6th May 2005 07:00
Unilever PLC06 May 2005 UNILEVER RESULTS FIRST QUARTER In competitive markets, first quarter business performance shows signs ofprogress. FINANCIAL HIGHLIGHTS(unaudited)• million First Quarter 2005 Current Current Constant rates rates ratesTurnover 9 266 2% 4%Operating profit 1 416 8% 9%Pre-tax profit 1 282 9% 10%Net profit attributable toshareholders' equity 934 24% 25% 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 €73 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 firststage was a step-up in market competitiveness, starting from the fourth quarterof last year. I am encouraged that we have had two consecutive quarters ofgrowth and that aggregate market shares are now stabilising. Our actions in the market place are now being supported by the transition to thenew organisation announced in February, which is proceeding well. This year we expect market conditions to remain very challenging in Europe, andmargins to continue to be under pressure from increased input costs. However,performance in developing and emerging markets was better, and here the outlookis more promising. Against this background, we will ensure our brands are competitive in theirmarkets while continuing to drive cost efficiency. At the same time we remainfocused on our priorities. These are: regaining momentum in Europe, building onour strengths in global personal care and developing and emerging markets; aswell as innovation which addresses the Vitality needs of our consumers. Patrick CescauGroup Chief Executive Unilever has adopted IFRS - the new international accounting standards. Theseapply to both the prior year comparators and the current year results. Inaddition, the financial statements are now shown only at current exchange rates,while percentage changes are shown at both current and constant exchange ratesto facilitate comparison. Further information on the impact of IFRS can be foundon 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 atconstant 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 internalperformance analysis and targeting purposes. Unilever believes that suchmeasures provide additional information for shareholders on underlying businessperformance trends. Such measures are not defined under IFRS or US GAAP and arenot 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 theimpact of an additional 5 days in the quarter, which varies by region. Weestimate that, at the group level, calendar effects contributed about 4% togrowth. Turnover was 2.3% ahead, with the underlying sales growth partly offset by anegative 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 again in the quarter of €73 million from profits on disposals, mainly in Europeand South Africa. Gross restructuring costs were also substantially lower thanlast year. These effects, together with the benefits of savings programmes, morethan offset higher input costs and increased investment in marketcompetitiveness. 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 tothe rate from non-recurring items including the conclusion of past tax audits. Earnings per share increased by 25% benefiting from the non-recurring items intax which contributed 8% to EPS, and from the favourable movement in netrestructuring charges. CASH FLOW Net cash flow from operating activities, which is net of tax payments, was €0.5billion, a decrease of €0.2 billion on 2004. The increase in operating profitwas more than offset by higher seasonal outflows of working capital, principallydue 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 €132million. BALANCE SHEET Goodwill and intangible assets increased by €0.3 billion, through currencymovements. Trade receivables and inventories both increased reflecting calendareffects and build-up ahead of the ice cream season. Closing net debt was €10.1 billion, a reduction of €1.1 billion from the1 January 2005 opening position. €1.4 billion of the reduction relates to theconversion of the €0.05 preference shares, offset by €0.5 billion from adversecurrency movements. Total equity increased by €2.3 billion from the 1 January 2005 opening position.Net profits added €1.0 billion and currency retranslation €0.1 billion. Treasurystock, which is