Unilever Plc · LSE:ULVR
Unilever — FY 2024 Earnings Presentation
28 slides from Unilever's earnings presentation, Feb 13, 2025
Slide 1: FY 2024 Results
FY 2024 Results Hein Schumacher & Fernando Fernandez 13 February 2025
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: Building for consistent, higher performance
Building for consistent, higher performance 1 Executing the Growth Action Plan 2 Implementing the productivity programme at pace 3 Allocating capital behind clear priorities 4 On track to separate Ice Cream by end of 2025 5 Building a winning culture with performance edge 3
Slide 4: Driving progress in our focus areas
Driving progress in our focus areas 1 Accelerated volume growth +2.9% UVG 2 Gross margin expansion 45.0% GM; +280bps vs. PY 3 Reinvesting in our brands €0.9bn incremental BMI 4 Strong profit growth +12.6% UOP growth Delivering top 1/3 total shareholder returns 4
Slide 5: Growth Action Plan driving improved performance
Growth Action Plan driving improved performance Unilever Power Brands Volume and price 4.2% 5.3% UPG UVG USG Underlying sales growth Underlying sales growth 4.7% 4.4% 4.5% 3.9% 4.0% 2.9% Underlying volume growth 3.8% Underlying volume growth 1.8% 2.2% 2.9% 3.6% 2.7% 1.3% Underlying price growth 1.4%
Slide 6: Beauty & Wellbeing
Beauty & Wellbeing €13.2bn turnover | 19.4% UOM, +70bps vs. PY Strong and broad-based volume growth, led by Power Brands FY 2024 UPG UVG USG 6.5% Underlying sales growth 7.9% 7.4% 6.8% 6.7% 5.2% 5.1% Underlying volume growth 6.3% 5.6% 5.4% 5.7% 3.9% 1.3% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Underlying pric
Slide 7: Personal Care
Personal Care €13.6bn turnover | 22.1% UOM, +190bps vs. PY Volume-led growth driven by continued strength in Deodorants FY 2024 UPG UVG USG 5.2% Underlying sales growth 6.4% 6.4% 4.8% 5.3% 4.4% 3.1% Underlying volume growth 2.5% 1.4% 4.4% 3.1% 3.6% 2.1% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Underlying price
Slide 8: Home Care
Home Care €12.3bn turnover | 14.5% UOM, +220bps vs. PY Premium innovations drove volume growth, and pricing reflected commodity deflation FY 2024 UPG UVG USG 2.9% Underlying sales growth 3.1% 3.4% 3.0% 1.7% 1.9% 4.0% Underlying volume growth 0.8% 4.3% 4.9% 3.3% 3.3% (1.1)% Q4'23 Q1'24 Q2'24 Q3'24 Q4
Slide 9: Foods
Foods €13.4bn turnover | 21.3% UOM, +270bps vs. PY Strong margin improvement despite muted volume growth amidst slower markets FY 2024 UPG UVG USG 2.6% Underlying sales growth 4.7% 3.7% 2.7% 2.6% 1.5% 0.2% (0.4)% 0.4% 0.4% 0.5% Underlying volume growth (1.1)% 2.4% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Under
Slide 10: Ice Cream
Ice Cream €8.3bn turnover | 11.8% UOM, +100bps vs. PY Operational improvements and innovations supported a step-up in performance FY 2024 UPG UVG USG 9.8% 3.7% Underlying sales growth (0.4)% 2.3% (0.5)% 4.3% (0.8)% (0.9)% (1.1)% 6.7% 2.2% 1.6% Underlying volume growth 2.1% Q4'23 Q1'24 Q2'24 Q3'24 Q4
Slide 11: Volume growth led by strong US and improved Europe
Volume growth led by strong US and improved Europe North America 22% of Group turnover 5.3% Europe 20% of Group turnover 4.3% Underlying sales growth 4.1% Underlying volume growth Underlying sales growth 1.1% 3.0% Underlying volume growth Underlying price growth 1.2% Underlying price growth Asia Pac
Slide 12: Taking action where we facing challenges
Taking action where we facing challenges Strengthening our China business Resetting our Indonesia business • Enhancing our business during market slowdown • Comprehensive reset to fix long-standing issues of portfolio and brand proposition • Accelerating portfolio premiumisation and • Correcting mis
Slide 13: FY 2024 turnover growth
FY 2024 turnover growth Turnover +1.9% USG 4.2% A&D (1.5)% 1.3% 0.4% 2.9% (1.8)% (0.7)% €60.8bn €59.6bn FY 2023 UVG UPG Acquisitions Disposals Currency FY 2024 turnover turnover 13
Slide 14: Structural reset of the gross margin
Structural reset of the gross margin Rebuilding gross margin to pre-Covid level Driven by structural levers and tailwinds +280bps vs PY 44% 45% + Increased volume leverage and positive mix 42% Net productivity gains from + interventions in procurement and higher capex for margin 40% + Benefited in H
