Unilever Plc · LSE:ULVR
Unilever — Q1 2001 Earnings Presentation
16 slides from Unilever's earnings presentation, Apr 27, 2001
Slide 1: 2001 First Quarter Results
2001 First Quarter Results Teleconference / Webcast by Howard Green April 27th, 2001
Slide 2: Q1 in Context
Q1 in Context • A sound start to the year • Continued momentum in growth of the leading brands • Key acquisitions are performing to plan - enriching both growth and margin profile • A&P increased behind growth opportunities and innovations • Continued investment in restructuring • Disposal programme
Slide 3: Path to Growth Highlights
Path to Growth Highlights • Excluding acquisitions/disposals the leading brands grew 5.4% in the quarter, 4.3% on a moving annual total basis • Leading brands produce 79% of Unilever sales (excludes Bestfoods) • Operating margin advances 130bps to 12.4% • Gross restructuring Euro 196 million • 29 fa
Slide 4: Breakdown of Sales Growth
Breakdown of Sales Growth Sales Sales Growth QUARTER 1 Euro % % bn Total Impact* Leading brands excluding acquisitions - Home & Personal Care 4.8 7.2% - Foods 3.6 3.2% Total leading brands 8.4 5.4% 4.0% Leading brands - acquisitions/disposals 0.3 2.9% 2.4% Tail and non consumer businesses 2.3 (9.4)%
Slide 5: Sales Growth on a Continuing Business Basis
Sales Growth on a Continuing Business Basis Q1 2001 UVG Price a/d Total Continuing 6,978 Foods 4.2 (0.7) (0.6) 2.8 5,761 HPC 4.1 2.4 (0.6) 5.9 12,739 TOTAL 4.1 0.7 (0.6) 4.2 As reported Foods 3.2 (0.7) 34.8 38.2 HPC 4.1 2.4 (2.2) 4.2 TOTAL 3.7 0.7 15.4 20.3 Bestfoods growth : W Europe : 3%, USA : 7%
Slide 6: Changes in Gross Margins
Changes in Gross Margins (bps of sales over total business) bps Volume / mix 10 Buying savings & restructuring 110 Selling price & cost changes : HPC Foods Price 110 (40) 70 Cost changes (70) - (70) Underlying change 120 Acquisition/disposal (10) Total change 110 5
Slide 7: Improvement in Operating Margin
Improvement in Operating Margin (bps of sales) Total Company Gross Margin 110 Advertising & Promotion 30 Others (incl. Overheads) 40 Associated Costs (50) Operating Margin (beia) 130 6
Slide 8: Integration of Bestfoods - Delivering the Cost Synergy
Integration of Bestfoods - Delivering the Cost Synergy • North America : • Integrated sales force, marketing, back office • Call centres 3 ⌫ 1 • Retail sales force ⌫ Lipton broker system • Foodservice ⌫ Bestfoods system • Single HQ, integrated R&D • Europe : • 18 countries with 2 sales forces • 50%
Slide 9: Key Financial Indicators for Q1
Key Financial Indicators for Q1 • Operating profit (beia) Euro +404 million, +34% • EBITDA Euro 1.8 billion • Cash flow from operations Euro 1.0 billion plus Euro 0.2 billion from disposals • Associated costs Euro 70 million, exceptionals Euro 196 million, Euro 40 million offset from Arden. No effec
Slide 10: Impact of Currency: Constant to Current Exchange Rates
Impact of Currency: Constant to Current Exchange Rates % Year on Year Constant Current Euro £ US$ 20% 21% 24% 13% Sales Operating Profit (BEIA) 34% 32% 36% 24% EPS (BEIA) (4)% (5)% (2)% (11)% Net Profit (BEIA) (4)% (5)% (2)% (11)% 9
Slide 11: Europe
Europe First Quarter Euro m Constant rates 2001 2000 +/- Sales 4,791 4,219 14% Operating Profit (BEIA) 607 505 20% Operating Margin (BEIA) 12.7% 12.0% • Sales ahead by 14% with Euro 400 million from acquisition/disposals • Leading brands grew 3.4% in Q1, 1.9% on MAT • Underlying volume growth 3.9% •
Slide 12: North America
North America First Quarter Euro m Constant rates 2001 2000 +/- Sales 3,266 2,490 31% Operating Profit (BEIA) 361 226 60% Operating Margin (BEIA) 11.1% 9.1% • Sales grew 31% - strong acquisition contribution • Leading brands grew 1.8% in Q1, 4.4% on MAT • HPC grows 4% with 3% in underlying volume gr
Slide 13: Africa, Middle East & Turkey
Africa, Middle East & Turkey First Quarter Euro m Constant rates 2001 2000 +/- Sales 855 757 13% Operating Profit (BEIA) 84 53 56% Operating Margin (BEIA) 9.8% 7.1% • Sales grew 13%, acquisitions contribute 6.3 points • Leading brands grew by 7.9% in Q1, 6.2% MAT • Underlying volume growth 4.3%, pri
Slide 14: Asia & Pacific
Asia & Pacific First Quarter Euro m Constant rates 2001 2000 +/- Sales 2,062 1,912 8% Operating Profit (BEIA) 283 263 8% Operating Margin (BEIA) 13.8% 13.7% • Sales ahead by 8% with underlying volume +5.4% • Leading brands grew by 9.1% in Q1, 8.4% MAT • East Asia Pacific - like for like sales growth
Slide 15: Latin America
Latin America First Quarter Euro m Constant rates 2001 2000 +/- Sales 1,765 1,212 46% Operating Profit (BEIA) 246 130 89% Operating Margin (BEIA) 13.9% 10.7% • Sales grew 46% with underlying volume growth of 3.8% and price of 3.3% • Leading brands grew 10.5% in Q1 and 6.3% on MAT • Laundry sales +10
Slide 16: 2001 First Quarter Results
2001 First Quarter Results Teleconference / Webcast by Howard Green April 27th, 2001