SOURCE: Unilever

May 06, 2005 02:01 ET

Unilever announces Unilever Results First Quarter

London/ Rotterdam -- (MARKET WIRE) -- May 6, 2005 --

                       UNILEVER RESULTS FIRST QUARTER

In competitive markets, first quarter business performance shows signs of progress.


FINANCIAL HIGHLIGHTS
(unaudited)

EUR million                                  First Quarter 2005
                                   Current       Current       Constant
                                     rates         rates          rates
Turnover                             9 266            2%             4%
Operating profit                     1 416            8%             9%
Pre-tax profit                       1 282            9%            10%
Net profit attributable to             934           24%            25%
shareholders' equity                   
EPS NV (Euros)                        0.96           25%            26%
EPS PLC (Euro cents)                 14.44           25%            26%

KEY FEATURES OF THE QUARTER

   -  Underlying sales grew by 6%, benefiting from additional calendar 
      days in the quarter.
   -  Aggregate market shares are stabilising.
   -  Operating margin was 15.3% and included EUR73 million from profits 
      on disposals.
   -  Earnings per share benefited from one-off movements in tax and net
      restructuring.

CHIEF EXECUTIVE'S COMMENT

We are making progress on the plans to improve top line performance. The first stage was a step-up in market competitiveness, starting from the fourth quarter of last year. I am encouraged that we have had two consecutive quarters of growth and that aggregate market shares are now stabilising.

Our actions in the market place are now being supported by the transition to the new organisation announced in February, which is proceeding well.

This year we expect market conditions to remain very challenging in Europe, and margins to continue to be under pressure from increased input costs. However, performance in developing and emerging markets was better, and here the outlook is more promising.

Against this background, we will ensure our brands are competitive in their markets while continuing to drive cost efficiency. At the same time we remain focused on our priorities. These are: regaining momentum in Europe, building on our strengths in global personal care and developing and emerging markets; as well as innovation which addresses the Vitality needs of our consumers.

Patrick Cescau
Group Chief Executive

Unilever has adopted IFRS - the new international accounting standards. These apply to both the prior year comparators and the current year results. In addition, the financial statements are now shown only at current exchange rates, while percentage changes are shown at both current and constant exchange rates to facilitate comparison. Further information on the impact of IFRS can be found on page 9 and on the Unilever web site at www.unilever.com/ourcompany/ investorcentre/.

In the following commentary sales growth is stated on an underlying basis at constant exchange rates and excluding the effects of acquisitions and disposals. Turnover includes the impact of exchange rates and acquisitions and disposals.

Unilever uses 'constant rate' and 'underlying' measures primarily for internal performance analysis and targeting purposes. Unilever believes that such measures provide additional information for shareholders on underlying business performance trends. Such measures are not defined under IFRS or US GAAP and are not intended to be a substitute for GAAP measures of turnover and profit.

FIRST QUARTER FINANCIAL RESULTS

Underlying sales grew by 6%, entirely coming from volume. This includes the impact of an additional 5 days in the quarter, which varies by region. We estimate that, at the group level, calendar effects contributed about 4% to growth.

Turnover was 2.3% ahead, with the underlying sales growth partly offset by a negative 2.1% from disposals and a negative 1.6% from currency movements. Operating margin was 15.3%, an increase of 0.8 percentage points. There was a gain in the quarter of EUR73 million from profits on disposals, mainly in Europe and South Africa. Gross restructuring costs were also substantially lower than last year. These effects, together with the benefits of savings programmes, more than offset higher input costs and increased investment in market competitiveness.

Operating profit increased by 8% (9% at constant exchange rates).

Net financing costs were 3% lower.

The tax rate in the quarter was 23% and included 6 percentage points benefit to the rate from non-recurring items including the conclusion of past tax audits.

Earnings per share increased by 25% benefiting from the non-recurring items in tax which contributed 8% to EPS, and from the favourable movement in net restructuring charges.

CASH FLOW

Net cash flow from operating activities, which is net of tax payments, was EUR0.5 billion, a decrease of EUR0.2 billion on 2004. The increase in operating profit was more than offset by higher seasonal outflows of working capital, principally due to calendar effects, and by higher payments for restructuring costs and tax.

During the period there was a net increase in cash and cash equivalents of EUR132 million.

BALANCE SHEET

Goodwill and intangible assets increased by EUR0.3 billion, through currency movements. Trade receivables and inventories both increased reflecting calendar effects and build-up ahead of the ice cream season.

Closing net debt was EUR10.1 billion, a reduction of EUR1.1 billion from the 1 January 2005 opening position. EUR1.4 billion of the reduction relates to the conversion of the EUR0.05 preference shares, offset by EUR0.5 billion from adverse currency movements.

