LONDON and ROTTERDAM, THE NETHERLANDS--(Marketwired - Apr 25, 2013) -
UNILEVER TRADING STATEMENT FIRST QUARTER 2013
FIRST QUARTER: GROWTH MOMENTUM CONTINUES
First quarter highlights
* Underlying sales growth 4.9% with emerging markets up 10.4%
* Underlying volume growth 2.2%; pricing up 2.6%
* Turnover increased 0.2% to EUR12.2 billion including a negative
currency impact of (3.5)%
* Disposals reduced turnover by (1.1)% reflecting the disposal of
Skippy and the US Frozen Food business
* Quarterly dividend up 10.7% to EUR0.2690
Paul Polman: Chief Executive Officer statement"We maintained good
growth momentum in the first quarter despite challenging economies
and the tough competitive environment. This performance is further
evidence that Unilever is becoming fit to win and capable of delivering
consistent growth ahead of our markets. Our strategy is working.
Emerging markets delivered double digit growth for the eighth
successive quarter and represented over 57% of our turnover. This
strong performance reflects the impact of our successful innovations,
the introduction of our brands into new markets, improved product
quality and competitive in-market execution.
Developed markets growth remained sluggish. Europe faced a particularly
strong prior year comparator and whilst the overall performance was
solid, the reported growth was held back by the slow start to the ice
cream season and weakness in spreads.
The Unilever Sustainable Living Plan is becoming embedded across the
business and increasingly driving our day-to-day decisions and actions,
helping to drive increased sales whilst reducing costs and risks.
Brands like Lifebuoy, Dove, Domestos, Knorr and Signal that have made
sustainability central to their brand proposition continue to perform
well. At the same time we have focused on eco-efficiencies in our
factories. By reducing our usage of energy, water and materials, and by
driving down waste, we release funds to invest in our brands and
further drive growth.
We remain focused on achieving another year of profitable volume growth
ahead of our markets, steady and sustainable core operating margin
improvement and strong cash flow."
25 April 2013
OPERATIONAL REVIEW: CATEGORIES
First Quarter 2013
(unaudited) Turnover USG UVG UPG
EURbn % % %
Unilever Total 12.2 4.9 2.2 2.6
Personal Care 4.4 8.3 5.6 2.6
Foods 3.4 (0.5) (1.4) 0.9
Home Care 2.3 9.4 5.2 3.9
Refreshment 2.1 2.2 (1.6) 3.9
Our markets: Growth remained solid in emerging markets despite the
continuing macro-economic headwinds, whilst developed markets remained
sluggish.
Unilever overall performance: In this context Unilever delivered
another quarter of good growth led by emerging markets which grew by
10.4% with a good balance between volume and price. Developed markets
declined in the quarter against a high prior year comparator. We saw
continued strong growth from Home Care and Personal Care and modest
growth from Refreshment, despite a much slower start to the ice cream
season in Europe. Foods performance was mixed and whilst savoury and
dressings held up well, the spreads category continued to be under
pressure.
Personal Care
Growth in hair care was underpinned by a strong innovation programme
and the continued introduction of our brands into new markets. For
Dove, the successful Dove Damage Therapy range, the extension of the
Dove Men+Care hair range and the launch of Dove hair products in Mexico
continued to drive growth. TRESemme continued to make excellent
progress, building on last year's success in Brazil, and we saw a good
early response to the launches in India and Indonesia. Clear continued
to make good progress in the highly competitive US market and delivered
strong growth in the emerging markets. Toni&Guy is now present in 17
countries and we have successfully launched the Nexxus Youth Renewal
range in the United States.
Skin cleansing and care enjoyed good growth driven by innovation across
the brands and geographies. Lifebuoy benefited from market development
activities to encourage hand washing. Lifebuoy clini-care 10, which
offers improved germ protection and skin care, was extended to
Indonesia, Ghana and Kenya. Dove performance reflected the continuing
success of Dove Nutrium Moisture shower gels and the growth of Dove
Men+Care, including the launch of a range of male face products in
Europe and North America. Innovations under the Vaseline brand included
the Spray & Go moisturizer in North America and a new range of facial
washes in South East Asia. In face care, activities include the launch
of Pond's Flawless White BB+ and the extension of Axe to male face care
in North America.
Deodorants started the year particularly strongly, powered by the
success of the Axe Apollo launch which has been supported by both
traditional and digital media in 60 countries and 45 languages. Rexona
is making good progress assisted by the 'Do: More' campaign which
integrates the new Lotus F1 Team variant. Dove remains a key growth
driver through the success of Dove Men+Care deodorants and the Dove
Maximum Protection range. Despite heightened competition we saw better
growth in oral care driven by our strong programme of product
innovation. Signal Expert Protection continues to make excellent
progress. Close-Up 3 times fresher breath has been rolled out to more
than 40 markets and White Now Triple Gold has been launched in China
and Europe.
