UNILEVER
PLC
|
|
|
|
/S/ R SOTAMAA
|
BY R SOTAMAA
|
CHIEF LEGAL OFFICER AND GROUP SECRETARY
|
EXHIBIT
NUMBER
|
EXHIBIT
DESCRIPTION
|
99
|
Notice
to London Stock Exchange dated 30
January 2020
|
|
Final Results
|
Underlying performance
|
GAAP measures
|
||||
|
|
vs 2018
|
|
|
vs 2018
|
Full
Year
|
|
|
|
|
|
Underlying
sales growth (USG)(a)
|
|
2.9%
|
Turnover
|
€52.0bn
|
2.0%
|
Underlying
operating margin(b)
|
19.1%
|
50bps
|
Operating
margin(b)
|
16.8%
|
(800)bps
|
Underlying
earnings per share(b)
|
€2.55
|
8.1%
|
Diluted
earnings per share(b)
|
€2.14
|
(38.4)%
|
Free
cash flow(b)
|
€6.1bn
|
€0.7bn
|
Net
profit(b)
|
€6.0bn
|
(38.4)%
|
Fourth
Quarter
|
|
|
|
|
|
USG(a)
|
|
1.5%
|
Turnover
|
€12.6bn
|
4.0%
|
Quarterly
dividend payable in March 2020 €0.4104 per share
|
Alan
Jope: Chief Executive Officer statement
|
FULL
YEAR OPERATIONAL REVIEW: DIVISIONS
|
Fourth
Quarter 2019
|
Full
Year 2019
|
||||||||
(unaudited)
|
Turnover
|
USG*
|
UVG
|
UPG*
|
Turnover
|
USG*
|
UVG
|
UPG*
|
Change
in underlying operating margin
|
|
€bn
|
%
|
%
|
%
|
€bn
|
%
|
%
|
%
|
bps
|
Unilever
|
12.6
|
1.5
|
1.1
|
0.4
|
52.0
|
2.9
|
1.2
|
1.6
|
50
|
Beauty & Personal Care
|
5.6
|
0.5
|
1.3
|
(0.8)
|
21.9
|
2.6
|
1.7
|
0.9
|
70
|
Home Care
|
2.7
|
3.7
|
3.0
|
0.7
|
10.8
|
6.1
|
2.9
|
3.1
7%1%
|
150
|
Foods & Refreshment
|
4.3
|
1.4
|
(0.5)
|
1.9
|
19.3
|
1.5
|
(0.2)
|
1.7
|
(20)
|
FULL
YEAR OPERATIONAL REVIEW: GEOGRAPHICAL AREA
|
|
Fourth
Quarter 2019
|
Full
Year 2019
|
|||||||
(unaudited)
|
Turnover
|
USG*
|
UVG
|
UPG*
|
Turnover
|
USG*
|
UVG
|
UPG*
|
Change in underlying operating margin
|
|
€bn
|
%
|
%
|
%
|
€bn
|
%
|
%
|
%
|
bps
|
Unilever
|
12.6
|
1.5
|
1.1
|
0.4
|
52.0
|
2.9
|
1.2
|
1.6
|
50
|
Asia/AMET/RUB
|
5.8
|
2.1
|
1.9
|
0.2
|
24.1
|
5.0
|
2.7
|
2.3
|
90
|
The Americas
|
4.2
|
2.0
|
(0.4)
|
2.5
|
16.5
|
2.4
|
(0.2)
|
2.6
|
170
|
Europe
|
2.6
|
(0.8)
|
1.5
|
(2.3)
|
11.4
|
(0.6)
|
0.3
|
(0.9)
|
(170)
|
|
Fourth
Quarter 2019
|
Full
Year 2019
|
||||||
(unaudited)
|
Turnover
|
USG*
|
UVG
|
UPG*
|
Turnover
|
USG*
|
UVG
|
UPG*
|
|
€bn
|
%
|
%
|
%
|
€bn
|
%
|
%
|
%
|
Emerging markets
|
7.5
|
2.8
|
1.5
|
1.3
|
31.0
|
5.3
|
2.2
|
3.1
|
Developed markets
|
5.1
|
(0.6)
|
0.4
|
(1.0)
|
21.0
|
(0.5)
|
(0.1)
|
(0.4)
|
North America
|
2.4
|
0.6
|
(0.2)
|
0.8
|
9.4
|
0.3
|
(0.4)
|
0.7
|
Latin America
|
1.8
|
3.8
|
(0.8)
|
4.6
|
7.1
|
5.1
|
-
|
5.1
|
ADDITIONAL
COMMENTARY ON THE FINANCIAL STATEMENTS – FULL YEAR
|
COMPETITION INVESTIGATIONS
|
NON-GAAP MEASURES |
|
Annual
Average rate in 2019
|
Annual
Average rate in 2018
|
Brazilian Real (€1 = BRL)
|
4.367
|
4.282
|
Chinese Yuan (€1 = CNY)
|
7.725
|
7.807
|
Indian Rupee (€1 = INR)
|
78.812
|
80.730
|
Indonesia Rupiah (€1 = IDR)
|
15863
|
16831
|
Philippine Peso (€1 = PHP)
|
58.112
|
62.379
|
UK Pound Sterling (€1 = GBP)
|
0.880
|
0.884
|
US Dollar (€1 = US $)
|
1.120
|
1.185
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Operating profit
|
8,708
|
12,639
|
Non-underlying items within operating profit (see note
2)
|
1,239
|
(3,176)
|
Underlying operating profit
|
9,947
|
9,463
|
Turnover
|
51,980
|
50,982
|
Operating margin (%)
|
16.8%
|
24.8%
|
Underlying operating margin (%)
|
19.1%
|
18.6%
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Operating profit
|
8,708
|
12,639
|
Depreciation and amortisation
|
1,964
|
2,008
|
Non-underlying items within operating profit
|
1,239
|
(3,176)
|
Underlying earnings before interest, taxes, depreciation and
amortisation (UEBITDA)
|
11,911
|
11,471
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Taxation
|
2,263
|
2,572
|
Tax impact of:
|
|
|
Non-underlying items within operating
profit(b)
|
309
|
(259)
|
Non-underlying items not in operating profit but
within net profit(b)
|
(196)
|
(29)
|
Taxation before tax impact of non-underlying
items
|
2,376
|
2,284
|
Profit before taxation
|
8,289
|
12,360
|
Non-underlying items within operating profit before
tax(b)
|
1,239
|
(3,176)
|
Non-underlying items not in operating profit but within net
profit before tax(c)
|
(32)
|
(122)
|
Share of net profit/(loss) of joint ventures and
associates
|
(176)
|
(185)
|
Profit before tax excluding non-underlying items before tax and
share of net profit/(loss) of joint ventures and
associates
|
9,320
|
8,877
|