deducted from equity, was used for the conversion of the €0.05preference shares. This had the effect of reducing borrowings by €1.4 billionand increasing equity by the same amount. Subsequent purchases of treasury stockduring the quarter reduced equity by €0.2 billion. Future share purchases toreplenish the treasury stock used in the conversion will further offset theincrease in equity. FIRST QUARTER PERFORMANCE BY REGION EUROPE Market conditions remain difficult through much of Western Europe. Competitionis intense between retailers as well as between manufacturers and pricing isunder 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 improvecompetitiveness. There were some encouraging signs of progress: we have gainedshare in most foods categories compared with the end of last year and ice creambenefited 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 alsolost market share. Action is being taken and, with a stronger innovationprogramme this year, we expect to see a gradual improvement. Elsewhere in Western Europe performance was mixed. In France, sales of home andpersonal care categories held up well, however foods categories were weaker. Bycontrast, in the other major markets we saw a better performance in our foodsbusinesses. Eastern Europe, and Russia in particular, continued to show strong, volumedriven growth across categories. The pro.activ range of Flora/Becel was further extended to include yoghurtdrinks. In the Netherlands and Belgium we launched Knorr Vie shots which provideat least half the daily recommended intake of fruit and vegetables. Magnum 5 senses ice creams were introduced while in frozen foods the brandrelaunch is underway in all countries, and supports innovation which is focusedon 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 fullyoffset the impact of lower prices. THE AMERICAS There was a modest pick-up in market growth in most categories in the US, whileconsumption 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 infoods were slightly up. However, the weight management market has contractedrapidly and, while Slim.Fast continued to gain some share, sales of the brandwere sharply lower than last year. We are further refreshing the Slim.Fast Optima product range and are alsointroducing 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 andpersonal care categories in the US driven by deodorants, hair care and personalwash. Skin care and laundry are both very active markets with intensecompetition 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 inBrazil were in line with a very strong quarter in the previous year. In thesecountries the personal care and savoury and dressings brands continue to performparticularly well. In the US Country Crock side dishes and Bertolli frozen meals have both beenrolled out nationally. New ice cream products include Breyers ranges thatfurther 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, andwe launched 'all' laundry detergent with softening. In Latin America we introduced new flavours and 'light' varieties of the AdeSsoy based nutritional drink. In Mexico and Argentina, new flavours of Knorrsoups 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 andArgentina. Rexona 'teens' deodorant complements the existing products for menand women and Rexona antibacterial soap bar has been extended from Argentinainto 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 ofhigher input costs and an increase in marketing investment. ASIA/AFRICA Consumption overall continues to grow well, despite a weaker economy in Japanand 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 innovationsin hair care and good progress in savoury products. India had its strongest quarterly growth in over two years, unaffected by thecalendar change and following a robust response to the earlier increase incompetition. In laundry, market shares have been maintained and we started toregain share in hair care through innovation and increased support. In Japan,where competition has also been intense, like-for-like sales were in line withlast year. Turkey and West Africa both performed well, while Arabia saw a good recovery insales of Lipton teas. A strong innovation programme for hair care in India