Unilever Half Year 2020 Results
Alan Jope & Graeme Pitkethly
23rd July 2020
Safe harbour 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 Unilever Group (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; 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 current COVID-19 pandemic. 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. 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 2019 and the Unilever Annual Report and Accounts 2019.
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Alan Jope
Unilever Half Year 2020 Results
23rd July 2020
2020: Half year results
GrowthProfit
Underlying Sales Growth | UOP |
(0.1)% €5.1bn
+3.8%
(0.3)% +50bps
Underlying Volume Growth | UOM |
Cash
Free Cash Flow
€2.9bn
+€1.3bn
vs H1 2019
Earnings & Dividend
Underlying EPS
+6.4%
Dividend
maintained
Quarterly Dividend
4
Absolute UOP as reported, UOP growth rate on constant basis
Managing our Covid-19 response
People | Supply | Demand | Community | Cash | ||
5
Operational excellence through 5 fundamentals
Volume growth & share
1
Focused innovation
2
Ecommerce & value
3
Never more relevant
4
Cash priority
5
6
Strategic change agenda
Legal simplification | Shaping the portfolio | Climate & nature |
commitments |
7
Category portfolio
€4bn
TO H1
2020
Laundry
80% EM | €4bn |
2020 | |
TO H1 |
€7bn
TO H1
2020
Personal Care
60% EM
€8bn
TO H1
2020
In Home
50% EM
€26bn
Turnover
H1 2020
€0.3bn
TO H1
2020
Prestige
€2bn
TO H1
2020
Out of Home
Hygiene: Skin Cleansing + Home & Hygiene Personal Care: Personal Care excl. Skin Cleansing
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Beauty & Personal Care
Skin Cleansing
+27% Q2 USG
Rest of BPC
(10)% Q2 USG
Prestige
(10)% Q2 USG
H1 | (0.3)% | H1 | 0.1% |
USG | UVG | ||
Skin Cleansing
Q2 USG% | |
Bars | +2% |
Bodywash | +12% |
Liquid Handwash | +155% |
Sanitiser | >+20,000% |
Total Skin Cleansing | +27% |
Hair Care | ||
Q2 USG% | ||
Wash & Care | (1)% | |
Styling | (32)% | |
Total Hair | (6)% | |
Rest of BPC: Hair care, Deodorants, Skin Care, Oral Care
9
Foods & Refreshment
In Home
+17% Q2 USG
Out of Home
(42)% Q2 USG
H1 | (1.7)% | H1 | (2.5)% |
USG | UVG | ||
In Home
Q2 USG% | |
Savoury, | +14% |
Dressings and Tea | |
Ice Cream | +26% |
Out of Home
Q2 USG% | |
Ice Cream | (35)% |
UFS | (56)% |
UFS included in other categories
10
Home Care | 3.2% |
Home & Hygiene
+24% Q2 USG
Laundry
(1)% Q2 USG
H1 | 3.2% | H1 | 2.9% |
USG | UVG | ||
Home & Hygiene
Q2 USG% | |
Sunlight | +5% |
Cif | +20% |
Domestos | +37% |
Sun | +32% |
Living | +87% |
Hygiene | |
Seventh | +54% |
Generation | |
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eCommerce | ||
Q2 Growth | ||
+78% | +48% | +62% |
eB2B | Brazil | |
+58% | +59% | 8% |
Pure play | China | Hellmann's |
% of H1 Total Sales | ||
+120% | +177% | |
Omnichannel | USA |
eB2B excludes UFS
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Graeme Pitkethly
Unilever Half Year 2020 Results
23rd July 2020
A global pandemic
Map depicts the daily confirmed COVID-19 cases per million, 3-day rolling average, 17th July 2020
14
Macro uncertainty
Rising COVID-19 cases
Asia
Europe
North America
Middle East
Latin America
Africa
J F M A M J J
Wide range of economic | Volatile currencies and |
outlooks | commodities |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | J | F | M | A | M | J | J | |||||||
Crude | EUR/ BRL | ||||||||||||||||||
Daily confirmed COVID-19 cases per million, 7-day rolling average, 15th July 2020
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H1 2020: Group USG performance
H1 | (0.1)% | H1 | (0.3)% |
USG | UVG | ||
USG | 3.8% 2.9% 1.5% 0.0% (0.3)% |
UPG | 0.5% |
UVG | (0.8)% |
'19 Q2 | '19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 |
India UK China
Outbreak | Recovery |
USA Brazil
- Resilient performance in a volatile and challenging operating environment
- Spread of Covid-19 and implementation of lockdowns and restrictions
- Some lockdowns have had a more severe impact on the supply and accessibility of goods
- Changing consumer demand patterns
16
Reflecting treatment of hyperinflation in USG as announced in September 2019
