LONDON and ROTTERDAM, THE NETHERLANDS--(Marketwire - Oct 25, 2012) -
UNILEVER TRADING STATEMENT THIRD QUARTER 2012
SUSTAINED GROWTH MOMENTUM DRIVEN BY EMERGING MARKETS
Third quarter highlights
* Turnover increased by 10.3% to EUR13.4 billion with a positive
impact of 4.1% from FX and 0.1% from M&A
* Underlying sales growth 5.9% with emerging markets up 12.1%
* Underlying volume growth 3.4% ahead of our markets; pricing up
2.4%
Nine months highlights
* Turnover increased by 11.1% to EUR38.8 billion with a positive
impact of 2.6% from FX and 1.5% from M&A
* Underlying sales growth 6.6% with emerging markets up 11.7%
* Underlying volume growth 3.0% ahead of our markets; pricing up
3.5%
Paul Polman: Chief Executive Officer statement"I am pleased that we have
again reported good quality growth, with
volumes ahead of our markets. This consistent performance, despite
continued high levels of competitive intensity, depressed economies and
increasing global imbalances and uncertainty, shows that the Unilever
transformation is well on track and is being embedded deeply in the
business.
The Compass strategy and the Unilever Sustainable Living Plan are
driving aligned actions across the business. We are seeing a steady
improvement in the quality of our innovation, meeting the needs of
consumers wherever they are. The organisational structure that we
announced last year is already paying off and we are seeing benefits in
terms of our agility and discipline in operational execution.
I am particularly pleased with the progress that we have made in
attracting and retaining the best talent. This is increasingly being
recognised externally. For example we have won awards for diversity in
China and Europe and we were recently ranked as the world's fifth most
desirable company to work for in a survey by the Linkedin professional
networking site. This is an area where we see that a socially
responsible approach brings a tangible business benefit.
Looking forward, it is clear that the environment will remain
challenging. Commodity cost inflation is high and remains volatile and
there is no sign that the level of competition will ease. In this
challenging environment there is no change to our objectives, which
remain: profitable volume growth ahead of our markets, steady and
sustainable core operating margin improvement and strong cash flow. For
2012 we remain on track to deliver a modest improvement in core
operating margin"
25 October 2012
OPERATIONAL REVIEW: CATEGORIES
Third Quarter 2012 Nine Months 2012
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
EURbn % % % EURbn % % %
Unilever Total 13.4 5.9 3.4 2.4 38.8 6.6 3.0 3.5
Personal Care 4.7 8.0 5.6 2.3 13.4 9.5 6.3 3.1
Foods 3.6 (0.4) (1.4) 1.0 10.7 2.0 (1.2) 3.2
Home Care 2.4 11.0 7.0 3.8 6.8 10.2 5.9 4.1
Refreshment 2.7 6.8 3.3 3.4 7.9 5.5 1.4 4.1
Markets: Third quarter market growth was driven largely by higher
prices. Market volumes continued to grow in emerging markets whilst
volumes in developed markets remained below prior year.
Unilever Performance: Against this overall market backdrop we saw solid
growth with a good balance between volume and price. Our emerging
markets businesses delivered another quarter of double digit growth,
taking year to date growth to 11.7%. Developed markets declined in the
quarter but are up 0.8% year to date.
Personal Care
Hair performance reflected the success of a strong programme of
activities across the brands. Tresemme did well in its traditional
markets, made strong headway in Brazil and has recently been launched
in Indonesia and India. The Clear launch in the United States is
performing well, confirming that the proposition is strong and
differentiated, and the brand is also making inroads into other new
markets such as Australia. Dove Damage Therapy continues to drive
growth across many markets and Dove Men+Care hair was launched in
Brazil. Axe hair has established a good platform in Europe and was
launched in Turkey.
Deodorants grew ahead of our markets with a broad-based, good
performance across the key brands and geographies. Dove continued to
deliver strong growth and Rexona was underpinned by the extension of
the MotionSense technology to Rexona for Men. Axe benefited from strong
digital campaigns and Axe Anarchy, which offers fragrances for both him
and her, continues to do well.
Dove continues to drive skin cleansing growth with the continuing
success of Dove Nutrium Moisture and Dove Men+Care. Lifebuoy is
progressing well driven by the '10 seconds germ-removal' hand wash
campaign supporting the launch of Lifebuoy Clini-Care 10 in India and
South Africa. Lux continues to deliver double digit growth helped by
the recent Fresh re-stage. Both Radox and Duschdas, brands acquired
from Sara Lee, are performing well. In skin care, Vaseline Daily Care
Total Moisture maintained good momentum whilst a Dove Men+Care face
range was launched in the United Kingdom. The acquired Kalina brands in
Russia performed strongly.
Oral improved its growth rate in the third quarter driven by the
rollout of Expert Protection in Signal / Pepsodent, our most advanced
complete protection toothpaste and '3x fresher breath' proposition for
Close-up. Pepsodent 123 was launched in Indonesia and Vietnam and we
launched Pepsodent in South Africa.
Foods
Overall Foods growth was slightly negative. Knorr jelly bouillon
continues to do well in savoury, with the recent extension to markets
such as Australia and Russia and the introduction of new variants such
as Herbs & Spices in Germany and Borsch Soup in Russia. Knorr baking
bags have gained share in most key countries. During the third quarter
we launched our first soup made from 100% sustainable tomatoes in
France.
