
Sterling to Euro. This follows a review and subsequent change of
the internal debt of PLC, from Sterling to Euro, which triggered a
formal evaluation of PLCs functional currency in line with relevant
accounting standards. The change is applied prospectively. There is
no change to the stock listing currency of the Group and future
dividends will continue to be paid in Sterling, Euro, and US dollar
depending on the location of the exchange where shares are traded.
There is no impact on the presentation of the Group results nor
will there be any restatement to the Group financial statements as
a result of this change.
Certain discussions and analyses set out in this announcement
include measures which are not defined by generally accepted
accounting principles (GAAP) such as IFRS. We believe this
information, along with comparable GAAP measurements, is useful to
investors because it provides a basis for measuring our operating
performance, ability to retire debt and invest in new business
opportunities. Our management uses these financial measures, along
with the most directly comparable GAAP financial measures, in
evaluating our operating performance and value creation. Non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information presented in compliance
with GAAP. Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures.
Unilever uses 'constant rate', and 'underlying' measures primarily
for internal performance analysis and targeting purposes. We
present certain items, percentages and movements, using constant
exchange rates, which exclude the impact of fluctuations in foreign
currency exchange rates. We calculate constant currency values by
translating both the current and the prior period local currency
amounts using the prior year average exchange rates into euro,
except for the local currency of entities that operate in
hyperinflationary economies. These currencies are translated into
euros using the prior year closing exchange rate before the
application of IAS 29. The table below shows exchange rate
movements in our key markets.
|
Annual average rate in 2023
|
Annual average rate in 2022
|
Brazilian Real (€1 = BRL)
|
5.405
|
5.414
|
Chinese Yuan (€1 = CNY)
|
7.635
|
7.047
|
Indian Rupee (€1 = INR)
|
89.232
|
82.303
|
Indonesia Rupiah (€1 = IDR)
|
16,457
|
15,535
|
Philippine Peso (€1 = PHP)
|
60.110
|
57.194
|
UK Pound Sterling (€1 = GBP)
|
0.870
|
0.851
|
US Dollar (€1 = US $)
|
1.081
|
1.050
|
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover
for the period, excluding any change in turnover resulting from
acquisitions, disposals, changes in currency and price growth in
excess of 26% in hyperinflationary economies. Inflation of 26% per
year compounded over three years is one of the key indicators
within IAS 29 to assess whether an economy is deemed to be
hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the
business and is a key measure used internally. The impact of
acquisitions and disposals (A&D) is excluded from USG for a
period of 12 calendar months from the applicable closing date.
Turnover from acquired brands that are launched in countries where
they were not previously sold is included in USG as such turnover
is more attributable to our existing sales and distribution network
than the acquisition itself. The reconciliation of changes in the
GAAP measure turnover to USG is provided in notes 3 and
4.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the
applicable period, the increase in turnover attributable to changes
in prices during the period. UPG therefore excludes the impact to
USG due to (i) the volume of products sold; and (ii) the
composition of products sold during the period. In determining
changes in price, we exclude the impact of price growth in excess
of 26% per year in hyperinflationary economies as explained in USG
above. The measures and the related turnover GAAP measure are set
out in notes 3 and 4.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the
applicable period, the increase in turnover in such period
calculated as the sum of (i) the increase in turnover attributable
to the volume of products sold; and (ii) the increase in turnover
attributable to the composition of products sold during such
period. UVG therefore excludes any impact on USG due to changes in
prices. The measures and the related turnover GAAP measure are set
out in notes 3 and 4.
Non-underlying items
Several non-GAAP measures are adjusted to exclude items defined as
non-underlying due to their nature and/or frequency of
occurrence.
● Non-underlying
items within operating profit are: gains
or losses on business disposals, acquisition and disposal related
costs, restructuring costs, impairments and other items within
operating profit classified here due to their nature and
frequency.
● Non-underlying
items not in operating profit but within net profit
are: net
monetary gain/(loss) arising from hyperinflationary economies and
significant and unusual items in net finance cost, share of
profit/(loss) of joint ventures and associates and
taxation.
● Non-underlying
items are: both
non-underlying items within operating profit and those
non-underlying items not in operating profit but within net
profit.
Underlying operating profit (UOP) and underlying operating margin
(UOM)
Underlying operating profit and underlying operating margin mean
operating profit and operating margin before the impact of
non-underlying items within operating profit. Underlying operating
profit represents our measure of segment profit or loss as it is
the primary measure used for making decisions about allocating
resources and assessing performance of the segments. The
reconciliation of operating profit to underlying operating profit
is as follows:
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Operating profit
|
9,758
|
10,755
|
Non-underlying items within operating profit (see note
2)
|
173
|
(1,072)
|
Underlying operating profit
|
9,931
|
9,683
|
Turnover
|
59,604
|
60,073
|
Operating margin (%)
|
16.4
|
17.9
|
Underlying operating margin (%)
|
16.7
|
16.1
|
Underlying effective tax rate
The underlying effective tax rate is calculated by dividing
taxation excluding the tax impact of non-underlying items by profit
before tax excluding the impact of non-underlying items and share
of net (profit)/loss of joint ventures and associates. This measure
reflects the underlying tax rate in relation to profit before tax
excluding non-underlying items before tax and share of net
profit/(loss) of joint ventures and associates. Tax impact on
non-underlying items within operating profit is the sum of the tax
on each non-underlying item, based on the applicable country tax
rates and tax treatment. This is shown in the following
table:
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Taxation
|
2,199
|
2,068
|
Tax impact of:
|
|
|
Non-underlying items within operating
profit(a)
|
207
|
273
|
Non-underlying items not in operating profit but
within net profit(a)
|
12
|
(121)
|
Taxation before tax impact of non-underlying items
|
2,418
|
2,220
|
Profit before taxation
|
9,339
|
10,337
|
Share of net (profit)/loss of joint ventures and
associates
|
(231)
|
(208)
|
Profit before tax excluding share of net profit/(loss) of joint
ventures and associates
|
9,108
|
10,129
|
Non-underlying items within operating profit before
tax(a)
|
173
|
(1,072)
|
Non-underlying items not in operating profit but within net profit
before tax
|
153
|
164
|
Profit before tax excluding non-underlying items before tax and
share of net profit/(loss) of joint ventures and
associates
|
9,434
|
9,221
|
Effective tax rate (%)
|
24.1
|
20.4
|
Underlying effective tax rate (%)
|
25.6
|
24.1
|
(a)
See note 2.
Underlying earnings per share
Underlying earnings per share (underlying EPS) is calculated as
underlying profit attributable to shareholders' equity divided by
the diluted average number of ordinary shares. In calculating
underlying profit attributable to shareholders' equity, net profit
attributable to shareholders' equity is adjusted to eliminate the
post-tax impact of non-underlying items. This measure reflects the
underlying earnings for each share unit of the Group. Refer to note
6 for reconciliation of net profit attributable to shareholders'
equity to underlying profit attributable to shareholders'
equity.