Total equity increased by EUR2.3 billion from the 1 January 2005 opening position. Net profits added EUR1.0 billion and currency retranslation EUR0.1 billion. Treasury stock, which is deducted from equity, was used for the conversion of the EUR0.05 preference shares. This had the effect of reducing borrowings by EUR1.4 billion and increasing equity by the same amount. Subsequent purchases of treasury stock during the quarter reduced equity by EUR0.2 billion. Future share purchases to replenish the treasury stock used in the conversion will further offset the increase in equity.

FIRST QUARTER PERFORMANCE BY REGION

EUROPE

Market conditions remain difficult through much of Western Europe. Competition is intense between retailers as well as between manufacturers and pricing is under pressure.

On a like-for-like calendar basis, underlying sales declined by about 2%, including the effect of lower pricing as we took action to improve competitiveness. There were some encouraging signs of progress: we have gained share in most foods categories compared with the end of last year and ice cream benefited from a good uptake in the trade for new products.

It was a difficult quarter in home and personal care, largely due to the UK. While some of this stems from the difficult market environment, we have also lost market share. Action is being taken and, with a stronger innovation programme this year, we expect to see a gradual improvement.

Elsewhere in Western Europe performance was mixed. In France, sales of home and personal care categories held up well, however foods categories were weaker. By contrast, in the other major markets we saw a better performance in our foods businesses.

Eastern Europe, and Russia in particular, continued to show strong, volume driven growth across categories.

The pro.activ range of Flora/Becel was further extended to include yoghurt drinks. In the Netherlands and Belgium we launched Knorr Vie shots which provide at least half the daily recommended intake of fruit and vegetables.

Magnum 5 senses ice creams were introduced while in frozen foods the brand relaunch is underway in all countries, and supports innovation which is focused on convenience products with fresh, natural ingredients.

The first quarter saw the introduction of Sunsilk hair styling products, Dove 'silk dry' deodorant and new body wash variants.

Operating margin, at 16.4%, was 1.1 percentage points ahead of last year, boosted by profits on disposals. Savings programmes and improved mix fully offset the impact of lower prices.

THE AMERICAS

There was a modest pick-up in market growth in most categories in the US, while consumption in the majority of Latin American countries is buoyant.

On a like-for-like calendar basis our underlying sales grew by about 4%.

Performance was strong across most foods categories and aggregate shares in foods were slightly up. However, the weight management market has contracted rapidly and, while Slim.Fast continued to gain some share, sales of the brand were sharply lower than last year.

We are further refreshing the Slim.Fast Optima product range and are also introducing the first in a new range of high protein shakes and meal bars.

There was an encouraging return to like-for-like sales growth in home and personal care categories in the US driven by deodorants, hair care and personal wash. Skin care and laundry are both very active markets with intense competition and our market shares are down in both. Prestige grew well, continuing the progress made in the second half of 2004.

Mexico, Chile and Argentina all showed strong volume growth while sales in Brazil were in line with a very strong quarter in the previous year. In these countries the personal care and savoury and dressings brands continue to perform particularly well.

In the US Country Crock side dishes and Bertolli frozen meals have both been rolled out nationally. New ice cream products include Breyers ranges that further build on the 'healthy' platform; Cal Smart, Sugar Smart and Heart Smart.

Dove in the US has extended from its position in shampoo into hair styling, and we launched 'all' laundry detergent with softening.

In Latin America we introduced new flavours and 'light' varieties of the AdeS soy based nutritional drink. In Mexico and Argentina, new flavours of Knorr soups address traditional habits, and Hellmann's cholesterol free mayonnaise, already succesful in Chile, has been brought to Mexico.

In hair care, Sunsilk Guarana is being rolled out in Brazil, Andina and Argentina. Rexona 'teens' deodorant complements the existing products for men and women and Rexona antibacterial soap bar has been extended from Argentina into Brazil.

The operating margin at 15.2% was 0.2 percentage points higher than last year. Savings programmes and lower restructuring costs more than offset the impact of higher input costs and an increase in marketing investment.

ASIA/AFRICA

Consumption overall continues to grow well, despite a weaker economy in Japan and still modest economic growth in South Africa.

On a like-for-like calendar basis, underlying sales grew by about 7%.

There was widespread growth across South East Asia, with succesful innovations in hair care and good progress in savoury products.

India had its strongest quarterly growth in over two years, unaffected by the calendar change and following a robust response to the earlier increase in competition. In laundry, market shares have been maintained and we started to regain share in hair care through innovation and increased support. In Japan, where competition has also been intense, like-for-like sales were in line with last year.