Underlying effective tax rate
|
25.5%
|
25.7%
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Underlying profit attributable to shareholders’ equity
(see note 6)
|
6,688
|
6,345
|
Impact of translation from current to constant exchange rates
and translational
|
|
|
hedges
|
13
|
46
|
Impact of price growth in excess of 26% per year in
hyperinflationary economies
|
(108)
|
(10)
|
Constant underlying earnings attributable to
shareholders’ equity
|
6,593
|
6,381
|
Diluted combined average number of share units (millions of
units)
|
2,626.7
|
2,694.8
|
Constant underlying EPS (€)
|
2.51
|
2.37
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Net profit
|
6,026
|
9,788
|
Taxation
|
2,263
|
2,572
|
Share
of net profit of joint ventures/associates and other income from
non-current investments
|
(176)
|
(207)
|
Net monetary gain arising from hyperinflationary
economies
|
(32)
|
(122)
|
Net finance costs
|
627
|
608
|
Operating profit
|
8,708
|
12,639
|
Depreciation, amortisation and impairment
|
1,982
|
2,216
|
Changes in working capital
|
(9)
|
(793)
|
Pensions and similar obligations less payments
|
(260)
|
(128)
|
Provisions less payments
|
7
|
55
|
Elimination of (profits)/losses on disposals
|
60
|
(4,313)
|
Non-cash charge for share-based compensation
|
151
|
196
|
Other adjustments
|
2
|
(260)
|
Cash flow from operating activities
|
10,641
|
9,612
|
Income tax paid
|
(2,532)
|
(2,294)
|
Net capital expenditure
|
(1,429)
|
(1,424)
|
Net interest paid
|
(548)
|
(461)
|
Free cash flow
|
6,132
|
5,433
|
Net cash flow (used in)/from investing
activities
|
(2,237)
|
4,644
|
Net cash flow (used in)/from financing
activities
|
(4,667)
|
(12,113)
|
€ million
|
As
at
|
As
at
|
|
31
December
|
31
December
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Total financial liabilities
|
(28,257)
|
(26,738)
|
Current
financial liabilities
|
(4,691)
|
(3,613)
|
Non-current
financial liabilities
|
(23,566)
|
(23,125)
|
Cash and cash equivalents as per balance sheet
|
4,185
|
3,230
|
Cash
and cash equivalents as per cash flow statement
|
4,116
|
3,090
|
Add
bank overdrafts deducted therein
|
69
|
140
|
Less
cash and cash equivalents classified as held for sale
|
-
|
-
|
Other current financial assets
|
907
|
874
|
Non-current financial asset derivatives that relate to financial
liabilities
|
114
|
-
|
Net debt
|
(23,051)
|
(22,634)
|
€ million
|
Full
Year
|
|
(unaudited)
|
2019
|
2018
Restated(a)
|
Underlying operating profit before
tax(b)
|
9,947
|
9,463
|
Tax on underlying operating
profit(c)
|
(2,536)
|
(2,432)
|
Underlying operating profit after tax
|
7,411
|
7,031
|
Goodwill
|
18,067
|
17,341
|
Intangible
assets
|
12,962
|
12,152
|
Property,
plant and equipment
|
12,062
|
12,088
|
Net
assets held for sale
|
81
|
108
|
Inventories
|
4,164
|
4,301
|
Trade
and other current receivables
|
6,695
|
6,482
|
Trade
payables and other current liabilities
|
(14,768)
|
(14,457)
|
Period-end
invested capital
|
39,263
|
38,015
|
Average invested capital for the period
|
38,639
|
38,749
|
Return on invested capital
|
19.2%
|
18.1%
|
CAUTIONARY
STATEMENT
|
ENQUIRIES
|
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 61
500 8293
|
|
+44 20
7822 6830
|
INCOME
STATEMENT
|
€ million
|
Full
Year
|
|||
|
2019
|
2018
Restated(a)
|
Increase/
|
|
(Decrease)
|
||||
Current
|
Constant
|
|||
rates
|
rates
|
|||
|
|
|
|
|
Turnover
|
51,980
|
50,982
|
2.0%
|
2.7%
|
|
|
|
|
|
Operating profit
|
8,708
|
12,639
|
(31.1)%
|
(31.4)%
|
|
|
|
|
|
Which
includes non-underlying items credits/(charges) of
|
(1,239)
|
3,176
|
|
|
|
|
|
|
|
Net finance costs
|
(627)
|
(608)
|
|
|
Finance
income
|
224
|
135
|
|
|
Finance
costs
|
(821)
|
(718)
|
|
|
Pensions
and similar obligations
|
(30)
|
(25)
|
|
|
|
|
|
|
|
Net monetary gain/(loss) arising from hyperinflationary
economies
|
32
|
122
|
|
|
|
|
|
|
|
Share of net profit/(loss) of joint ventures and
associates
|
176
|
185
|
|
|
Which
includes non-underlying item credits/(charges) of
|
3
|
32
|
|
|
Other income/(loss) from non-current investments and
associates
|
-
|
22
|
|
|
|
|
|
|
|
Profit before taxation
|
8,289
|
12,360
|
(32.9)%
|
(32.5)%
|
|
|
|
|
|
Taxation
|
(2,263)
|
(2,572)
|
|
|
Which
includes tax impact of non-underlying items of
|
113
|
