FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of April, 2020
UNILEVER
PLC
(Translation
of registrant's name into English)
UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(1):_____
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(7):_____
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No .X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- _______
Exhibit
99 attached hereto is incorporated herein by reference.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
UNILEVER
PLC
|
|
|
|
/S/ R SOTAMAA
|
BY R SOTAMAA
|
CHIEF LEGAL OFFICER AND GROUP SECRETARY
|
Date:
23 April, 2020
EXHIBIT INDEX
------------------------
EXHIBIT
NUMBER
|
EXHIBIT
DESCRIPTION
|
99
|
Notice
to London Stock Exchange dated 23
April 2020
|
|
1st Quarter 2020 Trading Statement
|
UNILEVER TRADING STATEMENT FIRST QUARTER 2020
Performance highlights
Underlying performance
|
GAAP measures
|
|
|
vs 2019
|
|
|
vs 2019
|
|
|
|
|
|
|
Underlying sales
growth (USG)
|
|
0.0%
|
Turnover
|
€12.4bn
|
0.2%
|
Quarterly dividend
payable in June 2020
|
€0.4104 per
share
|
●
Underlying
sales were flat with volume growth of 0.2% and negative price of
0.2%
●
Developed
markets underlying sales growth was 2.8% and emerging markets
declined 1.8%
●
Turnover
increased 0.2% including a positive impact of 0.6% from
acquisitions net of disposals and negative impact of 0.4% from
currency
●
Quarterly
dividend maintained at €0.4104 per share
Alan Jope: Chief Executive Officer statement
|
"Covid-19 is having an unprecedented impact on people and economies
worldwide. Unilever has moved at speed to support our multiple
stakeholders and maintain our operations through the crisis, and
prepare for growth in a new normal. We have structured our
immediate response into five areas: supporting our people;
protecting supply; serving demand; contributing to society; and
maintaining our financial strength.
Our people are our priority and we moved quickly to
ensure the safety of our workforce as well as to protect incomes
and jobs. We are now focused on redeploying people to those parts
of the business that are seeing high demand.
We have been able to maintain the supply of product and we are keeping our factories
running through the many unpredictable challenges in local
operating environments across our value chain. We are also opening
up new capacity where it is most needed, such as in hand hygiene
and food.
Demand patterns are
changing. As the crisis hits countries around the world, we see
upswings in sales of hygiene and in-home food products, combined
with some household stocking, and near cessation of out of home
consumption which is particularly affecting our food service and
ice cream business. We are adapting to new demand patterns and are
preparing for lasting changes in consumer behaviour, in each
country, as we move out of the crisis and into
recovery.
The crisis highlights the importance of our commitment to use our
scale and brands as a force for good in society, throughout the pandemic and beyond. We are
supporting communities through donations and partnerships, while
our Lifebuoy and Domestos brands are leading the way on hygiene
education programmes.
We take these actions in the knowledge that we enter the crisis
with a strong balance sheet and cash position. We are systematically reviewing
all areas of cash generation and usage and re-evaluating all costs
in the light of the current circumstances, so that we can continue
to invest in our brands and reallocate funds towards the best
opportunities.
We will continue to adapt throughout this crisis. However, the
unknown severity and duration of the pandemic, as well as the
containment measures that may be adopted in each country, mean that
we cannot reliably assess the impact across our markets and our
business. We are therefore withdrawing our previous growth and
margin outlook for 2020.
Our portfolio, our financial stability and the quality of our
leadership teams around the world mean that Unilever is
well-positioned during this crisis and for the changing world that
will come afterwards. The fundamental drivers of growth continue to
be the key principles driving our execution as we remain focused on
delivering superior long-term financial performance through our
sustainable business model."
