Unilever announces 3rd Quarter Results 2013

Unilever announces 3rd Quarter Results 2013 
10/24/13 --  *T 
Nine months highlights 
* Underlying sales growth 4.4% with emerging markets up 8.8% 
* Underlying volume growth 2.4% ahead of our markets and pricing
  up 1.9% 
* Turnover decreased (2.0)% to EUR38.0 billion including a negative
  currency impact of (5.0)% 
Third quarter highlights 
* Underlying sales growth 3.2% with emerging markets up 5.9% 
* Underlying volume growth 1.9% and pricing up 1.3% 
* Turnover decreased (6.5)% to EUR12.5 billion including a negative
  currency impact of (8.5)% 
* Acquisitions & Disposals reduced turnover by (1.0)%reflecting
  the disposal of non-core businesses 
Paul Polman: Chief Executive Officer statement"Underlying sales
growth of 4.4% over the first nine months is ahead of
our markets. Emerging markets continue to be the main driver of our
growth and, despite the current slow-down, they remain a significant
growth opportunity which the company is well-placed to capitalise on.
We have not yet seen an improvement in market conditions in North
America or Europe. 
We will continue to accelerate our innovations, backed with competitive
support, to build long term growth and value. We expect to report a
sequential quarterly improvement in underlying sales growth in the
fourth quarter driven by a strong innovation pipeline. We remain
focused on achieving another year of profitable volume growth ahead of
our markets, steady and sustainable core operating margin improvement
and strong cash flow." 
24 October 2013 
Third Quarter 2013          Nine Months 2013 
(unaudited)    Turnover  USG   UVG   UPG   Turnover  USG   UVG   UPG 
EURbn     %     %     %     EURbn     %     %     % 
Unilever Total   12.5    3.2   1.9   1.3     38.0    4.4   2.4   1.9 
Personal Care     4.5    5.8   4.3   1.4     13.5    7.2   5.3   1.8 
Foods             3.2   (0.3) (1.0)  0.7     10.0    0.1  (1.0)  1.1 
Refreshment       2.6    0.7  (1.6)  2.3      7.7    1.6  (1.2)  2.9 
Home Care         2.2    6.0   
5.5   0.5      6.8    8.5   6.1   2.3 
Our markets: Growth continued to slow in emerging markets as
macro-economic headwinds and the consequences of currency weakness
affected consumer demand across a significant number of the emerging
countries. The developed markets have not recovered and remain flat to
down, with little sign of any improvement so far. In this context we
continue to see high levels of competition in many markets and
promotional intensity remains high. 
Unilever overall performance: Against this background we continued to
grow ahead of our markets, albeit at a slower rate, and maintained a
good balance between volume and price. Emerging markets growth slowed
to 5.9% whilst developed markets showed a progressive improvement but
still declined in the quarter by (0.3)%. Volume growth was positive in
both emerging and developed markets in the quarter but price growth
moderated as we lapped prior year increases and took action to ensure
that our brands remain competitive in key markets. 
Personal Care 
Personal Care continued to deliver healthy volume-led growth in the
quarter ahead of our markets, with a good balance of growth across the
Hair performed well reflecting the strength of our portfolio of brands.
Dove Repair Expertise has now been launched across most of our markets.
Clear delivered double digit growth despite lapping high prior year
comparators and TRESemme is making good progress in new markets such as
India and Indonesia. Sunsilk progressed well thanks to a strong
activity plan which included the relaunch of Sunsilk Soft & Smooth with
the power of oils. The launch of Toni&Guy into new markets continues
with, for example, the recent introduction in the United States retail
Skin cleansing growth was driven by strong performances by Dove and
Lifebuoy. Improved Dove NutriumMoisture shower gels have delivered
strong results and the Dove Purely Pampering range has been
successfully launched in China. Lifebuoy Clini-care 10 performed well
with notable strength in South Africa and in India. In skin care,
Vaseline body lotion sprays continued their success in North America
and are now being extended to the United Kingdom and the Netherlands.
The male face launch of Dove Men+Care continued to drive growth and we
re-launched Fair & Lovely in India, bringing our "best ever formula" to
market with large scale marketing support. Pond's Flawless Radiance BB
cream has been successfully launched in South Africa and Pond's Men is
progressing well in Indonesia. 
Deodorants growth reflected another strong performance by Dove in both
the male and female ranges. The Rexona 'Do:More' campaign is gaining
traction in many markets and the new Rexona Men packaging is being
rolled out, starting in Latin America and the United Kingdom. Despite
increasing competitive intensity, our oral business has done well as a
result of the 'Brush Day and Night' campaign and new product launches
such as Pepsodent Germicheck+ in India and Zhong Hua Porcelain White in
China. Closeup Diamond Attraction was launched in Brazil. 
Foods performance continued to be held back by spreads which, despite
showing a progressive improvement, remained negative reflecting
weakness in the market and lower pricing in a benign commodity cost
environment. We are taking action to enhance the naturalness of our
products. In the United Kingdom we relaunched Flora with new
advertising emphasising the goodness of sunflower whilst in Germany we
launched Rama with Butter. In North America we launched 'Simply
Delicious' clean label variants of Country Crock and I Can't Believe
It's Not Butter with no artifical colours or preservatives. 
Dressings continued to grow, helped by the rollout of the new
innovative Hellmann's squeezy packaging in Brazil. Knorr cooking
products continued to grow well, driven by increased penetration of the
core range and the success of jelly bouillon and baking bags. 