(288)
|
|
|
|
|
|
|
|
Net profit
|
6,026
|
9,788
|
(38.4)%
|
(37.9)%
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Non-controlling
interests
|
401
|
419
|
|
|
Shareholders’
equity
|
5,625
|
9,369
|
(40.0)%
|
(39.3)%
|
Combined
earnings per share
|
|
|
|
|
Basic earnings per share (euros)
|
2.15
|
3.49
|
(38.4)%
|
(37.7)%
|
Diluted earnings per share (euros)
|
2.14
|
3.48
|
(38.4)%
|
(37.7)%
|
STATEMENT OF COMPREHENSIVE INCOME
|
€ million
|
Full
Year
|
|
|
2019
|
2018
Restated(a)
|
|
|
|
Net profit
|
6,026
|
9,788
|
|
|
|
Other comprehensive income
|
|
|
Items that will not be reclassified to profit or loss, net of
tax:
|
|
|
Gains/(losses) on equity instruments measured at
fair value through other comprehensive income
|
29
|
51
|
Remeasurement
of defined benefit pension plans
|
353
|
(328)
|
Items that may be reclassified subsequently to profit or
loss, net of tax:
|
|
|
Gains/(losses)
on cash flow hedges
|
176
|
(55)
|
Currency
retranslation gains/(losses)
|
(15)
|
(839)
|
|
|
|
Total comprehensive income
|
6,569
|
8,617
|
|
|
|
Attributable to:
|
|
|
Non-controlling
interests
|
407
|
407
|
Shareholders’
equity
|
6,162
|
8,210
|
STATEMENT
OF CHANGES IN EQUITY
|
€ million
|
Called
up share capital
|
Share
premium account
|
Other
reserves
|
Retained
profit
|
Total
|
Non-
controlling interest
|
Total
equity
|
1
January - 2019
|
|
|
|
|
|
|
|
1
January 2019 as previously reported
|
464
|
129
|
(15,286)
|
26,265
|
11,572
|
720
|
12,292
|
IFRS 16
restatement(a)
|
-
|
-
|
68
|
(243)
|
(175)
|
-
|
(175)
|
Impact
of adopting IFRIC 23(a)
|
-
|
-
|
-
|
(38)
|
(38)
|
-
|
(38)
|
1
January 2019 after restatement
|
464
|
129
|
(15,218)
|
25,984
|
11,359
|
720
|
12,079
|
Profit
or loss for the period
|
-
|
-
|
-
|
5,625
|
5,625
|
401
|
6,026
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
Gains/(losses)
on:
|
|
|
|
|
|
|
|
Equity
instruments
|
-
|
-
|
25
|
-
|
25
|
4
|
29
|
Cash
flow hedges
|
-
|
-
|
176
|
-
|
176
|
-
|
176
|
Remeasurements of
defined benefit pension plans
|
-
|
-
|
-
|
352
|
352
|
1
|
353
|
Currency
retranslation gains/(losses)
|
-
|
-
|
(18)
|
2
|
(16)
|
1
|
(15)
|
Total
comprehensive income
|
-
|
-
|
183
|
5,979
|
6,162
|
407
|
6,569
|
Dividends
on ordinary capital
|
-
|
-
|
-
|
(4,223)
|
(4,223)
|
-
|
(4,223)
|
Cancellation
of treasury shares(b)
|
(44)
|
-
|
9,416
|
(9,372)
|
-
|
-
|
-
|
Other
movements in treasury shares(c)
|
-
|
-
|
64
|
(231)
|
(167)
|
-
|
(167)
|
Share-based
payment credit(d)
|
-
|
-
|
-
|
151
|
151
|
-
|
151
|
Dividends
paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
(435)
|
(435)
|
Currency
retranslation gains/(losses) net of tax
|
-
|
5
|
-
|
-
|
5
|
-
|
5
|
Hedging
gain/(loss) transferred to non-financial assets
|
-
|
-
|
32
|
-
|
32
|
-
|
32
|
Other
movements in equity
|
-
|
-
|
(51)
|
(76)
|
(127)
|
2
|
(125)
|
31 December 2019
|
420
|
134
|
(5,574)
|
18,212
|
13,192
|
694
|
13,886
|
1
January - 2018
|
|
|
|
|
|
|
|
1
January 2018 as previously reported
|
484
|
130
|
(13,633)
|
27,041
|
14,022
|
758
|
14,780
|
IFRS 16
restatement(a)
|
-
|
-
|
46
|
(235)
|
(189)
|
-
|
(189)
|
1
January 2018 after restatement
|
484
|
130
|
(13,587)
|
26,806
|
13,833
|
758
|
14,591
|
Profit
or loss for the period
|
-
|
-
|
-
|
9,369
|
9,369
|
419
|
9,788
|
Other
comprehensive income, net of tax:
|
|
|
|
|
|
|
|
Gains/(losses)
on:
|
|
|
|
|
|
|
|
Equity
instruments
|
-
|
-
|
51
|
-
|
51
|
-
|
51
|
Cash
flow hedges
|
-
|
-
|
(56)
|
-
|
(56)
|
1
|
(55)
|
Remeasurements of
defined benefit pension plans
|
-
|
-
|
-
|
(330)
|
(330)
|
2
|
(328)
|
Currency
retranslation gains/(losses)
|
-
|
-
|
(814)
|
(10)
|
(824)
|
(15)
|
(839)
|
Total
comprehensive income
|
-
|
-
|
(819)
|
9,029
|
8,210
|
407
|
8,617
|
Dividends
on ordinary capital
|
-
|
-
|
-
|
(4,081)
|
(4,081)
|
-
|
(4,081)
|
Repurchase
of shares(e)
|
-
|
-
|
(6,020)
|
-
|
(6,020)
|
-
|
(6,020)
|
Cancellation
of treasury shares (b)
|
(20)
|
-
|
5,069
|
(5,049)
|
-
|
-
|
-
|
Other
movements in treasury shares(c)
|
-
|
-
|
(8)
|
(245)
|
(253)
|
-
|
(253)
|
Share-based
payment credit(d)
|
-
|
-
|
-
|
196
|
196
|
-
|
196
|
Dividends
paid to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
(342)
|
(342)
|
Currency
retranslation gains/(losses) net of tax
|
-
|
(1)
|
-
|
-
|
(1)
|