includes new products forthe Clinic range in family health and anti-dandruff positions and Sunsilk 'Freshand Cool' for sticky hair. Following the relaunch of Lux super rich in Japantowards 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 alsolaunched Lipton milk tea. In Turkey the main spreads brands, Rama and Sana, nowinclude olive oil versions. The operating margin, at 13.4%, was 0.7 percentage points higher than last yearlargely 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 StatesPrivate Securities Litigation Reform Act of 1995. Words such as 'expects','anticipates', 'intends' or the negative of these terms and other similarexpressions of future performance or results and their negatives are intended toidentify such forward-looking statements. These forward-looking statements arebased upon current expectations and assumptions regarding anticipateddevelopments and other factors affecting the Group. They are not historicalfacts, nor are they guarantees of future performance. Because theseforward-looking statements involve risks and uncertainties, there are importantfactors that could cause actual results to differ materially from thoseexpressed or implied by these forward-looking statements, including, amongothers, competitive pricing and activities, consumption levels, costs, theability to maintain and manage key customer relationships and supply chainsources, currency values, interest rates, the ability to integrate acquisitionsand complete planned divestitures, physical risks, environmental risks, theability to manage regulatory, tax and legal matters and resolve pending matterswithin current estimates, legislative, fiscal and regulatory developments,political, economic and social conditions in the geographic markets where theGroup operates and new or changed priorities of the Boards. Further details ofpotential risks and uncertainties affecting the Group are described in theGroup's filings with the London Stock Exchange, Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report and Accounts onForm 20-F. These forward-looking statements speak only as of the date of thisdocument. Except as required by any applicable law or regulation, the Groupexpressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained herein toreflect any change in the Group's expectations with regard thereto or any changein events, conditions or circumstances on which any such statement is based. CONDENSED INTERIM FINANCIAL STATEMENTSINCOME STATEMENT(unaudited) •million First Quarter 2005 2004 Increase/ (Decrease) Current rates Constant rates Turnover 9 266 9 061 2% 4% Operating profit 1 416 1 316 8% 9% Finance income 97 86Finance costs (234) (225)Other finance income/(costs) - (16) (19)pensions and similarobligationsShare in net profit of 10 9joint venturesShare in net profit of - 1associatesOther income fromnon-current 9 13investments Profit before taxation 1 282 1 181 9% 10% Taxation (301) (379) Net profit for the 981 802 22% 24%period Attributable to:Minority interests 47 49Shareholders' equity 934 753 24% 25% Combined earnings persharePer €0.51 ordinary NV 0.96 0.77 25% 26%share (Euros)Per 1.4p ordinary PLCshare (Euro 14.44 11.58 25% 26%cents) Per €0.51 ordinary NVshare - diluted 0.93 0.74 26% 27%(Euros)Per 1.4p ordinary PLCshare - diluted 13.94 11.13 25% 27%(Euro cents) STATEMENT OF RECOGNISED INCOME AND EXPENSE(unaudited)• million First Quarter 2005 2004 Fair value gains/(losses) on financial instruments andcashflow hedges net of tax 16 n/aActuarial gains/(losses) on pension schemes net of tax (3) 32Currency 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 67Shareholders' equity 1 050 844 BALANCE SHEET(unaudited)•million As at As at As at 2 April 31 December 27 March 2005 2004 2004 Non current assetsGoodwill and intangible assets 17 346 17 018 18 990Property, plant and equipment 6 231 6 181 6 653Pension asset for funded schemes in 696 625 830surplusDeferred tax assets 1 533 1 491 1 181Other non-current assets 1 582 1 064 1 023Total non-current assets 27 388 26 379 28 677 Assets held for sale 156 n/a n/a Current assetsInventories 4 112 3 756 4 504Trade and other receivables duewithin one 4 616 4 131 5 313yearFinancial assets 334 1 013 1 338Cash and cash