Constant underlying EPS
Constant underlying earnings per share (constant underlying EPS) is
calculated as underlying profit attributable to shareholders'
equity at constant exchange rates and excluding the impact of both
translational hedges and price growth in excess of 26% per year in
hyperinflationary economies divided by the diluted average number
of ordinary shares. This measure reflects the underlying earnings
for each share unit of the Group in constant exchange
rates.
The reconciliation of underlying profit attributable to
shareholders' equity to constant underlying earnings attributable
to shareholders' equity and the calculation of constant underlying
EPS is as follows:
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Underlying profit attributable to shareholders' equity (see note
6)
|
6,588
|
6,568
|
Impact of translation from current to constant exchange rates and
translational hedges
|
992
|
(10)
|
Impact of price growth in excess of 26% per year in
hyperinflationary economies
|
(378)
|
-
|
Constant underlying earnings attributable to shareholders'
equity
|
7,202
|
6,558
|
Diluted average number of share units (millions of
units)
|
2,532.4
|
2,559.8
|
Constant underlying EPS (€)
|
2.84
|
2.56
|
Net debt
Net debt is a measure that provides valuable additional information
on the summary presentation of the Group's net financial
liabilities and is a measure in common use elsewhere. Net debt is
defined as the excess of total financial liabilities, excluding
trade payables and other current liabilities, over cash, cash
equivalents and other current financial assets, excluding trade and
other current receivables, and non-current financial asset
derivatives that relate to financial liabilities.
The reconciliation of total financial liabilities to net debt is as
follows:
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Total financial liabilities
|
(29,622)
|
(29,488)
|
Current
financial liabilities
|
(5,087)
|
(5,775)
|
Non-current
financial liabilities
|
(24,535)
|
(23,713)
|
Cash and cash equivalents as per balance sheet
|
4,159
|
4,326
|
Cash
and cash equivalents as per cash flow statement
|
4,045
|
4,225
|
Add:
bank overdrafts deducted therein
|
116
|
101
|
Less:
cash and cash equivalents held for sale
|
(2)
|
-
|
Other current financial assets
|
1,731
|
1,435
|
Non-current financial asset derivatives that relate to financial
liabilities
|
75
|
51
|
Net debt
|
(23,657)
|
(23,676)
|
Free cash flow (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as cash
flow from operating activities, less income taxes paid, net capital
expenditure and net interest payments. It does not represent
residual cash flows entirely available for discretionary purposes;
for example, the repayment of principal amounts borrowed is not
deducted from FCF. FCF reflects an additional way of viewing our
liquidity that we believe is useful to investors because it
represents cash flows that could be used for distribution of
dividends, repayment of debt or to fund our strategic initiatives,
including acquisitions, if any.
The reconciliation of cash flow from operating activities to FCF is
as follows:
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Cash flow from operating activities
|
11,561
|
10,089
|
Income tax paid
|
(2,135)
|
(2,807)
|
Net capital expenditure
|
(1,703)
|
(1,627)
|
Net interest paid
|
(632)
|
(457)
|
Free cash flow
|
7,091
|
5,198
|
Net cash flow (used in)/from investing activities
|
(2,294)
|
2,453
|
Net cash flow used in financing activities
|
(7,193)
|
(8,890)
|
Cash conversion
Unilever defines cash conversion as free cash flow excluding tax on
disposal as a proportion of net profit, excluding P&L on
disposal and income from JV, associates and non-current
investments. This reflects our ability to convert profit to
cash.
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Net profit
|
7,140
|
8,269
|
Gain on disposal of group companies
|
(489)
|
(2,335)
|
Share of net profit of joint ventures and associates
|
(231)
|
(208)
|
Other loss/(income) from non-current investments and
associates
|
22
|
(24)
|
Tax on gain on disposal of group companies
|
(69)
|
(1)
|
Net profit excluding P&L on disposals, JV, associates,
NCI
|
6,373
|
5,701
|
Free cash flow
|
7,091
|
5,198
|
Cash impact of tax on disposal
|
14
|
330
|
Free cash flow excluding cash impact of tax on
disposal
|
7,105
|
5,528
|
Cash conversion (%)
|
111
|
97
|
Underlying return on invested capital (ROIC)
Underlying return on invested capital (ROIC) is a measure of the
return generated on capital invested by the Group. The measure
provides a guard rail for long-term value creation and encourages
compounding reinvestment within the business and discipline around
acquisitions with low returns and long payback. Underlying ROIC is
calculated as underlying operating profit after tax divided by the
annual average of: goodwill, intangible assets, property, plant and
equipment, net assets held for sale, inventories, trade and other
current receivables, and trade payables and other current
liabilities.
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Operating profit
|
9,758
|
10,755
|
Non-underlying items within operating profit (see note
2)
|
173
|
(1,072)
|
Underlying operating profit before tax
|
9,931
|
9,683
|
Tax on underlying operating profit(a)
|
(2,545)
|
(2,331)
|
Underlying operating profit after tax
|
7,386
|
7,352
|
Goodwill
|
21,109
|
21,609
|
Intangible assets
|
18,357
|
18,880
|
Property, plant and equipment
|
10,707
|
10,770
|
Net assets held for sale
|
516
|
24
|
Inventories
|
5,119
|
5,931
|
Trade and other current receivables
|
5,775
|
7,056
|
Trade payables and other current liabilities
|
(16,857)
|
(18,023)
|
Period-end invested capital
|
44,726
|
46,247
|
Average invested capital for the period
|
45,487
|
46,005
|
Underlying return on invested capital (%)
|
16.2
|
16.0
|
(a) Tax on underlying operating
profit is calculated as underlying operating profit before tax
multiplied by the underlying effective tax rate of 25.6% (2022:
24.1%) which is shown on page 14.
This announcement may contain forward-looking statements within the
meaning of the securities laws of certain jurisdictions, including
'forward-looking statements' within the meaning of the United
States Private Securities Litigation Reform Act of 1995. Words and
terminology such as 'will', 'aim', 'expects', 'anticipates',
'intends', 'looks', 'believes', 'vision', 'will continue',
'should', 'would be', 'seeks', 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. Forward-looking statements also include, but are not
limited to, statements and information regarding the Unilever
Group's (the 'Group') emissions reduction targets and other climate
change related matters (including actions, potential impacts and
risks associated therewith). These forward-looking statements
appear in a number of places throughout this document and are based
upon the intentions, beliefs, current expectations and assumptions
regarding anticipated developments and other factors affecting the
Group. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. They are not
historical facts, nor are they guarantees of future performance or
outcomes.
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. In addition, even if the results
are consistent with the forward-looking statements contained in
this announcement, those results may not be indicative of results
in subsequent periods. Among other risks and uncertainties, the
material or principal factors which could cause actual results to
differ materially are: Unilever's global brands not meeting
consumer preferences; Unilever's ability to innovate and remain
competitive; Unilever's investment choices in its portfolio
management; the effect of climate change on Unilever's business;
Unilever's ability to find sustainable solutions to its plastic
packaging; significant changes or deterioration in customer
relationships; the recruitment and retention of talented employees;
disruptions in our supply chain and distribution; increases or
volatility in the cost of raw materials and commodities; the
production of safe and high quality products; secure and reliable
IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political
risks and natural disasters; financial risks; failure to meet high
and ethical standards; and managing regulatory, tax and legal
matters. A number of these risks have increased as a result of the
Russia/Ukraine war. 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 intention or
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. All subsequent written and oral
forward-looking statements attributable to either the Group or to
persons acting on its behalf are expressly qualified in their
entirety by the cautionary statements referred to above. 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 in the Annual Report on Form 20-F 2022 and
the Unilever Annual Report and Accounts 2022.