-
|
(1)
|
Hedging
gain/(loss) transferred to non-financial assets
|
-
|
-
|
71
|
-
|
71
|
-
|
71
|
Other
movements in equity(f)
|
-
|
-
|
76
|
(634)
|
(558)
|
(103)
|
(661)
|
31 December 2018
|
464
|
129
|
(15,218)
|
26,022
|
11,397
|
720
|
12,117
|
BALANCE
SHEET
|
€ million
|
As
at
31
December
2019
|
As
at
31
December
2018
Restated(a)
|
As
at
1
January
2018
Restated(a)
|
|
|||
Non-current assets
|
|
|
|
Goodwill
|
18,067
|
17,341
|
16,881
|
Intangible assets
|
12,962
|
12,152
|
11,520
|
Property, plant and equipment
|
12,062
|
12,088
|
12,270
|
Pension asset for funded schemes in surplus
|
2,422
|
1,728
|
2,173
|
Deferred tax assets
|
1,336
|
1,152
|
1,118
|
Financial assets
|
874
|
642
|
675
|
Other non-current assets
|
653
|
530
|
441
|
|
48,376
|
45,633
|
45,078
|
Current assets
|
|
|
|
Inventories
|
4,164
|
4,301
|
3,962
|
Trade and other current receivables
|
6,695
|
6,482
|
5,219
|
Current tax assets
|
397
|
472
|
488
|
Cash and cash equivalents
|
4,185
|
3,230
|
3,317
|
Other financial assets
|
907
|
874
|
770
|
Assets held for sale
|
82
|
119
|
3,224
|
|
16,430
|
15,478
|
16,980
|
|
|
|
|
Total assets
|
64,806
|
61,111
|
62,058
|
Current liabilities
|
|
|
|
Financial liabilities
|
4,691
|
3,613
|
8,378
|
Trade payables and other current liabilities
|
14,768
|
14,457
|
13,426
|
Current tax liabilities
|
898
|
1,445
|
1,088
|
Provisions
|
620
|
624
|
525
|
Liabilities held for sale
|
1
|
11
|
170
|
|
20,978
|
20,150
|
23,587
|
Non-current liabilities
|
|
|
|
Financial liabilities
|
23,566
|
23,125
|
18,039
|
Non-current tax liabilities
|
182
|
174
|
118
|
Pensions and post-retirement healthcare
liabilities:
|
|
|
|
Funded schemes in
deficit
|
1,157
|
1,209
|
1,225
|
Unfunded
schemes
|
1,461
|
1,393
|
1,509
|
Provisions
|
664
|
697
|
794
|
Deferred tax liabilities
|
2,573
|
1,900
|
1,888
|
Other non-current liabilities
|
339
|
346
|
700
|
|
29,942
|
28,844
|
24,273
|
|
|
|
|
Total liabilities
|
50,920
|
48,994
|
47,860
|
Equity
|
|
|
|
Shareholders’ equity
|
13,192
|
11,397
|
13,440
|
Non-controlling interests
|
694
|
720
|
758
|
Total equity
|
13,886
|
12,117
|
14,198
|
|
|
|
|
Total liabilities and equity
|
64,806
|
61,111
|
62,058
|
CASH
FLOW STATEMENT
|
€ million
|
Full
Year
|
|
|
2019
|
2018
Restated(a)
|
Net profit
|
6,026
|
9,788
|
Taxation
|
2,263
|
2,572
|
Share
of net profit of joint ventures/associates and other (income)/loss
from non-current investments and associates
|
(176)
|
(207)
|
Net monetary (gain)/loss arising from hyperinflationary
economies
|
(32)
|
(122)
|
Net finance costs
|
627
|
608
|
Operating profit
|
8,708
|
12,639
|
Depreciation, amortisation and impairment
|
1,982
|
2,216
|
Changes in working capital
|
(9)
|
(793)
|
Pensions and similar obligations less payments
|
(260)
|
(128)
|
Provisions less payments
|
7
|
55
|
Elimination of (profits)/losses on disposals
|
60
|
(4,313)
|
Non-cash charge for share-based compensation
|
151
|
196
|
Other adjustments(b)
|
2
|
(260)
|
Cash flow from operating activities
|
10,641
|
9,612
|
Income tax paid
|
(2,532)
|
(2,294)
|
Net cash flow from operating activities
|
8,109
|
7,318
|
Interest received
|
146
|
110
|
Net capital expenditure
|
(1,429)
|
(1,424)
|
Other acquisitions and disposals
|
(945)
|
5,757
|
Other investing activities
|
(9)
|
201
|
|
|
|
Net cash flow (used in)/from investing
activities
|
(2,237)
|
4,644
|
Dividends paid on ordinary share capital
|
(4,209)
|
(4,066)
|
Interest paid
|
(694)
|
(571)
|
Change in financial liabilities
|
901
|
(506)
|
Repurchase of shares
|
-
|
(6,020)
|
Other movements on treasury shares
|
(201)
|
(257)
|
Other financing activities
|
(464)
|
(693)
|
|
|
|
Net cash flow (used in)/from financing
activities
|
(4,667)
|
(12,113)
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash
equivalents
|
1,205
|
(151)
|
Cash and cash equivalents at the beginning of the
period
|
3,090
|
3,169
|
|
|
|
Effect of foreign exchange rate changes
|
(179)
|
72
|
|
|
|
Cash and cash equivalents at the end of the
period
|
4,116
|
3,090
|
NOTES TO THE CONDENSED FINANCIAL STATEMENTS |
1 ACCOUNTING INFORMATION AND POLICIES |
2 SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT |
€ million
|
Full
Year
|
|
|
2019
|
2018
|
Acquisition and disposal-related
costs(a)