Slide 15: Stronger UOM driven by gross margin expansion
Stronger UOM driven by gross margin expansion Underlying operating margin (UOM) +170bps 2.8% 0.1% (1.2)% Strong gross margins fuelled 18.4% 16.7% increased investment behind our brands and innovations FY 2023 FY 2024 Gross margin BMI Overheads UOM UOM 15
Slide 16: UEPS driven by topline growth and margin expansion
UEPS driven by topline growth and margin expansion Underlying earning per share (UEPS) Current underlying EPS +14.7% 15.6% 1.0% 0.8% (1.4)% (0.6)% (0.7)% €2.98 €2.60 FY 2023 Operational Finance Tax Share Minorities & Currency FY 2024 UEPS performance costs buybacks Other UEPS 16
Slide 17: Strong cash conversion and high teens ROIC
Strong cash conversion and high teens ROIC Strong cash generation Robust balance sheet Improving ROIC €6.9bn Free cash flow 1.9x Closing net debt / underlying EBITDA 18.1% Underlying ROIC 106% €24.5bn +190bps Cash conversion Closing net debt vs FY 2023 17
Slide 18: Capital allocation in line with our investment priorities
Capital allocation in line with our investment priorities Growth & productivity Portfolio reshaping Capital returns +120bps €5.8bn Bolt-on acquisitions in premium Increased BMI vs PY as % of turnover segments Capital returned to PLC shareholders in 2024 3.2% Portfolio pruning €4.3bn Capex as % of tu
Slide 19: Strategic choices to optimise our portfolio
Strategic choices to optimise our portfolio Completed in 2024 To be completed in 2025 Acquisitions Disposals Acquisitions Disposals Unilever Russia 19
Slide 20: 2025 outlook
2025 outlook Growth Margin Capital returns Underlying sales growth for full Modest improvement in full Attractive, sustainable year 2025 to be within our year underlying operating dividend multi-year range of 3-5% margin New up to €1.5bn share Slower start to 2025 with Improvement will b
Slide 21: Continuing our transformation in 2025
Continuing our transformation in 2025 Growth Action Plan Productivity programme Ice Cream separation € 800 m Cost savings, more than offsetting On track for end 2025 operational separation dis-synergies 21
Slide 22: Our Growth Action Plan 2030
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS FOCUS EXCEL ACCELERATE STRATEGY Unmissably Superior Brands 30 Power Brands Social First Demand Creation Science & Technology 24 Top Markets Multi
Slide 23: Making progress on our sustainability agenda
Making progress on our sustainability agenda Pillar SPI measure1 2024 target Status2 Climate % reduction in GHG emissions, Scope 1 & 2, in our operations from a 2015 baseline 76% 76% Hectares of land with regenerative agriculture 500k Nature or protect & restore practices implemented from a January
Slide 24: Productivity programme ahead of plan
Productivity programme ahead of plan Productivity programme + 4,300 reduction in FTEs in 2024 vs 2023 baseline 800 + ~€200m savings already delivered in 2024 € m + New organisation in place from 1 January 2025 Cost savings, more than offsetting In 2025, focus on implementation and governance operati
Slide 25: Ice Cream separation on track to complete by end of 2025
Ice Cream separation on track to complete by end of 2025 Ice Cream separation + Good progress on workstreams Appointed Jean-Francois van Boxmeer as Chair + Designate for the separated Ice Cream business Separation by way of demerger through listing in + Amsterdam, London, and New York Ice Cream busi
Slide 26: Growth Action Plan supporting prioritisation and focus
Growth Action Plan supporting prioritisation 1 and focus Continuing our transformation to create a 2 leaner and more efficient company 3 Building for consistent, higher performance 26
Slide 27: Q&A
Q&A
Slide 28: Other financial guidance for 2025
Other financial guidance for 2025 Capex above 3% of turnover Restructuring around 1.4% of turnover Currency impact1 on full year expected to be minimal on turnover and underlying operating margin Net finance costs around 3% on average net debt Underlying effective tax rate around 26% Lev