Media: Media Relations Team
|
Investors: Investor
Relations Team
|
UK
|
+44 78 3304 8414
|
gemma.shaw@unilever.com
|
investor.relations@unilever.com
|
or
|
+44 77 7999 9683
|
jonathan.sibun@teneo.com
|
|
|
NL
|
+31 62 191 3705
|
kiran.hofker@unilever.com
|
|
|
or
|
+31 61 500 8293
|
fleur-van.bruggen@unilever.com
|
|
|
After the conference call on 8 February 2024 at 8:00 AM (UK time),
the webcast of the presentation will be available
at www.unilever.com/investor-relations/results-and-presentations/latest-results.
This Results Presentation has been submitted to the FCA National
Storage Mechanism and is available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Consolidated income statement
|
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Change
|
Turnover
|
59,604
|
60,073
|
(0.8)%
|
Operating profit
|
9,758
|
10,755
|
(9.3)%
|
Net finance costs
|
(486)
|
(493)
|
|
Pensions
and similar obligations
|
110
|
44
|
|
Finance
income
|
442
|
281
|
|
Finance
costs
|
(1,038)
|
(818)
|
|
Net monetary loss arising from hyperinflationary
economies
|
(142)
|
(157)
|
|
Share of net profit of joint ventures and associates
|
231
|
208
|
|
Other (loss)/income from non-current investments and
associates
|
(22)
|
24
|
|
Profit before taxation
|
9,339
|
10,337
|
(9.7)%
|
Taxation
|
(2,199)
|
(2,068)
|
|
Net profit
|
7,140
|
8,269
|
(13.7)%
|
|
|
|
|
Attributable to:
|
|
|
|
Non-controlling
interests
|
653
|
627
|
|
Shareholders'
equity
|
6,487
|
7,642
|
(15.1)%
|
Earnings per share
|
|
|
|
Basic earnings per share (euros)
|
2.58
|
3.00
|
(14.0)%
|
Diluted earnings per share (euros)
|
2.56
|
2.99
|
(14.2)%
|
Consolidated statement of comprehensive income
|
€ million
|
Full Year
|
(unaudited)
|
2023
|
2022
|
Net profit
|
7,140
|
8,269
|
Other comprehensive income
|
|
|
Items that will not be reclassified to profit or loss, net of
tax:
|
|
|
Gains/(losses)
on equity instruments measured at fair value through other
comprehensive income
|
(28)
|
36
|
Remeasurement
of defined benefit pension plans
|
(510)
|
(473)
|
Items that may be reclassified subsequently to profit or loss, net
of tax:
|
|
|
Losses
on cash flow hedges
|
(27)
|
(91)
|
Currency
retranslation (losses)/gains
|
(1,461)
|
614
|
Total comprehensive income
|
5,114
|
8,355
|
|
|
|
Attributable to:
|
|
|
Non-controlling interests
|
524
|
507
|
Shareholders' equity
|
4,590
|
7,848
|
Consolidated statement of changes in equity
|
(unaudited)
|
|
|
|
|
|
|
|
|
€ million
|
Called
up share
capital
|
Share
premium
account
|
Unification
reserve
|
Other
reserves
|
Retained
profit
|
Total
|
Non-
controlling
interest
|
Total
equity
|
31 December 2021
|
92
|
52,844
|
(73,364)
|
(9,210)
|
46,745
|
17,107
|
2,639
|
19,746
|
Hyperinflation restatement to 1 January 2022 (Turkey)
|
-
|
-
|
-
|
-
|
154
|
154
|
-
|
154
|
Adjusted opening balance
|
92
|
52,844
|
(73,364)
|
(9,210)
|
46,899
|
17,261
|
2,639
|
19,900
|
Profit or loss for the period
|
-
|
-
|
-
|
-
|
7,642
|
7,642
|
627
|
8,269
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
Gains/(losses) on:
|
|
|
|
|
|
|
|
|
Equity
instruments
|
-
|
-
|
-
|
45
|
-
|
45
|
(9)
|
36
|
Cash
flow hedges
|
-
|
-
|
-
|
(92)
|
-
|
(92)
|
1
|
(91)
|
Remeasurements of defined benefit pension plans
|
-
|
-
|
-
|
-
|
(474)
|
(474)
|
1
|
(473)
|
Currency retranslation gains/(losses)(a)
|
-
|
-
|
-
|
240
|
487
|
727
|
(113)
|
614
|
Total comprehensive income
|
-
|
-
|
-
|
193
|
7,655
|
7,848
|
507
|
8,355
|
Dividends on ordinary capital
|
-
|
-
|
-
|
-
|
(4,356)
|
(4,356)
|
-
|
(4,356)
|
Repurchase of shares(b)
|
-
|
-
|
-
|
(1,509)
|
-
|
(1,509)
|
-
|
(1,509)
|
Movements in treasury shares(c)
|
-
|
-
|
-
|
106
|
(137)
|
(31)
|
-
|
(31)
|
Share-based payment credit(d)
|
-
|
-
|
-
|
-
|
177
|
177
|
-
|
177
|
Dividends paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(572)
|
(572)
|
Hedging loss transferred to non-financial assets
|
-
|
-
|
-
|
(126)
|
-
|
(126)
|
(1)
|
(127)
|
Other movements in equity(e)
|
-
|
-
|
-
|
(258)
|
15
|
(243)
|
107
|
(136)
|
31 December 2022
|
92
|
52,844
|
(73,364)
|
(10,804)
|
50,253
|
19,021
|
2,680
|
21,701
|
Profit or loss for the period
|
-
|
-
|
-
|
-
|
6,487
|
6,487
|
653
|
7,140
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
Gains/(losses) on:
|
|
|
|
|
|
|
|
|
Equity
instruments
|
-
|
-
|
-
|
(27)
|
-
|
(27)
|
(1)
|
(28)
|
Cash
flow hedges
|
-
|
-
|
-
|
(27)
|
-
|
(27)
|
-
|
(27)
|
Remeasurements of defined benefit pension plans
|
-
|
-
|
-
|
-
|
(508)
|
(508)
|
(2)
|
(510)
|
Currency retranslation gains/(losses)(f)
|
-
|
-
|
-
|
(1,629)
|
294
|
(1,335)
|
(126)
|
(1,461)
|
Total comprehensive income
|
-
|
-
|
-
|
(1,683)
|
6,273
|
4,590
|
524
|
5,114
|
Dividends on ordinary capital
|
-
|
-
|
-
|
-
|
(4,327)
|
(4,327)
|
-
|
(4,327)
|
Cancellation of treasury shares(g)
|
(4)
|
-
|
-
|
5,282
|
(5,278)
|
-
|
-
|
-
|
Repurchase of shares(b)
|
-
|
-
|
-
|
(1,507)
|
-
|
(1,507)
|
-
|
(1,507)
|
Movements in treasury shares(c)
|
-
|
-
|
-
|
75
|
(98)
|
(23)
|
-
|
(23)
|
Share-based payment credit(d)
|
-
|
-
|
-
|
-
|
212
|
212
|
-
|
212
|
Dividends paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
(521)
|
(521)
|
Hedging gain/(loss) transferred to non-financial
assets
|
-
|
-
|
-
|
117
|
-
|
117
|
-
|
117
|
Other movements in equity
|
-
|
-
|
-
|
2
|
17
|
19
|
(21)
|
(2)
|
31 December 2023
|
88
|
52,844
|
(73,364)
|
(8,518)
|
47,052
|
18,102
|
2,662
|
20,764
|
(a)
Includes a hyperinflation adjustment of €514 million in
relation to Argentina and Turkey.
