Unilever Plc · LSE:ULVR
Unilever — Q1 2020 Earnings Presentation
29 slides from Unilever's earnings presentation, Apr 23, 2020
Slide 1: Unilever Q1 2020 Trading Statement
Unilever Q1 2020 Trading Statement Alan Jope & Graeme Pitkethly 23rd April 2020
Slide 2: Safe harbour statement
Safe harbour statement 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’, ‘vi
Slide 3: Alan Jope
Alan Jope Unilever Q1 2020 Trading Statement 23rd April 2020
Slide 4: Covid-19: Disruption and uncertainty
Covid-19: Disruption and uncertainty A human crisis A global crisis Unprecedented government responses 800k 250k 700000 USA 500000 200k Spain 300000 100000 150k Italy -100000 -300000 100k -500000 China -700000 Turkey 50k -900000 -1100000 0k -1300000 Jan Apr Number of Covid-19 cases for 40 countries
Slide 5: Managing through Covid-19: Five workstreams
Managing through Covid-19: Five workstreams People Supply Demand Community Cash Agile markets organisation 5
Slide 6: Protect extended workforce
People People Supply Demand Community Cash People #1 priority Lives & livelihoods Redeployment of teams Protect extended workforce from drops in pay for up to three months 6
Slide 7: Supply
People Supply Supply Demand Community Cash New challenges in factories Agility for new demand Procurement New sourcing routes for 1000s of key materials Secured alternative suppliers 7
Slide 8: Demand
People Supply Demand Community Cash Hygiene Household stocking In home cooking Online shopping Value 8
Slide 9: Demand
People Supply Demand Community Cash 9
Slide 10: Community
People Supply Demand Community Cash Public service messages €100m product donations 10
Slide 11: 5 workstreams: Cash
5 workstreams: Cash People Supply Demand Community Cash Agile markets organisation 11
Slide 12: Graeme Pitkethly
Graeme Pitkethly Unilever Q1 2020 Trading Statement 23rd April 2020
Slide 13: Q1 Trading update
Q1 Trading update Improving momentum and competitiveness prior to March Underlying Sales Growth Food service Food outlets closed down in many markets +0.0% Out of home ice cream Limited sell-in ahead of summer season +0.2% China Negative impact from late January India Underlying Volume Growth 7 days
Slide 14: Covid-19 impacts
Covid-19 impacts Categories & channels impacted differently Countries at different stages of the cycle Household stocking e.g. stockpiling dried foods Increased consumer usage India UK China e.g. increased at home cooking Outbreak Recovery Decreased consumer usage e.g. less hair washing Brazil USA C
Slide 15: Beauty & Personal Care
Beauty & Personal Care USG 0.3% UVG 0.7% Annual size of Household Consumer Channel business Stocking usage Hair Deodorants Travel restrictions Skin care ~€14bn impacting Carver skin Skin cleansing ~€5bn Oral Care ~€1.5bn Prestige Closure/some switching ~€0.6bn (incl. in hair & skin above) 15 Approx.
Slide 16: Foods & Refreshment
Foods & Refreshment USG (1.7)% UVG (1.8)% Annual size of Household Consumer Channel business Stocking usage Savoury, dressings & tea ~€11bn In home ice cream ~€4bn Some switching Out of home ice Channels mostly closed cream ~€3bn Food Channels mostly closed Service ~€2.5bn (incl. in savoury, dressin
Slide 17: Home Care
Home Care USG 2.4% UVG 2.6% Annual size of Household Consumer Channel business Stocking usage Laundry ~€8bn Home & Hygiene ~€2bn 17
Slide 18: Asia / AMET / RUB
Asia / AMET / RUB USG 6.0% 6.3% 5.6% 2.1% (3.7)% S Africa India Philippines Vietnam China Outbreak Recovery UPG Indonesia Turkey S Korea Russia Thailand • China: Significant decline, with restricted out of home eating and shopping trips UVG • India: Supply chain disruption following severe '19 Q1 '1
Slide 19: Latin America
Latin America USG 2.4% 11.6% 3.2% 3.8% 4.9% Mexico Ecuador Outbreak Outbreak Recovery Recovery UPG Brazil Argentina • Relatively limited impact from Covid-19 in Q1 UVG • Small positive impact from household stocking, negative from ice cream • Challenging conditions and currency devaluation '19 Q1 '1
Slide 20: North America
North America USG 0.4% (0.2)% 0.3% 0.6% 4.8% Canada Outbreak Outbreak Recovery Recovery USA UPG UVG • US Hotspots (dressings, ice cream, hair) continue showing signs of improvement • Household stocking across most categories in '19 Q1 '19 Q2 '19 Q3 '19 Q4 '20 Q1 March • Social restrictions later in
Slide 21: Europe
Europe USG 0.7% (1.6)% (0.3)% (0.8)% 1.4% UK Spain Germany Outbreak Outbreak Recovery Recovery UPG NL France Italy • Limited ice cream sell-in to retail ahead of Easter UVG • Household stocking in the UK • Increased consumer demand in hygiene and '19 Q1 '19 Q2 '19 Q3 '19 Q4 '20 Q1 foods 21
Slide 22: Q1 2020 turnover
Q1 2020 turnover USG +0.0% (0.2)% 0.8% (0.4)% +0.2% (0.2)% A & D +0.6% €12.4bn €12.4bn 22
Slide 23: Strong balance sheet and liquidity position
Strong balance sheet and liquidity position Low gearing Total cash & facilities Access to funding Y/E ‘19 Net debt/EBITDA Total cash & undrawn facilities Commercial paper at 31/03/20 1.9x €11bn €2bn A1/A+ 2.8x coverage of debt maturing €7bn in 1 year Credit rating As of Y/E ‘19 Accessible undrawn st
Slide 24: Managing cash through uncertainty
Managing cash through uncertainty Review sources & uses of cash Operational cost discipline Reallocate spend • Laser focus on receivables Dialling up key categories: Reduce non essential spend • Reviewing our spend: • Capex • Restructuring Hiring freeze • Brand & marketing Tailoring communications:
Slide 25: Alan Jope
Alan Jope Unilever Q1 2020 Trading Statement 23rd April 2020
Slide 26: 2020 outlook withdrawn
2020 outlook withdrawn 2020 unknowns 2020 knowns • Progression of the virus • Ongoing challenges for out of home ice cream and food service • Duration of crisis – varies by country • Short term impact on consumption habits • Scale and impact of government containment measures • Importance of agility
Slide 27: What's important for our business now
What’s important for our business now 5 Covid-19 workstreams 5 growth fundamentals People 1 Supply 2 Demand 3 Community 4 Cash 5 27
Slide 28: Looking forwards: Confidence for the long term
Looking forwards: Confidence for the long term • High quality leadership teams on the ground • A portfolio of trusted brands • Financial stability • 5 fundamentals of growth driving execution Delivering superior long-term financial performance through our sustainable business model 28
Slide 29: Unilever Q1 2020 Trading Statement
Unilever Q1 2020 Trading Statement Alan Jope & Graeme Pitkethly 23rd April 2020