Home Care 
Laundry growth was largely driven by increased volumes and the success
of premium formats such as liquids. We are responding to ongoing
competitive intensity by re-investing part of our cost savings in
product performance and in brand support. In France we launched new
Skip Small & Mighty, a superior concentrated product with an in-built
pre-treatment device and the rollout of Omo with wash boosters, giving
outstanding cleaning even in a quick wash, reached South Africa and
Indonesia. Radiant has been relaunched with an improved formulation
to'fight the 5 enemies of whiteness' and the Comfort aromatherapy range
is doing well in South East Asia. 
Household care continued to grow as we converted consumers from cheaper
but less effective alternatives. Domestos and Cif continue to grow well
and the combined launch in Brazil is making good progress. The hand
dishwash business continues to grow double digit in emerging markets
despite increasing competitive intensity. 
Refreshment was disappointing due to a number of unrelated factors. In
ice cream, sales benefited from good summer weather in northern Europe
but this was offset by weaker performance in southern Europe and
particularly in Italy, our biggest European ice cream business. North
America was impacted by our deci
sion to withdraw from some low margin
products. Despite these headwinds, key innovations such as the launch
of Fruttare in North America, the global relaunch of Cornetto and
Magnum '5 Kisses' continued to do well. 
Tea growth included the launch of Lipton single serve K-cups in the
United States and the extension of the Lipton Yellow Label core range
in Russia, adding new flavours to the range of better tasting Lipton
teas. South Asia continues to see rapid growth with a good performance
from the Brooke Bond brand. Sales of Ades soy drinks were impacted by a
product recall in Brazil. The underlying issue has been resolved and
action is now underway to re-build the growth momentum of the brand. 
Third Quarter 2013          Nine Months 2013
(unaudited)    Turnover  USG   UVG   UPG   Turnover  USG   UVG   UPG 
EURbn     %     %     %     EURbn     %     %     % 
Unilever Total   12.5    3.2   1.9   1.3     38.0    4.4   2.4   1.9 
Asia/AMET/RUB     5.0    6.2   4.5   1.6     15.4    8.2   5.2   2.8 
The Americas      3.9    1.8  (1.6)  3.5     12.3    4.3   0.7   3.6 
Europe            3.6    0.4   2.2  (1.7)    10.3   (1.1)  0.2  (1.3) 
Underlying sales growth slowed in the quarter, as market growth
reduced. Volume growth remained healthy but price growth eased as we
lapped prior year price increases. We continued to invest in our brands
and delivered competitive growth across the markets. Australia
continued to grow despite strong competitive activity and Japan picked
up, helped by a strong innovation programme. During the quarter we
completed the disposal of the Unipro bakery and industrial oils
business in Turkey. We also announced that we have reached agreement to
acquire the T2 premium tea business in Australia. 
The Americas 
North America declined, mainly due to lower volumes which reflected
action to withdraw some low margin ice cream products and continuing
weakness in spreads. Personal Care growth remained competitive. We
announced the disposal of the Wish-Bone and Western brands and
completed the sale at the start of the fourth quarter. 
Latin America growth remained strong, adjusting for the impact of the
implementation of a new SAP system in Brazil which was accompanied by
some advancing of third quarter sales into the second quarter. 
Against the backdrop of markets which remain fundamentally weak, Europe
delivered good volume growth offset by lower pricing, resulting in
marginally positive underlying sales growth in the quarter. However,
this masks a strong performance by the countries in northern Europe,
helped by a good ice cream performance, offset by declines in southern
Europe where the continuing impact of difficult economies combined with
a poor ice cream season. 
There has been no material change to Unilever's financial position
since the published 2013 interim financial statements. 
The Boards have declared a quarterly interim dividend for Q3 2013 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 0.2690
Per Unilever PLC ordinary share:               GBP 0.2280
Per Unilever N.V. New York share:              US$ 0.3678
Per Unilever PLC American Depositary Receipt:  US$ 0.3678 
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 22 October 2013. They will
be payable as from 11 December 2013, to shareholders registered at
close of business on 8 November 2013. The shares will go ex-dividend on
6 November 2013. 
US dollar cheques for the quarterly interim dividend will be mailed on
10 December 2013 to holders of record at the close of business on 8
November 2013. In the case of the N.V. New York shares, Netherlands
withholding tax will be deducted. 
As previously disclosed, along with other consumer products companies
and/or retail customers, Unilever is involved in a number of ongoing
investigations by national competition authorities. These proceedings
and investigations are at various stages and concern a variety of
product markets. Despite recent developments in some of these markets,
it is too early in the regulatory process to determine conclusively the
outcome of these matters or to reliably measure our exposure. We
continue to monitor developments and will make provisions as
Ongoing compliance with competition laws is of key importance to
Unilever. It is Unilever's policy to co-operate fully with competition
authorities whenever questions or issues arise. In addition the Group
continues to reinforce and enhance its internal competition law
compliance programme on an ongoing basis. 
This announcement may contain forward-looking statements,
including'forward-looking statements' within the meaning of the United
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
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; increasing competitive pressures; Unilever's investment
choices in its portfolio management; inability to find 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 natural disasters; the 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, NYSE
Euronext in Amsterdam and the US Securities and Exchange Commission,
including the Group's Annual Report on Form 20-F for the year ended 31
December 2012 and Annual Report and Accounts 2012. 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. 
Media: Media Relations Team        Investors: Investor Relations Team
UK +44 20 7822 6719                +44 20 7822 6830
trevor.gorin@unilever.com          investor.relations@unilever.com
NL +31 10 217 4844
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