(b)
Repurchase of shares reflects the cost of acquiring ordinary shares
as part of the share buyback program announced on 10 February
2022.
(c)
Includes purchases and sales of treasury shares, other than the
share buyback programme and the transfer from treasury shares to
retained profit of share-settled schemes arising from prior years
and differences between purchase and grant price of share
awards.
(d) The
share-based payment credit relates to the non-cash charge recorded
against operating profit in respect of the fair value of share
options and awards granted to employees.
(e) Includes
the following items related to the acquisition of Nutrafol:
€(269) million non-controlling interest purchase option in
other reserves and €99 million non-controlling interest
recognised on acquisition.
(f)
Includes a hyperinflation adjustment of €308 million in
relation to Argentina and Turkey.
(g)
During 2023, 112,746,434 PLC ordinary shares held as treasury
shares were cancelled. The amount paid to repurchase these shares
was initially recognised in other reserves and is transferred to
retained profit on cancellation.
Consolidated balance sheet
|
(unaudited)
|
|
|
€ million
|
As at 31 December 2023
|
As at 31 December 2022
|
Non-current assets
|
|
|
Goodwill
|
21,109
|
21,609
|
Intangible assets
|
18,357
|
18,880
|
Property, plant and equipment
|
10,707
|
10,770
|
Pension asset for funded schemes in surplus
|
3,781
|
4,260
|
Deferred tax assets
|
1,113
|
1,049
|
Financial assets
|
1,386
|
1,154
|
Other non-current assets
|
911
|
942
|
|
57,364
|
58,664
|
Current assets
|
|
|
Inventories
|
5,119
|
5,931
|
Trade and other current receivables
|
5,775
|
7,056
|
Current tax assets
|
427
|
381
|
Cash and cash equivalents
|
4,159
|
4,326
|
Other financial assets
|
1,731
|
1,435
|
Assets held for sale
|
691
|
28
|
|
17,902
|
19,157
|
|
|
|
Total assets
|
75,266
|
77,821
|
|
|
|
Current liabilities
|
|
|
Financial liabilities
|
5,087
|
5,775
|
Trade payables and other current liabilities
|
16,857
|
18,023
|
Current tax liabilities
|
851
|
877
|
Provisions
|
537
|
748
|
Liabilities held for sale
|
175
|
4
|
|
23,507
|
25,427
|
Non-current liabilities
|
|
|
Financial liabilities
|
24,535
|
23,713
|
Non-current tax liabilities
|
384
|
94
|
Pensions and post-retirement healthcare liabilities:
|
|
|
Funded
schemes in deficit
|
351
|
613
|
Unfunded
schemes
|
1,029
|
1,078
|
Provisions
|
563
|
550
|
Deferred tax liabilities
|
3,995
|
4,375
|
Other non-current liabilities
|
138
|
270
|
|
30,995
|
30,693
|
|
|
|
Total liabilities
|
54,502
|
56,120
|
|
|
|
Equity
|
|
|
Shareholders' equity
|
18,102
|
19,021
|
Non-controlling interests
|
2,662
|
2,680
|
Total equity
|
20,764
|
21,701
|
|
|
|
Total liabilities and equity
|
75,266
|
77,821
|
Consolidated cash flow statement
|
(unaudited)
|
Full Year
|
€ million
|
2023
|
2022
|
Net profit
|
7,140
|
8,269
|
Taxation
|
2,199
|
2,068
|
Share of net profit of joint ventures/associates and other
(income)/loss from non-current investments and
associates
|
(209)
|
(232)
|
Net monetary loss arising from hyperinflationary
economies
|
142
|
157
|
Net finance costs
|
486
|
493
|
Operating profit
|
9,758
|
10,755
|
|
|
|
Depreciation, amortisation and impairment
|
1,579
|
1,946
|
Changes in working capital
|
814
|
(422)
|
Inventories
|
340
|
(1,398)
|
Trade
and other receivables
|
768
|
(1,852)
|
Trade
payables and other liabilities
|
(294)
|
2,828
|
Pensions and similar obligations less payments
|
(281)
|
(119)
|
Provisions less payments
|
(185)
|
203
|
Elimination of profits on disposals
|
(433)
|
(2,335)
|
Non-cash charge for share-based compensation
|
212
|
177
|
Other adjustments
|
97
|
(116)
|
Cash flow from operating activities
|
11,561
|
10,089
|
Income tax paid
|
(2,135)
|
(2,807)
|
Net cash flow from operating activities
|
9,426
|
7,282
|
|
|
|
Interest received
|
267
|
287
|
Purchase of intangible assets
|
(243)
|
(253)
|
Purchase of property, plant and equipment
|
(1,502)
|
(1,456)
|
Disposal of property, plant and equipment
|
42
|
82
|
Acquisition of businesses and investments in joint ventures and
associates
|
(704)
|
(979)
|
Disposal of businesses, joint ventures and associates
|
436
|
4,622
|
Acquisition of other non-current investments
|
(533)
|
(170)
|
Disposal of other non-current investments
|
62
|
266
|
Dividends from joint ventures, associates and other non-current
investments
|
239
|
185
|
(Purchase)/sale of financial assets
|
(358)
|
(131)
|
Net cash flow (used in)/from investing activities
|
(2,294)
|
2,453
|
|
|
|
Dividends paid on ordinary share capital
|
(4,363)
|
(4,329)
|
Interest paid
|
(899)
|
(744)
|
Net change in short-term borrowings
|
(570)
|
(545)
|
Additional financial liabilities
|
4,972
|
7,776
|
Repayment of financial liabilities
|
(3,905)
|
(8,440)
|
Capital element of lease rental payments
|
(394)
|
(518)
|
Repurchase of shares
|
(1,507)
|
(1,509)
|
Other financing activities
|
(527)
|
(581)
|
Net cash flow used in financing activities
|
(7,193)
|
(8,890)
|
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
(61)
|
845
|
|
|
|
Cash and cash equivalents at the beginning of the
period
|
4,225
|
3,387
|
|
|
|
Effect of foreign exchange rate changes
|
(119)
|
(7)
|
|
|
|
Cash and cash equivalents at the end of the period
|
4,045
|
4,225
|
Notes to the condensed consolidated financial
statements
|
(unaudited)
1.