|
(132)
|
76
|
Gain/(loss) on disposal of group
companies(b)
|
70
|
4,331
|
Restructuring costs(c)
|
(1,159)
|
(914)
|
Impairments(d)
|
(18)
|
(208)
|
One-off items(e)
|
-
|
(109)
|
Non-underlying
items within operating profit before tax
|
(1,239)
|
3,176
|
|
|
|
Tax
on non-underlying items within operating profit
|
309
|
(259)
|
Non-underlying
items within operating profit after tax
|
(930)
|
2,917
|
|
|
|
Share
of gain on disposal of spreads business in Portugal JV
|
3
|
32
|
Net
monetary gain arising from hyperinflationary economies
|
32
|
122
|
Non-underlying
items not in operating profit but within net profit before
tax
|
35
|
154
|
|
|
|
Tax
impact of non-underlying items not in operating profit but within
net profit:
|
|
|
Impact
of US tax reform
|
-
|
(29)
|
Taxes
related to the reorganisation of our European business
|
(175)
|
-
|
Hyperinflation
adjustment for Argentina deferred tax
|
(21)
|
-
|
Non-underlying
items not in operating profit but within net profit after
tax
|
(161)
|
125
|
|
|
|
Non-underlying items after tax(f)
|
(1,091)
|
3,042
|
|
|
|
Attributable to:
|
|
|
Non-controlling
interests
|
(28)
|
18
|
Shareholders’
equity
|
(1,063)
|
3,024
|
3
SEGMENT INFORMATION – DIVISIONS
|
Fourth Quarter
|
Beauty
&
Personal
Care
|
Home
Care
|
Foods
& Refreshment
|
Total
|
Turnover (€ million)
|
|
|
|
|
2018
|
5,353
|
2,589
|
4,208
|
12,150
|
2019
|
5,588
|
2,724
|
4,326
|
12,638
|
Change
(%)
|
4.4
|
5.2
|
2.8
|
4.0
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
1.4
|
0.5
|
0.4
|
0.8
|
Disposals
(%)
|
-
|
-
|
(0.8)
|
(0.3)
|
Currency-related items (%), of which:
|
2.5
|
1.0
|
1.8
|
2.0
|
Exchange rates changes (%)
|
1.7
|
0.4
|
(8.9)
|
(2.4)
|
Extreme price growth in hyperinflationary markets* (%)
|
0.8
|
0.6
|
11.7
|
4.5
|
Underlying sales
growth (%)
|
0.5
|
3.7
|
1.4
|
1.5
|
Price* (%)
|
(0.8)
|
0.7
|
1.9
|
0.4
|
Volume
(%)
|
1.3
|
3.0
|
(0.5)
|
1.1
|
Full Year
|
Beauty
&
Personal
Care
|
Home
Care
|
Foods
& Refreshment
|
Total
|
Turnover (€ million)
|
|
|
|
|
2018
|
20,624
|
10,131
|
20,227
|
50,982
|
2019
|
21,868
|
10,825
|
19,287
|
51,980
|
Change
(%)
|
6.0
|
6.9
|
(4.6)
|
2.0
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
0.9
|
0.3
|
0.6
|
0.7
|
Disposals
(%)
|
-
|
-
|
(7.5)
|
(3.0)
|
Currency-related items (%), of which:
|
2.4
|
0.4
|
1.0
|
1.5
|
Exchange rate changes (%)
|
1.7
|
(0.3)
|
(3.5)
|
(0.7)
|
Extreme price growth in hyperinflationary markets* (%)
|
0.6
|
0.7
|
4.7
|
2.2
|
Underlying sales growth
(%)
|
2.6
|
6.1
|
1.5
|
2.9
|
Price* (%)
|
0.9
|
3.1
|
1.7
|
1.6
|
Volume
(%)
|
1.7
|
2.9
|
(0.2)
|
1.2
|
|
|
|
|
|
Operating profit
(€ million)
|
|
|
|
|
2018(a)
|
4,165
|
1,187
|
7,287
|
12,639
|
2019
|
4,520
|
1,377
|
2,811
|
8,708
|
Underlying operating
profit (€
million)
|
|
|
|
|
2018(a)
|
4,543
|
1,344
|
3,576
|
9,463
|
2019
|
4,960
|
1,605
|
3,382
|
9,947
|
Operating margin
(%)
|
|
|
|
|
2018(a)
|
20.2
|
11.7
|
36.0
|
24.8
|
2019
|
20.7
|
12.7
|
14.6
|
16.8
|
Underlying operating
margin (%)
|
|
|
|
|
2018(a)
|
22.0
|
13.3
|
17.7
|
18.6
|
2019
|
22.7
|
14.8
|
17.5
|
19.1
|
4
SEGMENT INFORMATION – GEOGRAPHICAL AREA
|
Fourth Quarter
|
Asia /
AMET /
RUB
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2018
|
5,541
|
4,019
|
2,590
|
12,150
|
2019
|
5,866
|
4,181
|
2,591
|
12,638
|
Change
(%)
|
5.9
|
4.0
|
-
|
4.0
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
0.1
|
1.5
|
1.2
|
0.8
|
Disposals
(%)
|
(0.1)
|
(0.1)
|
(1.0)
|
(0.3)
|
Currency-related items (%), of which:
|
3.7
|
0.5
|
0.6
|
2.0
|
Exchange rates changes (%)
|
3.7
|
(11.6)
|
0.6
|
(2.4)
|
Extreme price growth in hyperinflationary markets* (%)
|
-
|
13.7
|
-
|
4.5
|
Underlying sales growth
(%)
|
2.1
|
2.0
|
(0.8)
|
1.5
|
Price* (%)
|
0.2
|
2.5
|
(2.3)
|
0.4
|
Volume
(%)
|
1.9
|
(0.4)
|
1.5
|
1.1
|
|
|
|
|
|
Full Year
|
Asia /
AMET /
RUB
|
The
Americas
|
Europe
|
Total
|
Turnover (€ million)
|
|
|
|
|
2018
|
22,868
|
16,020
|
12,094
|
50,982
|
2019
|
24,129
|
16,482
|
11,369
|
51,980
|
Change
(%)
|
5.5
|
2.9
|
(6.0)
|
2.0
|
Impact of:
|
|
|
|
|
Acquisitions
(%)
|
-
|
1.0
|
1.4
|
0.7
|
Disposals
(%)
|
(1.2)
|
(2.6)
|
(6.8)
|
(3.0)
|
Currency- related items (%), of which:
|
1.7
|
2.1
|
0.1
|
1.5
|
Exchange rates changes (%)
|
1.7
|
(4.5)
|
0.1
|
(0.7)
|