Turkey and West Africa both performed well, while Arabia saw a good recovery in sales of Lipton teas.

A strong innovation programme for hair care in India includes new products for the Clinic range in family health and anti-dandruff positions and Sunsilk 'Fresh and Cool' for sticky hair. Following the relaunch of Lux super rich in Japan towards the end of last year, Lux styling has now also been relaunched.

Lipton herbal teas have been introduced to Turkey and China, where we have also launched Lipton milk tea. In Turkey the main spreads brands, Rama and Sana, now include olive oil versions.

The operating margin, at 13.4%, was 0.7 percentage points higher than last year largely through profits on disposals and lower restructuring charges.

SAFE HARBOUR STATEMENT: This document may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report and Accounts on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.


CONDENSED INTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
(unaudited)

EUR million                         First Quarter
                         2005    2004                 Increase/
                                                     (Decrease)
                                               Current         Constant 
                                                 rates            rates

Turnover                9 266   9 061               2%               4%
Operating profit        1 416   1 316               8%               9%

Finance income             97      86
Finance costs            (234)   (225)
Other finance income/     (16)    (19)
(costs) - pensions and
similar obligations       
Share in net profit of     10       9
joint ventures
Share in net profit of      -       1
associates
Other income from           9      13
non-current investments

Profit before taxation  1 282   1 181               9%              10%

Taxation                 (301)   (379)

Net profit for the period 981     802              22%              24%

Attributable to:
Minority interests         47      49
Shareholders' equity      934     753              24%              25%

Combined earnings per
share
Per EUR0.51 ordinary NV  0.96    0.77              25%              26%
share (Euros)
Per 1.4p ordinary PLC   14.44   11.58              25%              26%
share (Euro cents)      

Per EUR0.51 ordinary NV  0.93    0.74              26%              27%
share - diluted (Euros)
Per 1.4p ordinary PLC   13.94   11.13              25%              27%
share - diluted (Euro 
cents)

STATEMENT OF RECOGNISED INCOME AND EXPENSE
(unaudited)

EUR million                                              First Quarter
                                                        2005      2004

Fair value gains/(losses) on financial instruments and
cash flow hedges net of tax                               16       n/a
Actuarial gains/(losses) on pension schemes net of tax    (3)       32
Currency retranslation gains/(losses) net of tax         123        77

Net income/(expense) recognised directly in equity       136       109

Net profit for the period                                981       802

Total recognised income and expense for the period     1 117       911

Attributable to:
Minority interests                                        67        67
Shareholders' equity                                   1 050       844


BALANCE SHEET
(unaudited)

                                       As at         As at       As at
                                     2 April   31 December    27 March
EUR million                             2005          2004        2004

Non current assets
Goodwill and intangible assets        17 346        17 018      18 990
Property, plant and equipment          6 231         6 181       6 653
Pension asset for funded schemes in      696           625         830
surplus
Deferred tax assets                    1 533         1 491       1 181
Other non-current assets               1 582         1 064       1 023
Total non-current assets              27 388        26 379      28 677

Assets held for sale                     156           n/a         n/a

Current assets
Inventories                            4 112         3 756       4 504
Trade and other receivables due        4 616         4 131       5 313
within one year
Financial assets                         334         1 013       1 338
Cash and cash equivalents              1 721         1 590       2 239
Total current assets                  10 783        10 490      13 394

Current liabilities
Borrowings due within one year       (5 462)       (5 155)     (7 485)
Trade payables and other current     (8 234)       (8 232)     (9 022)
liabilities
Total current liabilities           (13 696)      (13 387)    (16 507)
Net current assets/(liabilities)     (2 913)       (2 897)     (3 113)
Total assets less current             24 631        23 482      25 564
liabilities

Non-current liabilities
Borrowings due after one year          7 062         6 893       8 659
Pension liability for funded           2 363         2 291       2 462
schemes in deficit
Pension liability for unfunded         3 906         3 788       3 683
schemes
Deferred tax liabilities                 798           740       1 141
Restructuring and other provisions     1 325         1 364         850
Other non-current liabilities            713           717         759
Total non-current liabilities         16 167        15 793      17 554

Liabilities held for sale                  9           n/a         n/a

Equity
Shareholders' equity                   8 041         7 324       7 532
Minority interests                       414           365         478
Total equity                           8 455         7 689       8 010
Total capital employed                24 631        23 482      25 564


MOVEMENTS IN EQUITY
(unaudited)

EUR million                                              First Quarter
                                                         2005     2004