equivalents 1 721 1 590 2 239Total current assets 10 783 10 490 13 394 Current liabilitiesBorrowings due within one year (5 462) (5 155) (7 485)Trade payables and other current (8 234) (8 232) (9 022)liabilitiesTotal 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 564liabilities Non-current liabilitiesBorrowings due after one year 7 062 6 893 8 659Pension liability for fundedschemes in 2 363 2 291 2 462deficitPension liability for unfunded 3 906 3 788 3 683schemesDeferred tax liabilities 798 740 1 141Restructuring and other provisions 1 325 1 364 850Other non-current liabilities 713 717 759Total non-current liabilities 16 167 15 793 17 554 Liabilities held for sale 9 n/a n/a EquityShareholders' equity 8 041 7 324 7 532Minority interests 414 365 478Total equity 8 455 7 689 8 010Total capital employed 24 631 23 482 25 564 MOVEMENTS IN EQUITY(unaudited)•million First Quarter 2005 2004 Equity at 31 December 2004 7 689 n/aIFRS transition adjustment for financial instruments(including preference shares) (1 564) n/aEquity at 1 January 6 125 7 241Total recognised income and expense for the period 1 117 911Dividends - (5)Conversion of preference shares 1 380 -Purchase/sale of treasury stock (158) (139)Share option credit 41 56Dividends 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)•million First Quarter 2005 2004 Operating activitiesCash flow from operating activities 779 961Income tax paid (308) (241)Net cash flow from operating activities 471 720 Investing activitiesInterest received 42 11Net 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 activitiesDividends paid on ordinary share capital (2) -Interest and preference dividends paid (115) (107)Change in borrowings and finance leases (214) 229Purchase 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)•million As at As at 2 April 1 January 2005 2005 Cash and cash equivalents as per cash flowstatement 1 515 1 406Add: bank overdrafts deducted therein 206 184Less: cash in assets held for disposal - (8)Cash and cash equivalents as per balance 1 721 1 582sheetFinancial assets 334 533Borrowings due within one year (5 462) (6 448)Borrowings due after one year (7 062) (7 221)Derivatives and finance leases included inother 332 369receivables and other liabilities Net debt at the end of the period (10 137) (11 185) GEOGRAPHICAL ANALYSIS(unaudited) First Quarter•million Europe Americas Asia/Africa Total Turnover 2004 3 885 2 925 2 251 9 061 2005 3 932 3 004 2 330 9 266Change 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 416Change 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•million Savoury Spreads Beverages Ice cream Foods Personal Home Home Total and and and care care and dressings cooking frozen and personal products foods other Care Turnover 2004 1 889 1 040 733 1 316 4 978 2 375 1 708 4 083 9 061 2005 1 965 1 057 714 1 357 5 093 2 499 1 674 4 173 9 266Change 4.0% 1.6% (2.5)% 3.1% 2.3% 5.2% (2.0)% 2.2% 2.3%Impact of: Exchange rates (0.8)% (0.3)% (2.4)% (1.4)% (1.1)% (2.7)% (1.5)% (2.2)% (1.6)% Acquisitions 0.0% 0.0% 0.0% 0.6% 0.2% 0.1% 0.0% 0.0% 0.1% Disposals (1.6)% (6.7)% (1.1)% (2.4)% (2.8)% (0.7)% (2.1)% (1.3)% (2.1)%Underlyingsales growth 6.6% 9.3% 0.9% 6.5% 6.2% 8.8% 1.6% 5.8% 6.0% Operating profit 2004 313 170 92 98 673 385 258 643 1 316 2005 366 212 91 89 758 461 197 658 1 416Change currentrates 17.1% 25.0% (2.4)% (8.4)% 12.7% 19.4% (23.6)% 2.2% 7.6%Changeconstant rates 17.9% 25.7% (0.1)% (6.7)% 13.8% 23.4% (23.2)% 4.7% 9.3% Operating margin 2004 16.5% 16.3% 12.6% 7.4% 13.5% 16.3% 15.1% 15.8% 14.5% 2005 18.6% 20.1% 12.7% 6.6% 14.9% 18.4% 11.8% 15.8% 15.3% NOTES(unaudited) Adoption of IFRS Unilever adopted International Financial Reporting Standards (IFRS) with effectfrom 1 January 2005. Our transition date is 1 January 2004 as this is the startdate of the earliest period for which we will present full comparativeinformation 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 asmodified by the revaluation of biological assets, financial assets'available-for-sale investments' and 'at fair value through profit or loss', andderivatives. IFRS 1 mandates that most IFRS are applied fully retrospectively, meaning thatthe opening balance sheet at 1 January 2004 is restated as if