Accounting information and policies
|
Except as set out below the accounting policies and methods of
computation are consistent with the year ended 31 December 2022. In
conformity with the requirements of the Companies Act 2006, the
condensed consolidated preliminary financial statements have been
prepared based on the International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standard Board
(IASB) and UK-adopted international accounting
standards.
The condensed consolidated financial statements are shown at
current exchange rates, and percentage year-on-year changes are
shown to facilitate comparison. The consolidated income statement
on page 18,
the consolidated statement of comprehensive income on
page 18,
the consolidated statement of changes in equity on
page 19 and
the consolidated cash flow statement on page 21 are
translated at exchange rates current in each period. The balance
sheet on page 20 is
translated at period-end rates of exchange.
The condensed consolidated financial statements attached do not
constitute the full financial statements within the meaning of
Section 434 of the UK Companies Act 2006, which will be finalised
and delivered to the Registrar of Companies in due course. Full
accounts for Unilever for the year ended 31 December 2022 have been
delivered to the Registrar of Companies; the auditors' reports on
these accounts were unqualified, did not include a reference to any
matters by way of emphasis and did not contain a statement under
Section 498 (2) or Section 498 (3) of the UK Companies Act
2006.
New accounting standards
On 1 January 2023, the Group adopted IFRS 17 'Insurance Contracts'.
The standard introduces a new model for accounting for insurance
contracts. We have reviewed existing arrangements and concluded
that IFRS 17 does not impact the condensed consolidated financial
statements.
On 23 May 2023, amendments to IAS 12 'Income Taxes' came into
effect relating to International Tax Reform (Pillar Two). These
amendments clarify when an entity shall disclose qualitative and
quantitative information about its exposure to Pillar Two income
taxes. Effective immediately, the amendments also provide a
temporary mandatory exemption from deferred tax accounting. There
is no impact on the condensed consolidated financial
statements.
All other new standards or amendments issued by the IASB and UK
Endorsement Board that are effective or not yet effective, are
either not applicable or not material to the Group.
2.
Significant items within the income statement
|
Non-underlying items
These include non-underlying items within operating profit and
non-underlying items not in operating profit but within net
profit:
● Non-underlying
items within operating profit are
gains or losses on business disposals, acquisition and disposal
related costs, restructuring costs, impairments and other items
within operating profit classified here due to their nature and
frequency.
● Non-underlying
items not in operating profit but within net
profit are
net monetary gain/(loss) arising from hyperinflationary economies
and significant and unusual items in net finance cost, share of
profit/(loss) of joint ventures and associates and
taxation.
Restructuring costs are charges associated with activities planned
by management that significantly change either the scope of the
business or the manner in which it is conducted.
|
Full Year
|
€ million
|
2023
|
2022
|
Acquisition and disposal-related
credits/(costs)(a)
|
(242)
|
(50)
|
Gain/(loss) on disposal of group
companies(b)
|
489
|
2,335
|
Restructuring costs(c)
|
(499)
|
(777)
|
Impairments(d)
|
(1)
|
(221)
|
Other(e)
|
80
|
(215)
|
Non-underlying items within operating profit before
tax
|
(173)
|
1,072
|
|
|
|
Tax on non-underlying items within operating profit
|
207
|
273
|
Non-underlying items within operating profit after tax
|
34
|
1,345
|
|
|
|
Interest
related to the UK tax audit of intangible income and centralised
services
|
(11)
|
(7)
|
Net
monetary loss arising from hyperinflationary economies
|
(142)
|
(157)
|
Non-underlying items not in operating profit but within net profit
before tax
|
(153)
|
(164)
|
|
|
|
Tax impact of non-underlying items not in operating profit but
within net profit:
|
|
|
Taxes
related to separation of Ekaterra
|
(4)
|
(35)
|
Taxes
related to the UK tax audit of intangible income and centralised
services
|
(5)
|
(5)
|
Hyperinflation
adjustment for Argentina and Turkey deferred tax
|
21
|
(81)
|
Non-underlying items not in operating profit but within net profit
after tax
|
(141)
|
(285)
|
|
|
|
Non-underlying items after tax(f)
|
(107)
|
1,060
|
|
|
|
Attributable to:
|
|
|
Non-controlling
interests
|
(6)
|
(14)
|
Shareholders'
equity
|
(101)
|
1,074
|
(a) 2023
includes a charge of €104 million for the revaluation of the
minority interest liability of Nutrafol, €43 million relating
to the disposal of Elida Beauty and €10 million (2022:
€42 million) relating to the disposal of the global tea
business.
(b) 2023
includes a gain of €497 million related to the disposal of
Suave business in North America. 2022 includes a gain of
€2,303 million related to the disposal of the global tea
business.
(c) Restructuring
costs are comprised of strategic organisational change programmes
(including Compass), and transformational technology and supply
chain projects.
(d) 2022
includes an impairment charge of €192 million relating to
Dollar Shave Club.
(e) 2023
includes €28 million net release after utilisation to the
provision (2022: €89 million charge) relating to a product
recall and market withdrawal by The Laundress, €107 million
release (2022: €82 million charge) relating to legal
provisions for ongoing competition investigations and €54
million charge (2022: €42 million charge) relating to our
businesses in Russia and Ukraine.
(f) Non-underlying
items after tax is calculated as non-underlying items within
operating profit after tax plus non-underlying items not in
operating profit but within net profit after
tax.
3.