Equity at 31 December 2004                              7 689      n/a
IFRS transition adjustment for financial instruments   (1 564)     n/a
(including preference shares)                         
Equity at 1 January                                     6 125    7 241
Total recognised income and expense for the period      1 117      911
Dividends                                                   -       (5)
Conversion of preference shares                         1 380        -
Purchase/sale of treasury stock                          (158)    (139)
Share option credit                                        41       56
Dividends paid to minority shareholders                   (22)     (24)
Currency retranslation gains/(losses) net of tax          (28)     (26)
Other movements in equity                                   -       (4)
Equity at the end of the period                         8 455    8 010


CASH FLOW STATEMENT
(unaudited)

EUR million                                              First Quarter
                                                         2005     2004

Operating activities
Cash flow from operating activities                       779      961
Income tax paid                                          (308)    (241)
Net cash flow from operating activities                   471      720

Investing activities
Interest received                                          42       11
Net capital expenditure                                  (182)    (170)
Acquisitions and disposals                                101      (88)
Other investing activities                                210      (79)
Net cash flow from/(used in) investing activities         171     (326)

Financing activities
Dividends paid on ordinary share capital                   (2)       -
Interest and preference dividends paid                   (115)    (107)
Change in borrowings and finance leases                  (214)     229
Purchase of own shares                                   (158)    (120)
Other financing activities                                (21)     (15)
Net cash flow from/(used in) financing activities        (510)     (13)

Net increase/(decrease) in cash and cash equivalents      132      381

Cash and cash equivalents at the beginning of the year  1 406    1 428

Effect of foreign exchange rate changes                   (23)     131

Cash and cash equivalents at the end of period          1 515    1 940


ANALYSIS OF NET DEBT
(unaudited)

EUR million                                     As at            As at
                                              2 April        1 January 
                                                 2005             2005

Cash and cash equivalents as per cash flow      1 515            1 406
statement                                       
Add: bank overdrafts deducted therein             206              184
Less: cash in assets held for disposal              -               (8)
Cash and cash equivalents as per balance        1 721            1 582
sheet
Financial assets                                  334              533
Borrowings due within one year                 (5 462)          (6 448)
Borrowings due after one year                  (7 062)          (7 221)
Derivatives and finance leases included in        332              369
other receivables and other liabilities

Net debt at the end of the period             (10 137)         (11 185)


GEOGRAPHICAL ANALYSIS
(unaudited)

First Quarter
EUR million              Europe     Americas      Asia/Africa     Total

Turnover
 2004                     3 885        2 925            2 251     9 061
 2005                     3 932        3 004            2 330     9 266
Change                     1.2%         2.7%             3.5%      2.3%
Impact of:
Exchange rates             0.3%        (2.5)%           (3.5)%    (1.6)%
Acquisitions               0.2%         0.1%             0.0%      0.1%
Disposals                 (2.4)%       (1.5)%           (2.5)%    (2.1)%
Underlying sales growth    3.1%         6.8%            10.1%      6.0%
Price                     (1.0)%        0.7%             0.7%      0.0%
Volume                     4.2%         6.1%             9.3%      6.1%

Operating profit
 2004                      592          438              286     1 316
 2005                      646          458              312     1 416
Change current rates       8.9%         4.7%             9.1%      7.6%
Change constant rates      8.7%         7.2%            13.9%      9.3%

Operating margin
 2004                     15.3%        15.0%            12.7%     14.5%
 2005                     16.4%        15.2%            13.4%     15.3%



CATEGORY ANALYSIS
(unaudited)

First Quarter
EUR million           Savoury   Spreads  Beverages       Ice   Foods
                          and       and                cream
                    dressings   cooking                  and
                               products               frozen
                                                       foods

Turnover
2004                    1 889     1 040        733     1 316   4 978
2005                    1 965     1 057        714     1 357   5 093
Change                    4.0%      1.6%      (2.5)%     3.1%    2.3%

Impact of:
Exchange rates           (0.8)%    (0.3)%     (2.4)%    (1.4)%  (1.1)%
Acquisitions              0.0%      0.0%       0.0%      0.6%    0.2%
Disposals                (1.6)%    (6.7)%     (1.1)%    (2.4)%  (2.8)%
Underlying sales          6.6%      9.3%       0.9%      6.5%    6.2%
growth

Operating profit
2004                      313       170         92        98     673
2005                      366       212         91        89     758
Change current rates     17.1%     25.0%      (2.4)%    (8.4)%  12.7%
Change constant          17.9%     25.7%      (0.1)%    (6.7)%  13.8%
rates

Operating margin
2004                     16.5%     16.3%      12.6%      7.4%   13.5%
2005                     18.6%     20.1%      12.7%      6.6%   14.9%


EUR million          Personal      Home       Home     Total
                         care      care        and
                                    and   personal
                                  other       Care