Extreme price growth in hyperinflationary markets* (%)
|
-
|
6.9
|
-
|
2.2
|
Underlying sales growth
(%)
|
5.0
|
2.4
|
(0.6)
|
2.9
|
Price* (%)
|
2.3
|
2.6
|
(0.9)
|
1.6
|
Volume
(%)
|
2.7
|
(0.2)
|
0.3
|
1.2
|
|
|
|
|
|
Operating profit
(€ million)
|
|
|
|
|
2018(a)
|
4,824
|
3,621
|
4,194
|
12,639
|
2019
|
4,418
|
2,683
|
1,607
|
8,708
|
Underlying operating
profit (€
million)
|
|
|
|
|
2018(a)
|
4,387
|
2,729
|
2,347
|
9,463
|
2019
|
4,857
|
3,078
|
2,012
|
9,947
|
Operating margin
(%)
|
|
|
|
|
2018(a)
|
21.1
|
22.6
|
34.7
|
24.8
|
2019
|
18.3
|
16.3
|
14.1
|
16.8
|
Underlying operating
margin (%)
|
|
|
|
|
2018(a)
|
19.2
|
17.0
|
19.4
|
18.6
|
2019
|
20.1
|
18.7
|
17.7
|
19.1
|
5
TAXATION
|
€ million
|
Full
Year 2019
|
Full
Year 2018
Restated(a)
|
||||
|
Before
tax
|
Tax
(charge)/ credit
|
After
tax
|
Before
tax
|
Tax
(charge)/ credit
|
After
tax
|
Gains/(losses)
on:
|
|
|
|
|
|
|
Equity
instruments at fair value through other
|
|
|
|
|
|
|
comprehensive
income
|
35
|
(6)
|
29
|
51
|
-
|
51
|
Cash
flow hedges
|
198
|
(22)
|
176
|
(70)
|
15
|
(55)
|
Remeasurements
of defined benefit pension plans
|
381
|
(28)
|
353
|
(437)
|
109
|
(328)
|
Currency
retranslation gains/(losses)
|
6
|
(21)
|
(15)
|
(847)
|
8
|
(839)
|
Other comprehensive income
|
620
|
(77)
|
543
|
(1,303)
|
132
|
(1,171)
|
6
COMBINED EARNINGS PER SHARE
|
|
2019
|
2018
Restated(a)
|
Combined EPS – Basic
|
|
|
Net profit attributable to shareholders’ equity
(€ million)
|
5,625
|
9,369
|
Average number of combined share units (millions of
units)
|
2,616.8
|
2,683.3
|
Combined EPS – basic (€)
|
2.15
|
3.49
|
|
|
|
Combined EPS – Diluted
|
|
|
Net profit attributable to shareholders’ equity
(€ million)
|
5,625
|
9,369
|
Adjusted average number of combined share units (millions of
units)
|
2,626.7
|
2,694.8
|
Combined EPS – diluted (€)
|
2.14
|
3.48
|
|
|
|
Underlying EPS
|
|
|
Net profit attributable to shareholders’ equity
(€ million)
|
5,625
|
9,369
|
Post tax impact of non-underlying items attributable to
shareholders’ equity (see note 2)
|
1,063
|
(3,024)
|
Underlying profit attributable to shareholders’
equity
|
6,688
|
6,345
|
Adjusted average number of combined share units (millions of
units)
|
2,626.7
|
2,694.8
|
Underlying EPS – diluted (€)
|
2.55
|
2.35
|
|
|
Millions
|
Number of shares at 31 December 2018 (net of treasury
shares)
|
|
2,614.2
|
Net movements in shares under incentive schemes
|
|
2.6
|
Number of shares at 31 December 2019
|
|
2,616.8
|
7
ACQUISITIONS AND DISPOSALS
|
Deal
completion date
|
Acquired/Disposed
business
|
28
January 2019
|
Acquired
the Laundress, a global premium eco-friendly laundry care business
in the US. The acquisition expands our portfolio into the premium
home care market.
|
5
February 2019
|
Acquired
Graze, the leading healthy snacking business in the UK. The
acquisition accelerates our presence in the healthy snacking and
out of home markets.
|
1
March 2019
|
Sold
the global Alsa baking and dessert business to Dr.
Oetker.
|
5
April 2019
|
Acquired
Garancia, a derma-cosmetic business in France. The acquisition
strengthens our prestige portfolio in the pharmacy
channel.
|
21
May 2019
|
Acquired
Olly Nutrition, a US based vitamins, minerals and supplements
business that accelerates our presence and competitiveness in the
wellness market.
|
28
June 2019
|
Acquired
Fluocaril and Parogencyl oral care businesses in France and Spain.
The acquisition complements our existing oral care portfolio and
strengthens our distribution in the European pharmacy
channel.
|
26
July 2019
|
Acquired
95% of Tatcha, a leading prestige skin care business in the US.
Tatcha is a modern skin care brand with a focus on natural
ingredients, product experience, premium design and packaging
quality.
|
30
August 2019
|
Acquired
Astrix, a personal and home care business in Bolivia that further
strengthens our local market competitiveness.
|
1
October 2019
|
Acquired
70% of Lenor, a premium skin care business based in Japan. The
acquisition expands our portfolio into Japanese beauty, premium
face and derma care in Japan and China.
|
1
October 2019
|
Acquired
75% of FruFru, a healthy food business in Romania which accelerates
our local presence and competitiveness in the healthy food
market.