Segment information - Business Groups
|
Fourth Quarter
|
Beauty & Wellbeing
|
Personal Care
|
Home Care
|
Nutrition
|
Ice Cream
|
Total
|
Turnover (€ million)
|
|
|
|
|
|
|
2022
|
3,255
|
3,522
|
3,162
|
3,468
|
1,204
|
14,611
|
2023
|
3,181
|
3,404
|
2,974
|
3,416
|
1,202
|
14,177
|
Change (%)
|
(2.3)
|
(3.4)
|
(5.9)
|
(1.5)
|
(0.2)
|
(3.0)
|
Impact of:
|
|
|
|
|
|
|
Acquisitions
(%)
|
0.1
|
-
|
-
|
-
|
4.0
|
0.3
|
Disposals
(%)
|
(2.2)
|
(1.8)
|
-
|
(0.4)
|
-
|
(1.0)
|
Currency-related
items (%), of which:
|
(7.5)
|
(7.5)
|
(7.5)
|
(5.6)
|
(3.6)
|
(6.7)
|
Exchange rates changes (%)
|
(9.1)
|
(10.2)
|
(11.3)
|
(7.5)
|
(4.3)
|
(9.1)
|
Extreme price growth in hyperinflationary markets* (%)
|
1.8
|
3.0
|
4.3
|
2.1
|
0.7
|
2.6
|
Underlying sales growth (%)
|
7.9
|
6.4
|
1.7
|
4.7
|
(0.4)
|
4.7
|
Price* (%)
|
1.5
|
3.8
|
0.9
|
5.9
|
0.4
|
2.8
|
Volume (%)
|
6.3
|
2.5
|
0.8
|
(1.1)
|
(0.8)
|
1.8
|
Full Year
|
Beauty & Wellbeing
|
Personal Care
|
Home Care
|
Nutrition
|
Ice Cream
|
Total
|
Turnover (€ million)
|
|
|
|
|
|
|
2022
|
12,250
|
13,636
|
12,401
|
13,898
|
7,888
|
60,073
|
2023
|
12,466
|
13,829
|
12,181
|
13,204
|
7,924
|
59,604
|
Change (%)
|
1.8
|
1.4
|
(1.8)
|
(5.0)
|
0.5
|
(0.8)
|
Impact of:
|
|
|
|
|
|
|
Acquisitions
(%)
|
1.9
|
-
|
-
|
-
|
0.9
|
0.5
|
Disposals
(%)
|
(1.7)
|
(0.9)
|
-
|
(6.9)
|
-
|
(2.1)
|
Currency-related
items (%), of which:
|
(6.2)
|
(6.1)
|
(7.2)
|
(5.2)
|
(2.7)
|
(5.7)
|
Exchange rates changes (%)
|
(7.5)
|
(8.0)
|
(10.3)
|
(6.8)
|
(5.4)
|
(7.8)
|
Extreme price growth in hyperinflationary markets* (%)
|
1.5
|
2.1
|
3.4
|
1.7
|
2.8
|
2.2
|
Underlying sales growth (%)
|
8.3
|
8.9
|
5.9
|
7.7
|
2.3
|
7.0
|
Price* (%)
|
3.8
|
5.5
|
6.8
|
10.1
|
8.8
|
6.8
|
Volume (%)
|
4.4
|
3.2
|
(0.9)
|
(2.2)
|
(6.0)
|
0.2
|
|
|
|
|
|
|
|
Operating profit (€ million)
|
|
|
|
|
|
|
2022
|
2,154
|
2,264
|
1,064
|
4,497
|
776
|
10,755
|
2023
|
2,209
|
2,957
|
1,419
|
2,413
|
760
|
9,758
|
Underlying operating profit (€ million)
|
|
|
|
|
|
|
2022
|
2,292
|
2,679
|
1,344
|
2,449
|
919
|
9,683
|
2023
|
2,331
|
2,792
|
1,496
|
2,460
|
852
|
9,931
|
Operating margin (%)
|
|
|
|
|
|
|
2022
|
17.6
|
16.6
|
8.6
|
32.4
|
9.8
|
17.9
|
2023
|
17.7
|
21.4
|
11.6
|
18.3
|
9.6
|
16.4
|
Underlying operating margin (%)
|
|
|
|
|
|
|
2022
|
18.7
|
19.6
|
10.8
|
17.6
|
11.7
|
16.1
|
2023
|
18.7
|
20.2
|
12.3
|
18.6
|
10.8
|
16.7
|
*Underlying price growth in excess of 26% per year in
hyperinflationary economies has been excluded when calculating the
price growth in the tables above, and an equal and opposite amount
is shown as extreme price growth in hyperinflationary
markets.
Turnover growth is made up of distinct individual growth components
namely underlying sales, currency impact, acquisitions and
disposals. Turnover growth is arrived at by multiplying these
individual components on a compounded basis as there is a currency
impact on each of the other components. Accordingly, turnover
growth is more than just the sum of the individual
components.
Underlying operating profit represents our measure of segment
profit or loss as it is the primary measure used for the purpose of
making decisions about allocating resources and assessing
performance of segments. Underlying operating margin is calculated
as underlying operating profit divided by turnover.
4.
Segment information - Geographical area
|
Fourth Quarter
|
Asia Pacific Africa
|
The Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2022
|
6,640
|
5,374
|
2,597
|
14,611
|
2023
|
6,119
|
5,388
|
2,670
|
14,177
|
Change (%)
|
(7.9)
|
0.3
|
2.8
|
(3.0)
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
-
|
0.8
|
-
|
0.3
|
Disposals
(%)
|
(0.2)
|
(2.6)
|
(0.1)
|
(1.0)
|
Currency-related
items (%), of which:
|
(9.4)
|
(6.9)
|
0.4
|
(6.7)
|
Exchange rates changes (%)
|
(10.6)
|
(11.7)
|
0.4
|
(9.1)
|
Extreme price growth in hyperinflationary markets* (%)
|
1.4
|
5.4
|
-
|
2.6
|
Underlying sales growth (%)
|
1.9
|
9.6
|
2.5
|
4.7
|
Price* (%)
|
1.1
|
2.0
|
9.4
|
2.8
|
Volume (%)
|
0.7
|
7.4
|
(6.3)
|
1.8
|
Full Year
|
Asia Pacific Africa
|
The Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2022
|
27,504
|
20,905
|
11,664
|
60,073
|
2023
|
26,234
|
21,531
|
11,839
|
59,604
|
Change (%)
|
(4.6)
|
3.0
|
1.5
|
(0.8)
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
-
|
1.4
|
-
|
0.5
|
Disposals
(%)
|
(1.9)
|
(2.6)
|
(1.9)
|
(2.1)
|
Currency-related
items (%), of which:
|
(8.8)
|
(4.5)
|
(0.6)
|
(5.7)
|
Exchange rates changes (%)
|
(10.5)
|
(8.0)
|
(0.6)
|
(7.8)
|
Extreme price growth in hyperinflationary markets* (%)
|
2.0
|
3.8
|
-
|
2.2
|
Underlying sales growth (%)
|
6.5
|
9.3
|
4.1
|
7.0
|
Price* (%)
|
5.3
|
5.7
|
12.8
|
6.8
|
Volume (%)
|
1.1
|
3.4
|
(7.7)
|
0.2
|
*Underlying
price growth in excess of 26% per year in hyperinflationary
economies has been excluded when calculating the price growth in
the tables above, and an equal and opposite amount is shown as
extreme price growth in hyperinflationary markets.
The effective tax rate for 2023 is 24.1% compared with 20.4% in
2022. The increase is primarily driven by the favourable
impact of the ekaterra Tea disposal which benefited from the
participation exemption in the Netherlands in 2022. The increase
was partially offset by a benefit related to the disposal of Dollar
Shave Club in 2023.
The earnings per share calculations are based on the average number
of share units representing the ordinary shares of PLC in issue
during the period, less the average number of shares held as
treasury shares.
In calculating diluted earnings per share and underlying earnings
per share, a number of adjustments are made to the number of
shares, principally the exercise of share plans by
employees.
Earnings per share for total operations for the twelve months were
calculated as follows:
|
Full Year
|
|
2023
|
2022
|
EPS - Basic
|
|
|
Net profit attributable to shareholders' equity (€
million)
|
6,487
|
7,642
|
Average number of shares (millions of share units)
|
2,515.9
|
2,548.2
|
EPS - basic (€)
|
2.58
|
3.00
|
|
|
|
EPS - Diluted
|
|
|
Net profit attributable to shareholders' equity (€
million)
|
6,487
|
7,642
|
Adjusted average number of shares (millions of share
units)
|
2,532.4
|
2,559.8
|
EPS - diluted (€)
|
2.56
|
2.99
|
|
|
|
Underlying EPS
|
|
|
Net profit attributable to shareholders' equity (€
million)
|
6,487
|
7,642
|
Post-tax impact of non-underlying items attributable to
shareholders' equity (see note 2)
|
101
|
(1,074)
|
Underlying profit attributable to shareholders' equity
|
6,588
|
6,568
|
Adjusted average number of shares (millions of share
units)
|
2,532.4
|
2,559.8
|
Underlying EPS - diluted (€)
|
2.60
|
2.57
|
In calculating underlying earnings per share, net profit
attributable to shareholders' equity is adjusted to eliminate the
post-tax impact of non-underlying items.