those accountingpolicies had always been applied. There are certain limited exemptions to thisrequirement. A reconciliation from old GAAP to IFRS of the balance sheet as per27 March 2004 and the income statement for the period then ended is given onpage 10 and 11. A more detailed review of the changes to our accounting policiesand a reconciliation of financial statements from old GAAP to IFRS is availableon our website at www.unilever.com/ourcompany/investorcentre/. From 1 January 2005 Unilever implemented the following additional changes inaccounting policies. These changes are applied prospectively from 1 January 2005and 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 havemany detailed consequences, however the key areas of impact for Unilever aredescribed below. Under IAS 32, Unilever must present the NV preference share capital as aliability rather than as part of equity. All of the dividends paid on thesepreference shares are recognised in the income statement as interest expense.The carrying value of the preferential share capital of NV as at 1 January 2005was €1 502 million. IAS 39 requires certain non-derivative financial assets to be held at fair valuewith 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 theyare measured at amortised cost plus the fair value of the hedged risk. IAS 39 requires recognition of all derivative financial instruments on thebalance sheet and that they are measured at fair value. The standard also placessignificant restrictions on the use of hedge accounting and changes the hedgeaccounting methodology. As a result Unilever recognises all derivative financialinstruments on balance sheet at fair value and applies the new hedge accountingmethodology 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 assetsand asset groups held for disposal in the balance sheet as at 1 January 2005. Itdoes not significantly affect the asset values themselves. Turnover definition From 1 January 2005 Unilever changed its treatment of promotional couponing andtrade communications. From 1 January 2005 these costs are deducted from turnovertogether with other trade promotion costs which are already deducted fromturnover. Comparatives have been restated to reflect this change, which has noimpact on operating profit or net profit. Preference shares On 15 February 2005 after close of trading NV converted part of the notionalvalue of the €0.05* cumulative preference shares into NV ordinary shares. Uponconversion the holders of the preference shares received one NV ordinary sharefor every 11.2 preference shares held. This resulted in a total of 18 881 587 NVordinary shares being transferred to the preference shareholders. These NVordinary shares had previously been held as treasury shares by NV. As aconsequence of the conversion, the notional value of the shares was reduced to€0.05*. A proposal will be put to the Annual General Meeting of NV on 10 May2005 to cancel the preference shares upon repayment of the notional value inaccordance with NV's articles of Association. Acquisitions and Disposals In December 2004 Unilever announced the restructuring of its Portuguese foodsbusiness. The deal was subject to regulatory approval and was completed at theend of March. Before the restructuring Unilever Portugal held a 40% stake in theFimaVG foods business, a joint venture with Jeronimo Martins Group, in additionto its wholly owned Bestfoods business acquired in 2000. As a result of the dealthe two foods businesses - FimaVG and Unilever Bestfoods Portugal - were unifiedand the joint venture stakes re-balanced so that Unilever now holds 49% of thecombined 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 aretranslated 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 websiteat www.unilever.com/ourcompany/investorcentre/. Reconciliation of profit for the first quarter ended 27 March 2004(unaudited) Goodwill Previously and reported indefinite Pensions Deferred under lived and tax Tax old intangible Biological similar restatement reclassifying GAAP assets Software assets obligations effect effect • million • million • million • million • million • million • million Turnover 9 357 - - - - - - Turnover of joint (43) - - - - - -ventures Operating