|
8 FINANCIAL
INSTRUMENTS
|
€ million
|
31
December 2019
|
31
December 2018
|
||||
Current
|
Non-current
|
Total
|
Current
|
Non-current
|
Total
|
|
Cash
and cash equivalents
|
|
|
|
|
|
|
Cash at
bank and in hand
|
2,457
|
-
|
2,457
|
2,174
|
-
|
2,174
|
Short-term deposits
with maturity of less than three months
|
1,693
|
-
|
1,693
|
1,024
|
-
|
1,024
|
Other
cash equivalents
|
35
|
-
|
35
|
32
|
-
|
32
|
|
4,185
|
-
|
4,185
|
3,230
|
-
|
3,230
|
|
|
|
|
|
|
|
Other financial assets
|
|
|
|
|
|
|
Financial assets at
amortised cost(b)
|
578
|
220
|
798
|
382
|
247
|
629
|
Financial assets at
fair value through other comprehensive income(c)
|
-
|
266
|
266
|
154
|
175
|
329
|
Financial assets at
fair value through profit or loss:
|
|
|
|
|
|
|
Derivatives that
relate to financial liabilities
|
20
|
114
|
134
|
194
|
-
|
194
|
Other(d)
|
309
|
274
|
583
|
144
|
220
|
364
|
|
907
|
874
|
1,781
|
874
|
642
|
1,516
|
Total financial assets(a)
|
5,092
|
874
|
5,966
|
4,104
|
642
|
4,746
|
€ million
|
Fair
value
|
Carrying
amount
|
||
As at
31 December 2019
|
As at
31 December 2018
Restated(a)
|
As at
31 December 2019
|
As at
31 December 2018
Restated(a)
|
|
Financial assets
|
|
|
|
|
Cash
and cash equivalents
|
4,185
|
3,230
|
4,185
|
3,230
|
Financial assets at
amortised cost
|
798
|
629
|
798
|
629
|
Financial assets at
fair value through other comprehensive income
|
266
|
329
|
266
|
329
|
Financial assets at
fair value through profit and loss:
|
|
|
|
|
Derivatives that
relate to financial liabilities
|
134
|
194
|
134
|
194
|
Other
|
583
|
364
|
583
|
364
|
|
5,966
|
4,746
|
5,966
|
4,746
|
Financial liabilities
|
|
|
|
|
Bank
loans and overdrafts
|
(853)
|
(816)
|
(853)
|
(814)
|
Bonds
and other loans
|
(26,525)
|
(23,691)
|
(25,032)
|
(23,391)
|
Lease
liabilities
|
(1,919)
|
(1,981)
|
(1,919)
|
(1,981)
|
Derivatives
|
(270)
|
(402)
|
(270)
|
(402)
|
Other
financial liabilities
|
(183)
|
(150)
|
(183)
|
(150)
|
|
(29,750)
|
(27,040)
|
(28,257)
|
(26,738)
|
€
million
|
Level
1
|
Level
2
|
Level
3
|
Level
1
|
Level
2
|
Level
3
|
|
As at
31 December 2019
|
As at
31 December 2018
|
||||
Assets at fair value
|
|
|
|
|
|
|
Financial
assets at fair value through other comprehensive
income
|
7
|
4
|
255
|
160
|
5
|
164
|
Financial
assets at fair value through profit or loss:
|
|
|
|
|
|
|
Derivatives(a)
|
-
|
208
|
-
|
-
|
276
|
-
|
Other
|
311
|
-
|
272
|
145
|
-
|
219
|
Liabilities at fair value
|
|
|
|
|
|
|
Derivatives(b)
|
-
|
(326)
|
-
|
-
|
(542)
|
-
|
Contingent
consideration
|
-
|
-
|
(154)
|
-
|
-
|
(142)
|
9
RESTATEMENT IMPACT OF IFRS 16
|
€ million
|
As at
31 December 2018
|
||
|
As
previously reported
|
Adjustments
for IFRS 16
|
Restated
|
Property,
plant and equipment
|
10,347
|
1,741
|
12,088
|
Deferred
tax assets
|
1,117
|
35
|
1,152
|
Other
non-current assets
|
648
|
(118)
|
530
|
Trade
and other current receivables
|
6,485
|
(3)
|
6,482
|
Total assets
|
59,456
|
1,655
|
61,111
|
|
|
|
|
Current
financial liabilities
|
3,235
|
378
|
3,613
|
Non-current
financial liabilities
|
21,650
|
1,475
|
23,125
|
Deferred
tax liability
|
1,923
|
(23)
|
1,900
|
Total liabilities
|
47,164
|
1,830
|
48,994
|
Income Statement (€ mill
|
|
|
|
Other
reserves
|
(15,286)
|
68
|
(15,218)
|
Retained
profit
|
26,265
|
(243)
|
26,022
|
Total equity
|
12,292
|
(175)
|
12,117
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
59,456
|
1,655
|
61,111
|
€ million
|
Full
Year 2018
|
||
|
As
previously reported
|
Adjustments
for IFRS 16
|
Restated
|
Income statement
|
|
|
|
Operating
profit
|
12,535
|
104
|
12,639
|
Finance
costs
|
(591)
|
(127)
|
(718)
|
Profit
before taxation
|
12,383
|
(23)
|
12,360
|
Taxation
|
(2,575)
|
3
|
(2,572)
|
Net
profit
|
9,808
|
(20)
|
9,788
|
Attributable
to: Shareholder’s equity
|
9,389
|
(20)
|
9,369
|
Statement of comprehensive income
|
|
|
|
|
Net
profit
|
9,808
|
(20)
|
9,788
|
|
Currency
retranslation gains/(losses)
|
(861)
|
22
|
(839)
|
|
Total
comprehensive income
|
8,615
|
2
|
8,617
|
|
Attributable
to: Shareholder’s equity
|
8,208
|
2
|
8,210
|
€ million
|
Full
Year 2018
|
||
As
previously reported
|
Adjustments
for IFRS 16
|
Restated
|
|
Cash flow statement
|
|||
Net
profit
|
9,808
|
(20)
|
9,788
|
Taxation
|
2,575
|
(3)
|
2,572
|
Net
finance costs
|
481
|
127
|
608
|
Operating
profit
|
12,535
|