23 April 2020
FIRST QUARTER OPERATIONAL REVIEW: DIVISIONS
|
|
First
Quarter 2020
|
(unaudited)
|
Turnover
|
USG
|
UVG
|
UPG
|
|
€bn
|
%
|
%
|
%
|
Unilever
|
12.4
|
0.0
|
0.2
|
(0.2)
|
Beauty
& Personal Care
|
5.3
|
0.3
|
0.7
|
(0.5)
|
Home
Care
|
2.7
|
2.4
|
2.6
|
(0.2)
|
Foods
& Refreshment
|
4.4
|
(1.7)
|
(1.8)
|
0.1
|
Our markets: The spread of Covid-19 has
led to extensive changes in the operating environment in our
markets. The lock-downs and restrictions that have been implemented
in many countries have
varied in severity, but all have had some impact on consumer demand
patterns and many have also had a significant impact on the supply
of goods.
At an individual market level, most lock-downs have required
closures in out of home channels, resulting in little out of home
consumption of ice cream and food. Initial household stocking of
both hygiene and food products has led to increased volume in some
markets.
Most major markets, outside China, saw normal sales patterns in
January and February with Covid-19 impacting in March. The Chinese
market slowed significantly during the lock-down period, which
began in January, whilst Europe and North America, saw a
positive impact of household stocking in March. The Indian market
had slowed even before the strict lock-down began at the end of
March. Conditions in Latin America remain challenging, as they were
before Covid-19, although we have seen some household stocking at
the end of the quarter.
Unilever overall performance: Underlying sales growth was 0.0% with 0.2%
from volume and negative 0.2% from price. Developed markets grew
2.8% whilst emerging markets declined 1.8%. China declined as a
result of the downturn in food service, out of home ice cream and
retail sales during the lock-down. Growth in India was impacted by
both the slowing market and the lock-down implemented at the end of
March, which stopped production and shipping for a number of days.
Latin America grew 4.9% whilst South East Asia was mixed, following
the introduction of strict restrictions in the
Philippines. North America and Europe benefitted from
household stocking, despite a decline in food service and ice
cream. E-commerce grew as shoppers moved from offline to online
channels.
Turnover increased 0.2%. There was a positive impact of 0.6% from
acquisitions net of disposals and a negative impact of 0.4% from
currency.
Covid-19 support measures: During the quarter Unilever introduced a
wide-ranging set of measures to support global and national efforts
to tackle the Covid-19 pandemic. We are contributing €100m
through donations of soap, sanitiser, bleach and food as well
as leveraging our procurement network to acquire much-needed
medical equipment for organisations around the
world.
Strict protocols for hygiene and physical distancing have been
put in place for Unilever's sourcing units and distribution
centres, and all Unilever office-based employees have been working
from home. Unilever has also committed to protect its workforce in
the short-term from sudden drops in pay, as a result of market
disruption or being unable to perform their role.
We are making available €500m of cash flow relief for our
most vulnerable small and medium sized suppliers and small-scale
retail customers whose business relies on Unilever.
In addition, we are working with the UK's Department for
International Development to fund a global programme to urgently
tackle the spread of coronavirus. The programme aims to reach up to
a billion people worldwide, raising hygiene awareness and changing
behaviour.
Recent acquisitions: On 1
April 2020 Hindustan Unilever Limited, Unilever's listed subsidiary
in India, successfully completed the merger with GlaxoSmithKline
Consumer Healthcare Limited. The transaction is in line with
Unilever's strategy to evolve the Foods & Refreshment portfolio
into higher growth segments. In early April we also entered into
agreements to buy out the minority shareholders of our subsidiary
in Malaysia.
Beauty & Personal Care
Beauty & Personal Care underlying sales grew 0.3%, with volume
growth of 0.7% and negative pricing of 0.5%. Growth in key
categories was driven by both consumption and household
stocking.
Skin cleansing saw mid-single digit volume-led growth as we
responded to the critical need for hygiene products to prevent the
spread of Covid-19. Through our Lifebuoy hygiene brand we continued to raise
handwashing awareness, introducing lifebuoy products to 43 new
markets, as well as working quickly across brands to expand our
range of formats to support the pandemic response. Skin care
declined, as travel restrictions impacted the Carver portfolio and
India was impacted by lock-down
conditions. Vaseline continued
to perform well, with mid-single digit growth, and we launched
anti-bacterial hand cream in the UK as well as a new Pro Derma
Clinical range in China. The Prestige portfolio was impacted by
health and beauty channel closures in many markets. Whilst hair
grew in the USA, the lock-down impacted the portfolio in China and
in India. Deodorants grew mid-single digit, with strong
performances from our Rexona Clinical range and Dove deodorants. Oral care grew, with growth from
natural toothpastes and bamboo toothbrushes. Negative pricing was
primarily driven by India following price reductions in the
previous quarter.