Foods
In Foods we continue to position our business for long term growth by
enhancing the nutritional value of our products and seeking to improve
food security, whilst at the same time strengthening the portfolio
through the accelerated divestment of non-core food brands such as
Skippy. Savoury and dressings continued to grow in the first quarter,
underpinned by innovations such as Knorr jelly bouillon variants, now
in more than 35 markets, and baking bags, now in more than 40 markets.
In dressings, Hellmann's growth was driven by market development
activities encouraging new uses of mayonnaise and the launch in Europe
of a superior squeeze pack. Hellmann's celebrates its 100th birthday in
the United States this year with activities to strengthen the brand's
'real mayonnaise' credentials.
Spreads declined, driven by lower volumes in a tough promotional
environment. Market dynamics are not currently in our favour with
consumers switching to alternatives. Despite the success of recent
innovations such as Flora Buttery and liquid margarines, which have now
been launched in Turkey under the Becel brand, we have more to do to
communicate the improved taste and health benefits of our margarines to
consumers.
Home Care
Laundry delivered broad-based growth ahead of our markets despite
intense competition. This performance reflected our strong innovaton
programme, including the introduction of improved Brilhante in Brazil,
offering superior cleaning and whiteness, the new Surf super-sensorials
range and the Philippines launch of Breeze in the 'Dirt is Good'
position. Fabric conditioners made a good contribution to the growth,
helped by the launch of Comfort anti-bacterial in Thailand and the
success of the super-sensorial range.
Household care started the year well, growing ahead of the market with
strong performances from our dishwash brands in Asia and Europe. The
household cleaners brands benefitted from impactful innovations such as
the introduction of the Cif easy lift technology for streak-free shine,
the launch of Domestos toilet blocks in Turkey and Domestos toilet
strips in Central Europe. Both Cif and Domestos were launched in Brazil
during the quarter.
Refreshment
Ice cream was up slightly despite a high prior year comparator and the
extremely cold weather conditions which prevailed in much of Europe.
Magnum, now a EUR1 billion brand, continued to make good progress
supported by the rollout of Magnum Gold?! to the United States, the
rollout of the '5 kisses' limited editions and the new pint format in
Europe, and the launch of Magnum Pink and Magnum Black in Mexico and
Turkey. Cornetto was relaunched in Europe, Mexico and South East Asia
and we introduced a new Cornetto mini variant in Europe whilst Fruttare
was launched in the United States.
The turnaround in tea which began last year continued with mid-single
digit growth in the first quarter. Improved product quality, stronger
mixes and improved in-market execution drove this performance. Lipton
Yellow Label again drove growth in Russia, benefiting from patented
technology to re-incorporate tea essence and deliver improved taste.
This innovation was rolled out to Pakistan and the Middle East during
the quarter. The Brooke Bond range of brands performed well in India
and PG Tips in the UK grew in a strongly promotional market.
OPERATIONAL REVIEW: GEOGRAPHICAL AREA
First Quarter 2013
(unaudited) Turnover USG UVG UPG
EURbn % % %
Unilever Total 12.2 4.9 2.2 2.6
Asia/AMET/RUB 5.0 9.2 5.4 3.7
The Americas 4.1 6.1 2.0 4.0
Europe 3.1 (3.1) (2.1) (1.0)
Asia/AMET/RUB
AAR achieved EUR5 billion turnover in the first quarter. The strong
growth performance was broad-based and driven by volume. We saw
particularly good performances in Indonesia, Vietnam, Thailand, China
and Turkey. Australia returned to growth despite tough markets.
Following the successful SAP implementation in Russia during the fourth
quarter of 2012, the regional SAP platform is now widely deployed and
operating successfully. The Kalina beauty brands acquired at the end of
2011 continued to make excellent progress.
The Americas
North America was stable, up 0.3%, with Personal Care growth ahead of
our markets largely offset by a decline in spreads. The major
innovations introduced in recent years, Magnum, Clear and Simple
continue to make good progress. The disposal of Skippy in North America
was completed during the quarter.
Latin America delivered another quarter of double-digit growth at
12.3%, driven by strong performances in Brazil and Argentina, where we
were able to maintain volume growth whilst taking necessary price
increases.
Europe
The performance in the first quarter reflected continued difficult
markets and the strong prior year comparator, particularly in ice cream
where the early spring weather in the prior year was not repeated.
Southern Europe remains particularly difficult and consumer confidence
in northern Europe continues to be eroded by fiscal tightening and the
continuing impact of the financial crisis.
FINANCIAL POSITION
There has been no material change to Unilever's financial position
since the published 2012 Group financial statements.
DIVIDENDS
The Boards have declared a quarterly interim dividend for Q1 2013 at
the following rates which are equivalent in value at the rate of
exchange applied under the terms of the Equalisation Agreement between
the two companies:
Per Unilever N.V. ordinary share: EUR 0.2690
Per Unilever PLC ordinary share: GBP 0.2291
Per Unilever N.V. New York share: US$ 0.3494
Per Unilever PLC American Depositary Receipt: US$ 0.3494
The quarterly interim dividends have been determined in euros and
converted into equivalent sterling and US dollar amounts using exchange
rates issued by the European Central Bank on 23 April 2013.