104
|
12,639
|
Depreciation,
amortisation and impairment
|
1,747
|
469
|
2,216
|
Elimination
of (profits)/losses on disposals
|
(4,299)
|
(14)
|
(4,313)
|
Other
adjustments
|
(266)
|
6
|
(260)
|
Net cash flow from operating activities
|
6,753
|
565
|
7,318
|
Interest
paid
|
(477)
|
(94)
|
(571)
|
Change
in financial liabilities / Capital element of finance lease rental
payments
|
(10)
|
10
|
-
|
Capital
element of lease payments
|
-
|
(481)
|
(481)
|
Net cash flow (used in) / from financing activities
|
(11,548)
|
(565)
|
(12,113)
|
|
Full
Year 2018
|
|
|
As
previously reported
|
Restated
|
Combined EPS – Basic
|
|
|
Net
profit attributable to shareholders’ equity (€
million)
|
9,389
|
9,369
|
|
|
|
Average
number of combined share units (millions of units)
|
2,683.3
|
2,683.3
|
|
|
|
Combined
EPS – basic (€)
|
3.50
|
3.49
|
|
|
|
Combined EPS – Diluted
|
|
|
Net
profit attributable to shareholders’ equity (€
million)
|
9,389
|
9,369
|
|
|
|
Adjusted
average number of combined share units (millions of
units)
|
2,694.8
|
2,694.8
|
|
|
|
Combined
EPS – diluted (€)
|
3.48
|
3.48
|
Full Year 2018
|
Beauty
& Personal
Care
|
Home
Care
|
Foods
& Refreshment
|
Total
|
Operating profit (€ million)
|
|
|
|
|
2018 as
previously reported
|
4,130
|
1,160
|
7,245
|
12,535
|
Adjustments for
IFRS 16
|
35
|
27
|
42
|
104
|
2018
after restatement
|
4,165
|
1,187
|
7,287
|
12,639
|
Underlying operating profit (€ million)
|
|
|
|
|
2018 as
previously reported
|
4,508
|
1,317
|
3,534
|
9,359
|
Adjustments for
IFRS 16
|
35
|
27
|
42
|
104
|
2018
after restatement
|
4,543
|
1,344
|
3,576
|
9,463
|
Operating margin (%)
|
|
|
|
|
2018 as
previously reported
|
20.0
|
11.5
|
35.8
|
24.6
|
2018
after restatement
|
20.2
|
11.7
|
36.0
|
24.8
|
Underlying operating margin (%)
|
|
|
|
|
2018 as
previously reported
|
21.9
|
13.0
|
17.5
|
18.4
|
2018
after restatement
|
22.0
|
13.3
|
17.7
|
18.6
|
Full Year 2018
|
Asia/AMET/
RUB
|
The
Americas
|
Europe
|
Total
|
Operating profit (€ million)
|
|
|
|
|
2018 as
previously reported
|
4,777
|
3,586
|
4,172
|
12,535
|
Adjustments for
IFRS 16
|
47
|
35
|
22
|
104
|
2018
after restatement
|
4,824
|
3,621
|
4,194
|
12,639
|
Underlying operating profit (€ million)
|
|
|
|
|
2018 as
previously reported
|
4,340
|
2,694
|
2,325
|
9,359
|
Adjustments for
IFRS 16
|
47
|
35
|
22
|
104
|
2018
after restatement
|
4,387
|
2,729
|
2,347
|
9,463
|
Operating margin (%)
|
|
|
|
|
2018 as
previously reported
|
20.9
|
22.4
|
34.5
|
24.6
|
2018
after restatement
|
21.1
|
22.6
|
34.7
|
24.8
|
Underlying operating margin (%)
|
|
|
|
|
2018 as
previously reported
|
19.0
|
16.8
|
19.2
|
18.4
|
2018
after restatement
|
19.2
|
17.0
|
19.4
|
18.6
|
10
DIVIDENDS
|
|
Announcement
Date
|
Ex-Dividend
Date
|
Record
Date
|
Payment
Date
|
Q4 2019
Dividend
|
30
January 2020
|
20
February 2020
|
21
February 2020
|
18
March 2020
|
|
|
|
|
|
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
|
11
EVENTS AFTER THE BALANCE SHEET DATE
|
(unaudited)
|
2018
|
2017
|
||||||
|
Beauty
& Personal Care
|
Foods
& Refresh-ment
|
Home
Care
|
Total
|
Beauty
& Personal Care
|
Foods
& Refresh-ment
|
Home
Care
|
Total
|
Previously
reported
|
|
|
|
|
|
|
|
|
Underlying sales
growth
|
3.1
|
2.0
|
4.2
|
2.9
|
2.9
|
2.7
|
4.4
|
3.1
|
Underlying price
growth
|
0.6
|
0.7
|
1.9
|
0.9
|
1.5
|
3.0
|
2.3
|
2.3
|
Restated
|
|
|
|
|
|
|
|
|
Underlying sales
growth
|
3.4
|
2.2
|
4.7
|
3.2
|
2.9
|
2.1
|
4.4
|
2.8
|
Underlying price
growth
|
0.9
|
0.9
|
2.4
|
1.2
|
1.5
|
2.3
|
2.3
|
2.0
|
(unaudited)
|
2018
|
2017
|
||||||
|
Beauty
& Personal Care
|
Foods
& Refresh-ment
|
Home
Care
|
Total
|
Beauty
& Personal Care
|
Foods
& Refresh-ment
|
Home
Care
|
Total
|
Previously
reported
|
|
|
|
|
|
|
|
|
Currency related
items
|
(7.0)
|
(5.6)
|
(8.3)
|
(6.7)
|
(1.9)
|
(2.4)
|
(1.7)
|
(2.1)
|
Of
which:
|
|
|
|
|
|
|
|
|
Exchange rate
changes
|
|
|
|
|
|
|
|
|
Extreme
price growth in
|
|
|
|
|
|
|
|
|
hyperinflationary
markets
|
|
|
|
|
|
|
|
|
Restated
|
|
|
|
|
|
|
|
|
Currency related
items
|
(7.2)
|
(5.8)
|
(8.8)
|
(7.0)
|
(1.9)
|
(1.8)
|
(1.7)
|
(1.8)
|
Of
which:
|
|
|
|
|
|
|
|
|
Exchange rate
changes
|
(8.1)
|
(47.4)
|
(9.1)
|
(29.4)
|
(1.9)
|
(4.3)
|
(1.7)
|
(2.8)
|
Extreme
price growth in
|
|
|
|
|
|
|
|
|
hyperinflationary
markets
|
1.0
|
79.1
|
0.4
|
31.7
|
-
|
2.5
|
-
|
1.1
|