During the period the following movements in shares have taken
place:
|
Millions
|
Number of shares at 31 December 2022 (net of treasury
shares)
|
2,529.0
|
Shares repurchased under the share buyback programme
|
(31.7)
|
Net movements in shares under incentive schemes
|
1.7
|
Number of shares at 31 December 2023 (net of treasury
shares)
|
2,499.0
|
7.
Acquisitions and disposals
|
In 2023, the Group completed the business acquisitions and
disposals as listed below. The net consideration for acquisitions
in 2023 is €675 million (2022: €811 million for
acquisitions completed during that year).
Deal completion date
|
Acquired/disposed business
|
10 January 2023
|
Acquired 51% of Zywie Ventures Private Limited ("OZiva"), a leading
plant-based, and clean-label consumer wellness brand focused on the
need spaces such as Lifestyle Protein, Hair & Beauty
Supplements and Women's health.
|
1 May 2023
|
Sold Suave brand in North America to Yellow Wood Partners LLC. The
Suave beauty and personal care brand includes hair care, skin care,
skin cleansing and deodorant products.
|
1 August 2023
|
Acquired Yasso Holdings, Inc., a premium frozen Greek yogurt brand
in the United States offering a high-quality range of low-calorie
yet indulgent products. The acquisition is aligned to the
premiumisation strategy of Unilever's Ice Cream Business
Group.
|
1 November 2023
|
Sold Dollar Shave Club to Nexus Capital Management LP.
|
On 1 May 2023, Unilever sold the North America Suave business to
Yellow Wood Partners LLC for consideration of
€592 million. A gain on disposal of
€497 million has been recognised as a non-underlying
item (see note 2).
On 18 December 2023, Unilever announced that it has received a
binding offer from Yellow Wood Partners LLC to acquire Elida
Beauty. Elida Beauty comprises more than 20 beauty and personal
care brands including Q-Tips, Caress, Timotei and Tigi. Completion
is expected by mid-2024.
On 22 December 2023, the Group announced it had signed an agreement
to acquire K18, a premium biotech haircare brand in the US. The
transaction completed on 1 February 2024 and the provisional
accounting for this transaction, including the valuation of assets
and liabilities acquired, is expected to be completed by H1 2024.
This acquisition is another step towards the optimisation of
Unilever's portfolio into premium segments.
Acquisitions
Effect on consolidated income statement
The acquisition deals completed in 2023 have contributed €82
million to the Group turnover and €18 million to the Group
operating profit since the date of acquisition. If the acquisition
deals completed in 2023 had all taken place at the beginning of the
year, Group turnover would have been €59,709 million, and
Group operating profit would have been €9,780
million.
Effect on consolidated balance sheet
The following table summarises the consideration and net assets
acquired in 2023. The fair values currently used for opening
balances are provisional. These balances remain provisional due to
there being outstanding relevant information in regard to facts and
circumstances that existed as of the acquisition date and/or where
valuation work is still ongoing.
€ million
|
Total 2023
|
Intangible assets
|
430
|
Other non-current assets
|
4
|
Trade and other receivables
|
25
|
Other current assets(a)
|
56
|
Non-current liabilities(b)
|
(114)
|
Current liabilities
|
(33)
|
Net assets acquired
|
368
|
Non-controlling interest
|
(20)
|
Goodwill
|
327
|
Total consideration
|
675
|
Of which:
|
|
Cash
consideration paid
|
652
|
Deferred
consideration
|
23
|
(a)
Other current assets include inventories of €18 million and
cash and cash equivalents of €30 million.
(b)
Non-current liabilities include deferred tax of €109
million.
Disposals
Total consideration for 2023 disposals is €578 million (2022:
€4,606 million for disposals completed during that year). The
following table sets out the effect of the disposals in 2023 and
comparative year on the consolidated balance sheet. The results of
disposed businesses are included in the consolidated financial
statements up until their date of disposal.
€ million
|
2023
|
2022
|
Goodwill and intangible assets(a)
|
56
|
948
|
Other non-current assets(b)
|
55
|
1,075
|
Current assets(c)
|
108
|
833
|
Liabilities(d)
|
(144)
|
(649)
|
Net assets sold
|
75
|
2,207
|
(Gain)/loss on recycling of currency retranslation on
disposal
|
14
|
65
|
Profit/(loss) on sale attributable to Unilever
|
489
|
2,334
|
Consideration
|
578
|
4,606
|
Of which:
|
|
|
Cash
|
472
|
4,606
|
Cash
balances of businesses sold
|
5
|
20
|
Non-cash
items and deferred consideration
|
101
|
(20)
|
(a)
2023 mainly related to the disposals of Suave and Dollar Shave
Club.
(b)
2023 includes property, plant and equipment of €42 million
mainly related to the disposal of Dollar Shave Club.
(c)
2023 includes inventories of €88 million related to the
disposals of Suave and Dollar Shave Club.
(d)
2023 includes €123 million of trade payables.
On 10 February 2022, we announced a share buyback programme of up
to €3 billion to be completed over 2022 and 2023. During
2023, the Group repurchased 31,734,256 ordinary shares which were
held by Unilever as treasury shares. Consideration paid for the
repurchase of shares including transaction costs was €1,507
million and was recognised in other reserves.
The Group's Treasury function aims to protect the Group's financial
investments, while maximising returns. The fair value of financial
assets is the same as the carrying amount for 2023 and 2022. The
Group's cash resources and
other financial assets are shown below.
|
31 December 2023
|
31 December 2022
|
€ million
|
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
Cash and cash equivalents
|
|
|
|
|
|
|
Cash
at bank and in hand
|
2,862
|
-
|
2,862
|
2,553
|
-
|
2,553
|
Short-term deposits(a)
|
1,181
|
-
|
1,181
|
1,743
|
-
|
1,743
|
Other
cash equivalents
|
116
|
-
|
116
|
30
|
-
|
30
|
|
4,159
|
-
|
4,159
|
4,326
|
-
|
4,326
|
Other financial assets
|
|
|
|
|
|
|
Financial assets at amortised
cost(b)
|
961
|
454
|
1,415
|
772
|
232
|
1,004
|
Financial assets at fair value through other
comprehensive income(c)
|
151
|
458
|
609
|
-
|
407
|
407
|
Financial
assets at fair value through profit or loss:
|
|
|
|
|
|
|
Derivatives
|
37
|
75
|
112
|
238
|
51
|
289
|
Other(d)
|
582
|
399
|
981
|
425
|
464
|
889
|
|
1,731
|
1,386
|
3,117
|
1,435
|
1,154
|
2,589
|
Total financial assets(e)
|
5,890
|
1,386
|
7,276
|
5,761
|
1,154
|
6,915
|
(a) Short-term
deposits typically have a maturity of up to 3
months.