Turnover
2004                    2 375     1 708      4 083     9 061
2005                    2 499     1 674      4 173     9 266
Change                    5.2%     (2.0)%      2.2%      2.3%

Impact of:
Exchange rates           (2.7)%    (1.5)%     (2.2)%    (1.6)%
Acquisitions              0.1%      0.0%       0.0%      0.1%
Disposals                (0.7)%    (2.1)%     (1.3)%    (2.1)%
Underlying sales          8.8%      1.6%       5.8%      6.0%
growth

Operating profit
2004                      385       258        643     1 316
2005                      461       197        658     1 416
Change current           19.4%    (23.6)%      2.2%      7.6%
rates
Change constant          23.4%    (23.2)%      4.7%      9.3%
rates

Operating margin
2004                     16.3%     15.1%      15.8%     14.5%
2005                     18.4%     11.8%      15.8%     15.3%

NOTES

(unaudited)

Adoption of IFRS

Unilever adopted International Financial Reporting Standards (IFRS) with effect from 1 January 2005. Our transition date is 1 January 2004 as this is the start date of the earliest period for which we will present full comparative information under IFRS in our 2005 Annual Report and Accounts.

These interim financial statements have been prepared in accordance with IAS 34. The financial information is prepared under the historical cost convention as modified by the revaluation of biological assets, financial assets 'available-for-sale investments' and 'at fair value through profit or loss', and derivatives.

IFRS 1 mandates that most IFRS are applied fully retrospectively, meaning that the opening balance sheet at 1 January 2004 is restated as if those accounting policies had always been applied. There are certain limited exemptions to this requirement. A reconciliation from old GAAP to IFRS of the balance sheet as per 27 March 2004 and the income statement for the period then ended is given on page 10 and 11. A more detailed review of the changes to our accounting policies and a reconciliation of financial statements from old GAAP to IFRS is available on our website at www.unilever.com/ourcompany/investorcentre/.

From 1 January 2005 Unilever implemented the following additional changes in accounting policies. These changes are applied prospectively from 1 January 2005 and therefore do not affect the 2004 comparative information.

Financial instruments (including preference shares)

From 1 January 2005 Unilever applies IAS 32 and IAS 39. These standards have many detailed consequences, however the key areas of impact for Unilever are described below.

Under IAS 32, Unilever must present the NV preference share capital as a liability rather than as part of equity. All of the dividends paid on these preference shares are recognised in the income statement as interest expense. The carrying value of the preferential share capital of NV as at 1 January 2005 was EUR1 502 million.

IAS 39 requires certain non-derivative financial assets to be held at fair value with unrealised movements in fair value recognised directly in equity. Non-derivative financial liabilities continue to be measured at amortised cost, unless they form part of a fair value hedge accounting relationship when they are measured at amortised cost plus the fair value of the hedged risk.

IAS 39 requires recognition of all derivative financial instruments on the balance sheet and that they are measured at fair value. The standard also places significant restrictions on the use of hedge accounting and changes the hedge accounting methodology. As a result Unilever recognises all derivative financial instruments on balance sheet at fair value and applies the new hedge accounting methodology to all significant qualifying hedging relationships.

Non-current assets and asset groups held for disposal

Application of IFRS 5 has resulted in reclassifications of non-current assets and asset groups held for disposal in the balance sheet as at 1 January 2005. It does not significantly affect the asset values themselves.

Turnover definition

From 1 January 2005 Unilever changed its treatment of promotional couponing and trade communications. From 1 January 2005 these costs are deducted from turnover together with other trade promotion costs which are already deducted from turnover. Comparatives have been restated to reflect this change, which has no impact on operating profit or net profit.

Preference shares

On 15 February 2005 after close of trading NV converted part of the notional value of the EUR0.05* cumulative preference shares into NV ordinary shares. Upon conversion the holders of the preference shares received one NV ordinary share for every 11.2 preference shares held. This resulted in a total of 18 881 587 NV ordinary shares being transferred to the preference shareholders. These NV ordinary shares had previously been held as treasury shares by NV. As a consequence of the conversion, the notional value of the shares was reduced to EUR0.05*. A proposal will be put to the Annual General Meeting of NV on 10 May 2005 to cancel the preference shares upon repayment of the notional value in accordance with NV's articles of Association.

Acquisitions and Disposals

In December 2004 Unilever announced the restructuring of its Portuguese foods business. The deal was subject to regulatory approval and was completed at the end of March. Before the restructuring Unilever Portugal held a 40% stake in the FimaVG foods business, a joint venture with Jeronimo Martins Group, in addition to its wholly owned Bestfoods business acquired in 2000. As a result of the deal the two foods businesses - FimaVG and Unilever Bestfoods Portugal - were unified and the joint venture stakes re-balanced so that Unilever now holds 49% of the combined foods business and Jeronimo Martins Group 51%.

