Unilever Plc · LSE:ULVR
Unilever — H1 2024 Earnings Presentation
22 slides from Unilever's earnings presentation, Jul 25, 2024
Slide 1: H1 2024 Results
H1 2024 Results Hein Schumacher & Fernando Fernandez 25 July 2024
Slide 2: Safe harbour statement
Safe harbour statement This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning the financial condition, results of operations and businesses of the Unilever G
Slide 3: Driving progress in our focus areas
Driving progress in our focus areas 1 Accelerated volume growth +2.6% H1 UVG 2 Gross Margin expansion 45.7% H1 GM; +420bps vs. PY 3 Reinvesting in our brands €0.7bn H1 incremental BMI 4 Strong profit growth +17.1% H1 UOP growth 3
Slide 4: Accelerated volume growth
Accelerated volume growth Q2 growth H1 growth Volume and price 3.9% Underlying sales growth 4.1% Underlying sales growth UPG UVG USG 7.9% 2.9% 2.6% 5.2% 4.7% 4.4% 3.9% 8.2% 1.0% Underlying volume growth Underlying volume growth 5.8% 2.8% 2.2% 1.0% 1.6% (0.3)% (0.6)% 1.8% 2.2% 2.9% Underlying price g
Slide 5: Beauty & Wellbeing 21% of Group turnover | 20.0% UOM
Beauty & Wellbeing 21% of Group turnover | 20.0% UOM Volume-led growth continued with double-digit growth from Power Brands H1 2024 UPG UVG USG 7.1% Underlying sales growth 8.8% 7.4% 7.9% 7.4% 6.8% 5.5% Underlying volume growth 4.9% 3.6% 6.3% 5.6% 5.4% 1.5% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Underlying p
Slide 6: Personal Care 22% of Group turnover | 23.0% UOM
Personal Care 22% of Group turnover | 23.0% UOM Balanced growth led by strong performance in Deodorants H1 2024 UPG UVG USG 5.6% Underlying sales growth 9.0% 8.0% 6.4% 6.4% 4.8% 2.9% Underlying volume growth 3.4% 3.9% 2.5% 1.4% 4.4% 2.6% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Underlying price growth Deodoran
Slide 7: Home Care 20% of Group turnover | 16.3% UOM
Home Care 20% of Group turnover | 16.3% UOM Volume-led growth supported by premium innovations H1 2024 UPG UVG USG 3.3% Underlying sales growth 6.7% 5.3% 3.1% 3.4% 1.7% 4.6% 0.4% Underlying volume growth 0.8% 4.3% (2.1)% 4.9% (1.3)% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Underlying price growth Fabric Cleani
Slide 8: Nutrition 22% of Group turnover | 22.3% UOM
Nutrition 22% of Group turnover | 22.3% UOM Price-led growth, with return to positive volume in Q2 led by Power Brands H1 2024 UPG UVG USG 3.2% Underlying sales growth 8.9% 5.6% 4.7% 3.7% 2.7% 0.0% (0.4)% 0.4% Underlying volume growth (1.1)% (2.6)% (3.8)% 3.2% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Underlyin
Slide 9: Ice Cream 15% of Group turnover | 14.6% UOM
Ice Cream 15% of Group turnover | 14.6% UOM Disappointing start to European key season and China underperformance H1 2024 UPG UVG USG 0.6% Underlying sales growth 5.6% (2.8)% (0.4)% 2.3% (0.5)% (0.8)% (0.9)% (1.1)% (1.0)% (5.8)% Underlying volume growth 1.6% (10.1)% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Und
Slide 10: Broad-based volume and price growth in H1
Broad-based volume and price growth in H1 North America 22% of Group turnover 3.4% Europe 20% of Group turnover 3.5% Underlying sales growth 2.0% Underlying volume growth Underlying sales growth 1.4% 0.5% Underlying volume growth Underlying price growth 2.9% Underlying price growth Asia Pacific Afri
Slide 11: USG driving turnover growth
USG driving turnover growth +2.3% USG 4.1% A&D (0.7)% 1.6% 0.5% 2.6% (1.2)% (1.1)% €31.1bn €30.4bn H1 2023 UVG UPG Acquisitions Disposals Currency H1 2024 turnover turnover 11
Slide 12: Driving all levers of Gross Margin expansion
Driving all levers of Gross Margin expansion H1 Gross Margin Levers + Volume leverage 45.7% + Positive mix + Net productivity gains +420bps vs. PY + Improved price coverage 12
Slide 13: EPS growth driven by operational performance
EPS growth driven by operational performance Current underlying EPS +16.3% 20.4% 1.0% 0.1% (1.0)% (3.2)% (1.0)% €1.62 €1.39 H1 2023 Operational Finance Tax Share Minorities & Currency H1 2024 Underlying performance costs buybacks Other Underlying EPS EPS (Current) 13
Slide 14: Cash and capital allocation
Cash and capital allocation Cash Dividend Share buyback €2.2bn +3% €1.5bn Free cash flow Increase in quarterly dividend Share buyback underway €(0.3)bn First increase since €850m vs H1 2023 free cash flow Q4 2020 Tranche started in May €0.7bn Capex, up €0.2bn vs PY 14
Slide 15: 2024 outlook
2024 outlook Growth Margin Underlying sales growth for full year 2024 to be Expect underlying operating margin for full year within our multi-year range of 3-5% 2024 to be at least 18%, with increasing investment behind our brands Majority of growth driven by volume Year-on-year margin progr
Slide 16: Driving growth with Power Brands
Driving growth with Power Brands H1 2024 75 7 6 5.7% ~ USG 5 4.1% 4 3 4.0% % of turnover from our UVG 2 2.6% Power Brands 1 0 Power Brands 16
Slide 17: Implementing Unmissable Brand Superiority
Implementing Unmissable Brand Superiority 21 Input metrics across 6Ps Product for root cause analysis Packaging Market and proprietary Proposition Unmissable Unilever data Brand Promotion Superiority Bespoke weighting of the Place 6Ps at country / category “cell” level by brand Pricing Action-orient
Slide 18: Stepping up our innovation
Stepping up our innovation Scalable multi-year platforms Market making & premiumisation Investment for growth +5.3% R&D increase vs. H1 2023 €0.7bn H1 incremental BMI 18
Slide 19: Accelerating the Growth Action Plan
Accelerating the Growth Action Plan Cultural change and productivity step-up Ice Cream separation Greater line of sight and more Legal entity set up differentiation in reward Standalone operating model Optimising organisational design to drive efficiency and simplification Preparation of c
Slide 20: Benefits of Growth Action Plan
1 Benefits of Growth Action Plan building Comprehensive productivity programme 2 and Ice Cream separation on track Transforming Unilever into a consistently 3 higher performing business 20
Slide 21: Q&A
Q&A
Slide 22: Other financial guidance for 2024
Other financial guidance for 2024 Capex around 3% of turnover Restructuring around 1.2% of turnover Expected currency impact* on full year turnover around (1.0)% and around (20)bps on full year underlying operating margin Net finance costs around 3% on average net debt Underlying effective