Home Care
Home Care underlying sales grew 2.4%, with 2.6% from volume and
negative price of 0.2%.
Our home and hygiene brands, including Cif surface cleaners
and Domestos bleach,
benefitted from increased demand for household cleaning products,
with double digit underlying sales growth. In China, we accelerated
the launch of the new germ-killing Botanical
Hygiene range, addressing
demand for natural cleaning supported by advanced and effective
technology. Format premiumisation continues to be a driver of
volume-led growth in fabric solutions, with liquids and capsules
both growing double digits. Clean and green home care
brand Seventh
Generation also
saw double digit growth.
Foods & Refreshment
Foods
& Refreshment underlying sales declined 1.7%, with volumes down
1.8% and positive pricing of 0.1%.
The largest volume decline was in ice cream, as the seasonal
sell-in for out of home consumption in key markets such as Europe,
Turkey and Latin America were heavily impacted by lock-down
measures and the reluctance of distributors to commit to buying ice
cream stock with an uncertain holiday and tourism season. There was
also a sharp decline in food service, as restaurants in China and
elsewhere closed due to Covid-19 mitigation measures. This was
offset by increased in-home consumption and household stocking in
some markets, particularly the USA and Europe, leading to
volume-led growth in savoury and
dressings. Knorr saw
low single digit growth, while Hellmann's grew double digits as our brands helped to
feed the many families at home. Tea declined low-single digit,
impacted by India and out of home channel closures. The strategic
review of our tea business is ongoing.
FIRST QUARTER OPERATIONAL REVIEW: GEOGRAPHICAL
AREA
|
(unaudited)
|
First
Quarter 2020
|
Turnover
|
USG
|
UVG
|
UPG
|
|
€bn
|
%
|
%
|
%
|
Unilever
|
12.4
|
0.0
|
0.2
|
(0.2)
|
Asia/AMET/RUB
|
5.7
|
(3.7)
|
(3.4)
|
(0.3)
|
The Americas
|
4.0
|
4.8
|
3.9
|
0.9
|
Europe
|
2.7
|
1.4
|
3.1
|
(1.7)
|
(unaudited)
|
First
Quarter 2020
|
Turnover
|
USG
|
UVG
|
UPG
|
|
€bn
|
%
|
%
|
%
|
Developed
markets
|
5.1
|
2.8
|
3.9
|
(1.1)
|
Emerging
markets
|
7.3
|
(1.8)
|
(2.2)
|
0.4
|
North
America
|
2.4
|
4.8
|
5.6
|
(0.7)
|
Latin
America
|
1.6
|
4.9
|
1.7
|
3.1
|
Asia/AMET/RUB
Underlying sales declined 3.7% led by volume decline of 3.4% and
price decline of 0.3%. China suffered a significant decline as the
lock-down measures restricted out of home eating and shopping trips
across much of the quarter. Lock-down measures in India commenced
from mid-March, followed by a strict national lock-down, severely
limiting the flow of goods and leading to a decline in South Asia.
Indonesia and Vietnam performed strongly although the Philippines
declined across divisions as restrictive social measures were put
in place.
The Americas
Underlying sales growth in North America was 4.8% with 5.6% from
volume and a decline of 0.7% from price. Our mainstream retail
business grew by 7.2%, helped by household stocking in March. Food
service, ice cream and our Prestige portfolio are negatively
impacted by the social restriction measures.
Latin America grew 4.9% with 3.1% from price and 1.7% from volume.
Across the region, there was relatively limited impact in the
quarter from Covid-19, with a small positive impact from household
stocking in late March and a negative impact from out of home ice
cream. Growth in Brazil was helped by continued strength in
deodorants and fabric solutions.