(b) Current
financial assets at amortised cost include short term deposits with
banks with maturities longer than three months and loans to joint
venture entities. Non-current financial assets at amortised cost
include judicial deposits of €227 million (2022: €199
million).
(c) Included
within non-current financial assets at fair value through other
comprehensive income are equity investments.
(d) Other
financial assets at fair value through profit or loss include money
market funds, marketable securities, other capital market
instruments
and investments in financial institutions in North America, North
Asia, South Asia and Europe.
(e) Financial
assets exclude trade and other current
receivables.
The Group is exposed to the risks of changes in fair value of its
financial assets and liabilities. The following tables summarise
the fair values and carrying amounts of financial instruments and
the fair value calculations by category.
|
Fair value
|
Carrying amount
|
€ million
|
As at 31 December 2023
|
As at 31 December 2022
|
As at 31 December 2023
|
As at 31 December 2022
|
Financial assets
|
|
|
|
|
Cash and cash equivalents
|
4,159
|
4,326
|
4,159
|
4,326
|
Financial assets at amortised cost
|
1,415
|
1,004
|
1,415
|
1,004
|
Financial assets at fair value through other comprehensive
income
|
609
|
407
|
609
|
407
|
Financial assets at fair value through profit and
loss:
|
|
|
|
|
Derivatives
|
112
|
289
|
112
|
289
|
Other
|
981
|
889
|
981
|
889
|
|
7,276
|
6,915
|
7,276
|
6,915
|
Financial liabilities
|
|
|
|
|
Bank loans and overdrafts
|
(506)
|
(519)
|
(506)
|
(519)
|
Bonds and other loans
|
(26,112)
|
(25,136)
|
(26,692)
|
(26,512)
|
Lease liabilities
|
(1,395)
|
(1,408)
|
(1,395)
|
(1,408)
|
Derivatives
|
(494)
|
(631)
|
(494)
|
(631)
|
Other financial liabilities
|
(535)
|
(418)
|
(535)
|
(418)
|
|
(29,042)
|
(28,112)
|
(29,622)
|
(29,488)
|
For assets and liabilities which are carried at fair value, the
classification of fair value calculations by category is summarised
below:
|
As at 31 December 2023
|
As at 31 December 2022
|
€ million
|
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
Assets at fair value
|
|
|
|
|
|
|
Financial assets at fair value through other comprehensive
income
|
163
|
4
|
442
|
5
|
3
|
399
|
Financial assets at fair value through profit or loss:
|
|
|
|
|
|
|
Derivatives(a)
|
-
|
149
|
-
|
-
|
378
|
-
|
Other
|
582
|
-
|
399
|
428
|
-
|
461
|
Liabilities at fair value
|
|
|
|
|
|
|
Derivatives(b)
|
-
|
(559)
|
-
|
-
|
(784)
|
-
|
Contingent
consideration
|
-
|
-
|
(157)
|
-
|
-
|
(164)
|
(a) Includes
€37 million (2022: €89 million) derivatives, reported
within trade receivables, that hedge trading
activities.
(b) Includes
€(65) million (2022: €(153) million) derivatives,
reported within trade creditors, that hedge trading
activities.
There were no significant changes in classification of fair value
of financial assets and financial liabilities since 31 December
2022. There were also no significant movements between the fair
value hierarchy classifications since 31 December
2022.
The fair value of trade receivables and payables is considered to
be equal to the carrying amount of these items due to their
short-term nature. The fair value of financial assets and financial
liabilities (excluding listed bonds) is considered to be same as
the carrying amount for 2023 and 2022.
Calculation of fair values
The fair values of the financial assets and liabilities are defined
as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Methods and
assumptions used to estimate the fair values are consistent with
those used in the year ended 31 December 2022.
10.
Assets and liabilities held for sale
|
On 18 December 2023, Unilever announced that it has received a
binding offer from Yellow Wood Partners LLC to acquire Elida
Beauty. Elida Beauty comprises more than 20 beauty and personal
care brands including Q-Tips, Caress, Timotei and Tigi. As a
result, the assets and liabilities of Elida Beauty have been
classified as held for sale as at 31 December 2023. Following the
classification of assets and liabilities as held for sale, they are
recognised as current on the balance sheet.
€ million
|
2023
|
2022
|
Property, plant and equipment held for sale(a)
|
2
|
4
|
|
|
|
Non-current assets
|
|
|
Goodwill and intangibles
|
534
|
2
|
Property, plant and equipment
|
21
|
20
|
Other non-current assets
|
1
|
-
|
|
556
|
22
|
Current assets
|
|
|
Inventories
|
80
|
-
|
Trade and other receivables
|
47
|
2
|
Current tax assets
|
4
|
-
|
Cash and cash equivalents
|
2
|
-
|
|
133
|
2
|
Assets held for sale
|
691
|
28
|
|
|
|
Current liabilities
|
|
|
Trade payables and other current liabilities
|
24
|
2
|
Current tax liabilities
|
2
|
-
|
Financial liabilities due within one year
|
-
|
2
|
|
26
|
4
|
Non-current liabilities
|
|
|
Financial liabilities due after one year
|
4
|
-
|
Deferred tax liabilities
|
145
|
-
|
|
149
|
-
|
Liabilities held for sale
|
175
|
4
|
(a) Includes
manufacturing assets held for sale.
The Board has declared a quarterly interim dividend for Q4 2023 of
£0.3647 per Unilever PLC ordinary share or €0.4268 per
Unilever PLC ordinary share at the applicable exchange rate issued
by WM/Reuters on 6 February 2024.
The following amounts will be paid in respect of this quarterly
interim dividend on the relevant payment date:
Per Unilever PLC ordinary share (traded on the London Stock
Exchange):
|
£0.3647
|
Per Unilever PLC ordinary share (traded on Euronext in
Amsterdam):
|
€0.4268
|
Per Unilever PLC American Depositary Receipt:
|
US$0.4582
|
The euro and US dollar amounts above have been determined using the
applicable exchange rates issued by WM/Reuters on 6 February
2024.
US dollar cheques for the quarterly interim dividend will be mailed
on 22 March 2024 to holders of record at the close of business
on 23 February 2024.
The quarterly dividend calendar for the remainder of 2024 will be
as follows:
|
Announcement Date
|
Ex-Dividend Date
|
Record Date
|
Payment Date
|
Q4 2023 Dividend
|
08 February 2024
|
22 February 2024
|
23 February 2024
|
22 March 2024
|
Q1 2024 Dividend
|
25 April 2024
|
16 May 2024
|
17 May 2024
|
07 June 2024
|
Q2 2024 Dividend
|
25 July 2024
|
08 August 2024
|
09 August 2024
|
06 September 2024
|
Q3 2024 Dividend
|
24 October 2024
|
07 November 2024
|
08 November 2024
|
06 December 2024
|
12.
Events after the balance sheet date
|
As disclosed elsewhere in this report, the acquisition of K18
completed on 1 February 2024.
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