Spreads volumes suffered from high relative pricing in key markets but
we have already taken action in some markets to ensure that our prices
are competitive and our volume market shares are improving as a result.
Liquid margarines continue to do well and Becel Gold, a premium variant
offering a healthy spread with a great creamy taste was launched in
Europe. Hellmann's mayonnaise is progressing well driven by the
campaign to inspire new uses of mayonnaise and the 50th anniversary
campaign in Brazil.
Home Care
Strong growth in laundry reflected volume growth ahead of our markets.
This includes the impact of improved product formulations, sustained
innovation delivery and effective brand communication. New Omo offering
fast stain removal has now been rolled out to more than 20 markets and
is performing well. Surf growth was driven by improved fragrances and
its value for money positioning. Comfort is building on the success of
recent launches in Australia, New Zealand and South Africa whilst
Comfort Anti-Bacterial was launched in Indonesia and Vietnam.
Household cleaners delivered double digit growth driven by a strong
Sunlight hand dishwash performance in South and South East Asia
supported by the improved degreasing formulation. Domestos continued to
deliver robust growth benefiting from the launches in Saudi Arabia, the
Gulf and Argentina, the successful Toilet System advertising in Europe
and the joint promotion with UNICEF to improve access to sanitation
across nine countries. Cif Power Naturals was launched in Turkey and
Cif Cream pouches were introduced in South East Asia to provide Cif
cleaning performance at an affordable unit price.
Refreshment
Ice cream delivered strong growth, with positive volume and price.
Magnum growth accelerated as the brand was successfully launched in the
Philippines and Malaysia and it continues to do well in the United
States and Indonesia. Magnum Infinity has been rolled out across
Europe, Turkey, Mexico and Australia. Cornetto also had a good quarter,
driven by growth in Asia, and Ben & Jerry's benefited from the Greek
Frozen Yogurt launch in North America and Core Concoctions in Europe.
Beverages growth improved in the third quarter but still lags market
growth. Lipton delivered double digit growth in the Middle East and the
relaunch of Lipton Yellow Label in Russia with improved taste is doing
well and is now being rolled out to Poland. Growth in India was
underpinned by a strong performance of Brooke Bond. Ades soy-based
drinks continued to make good progress in Latin America with successful
new flavours supported by impactful advertising.
OPERATIONAL REVIEW: GEOGRAPHIES
Third Quarter 2012 Nine Months 2012
(unaudited) Turnover USG UVG UPG Turnover USG UVG UPG
EURbn % % % EURbn % % %
Unilever Total 13.4 5.9 3.4 2.4 38.8 6.6 3.0 3.5
Asia/AMET/RUB 5.3 10.7 6.2 4.3 15.3 10.9 5.7 4.9
The Americas 4.3 4.7 1.2 3.4 12.8 6.6 1.8 4.8
Europe 3.7 0.9 2.1 (1.2) 10.6 1.0 0.9 0.1
Asia/AMET/RUB
Strong growth in the quarter, ahead of our markets, with particularly
good performances in Vietnam, Pakistan, India and Indonesia. Our
business in Thailand is making good progress following the flooding
last year. The investments to build our businesses in China and Russia
are delivering good results. Whilst we saw good growth in South Africa
and Ghana, overall performance across Africa was mixed reflecting
difficult economic situations in markets such as Nigeria and Cote
D'Ivoire.
The Americas
North America, adjusting for the impact of the sales brought forward
into the third quarter 2011, saw modest underlying sales growth with a
good performance in ice cream. The disposal of the North American
frozen foods business was completed on 20th August.
Latin America grew by 13.7%, the fifth successive quarter of double
digit growth, with a good balance between price and volume growth. All
the major countries delivered strong growth with particularly good
performances from Brazil, Argentina and Chile. The integration of the
acquired laundry business in Colombia continues to progress well.
Europe
Europe delivered 0.9% growth in the quarter, consistent with the growth
rate in the first half year. Volume growth was again ahead of our
markets. Underlying price growth was negative largely as a result of
the intensely competitive, promotionally-driven markets. We are
responding to the needs of hard-pressed consumers in Europe, for
example in Greece we have launched a range of value priced products
under the locally well-known Elais brand.
FINANCIAL POSITION
There has been no material change to Unilever's financial position
since the published 2012 interim financial statements.
DIVIDENDS
The Boards have declared a quarterly interim dividend for Q3 2012 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 0.2430
Per Unilever PLC ordinary share: GBP 0.1977
Per Unilever N.V. New York share: US$ 0.3160
Per Unilever PLC American Depositary Receipt: US$ 0.3160
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 October 2012.
The quarterly interim dividends will be payable as from 12 December
2012, to shareholders registered at close of business on 9 November
2012. The shares will go ex-dividend on 7 November 2012.
US dollar checks for the quarterly interim dividend will be mailed on
11 December 2012 to holders of record at the close of business on 9
November 2012. In the case of the N.V. New York shares, Netherlands
withholding tax will be deducted.
CAUTIONARY STATEMENT
Thisannouncementmay 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', '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 could 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; finding 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
national disasters; the sovereign 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 2011 and the
Annual Report and Accounts 2011. 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.
Click on, or paste the following link into your web browser, to view the
associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/4813P_1-2012-10-24.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
Contact Information:
Contacts:
RNS
Customer
Services
0044-207797-4400
http://www.rns.com