costs (8 267) 259 12 (2) - - - Share of operating 10 - - - - - -profit of joint ventures Operating profit/(loss) 1 057 259 12 (2) - - - Share of operating 9 2 - - - - -profit of associatesFinance costs (151) - - - - - -Other finance income/ (20) - - - 1 - -(cost) -pensions and similarobligationsShare of net profit of - - - - - - -joint venturesShare of net profit of - - - - - - -associatesIncome from other 2 - - - 11 - -non-current investments Profit/(loss) before 897 261 12 (2) 12 - -taxation Taxation (333) (14) (3) - (4) (24) - Profit/(loss) for the 564 247 9 (2) 8 (24) -period Attributable to:Minority interests 49 1 - (1) - - -Shareholders' equity 515 246 9 (1) 8 (24) - Total Change Joint effect relating ventures of to Restated and transition turnover under associates Dividends Other to IFRS definition IFRS • million • million • million • million • million • million Turnover (43) - - (43) (253) 9 061 Turnover of joint 43 - - 43 - -ventures Operating costs - - - 269 253 (7 745) Share of operating (10) - - (10) - - profit of joint ventures Operating profit/(loss) (10) - - 259 - 1 316 Share of operating (11) - - (9) - - profit of associatesFinance costs 12 - - 12 - (139) Other finance income/ - - - 1 - (19) (cost) - pensions and similar obligationsShare of net profit of 9 - - 9 - 9joint venturesShare of net profit of 1 - - 1 - 1 associatesIncome from other - - - 11 - 13 non-current investments Profit/(loss) before 1 - - 284 - 1 181 taxation Taxation (1) - - (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) Goodwill Previously and reported indefinite Pensions Deferred under lived and tax Tax old intangible Biological similar restatement reclassifying GAAP assets Software assets obligations effect effect • million • million • million • million • million • million • million Non-currentassetsGoodwill 13 556 209 - - - - -Intangible 4 276 833 116 - - - -assetsProperty, plant 6 750 - - (40) - - -and equipmentBiological - - - 27 - - -assetsJoint ventures 61 - - - - - -and associatesOther 150 - - - 194 - -non-currentinvestmentsPension asset 574 - - - (49) - 305for fundedschemes insurplusTrade and other 764 - - - - - (610)receivablesdue after morethan one yearDeferred tax - - - - - - 1 181assetsTotal 26 131 1 042 116 (13) 145 - 876non-currentassets Current assetsInventories 4 505 - - - - - -Trade and other 5 692 - - - - - -receivablesdue within oneyearFinancial 1 230 - - - - - -assetsCash and cash 2 347 - - - - - -equivalentsTotal current 13 774 - - - - - -assets CurrentliabilitiesCreditors due (17 654) - - - - - 873within one yearBorrowings (7 485) - - - - - -Trade and other (10 169) - - - - - 873payablesCurrent tax - - - - - - (873)liabilitiesNet current (3 880) - - - - - -assets/(liabilities)Total assets 22 251 1 042 116 (13) 145 - 876less currentliabilities Non-currentliabilitiesCreditors due 9 418 - - - - - -after more thanone yearBorrowings 8 659 - - - - - -Trade and other 759 - - - - - -payablesProvisions for 852 (2) - - - - -liabilities andcharges(excludingpensions andsimilarobligations)Restructuring 824 - - - - - -and otherprovisionsInterest in 28 (2) - - - - -associatesLiabilities for 4 407 - - - 179 - 1 559pensions andsimilarobligationsPension 1 709 - - - 14 - 739liability forfunded schemesin deficitPension 2 698 - - - 165 - 820liability forunfundedschemesDeferred tax 693 (6) 37 (1) (10) 1 111 (683)liabilitiesTotal 15 370 (8) 37 (1) 169 1 111 876non-currentliabilities Shareholders'equityCalled up share 642 - - - - - -capitalShare premium 1 537 - - - - - -accountOther reserves (2 613) - - - - - -Retained profit 6 835 1 049 79 (9) (24) (1 111) -Total 6 401 1 049 79 (9) (24) (1 111) -shareholders'equityMinority 480 1 - (3) - - -interestsTotal equity 6 881 1 050 79 (12) (24) (1 111) -Total capital 22 251 1 042 116 (13) 145 - 876employed Total Joint effect ventures of Restated and transition under associates Dividends Other to IFRS IFRS • million • million • million • million • million Non-current assetsGoodwill - - - 209 13 765Intangible assets - - - 949 5 225Property, plant and - - (57) (97) 6 653equipmentBiological assets - - - 27 27Joint ventures and - - - - 61associatesOther non-current - - 380 574 724investmentsPension asset for - - - 256 