Unilever Q3 2020 Trading Statement
Alan Jope & Graeme Pitkethly
22nd October2020
Safe harbourstatement
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
UnileverQ3 2020 Trading Statement
22nd October2020
Q3 2020 Trading update
Total | Emerging Markets | Developed Markets | ||
Underlying Sales Growth | Underlying Sales Growth | Underlying Sales Growth |
+4.4%+5.3%+3.1%
+3.9%+3.7%+4.1%
Underlying Volume Growth | Underlying Volume Growth | Underlying Volume Growth |
+1.4% Underlying Sales Growth YTD
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Agilityand operational excellence
Changing dynamics
Increased consumer consumption
hygiene, in-home eating
Channel switching
offline to online
Decreased consumer occasions
personal care & beauty
Channel closures
food service, out of home ice cream
5 growth fundamentals
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2
3
4
5
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Strategic change agenda
Legal simplification | Clean Future strategy | Shaping the portfolio |
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Graeme Pitkethly
UnileverQ3 2020 Trading Statement
22nd October2020
Categoryportfolio
Laundry | €9bn | |||||||||||
TO FY | ||||||||||||
2019 | ||||||||||||
0% | (1)% | 4% | ||||||||||
€7bn | ||||||||||||
TO FY | ||||||||||||
2019 | Q1 | Q2 | Q3 | |||||||||
7% | 26% | 19% | ||||||||||
Prestige | €0.6bn | |||||||||||
TO FY | ||||||||||||
2019 | ||||||||||||
Q1 | Q2 | Q3 | ||||||||||
(2)% | (10)% | 8% | ||
Q1 | Q2 | Q3 | ||
In Home | €14bn | |||
TO FY | ||||
2019 | ||||
4% | 17% | 12% |
Q1 Q2 Q3
€52bn
Turnover
FY 2019
Personal €16bn
Care TO FY
2019
(1)% (10)% (2)%
Q1 Q2 Q3
OutofHome €5.5bn
TO FY 2019
(18)% (42)% (16)%
Q1 Q2 Q3
Hygiene: Skin Cleansing + Home & Hygiene Personal Care: Personal Care excl. Skin Cleansing
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Beauty& Personal Care | Q3 | +3.8% | Q3 | +3.5% |
USG | UVG | |||
Skin Cleansing | Prestige | Restof BPC |
+20% Q3 USG | +8% Q3 USG | (2)% Q3 USG | ||
Dove hand sanitiser | Channel impact | Hair Care | |||||||
Health & Beauty channel | Q3 USG% | ||||||||
I | partially open | X% | |||||||
Wash & Care | +4% | ||||||||
Styling | (18)% | ||||||||
Shift to eCommerce | TotalHair | +2% | |||||||
Rest of BPC: Hair care, Deodorants, Skin Care, Oral Care
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Food & Refreshment
In Home
+12% Q3 USG
Q2 USG% | Q3 USG% | |
Savoury, Dressings, | +14% | +12% |
Tea | ||
In Home Ice Cream | +26% | +16% |
Q3 | +3.7% | Q3 | +1.8% |
USG | UVG | ||
Outof Home
(16)% Q3 USG
Q2 USG% | Q3 USG% | |
Food Service | (56)% | (21)% |
Out of Home Ice | (35)% | (13)% |
Cream | ||
Shaping the portfolio
I
UFS included in other categories
Food Service still negative | ||||||||
(21)% Q3 USG | ||||||||
(71)% August USG | ||||||||
China rebound | ||||||||
J | F | M | A | M | J | J | A | S |
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Home Care
Home & Hygiene
+18% Q3 USG
Domestosmulti-surface cleaner
I
Q3 | +6.7% | Q3 | +8.5% |
USG | UVG | ||
Laundry
+4% Q3 USG
Superior performance, sustainability & value
75% plastic reduction
20-30% lower price than standard 3L
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Q3 2020:Group USG performance
USG | 2.9% 1.5% 0.0% (0.3)% 4.4% |
0.5% |
3.9%
UPG
UVG
'19 Q3 '19 Q4 '20 Q1 '20 Q2 '20 Q3
USA UK Indonesia | China | |
Outbreak | COVID -19 | Recovery |
Brazil India |
- Disconnect between the progress of the pandemic and economic activity
- Opening up economies to protect livelihoods vs. lockdowns to protect health
- Policy response, incl. emergency stimulus and consumer handouts impacting the quarter - e.g. Brazil, USA
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Reflecting treatment of hyperinflation in USG as announced in September 2019
Asia / AMET / RUB
USG | 5.6% 2.1% (3.7)% (1.8)% 4.5% |
0.7%
3.7%
UPG
UVG
'19 Q3 '19 Q4 '20 Q1 '20 Q2 '20 Q3
- China: sales up double digit led by BPC and a return to growth in Food Service
- India: low single digit growth driven by Foods & Refreshment and hygiene products
- SEA:low single digit growth
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Reflecting treatment of hyperinflation in USG as announced in September 2019
Latin America
USG | 3.2% 3.8% 4.9% (0.8)% 6.5% |
4.2%
UPG | 2.1% |
UVG | |
'19 Q3 '19 Q4 '20 Q1 '20 Q2 '20 Q3
- Covid-19cases rising and many markets still in lockdown
- Brazil:high single digit sales growth, with demand stimulated by emergency cash pay-outs
- Argentina:continued volume growth, but soft comparator due to price increases in prior year
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Reflecting treatment of hyperinflation in USG as announced in September 2019
North America
USG | 0.3% 0.6% 4.8% 9.5% 9.1% |
0.5%
UPG | 8.6% |
UVG
'19 Q3 | '19 Q4 | '20 Q1 | '20 Q2 | '20 Q3 |
- Growth driven by in-home foods & ice cream, and hygiene products
- Regional growth includes c.(1.5)% negative impact from Food Service due to channel closures
- USA:Foods & Refreshment (excl. Food Service) USG +18%
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Europe
USG | (0.3)% (0.8)% 1.4% (4.5)% (0.8)% |
1.3%
(2.1)%
UPG
UVG
'19 Q3 '19 Q4 '20 Q1 '20 Q2 '20 Q3
- OOH ice cream and Food Service impacted by channel closures
- Price declines driven by a step up in promotional intensity across the region
- UK:up mid single digit, as demand for in-home foods and hygiene products remains high
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Q3 2020:Turnover (2.4)%
USG 4.4%
3.9% 0.5%
1.4%
(0.2)%
A & D 1.3%
(7.7)%
€13.3 bn
€12.9 bn
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Reflecting treatment of hyperinflation in USG as announced in September 2019
Alan Jope
UnileverQ3 2020 Trading Statement
22nd October2020
Unilever#ComeOutStronger
Resilience | Agility | Strategic future |
• | Portfolio | • | Category | • | Unification |
• | Operational excellence | • | Geography | • | Sustainability |
• | Financial strength | • | Supply | • | Portfolio evolution |
We are focused on volume led, competitive growth, delivering absolute
underlying operating profit and free cash flow
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Unilever Q3 2020 Trading Statement
Alan Jope & Graeme Pitkethly
22nd October2020
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Unilever plc published this content on 22 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2020 08:29:01 UTC