Europe
Underlying sales grew 1.4% with volume growth of 3.1% and price
down 1.7%. Sales across hygiene products and foods benefited from
household stocking, particularly in the UK and Germany. Central and
Eastern Europe had a strong quarter led by volume. Italy declined
following a prolonged lock-down impacting out of home consumption.
Across Europe, ice cream sales declined without the normal retail
sell-in ahead of the Easter holiday, which normally marks the
beginning of the ice cream season. Many out of home ice cream
outlets were closed during March in Europe. Price declined,
reflecting a difficult pricing environment.
COMPETITION
INVESTIGATIONS
|
As previously disclosed, along with other consumer products
companies and retail customers, Unilever is involved in a number of
ongoing investigations and cases by national competition
authorities, including those within Italy, Greece and South Africa.
These proceedings and investigations are at various stages and
concern a variety of product markets. Where appropriate, provisions
are made and contingent liabilities disclosed in relation to such
matters.
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 training and compliance programme on an ongoing
basis.
The Boards have determined to pay a quarterly interim dividend
for Q1 2020 at the following rates which are equivalent
in value between the two companies at the rate of exchange applied
under the terms of the Equalisation Agreement:
Per Unilever N.V. ordinary share:
€ 0.4104
Per Unilever PLC ordinary share:
£ 0.3614
Per Unilever N.V. New York
share:
US$ 0.4445
Per Unilever PLC American Depositary
Receipt:
US$ 0.4445
The quarterly interim dividends have been determined in euros and
converted into equivalent sterling and US dollar amounts using
exchange rates issued by WM/Reuters on 21 April 2020.
US dollar cheques for the quarterly interim dividend will be mailed
on 4 June 2020 to holders of record at the close of business on 15
May 2020. In the case of the NV New York shares, Netherlands
withholding tax will be deducted.
The quarterly dividend calendar for the remainder of 2020 will be
as follows:
|
Announcement
Date
|
Ex-Dividend
Date
|
Record
Date
|
Payment
Date
|
Q1 2020
Dividend
|
23
April 2020
|
14 May
2020
|
15 May
2020
|
4 June
2020
|
Q2 2020
Dividend
|
23 July 2020
|
6
August 2020
|
7
August 2020
|
9
September 2020
|
Q3 2020
Dividend
|
22
October 2020
|
5
November 2020
|
6
November 2020
|
2
December 2020
|
SEGMENT INFORMATION - DIVISIONS
|
(unaudited)
First Quarter
|
Beauty
& Personal
Care
|
Home
Care
|
Foods
& Refreshment
|
Total
|
Turnover (€
million)
|
|
|
|
|
2019
|
5,204
|
2,691
|
4,521
|
12,416
|
2020
|
5,298
|
2,717
|
4,425
|
12,440
|
Change
(%)
|
1.8
|
1.0
|
(2.1)
|
0.2
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
1.6
|
0.3
|
0.1
|
0.8
|
Disposals
(%)
|
-
|
-
|
(0.6)
|
(0.2)
|
Currency-related
items (%), of which:
|
(0.1)
|
(1.7)
|
-
|
(0.4)
|
Exchange rates changes (%)
|
(0.4)
|
(2.0)
|
(0.2)
|
(0.7)
|
Extreme price growth in hyperinflationary markets* (%)
|
0.3
|
0.4
|
0.2
|
0.3
|
|
|
|
|
|
Underlying sales
growth (%)
|
0.3
|
2.4
|
(1.7)
|
-
|
Price*
(%)
|
(0.5)
|
(0.2)
|
0.1
|
(0.2)
|
Volume
(%)
|
0.7
|
2.6
|
(1.8)
|
0.2
|
SEGMENT INFORMATION - GEOGRAPHICAL AREA
|
(unaudited)
First Quarter
|
Asia
/
AMET
/
RUB
|
The
Americas
|
Europe
|
Total
|
|
|
|
Turnover (€
million)
|
|
|
|
|
|
2019
|
5,931
|
3,872
|
2,613
|
12,416
|
|
2020
|
5,744
|
4,035
|
2,661
|
12,440
|
|
Change
(%)
|
(3.2)
|
4.2
|
1.8
|
0.2
|
|
Impact of:
|
|
|
|
|
|
Acquisitions
(%)
|
-
|
1.8
|
0.8
|
0.8
|
|
Disposals
(%)
|
(0.2)
|
(0.1)
|
(0.5)
|
(0.2)
|
|
Currency-related
items (%), of which:
|
0.7
|
(2.3)
|
0.2
|
(0.4)
|
|
Exchange rates changes (%)
|
0.6
|
(3.2)
|
0.2
|
(0.7)
|
|
Extreme price growth in hyperinflationary markets* (%)