US dollar cheques for the quarterly interim dividend will be mailed on
11 June 2013 to holders of record at the close of business on 10 May
2013. In the case of the NV New York shares, Netherlands withholding
tax will be deducted.
The quarterly dividend calendar for the remainder of 2013 will be as
follows:
Announcement Ex-Dividend Record Payment Date
Date Date Date
Quarterly dividend - 25 April 8 May 10 May 12 June
for Q1 2013 2013 2013 2013 2013*
Quarterly dividend - 25 July 7 August 9 August 11 September
for Q2 2013 2013 2013 2013 2013
Quarterly dividend - 24 October 6 November 8 November 11 December
for Q3 2013 2013 2013 2013 2013
* Please note that within the Financial calendar section on page 144 of
our printed version of the 2012 Annual Report and Accounts, the payment
date for the quarterly dividend announced with the Quarter 1 2013
results was incorrectly stated as 2 June 2013. The correct payment date
for the interim dividend in respect of the first quarter of 2013 is 12
June 2013 as noted in the table above.
CAUTIONARY STATEMENT
This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Words such as 'will',
'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes','vision',
or the negative of these terms and other similar expressions
of future performance or results, and their negatives, are intended to
identify such forward-looking statements. These forward-looking
statements are based upon current expectations and assumptions
regarding anticipated developments and other factors affecting the
Group. They are not historical facts, nor are they guarantees of future
performance.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by these
forward-looking statements. Among other risks and uncertainties, the
material or principal factors which cause actual results to differ
materially are: Unilever's global brands not meeting consumer
preferences; increasing competitive pressures; Unilever's investment
choices in its portfolio management; inability to find sustainable
solutions to support long-term growth; customer relationships; the
recruitment and retention of talented employees; disruptions in our
supply chain; the cost of raw materials and commodities; secure and
reliable IT infrastructure; successful execution of acquisitions,
divestitures and business transformation projects; economic and
political risks and natural disasters; the debt crisis in Europe;
financial risks; failure to meet high product safety and ethical
standards; and managing regulatory, tax and legal matters. Further
details of potential risks and uncertainties affecting the Group are
described in the Group's filings with the London Stock Exchange,
Euronext Amsterdam and the US Securities and Exchange Commission,
including the Group's Annual Report on Form 20-F for the year ended 31
December 2012 and the Annual Report and Accounts 2012. These
forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or regulation,
the Group expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Group's expectations with
regard thereto or any change in events, conditions or circumstances on
which any such statement is based.
ENQUIRIES
Media: Media Relations Team Investors: Investor Relations Team
UK +44 20 7822 6719 +44 20 7822 6830
trevor.gorin@unilever.com investor.relations@unilever.com
NL +31 10 2174844
flip.dotsch@unilever.com
There will be a web cast of the results presentation available at:
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/default.asp
The web cast can also be viewed from the Unilever Investor Relations
app which you can download from:
http://itunes.apple.com/us/app/unilever-investor-centre-app/id483403509?mt=8&ign-mpt=uo%3D4
SEGMENT INFORMATION - CATEGORIES
(unaudited)
Personal Home
First Quarter Care Foods Care Refreshment Total
Turnover (EUR million)
2012 4,260 3,568 2,198 2,118 12,144
2013 4,416 3,374 2,274 2,100 12,164
Change (%) 3.6 (5.4) 3.5 (0.9) 0.2
Impact of:
Exchange rates (%) (4.1) (1.9) (5.3) (3.0) (3.5)
Acquisitions (%) - - - - -
Disposals (%) (0.3) (3.2) (0.1) (0.1) (1.1)
Underlying sales growth (%) 8.3 (0.5) 9.4 2.2 4.9
Price (%) 2.6 0.9 3.9 3.9 2.6
Volume (%) 5.6 (1.4) 5.2 (1.6) 2.2
SEGMENT INFORMATION - GEOGRAPHICAL AREA
(unaudited)
Asia /
First Quarter AMET / The Europe Total
RUB Americas
Turnover (EUR million)
2012 4,823 4,091 3,230 12,144
2013 5,029 4,029 3,106 12,164
Change (%) 4.2 (1.5) (3.8) 0.2
Impact of:
Exchange rates (%) (4.5) (4.7) (0.3) (3.5)
Acquisitions (%) - - 0.1 -
Disposals (%) (0.1) (2.6) (0.6) (1.1)
Underlying sales growth (%) 9.2 6.1 (3.1) 4.9
Price (%) 3.7 4.0 (1.0) 2.6
Volume (%) 5.4 2.0 (2.1) 2.2
Additional geographical information
(unaudited)
First Quarter
Turnover USG UVG UPG
EURm % % %
Unilever Total 12,164 4.9 2.2 2.6
Developed markets 5,155 (1.9) (1.2) (0.7)
Emerging markets 7,009 10.4 5.0 5.1
First Quarter
Turnover USG UVG UPG
EURm % % %
The Americas 4,029 6.1 2.0 4.0
North America 1,999 0.3 0.1 0.2
Latin America 2,030 12.3 4.0 7.9
This information is provided by RNS
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