Exchange rate conventions

The income statement and statement of recognised income and expense on page 5, the movements in equity on page 6 and the cash flow statement on page 7 are translated at rates current in each period.

The balance sheet on page 6 is translated at period-end rates of exchange.

Supplementary information in US dollars and sterling is available on our website at www.unilever.com/ourcompany/investorcentre/.

Reconciliation of profit for the first quarter ended 27 March 2004
(unaudited)
                          Previously   Goodwill Software Biological
                            reported        and      EUR     assets
                               under indefinite  million        EUR
                            old GAAP      lived             million
                                 EUR intangible
                             million     assets
                                            EUR
                                        million         
                                                 

Turnover                       9 357          -        -          -

Turnover of joint                (43)         -        -          -
ventures

Operating costs               (8 267)       259       12         (2)

Share of operating profit         10          -        -          -
of joint ventures

Operating profit/(loss)        1 057        259       12         (2)

Share of operating profit          9          2        -          -
of associates
Finance costs                   (151)         -        -          -
Other finance income/            (20)         -        -          -
(cost) -
pensions and similar
obligations
Share of net profit of             -          -        -          -
joint ventures
Share of net profit of             -          -        -          -
associates
Income from other                  2          -        -          -
non-current investments

Profit/(loss) before             897        261       12         (2)
taxation

Taxation                        (333)       (14)      (3)         -

Profit/(loss) for the            564        247        9         (2)
period                                                     

Attributable to:

Minority interests                49          1        -         (1)
Shareholders' equity             515        246        9         (1)


                        Pensions    Deferred           Tax      Joint
                     and similar         tax reclassifying   ventures
                     obligations restatement        effect        and
                             EUR      effect           EUR associates
                         million         EUR       million        EUR
                                     million                  million


Turnover                       -           -             -       (43)

Turnover of joint              -           -             -        43
ventures

Operating costs                -           -             -         -

Share of operating profit      -           -             -       (10)
of joint ventures

Operating profit/(loss)        -           -             -       (10)

Share of operating profit      -           -             -       (11)
of associates
Finance costs                  -           -             -        12
Other finance income/          1           -             -         -
(cost) -
pensions and similar
obligations
Share of net profit of         -           -             -         9
joint ventures
Share of net profit of         -           -             -         1
associates
Income from other             11           -             -         -
non-current investments

Profit/(loss) before          12           -             -         1
taxation

Taxation                      (4)        (24)            -        (1)
                                                        
Profit/(loss) for the          8         (24)            -         -
period

Attributable to:

Minority interests             -           -             -         -
Shareholders' equity           8         (24)            -         -


                   Dividends    Other      Total     Change Restated
                         EUR      EUR  effect of   relating    under
                     million  million transition         to     IFRS
                                         to IFRS   turnover      EUR
                                             EUR definition  million
                                         million        EUR
                                                    million

Turnover                   -        -       (43)      (253)   9 061

Turnover of joint          -        -        43          -        -
ventures

Operating costs            -        -       269        253   (7 745)

Share of operating         -        -       (10)         -        -
profit of joint 
ventures

Operating profit/          -        -       259          -    1 316
(loss)

Share of operating         -        -        (9)         -        -
profit of associates
Finance costs              -        -        12          -     (139)
Other finance income/      -        -         1          -      (19)
(cost) -
pensions and similar
obligations
Share of net profit of     -        -         9          -        9
joint ventures
Share of net profit of     -        -         1          -        1
associates
Income from other          -        -        11          -       13
non-current investments

Profit/(loss) before       -        -       284          -    1 181
taxation

Taxation                   -        -       (46)         -     (379)

Profit/(loss) for the      -        -       238          -      802
period

Attributable to:

Minority interests         -        -         -          -       49
Shareholders' equity       -        -       238          -      753



Reconciliation of equity at 27 March 2004
(unaudited)
                          Previously   Goodwill Software Biological
                            reported        and      EUR     assets
                           under old indefinite  million        EUR
                                GAAP      lived             million
                                 EUR intangible
                             million     assets
                                            EUR          
                                        million
Non-current assets

Goodwill                      13 556        209        -         -
Intangible assets              4 276        833      116         -
Property, plant and            6 750          -        -       (40)
equipment
Biological assets                  -          -        -        27
Joint ventures and                61          -        -         -
associates
Other non-current                150          -        -         -
investments
Pension asset for funded         574          -        -         -
schemes in surplus
Trade and other                  764          -        -         -
receivables
due after more than one
year
Deferred tax assets                -          -        -         -
Total non-current assets      26 131      1 042      116       (13)

