SOURCE: Unilever PLC

August 04, 2011 02:00 ET

2nd Quarter Results 2011

LONDON and ROTTERDAM, THE NETHERLANDS--(Marketwire - Aug 4, 2011) -



First Half Highlights

* Strong second quarter underlying sales growth 7.1%; first half
underlying sales growth 5.7% comprising volume growth 2.2% and price
growth 3.5%.

* Turnover up 4.1% at EUR22.8 billion with a negative impact from
foreign exchange of 1.6%.

* Underlying operating margin down 20bps; impact of high input
cost inflation mitigated by pricing and savings. Stepped-up continuous
improvement programmes generated efficiencies in advertising and
promotions and led to lower indirect costs.

* Advertising and promotions expenditure, at around EUR3 billion,
was higher than the second half of 2010 but down 150bps versus the
exceptionally high prior year comparator.

* Fully diluted earnings per share up 10% at EUR0.77.

* Integration of Sara Lee brands largely complete and Alberto
Culver progressing rapidly. The acquisition of the laundry business in
Colombia completed.

Chief Executive Officer"We are making encouraging progress in the
transformation of Unilever
to a sustainable growth company. In a tough and volatile environment we
have again delivered strong growth. Volumes were robust and in line
with the market, despite having taken price increases. This shows the
strength of our brands and innovations. Our emerging markets business
continues to deliver double digit growth. Performance in Western Europe
was also strong in the second quarter so that the half year results
reflect the true progress we have been making.

Bigger and better innovation rolled out faster and moving our brands
into white spaces continue to be the biggest drivers of growth. We are
now striving to go further and faster still. For example Dove Hair
Damage Therapy will be in more than 30 markets by the end of the year,
Magnum has been rolled out to the United States and Indonesia and the
Vaseline Men face range has been launched in South East Asia. We also
continue to transform the portfolio with the integration of Sara Lee
brands largely complete and Alberto Culver progressing rapidly. The
acquisition of the "Fab" laundry brand in Colombia has now been

The recently announced organisational changes are another building
block in the transformation of Unilever, enabling us to further drive
the virtuous circle of growth. Our priorities remain: profitable volume
growth ahead of our markets, steady and sustainable underlying
operating margin improvement and strong cash flow. More so than ever,
in today's volatile environment, our number one priority is to ensure
that our brands are managed for the long term health of the business."

Key financials(unaudited)                               Half Year 2011
Current rates
Underlying sales growth*                                    5.7%
Turnover                                             EUR22,788m   +4.1%
Operating profit                                     EUR3,308m      +8%
Net profit                                           EUR2,405m      +9%
Diluted earnings per share                           EUR0.77       +10%
Quarterly Dividend payable in September 2011    EUR0.225 per share

(*) Underlying sales growth is a constant currency non-GAAP measure,
see note 2 on Page 11 for further explanation.        4 August 2011

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