830funded schemes insurplusTrade and other - - 57 (553) 211receivablesdue after more thanone yearDeferred tax assets - - - 1 181 1 181Total non-current - - 380 2 546 28 677assets Current assets Inventories - - (1) (1) 4 504Trade and other - - (379) (379) 5 313receivablesdue within one yearFinancial assets - - 108 108 1 338Cash and cash - - (108) (108) 2 239equivalentsTotal current assets - - (380) (380) 13 394 Current liabilities Creditors due within - 1 147 - 2 020 (15 634)one yearBorrowings - - - - (7 485)Trade and other - 1 147 - 2 020 (8 149)payablesCurrent tax - - - (873) (873)liabilitiesNet current assets/ - 1 147 (380) 767 (3 113)(liabilities)Total assets less - 1 147 - 3 313 25 564current liabilities Non-currentliabilitiesCreditors due after - - - - 9 418more than one yearBorrowings - - - - 8 659Trade and other - - - - 759payablesProvisions for - - - (2) 850liabilities andcharges (excludingpensions and similarobligations)Restructuring and - - - - 824other provisionsInterest in associates - - - (2) 26Liabilities for - - - 1 738 6 145pensions and similarobligationsPension liability for - - - 753 2 462funded schemes indeficitPension liability for - - - 985 3 683unfunded schemesDeferred tax - - - 448 1 141liabilitiesTotal non-current - - - 2 184 17 554liabilities Shareholders' equity Called up share - - - - 642capitalShare premium account - - - - 1 537Other reserves - - - - (2 613)Retained profit - 1 147 - 1 131 7 966Total shareholders' - 1 147 - 1 131 7 532equityMinority interests - - - (2) 478Total equity - 1 147 - 1 129 8 010Total 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 ofshare units representing the combined ordinary shares of NV and PLC in issueduring the period, less the average number of shares held to meet optionsgranted under various employee share plans. The number of combined share units is calculated from the underlying NV and PLCshares using the exchange rate of £ 1 = €5.445, in accordance with theEqualisation Agreement. This number (expressed in terms of NV shares) increasedfrom 962 million at the start of the year to 979 million at the end of the firstquarter (6 412 million to 6 525 million in terms of PLC shares) following theconversion of the €0.05 preference shares in February. The number is expected toreduce as we replenish treasury stock. The calculations of diluted earnings per share are based on (i) conversion intoPLC ordinary shares in the year 2038 of shares in a group company under thearrangements for the variation of the Leverhulme Trust; (ii) conversion of the€0.05* 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 ofthe Dutch Civil Code, rounded to two decimal places, of underlying Dutchguilders, as these have not been converted into Euros in Unilever N.V.'sArticles of Association. Earnings per share for the first quarter 2005 2004 Combined EPS Thousands of unitsAverage number of combined share units of €0.51 970 260 966 182Average number of combined share units of 1.4p 6 468 403 6 441 217 •millionNet profit attributable to shareholders' equity 934 753Less preference dividends n/a (7)Net profit attributable to shareholders' equityfor 934 746basic earnings per share calculation Combined EPS per €0.51 (Euros) 0.96 0.77Combined EPS per 1.4p (Euro cents) 14.44 11.58 Combined EPS - Diluted Thousands of unitsAdjusted average number of combined share unitsof €0.51 1 007 820 1 012 542 Adjusted average number of combined share unitsof 1.4p 6 718 801 6 750 283 •millionAdjusted net profit attributable toshareholders' 937 751equity Combined diluted EPS per €0.51 (Euros) 0.93 0.74Combined diluted EPS per 1.4p (Euro cents) 13.94 11.13 Combined EPS - American sharesCombined EPS per €0.51 NV - New York Share $ 1.26 $ 0.97Combined EPS per 5.6p PLC - American DepositaryReceipt $ 0.76 $ 0.58 Combined diluted EPS per €0.51 NV - New York $ 1.22 $ 0.93ShareCombined diluted EPS per 5.6p PLC - AmericanDepositary Receipt $ 0.73 $ 0.56 DATES The results for the second quarter and for the first half-year 2005 will bepublished on 4 August 2005 ENQUIRIES: UNILEVER PRESS OFFICE +44 (0) 20 7822 6805/6010Internet: www.unilever.comE-mail: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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