Current assets

Inventories                    4 505          -        -         -
Trade and other                5 692          -        -         -
receivables
due within one year
Financial assets               1 230          -        -         -
Cash and cash equivalents      2 347          -        -         -
Total current assets          13 774          -        -         -

Current liabilities

Creditors due within one     (17 654)         -        -         -
year
Borrowings                    (7 485)         -        -         -
Trade and other payables     (10 169)         -        -         -
Current tax liabilities            -          -        -         -
Net current assets/           (3 880)         -        -         -
(liabilities)
Total assets less current     22 251      1 042      116       (13)
liabilities

Non-current liabilities

Creditors due after more       9 418          -        -         -
than one year
Borrowings                     8 659          -        -         -
Trade and other payables         759          -        -         -
Provisions for                   852         (2)       -         -
liabilities and charges
(excluding pensions and
similar obligations)
Restructuring and other          824          -        -         -
provisions
Interest in associates            28         (2)       -         -
Liabilities for pensions       4 407          -        -         -
and similar obligations
Pension liability for          1 709          -        -         -
funded schemes in deficit
Pension liability for          2 698          -        -         -
unfunded schemes
Deferred tax liabilities         693         (6)      37        (1)
Total non-current             15 370         (8)      37        (1)
liabilities

Shareholders' equity

Called up share capital          642          -        -         -
Share premium account          1 537          -        -         -
Other reserves                (2 613)         -        -         -
Retained profit                6 835      1 049       79        (9)
Total shareholders'            6 401      1 049       79        (9)
equity
Minority interests               480          1        -        (3)
Total equity                   6 881      1 050       79       (12)
Total capital employed        22 251      1 042      116       (13)


                         Pensions    Deferred           Tax      Joint
                      and similar         tax reclassifying   ventures
                      obligations restatement        effect        and
                              EUR      effect           EUR associates
                          million         EUR       million        EUR
                                      million                  million

Non-current assets

Goodwill                        -           -             -         -
Intangible assets               -           -             -         -
Property, plant and             -           -             -         -
equipment
Biological assets               -           -             -         -
Joint ventures and              -           -             -         -
associates
Other non-current             194           -             -         -
investments
Pension asset for funded      (49)          -           305         -
schemes in surplus
Trade and other                 -           -          (610)        -
receivables
due after more than one
year
Deferred tax assets             -           -         1 181         -
Total non-current assets      145           -           876         -

Current assets

Inventories                     -           -             -         -
Trade and other                 -           -             -         -
receivables
due within one year
Financial assets                -           -             -         -
Cash and cash equivalents       -           -             -         -
Total current assets            -           -             -         -

Current liabilities

Creditors due within one        -           -           873         -
year
Borrowings                      -           -             -         -
Trade and other payables        -           -           873         -
Current tax liabilities         -           -          (873)        -
Net current assets/             -           -             -         -
(liabilities)
Total assets less current     145           -           876         -
liabilities

Non-current liabilities

Creditors due after more        -           -             -         -
than one year
Borrowings                      -           -             -         -
Trade and other payables        -           -             -         -
Provisions for                  -           -             -         -
liabilities and charges
(excluding pensions and
similar obligations)
Restructuring and other         -           -             -         -
provisions
Interest in associates          -           -             -         -
Liabilities for pensions      179           -         1 559         -
and similar obligations
Pension liability for          14           -           739         -
funded schemes in deficit
Pension liability for         165           -           820         -
unfunded schemes
Deferred tax liabilities      (10)      1 111          (683)        -
Total non-current             169       1 111           876         -
liabilities

Shareholders' equity

Called up share capital         -           -             -         -
Share premium account           -           -             -         -
Other reserves                  -           -             -         -
Retained profit               (24)     (1 111)            -         -
Total shareholders'           (24)     (1 111)            -         -
equity
Minority interests              -           -             -         -
Total equity                  (24)     (1 111)            -         -
Total capital employed        145           -           876         -

                           Dividends    Other      Total Restated
                                 EUR      EUR  effect of    under
                             million  million transition     IFRS
                                                 to IFRS      EUR
                                                     EUR  million
                                                 million
Non-current assets

Goodwill                           -        -        209   13 765
Intangible assets                  -        -        949    5 225
Property, plant and                -      (57)       (97)   6 653
equipment
Biological assets                  -        -         27       27
Joint ventures and                 -        -          -       61
associates
Other non-current                  -      380        574      724
investments
Pension asset for funded           -        -        256      830
schemes in surplus
Trade and other                    -       57       (553)     211
receivables
due after more than one
year
Deferred tax assets                -        -      1 181    1 181
Total non-current assets           -      380      2 546   28 677