|
-
|
0.9
|
-
|
0.3
|
|
|
|
|
|
|
|
Underlying sales
growth (%)
|
(3.7)
|
4.8
|
1.4
|
-
|
|
Price*
(%)
|
(0.3)
|
0.9
|
(1.7)
|
(0.2)
|
|
Volume
(%)
|
(3.4)
|
3.9
|
3.1
|
0.2
|
|
* Underlying price growth in excess of 26% per
year in hyperinflationary economies has been excluded when
calculating the price growth in the tables above, and an
equal and opposite amount is shown as extreme price
growth in hyperinflationary markets.
In our financial reporting we use certain measures that are not
defined by generally accepted accounting principles (GAAP) such as
IFRS. We believe this information, along with comparable GAAP
measurements, is useful to investors because it provides a basis
for measuring our operating performance, and our ability to retire
debt and invest in new business opportunities. Our management uses
these financial measures, along with the most directly comparable
GAAP financial measures, in evaluating our operating performance
and value creation. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information presented in compliance with GAAP. Wherever appropriate
and practical, we provide reconciliations to relevant GAAP
measures. The non-GAAP measures used in this announcement are
underlying sales growth, underlying volume growth and underlying
price growth (see below).
Underlying sales growth (USG)
Underlying sales growth (USG) refers to the increase in turnover
for the period, excluding any change in turnover resulting from
acquisitions, disposals, changes in currency and price growth in
excess of 26% in hyperinflationary economies. Inflation of 26% per
year compounded over three years is one of the key indicators
within IAS 29 to assess whether an economy is deemed to be
hyperinflationary. We believe this measure provides valuable
additional information on the underlying sales performance of the
business and is a key measure used internally. The impact of
acquisitions and disposals is excluded from USG for a period of 12
calendar months from the applicable closing date. Turnover from
acquired brands that are launched in countries where they were not
previously sold is included in USG as such turnover is more
attributable to our existing sales and distribution network than
the acquisition itself. The reconciliation of changes in the GAAP
measure turnover to USG is provided on page 5.
Underlying price growth (UPG)
Underlying price growth (UPG) is part of USG and means, for the
applicable period, the increase in turnover attributable to changes
in prices during the period. UPG therefore excludes the impact to
USG due to (i) the volume of products sold; and (ii) the
composition of products sold during the period. In determining
changes in price we exclude the impact of price growth in excess of
26% per year in hyperinflationary economies as explained in USG
above. The measures and the related turnover GAAP measure are set
out on page 5.
Underlying volume growth (UVG)
Underlying volume growth (UVG) is part of USG and means, for the
applicable period, the increase in turnover in such period
calculated as the sum of (i) the increase in turnover attributable
to the volume of products sold; and (ii) the increase in turnover
attributable to the composition of products sold during such
period. UVG therefore excludes any impact on USG due to changes in
prices. The measures and the related turnover GAAP measure are set
out on page 5.
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.
|
|
|
Media: Media Relations Team
|
Investors: Investor Relations Team
|
|
UK
or
NL
or
|
+44 78 2527 3767
+44 77
7999 9683
+31 10
217 4844
+31 62
375 8385
|
|
+44 20 7822 6830
|
|
|
|
|
|
|
|
|
|
There will be a web cast of the results presentation available
at:
www.unilever.com/investor-relations/results-and-presentations/latest-results