Asia / AMET / RUB
USG 6.3% 5.6% 2.1% (3.7)% (1.8)%
UPG
UVG
'19 Q2 | '19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 |
H1 | (2.7)% | H1 | (2.9)% |
USG | UVG | ||
S Africa India | China |
re k | v ry |
Outbreak | Recovery |
Russia | Indonesia S Korea |
- China: sales down mid single digits following a return to growth in Q2 as the market reopened
- India: declined high single digits impacted by a slowing market, followed by the national lockdown from March
- SEA: Indonesia & Vietnam in growth, Philippines & Thailand declined
17
Reflecting treatment of hyperinflation in USG as announced in September 2019
Latin America
USG 11.6% 3.2% 3.8% 4.9% (0.8)%
UPG
UVG
'19 Q2 | '19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 |
H1 | 1.9% | H1 | (0.8)% |
USG | UVG | ||
Mexico
re k | v ry |
Outbreak | Recovery |
Brazil Argentina
- Q2 impacted by the spread of Covid-19 and lockdown measures
- Brazil: sales up low single digits for the half, following a decline in Q2 with regional lockdowns implemented
- Argentina: continued volume growth, driven by in-home food consumption
18
Reflecting treatment of hyperinflation in USG as announced in September 2019
North America
USG (0.2)% 0.3% 0.6% 4.8% 9.5%
UPG
UVG
'19 Q2 | '19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 |
H1 | 7.3% | H1 | 7.7% |
USG | UVG | ||
Canada
re k | v ry |
Outbreak | Recovery |
USA
- Growth driven by in-home foods & ice cream, and hygiene products
- Q2 Foods & Refreshment USG +23% (excl. Food Service)
- H1 regional growth includes c.3% negative impact from Food Service and Prestige due to channel closures
19
Europe
USG | (1.6)% (0.3)% (0.8)% 1.4% | (4.5)% |
UPG
UVG
'19 Q2 | '19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 |
H1 | (1.8)% | H1 | (1.0)% |
USG | UVG | ||
UK Italy Germany
re k | v ry |
Outbreak | Recovery |
Spain France NL
- Out of Home Ice Cream and Food Service impacted by lockdowns across the region, primarily in Q2
- Sustained increases in in-home food consumption and hygiene products
- Italy & Spain: sales declined, led by OOH channels
- UK & Germany: growth maintained, despite headwind from OOH channels
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H1 2020: Turnover (1.6)%
USG (0.1)%
+0.2%
(0.3)%
+1.2%
(0.2)%
A & D +1.1%
€26.1 bn | (2.5)% |
€25.7 bn
21
Reflecting treatment of hyperinflation in USG as announced in September 2019
H1 2020: Underlying operating margin
+100bps
(20)bps
(80)bps Mix &
COVID-19
19.8%
19.3% (30)bps
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All numbers on an IFRS 16 basis
H1 2020: Underlying earnings per share
+5.4%
+0.3% | |
(1.9)% | |
+2.4% | |
+3.9% | (3.7)% |
€1.35
€1.27 | Underlying EPS +6.4% |
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All numbers on an IFRS 16 basis
H1 2020: Free cash flow
€0.4bn
€0.7bn €0.1bn
€0.1bn
€2.85bn
€1.55bn
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All numbers on an IFRS 16 basis
H1 2020: Balance sheet and liquidity position
Net debt | Access to funding |
H1 '20 Net debt/EBITDA | Commercial paper at |
30/06/2020 | |
1.9x | €1.3bn |
A1/A+ | €7bn |
Credit rating | Accessible undrawn |
standby facilities |
Cash & facilities
Total cash & undrawn facilities at 30/06/2020
€11.9bn
2.7x coverage of debt maturing in 1 year
As of H1 '20
Pensions
Deficit at
30/06/2020
€(0.4)bn €(0.2)bn
Increase in deficit vs.
FY 2019
25
All numbers on an IFRS 16 basis
Alan Jope
Unilever Half Year 2020 Results
23rd July 2020
Unilever #ComeOutStronger
Resilience | Agility | Strategic future |
• | Portfolio | • | Category | • | Unification |
• | Operational excellence | • | Geography | • | Portfolio evolution |
• | Financial strength | • | Supply | • | Sustainability |
We are focused on volume led, competitive growth; absolute underlying
operating profit; and cash
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Unilever Half Year 2020 Results
Alan Jope & Graeme Pitkethly
23rd July 2020
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Unilever NV published this content on 23 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2020 08:35:09 UTC