Current assets

Inventories                        -       (1)        (1)   4 504
Trade and other                    -     (379)      (379)   5 313
receivables
due within one year
Financial assets                   -      108        108    1 338
Cash and cash equivalents          -     (108)      (108)   2 239
Total current assets               -     (380)      (380)  13 394

Current liabilities

Creditors due within one       1 147        -      2 020  (15 634)
year
Borrowings                         -        -          -   (7 485)
Trade and other payables       1 147        -      2 020   (8 149)
Current tax liabilities            -        -       (873)    (873)
Net current assets/            1 147     (380)       767   (3 113)
(liabilities)
Total assets less current      1 147        -      3 313   25 564
liabilities

Non-current liabilities

Creditors due after more           -        -          -    9 418
than one year
Borrowings                         -        -          -    8 659
Trade and other payables           -        -          -      759
Provisions for liabilities         -        -         (2)     850
and charges (excluding
pensions and similar
obligations)
Restructuring and other            -        -          -      824
provisions
Interest in associates             -        -         (2)      26
Liabilities for pensions           -        -      1 738    6 145
and similar obligations
Pension liability for              -        -        753    2 462
funded schemes in deficit
Pension liability for              -        -        985    3 683
unfunded schemes
Deferred tax liabilities           -        -        448    1 141
Total non-current                  -        -      2 184   17 554
liabilities

Shareholders' equity

Called up share capital            -        -          -      642
Share premium account              -        -          -    1 537
Other reserves                     -        -          -   (2 613)
Retained profit                1 147        -      1 131    7 966
Total shareholders' equity     1 147        -      1 131    7 532
Minority interests                 -        -         (2)     478
Total equity                   1 147        -      1 129    8 010
Total capital employed         1 147        -      3 313   25 564

EARNINGS PER SHARE

Combined earnings per share

The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held to meet options granted under various employee share plans.

The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of GBP 1 = EUR5.445, in accordance with the Equalisation Agreement. This number (expressed in terms of NV shares) increased from 962 million at the start of the year to 979 million at the end of the first quarter (6 412 million to 6 525 million in terms of PLC shares) following the conversion of the EUR0.05 preference shares in February. The number is expected to reduce as we replenish treasury stock.

The calculations of diluted earnings per share are based on (i) conversion into PLC ordinary shares in the year 2038 of shares in a group company under the arrangements for the variation of the Leverhulme Trust; (ii) conversion of the EUR0.05* NV preference shares; (iii) the exercise of share options by employees.

* This amount is a representation in Euros on the basis of Article 67c Book 2 of the Dutch Civil Code, rounded to two decimal places, of underlying Dutch guilders, as these have not been converted into Euros in Unilever N.V.'s Articles of Association.

Earnings per share for the first quarter

                                                      2005        2004

Combined EPS                                        Thousands of units
Average number of combined share units of EUR0.51  970 260     966 182
Average number of combined share units of 1.4p   6 468 403   6 441 217

                                                          EURmillion
Net profit attributable to shareholders' equity        934         753
Less preference dividends                              n/a          (7)
Net profit attributable to shareholders' equity        934         746
for basic earnings per share calculation

Combined EPS per EUR0.51 (Euros)                      0.96        0.77
Combined EPS per 1.4p (Euro cents)                   14.44       11.58

Combined EPS - Diluted                            Thousands of units
Adjusted average number of combined share units
of EUR0.51                                       1 007 820   1 012 542

Adjusted average number of combined share units
of 1.4p                                          6 718 801   6 750 283


                                                          EURmillion
Adjusted net profit attributable to
shareholders'                                          937         751
equity

Combined diluted EPS per EUR0.51 (Euros)              0.93        0.74
Combined diluted EPS per 1.4p (Euro cents)           13.94       11.13

Combined EPS - American shares
Combined EPS per EUR0.51 NV - New York Share        $ 1.26      $ 0.97
Combined EPS per 5.6p PLC - American Depositary
Receipt                                             $ 0.76      $ 0.58

Combined diluted EPS per EUR0.51 NV - New York      $ 1.22      $ 0.93
Share
Combined diluted EPS per 5.6p PLC - American
Depositary Receipt                                  $ 0.73      $ 0.56
DATES

The results for the second quarter and for the first half-year 2005 will be published on 4 August 2005

ENQUIRIES: UNILEVER PRESS OFFICE
+44 (0) 20 7822 6805/6010
Internet: www.unilever.com
E-mail:   press-office.london@unilever.com







                This information is provided by RNS
      The company news service from the London Stock Exchange