Unilever Plc · LSE:ULVR
Unilever — Q1 2022 Earnings Presentation
30 slides from Unilever's earnings presentation, Apr 28, 2022
Slide 1: Unilever Q1 2022 Trading Statement
Unilever Q1 2022 Trading Statement Alan Jope & Graeme Pitkethly 28th April 2022
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. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 3: Alan Jope
Alan Jope Unilever Q1 2022 Trading Statement 28th April 2022
Slide 4: Contents
Contents Q1 2022 Overview & Strategic Priorities Alan Jope Q1 2022 Results & Outlook Graeme Pitkethly 4
Slide 5: Challenging operating environment
Challenging operating environment Heightened Inflation Russia / Ukraine Covid Continues • Focused on employee safety • Significantly increased Net • Recent China lockdowns Material Inflation • We will not profit from Russia 5
Slide 6: Q1 2022 Delivery
Q1 2022 Delivery Competitive Q1 Growth Pricing Growth Growth Underlying Sales Growth 8.3% 7.3% 4.9% 4.1% 58% 1.6% % Business Winning MAT1 -1% 0.3% 1.0% Underlying Volume Growth FY'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 1Moving Annual Total / Last 52 weeks 6
Slide 7: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 7
Slide 8: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 8
Slide 9: 1. Winning with our brands
1. Winning with our brands 13 €1bn+ brands 51% of turnover 8.8% Q1’22 USG 9
Slide 10: 1. Winning with our brands: Bigger, better innovations and product superiority
1. Winning with our brands Bigger, better innovations and product superiority Beauty & Personal Care Foods & Refreshment Home Care Positive Beauty Future Foods Clean Future • Superior product, winning • Rich in flavour, zero salt • Naturally derived cleaning proposition enzymes • 98% biodegradable •
Slide 11: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 11
Slide 12: 2. Portfolio change
2. Portfolio change Total Acquisitions High Growth Spaces Q1 ‘22 USG contribution (bps contribution to Q1 ‘22 USG from Prestige Beauty Functional Nutrition1 acquisitions since ‘17) USG Q1 14% USG Q1 18% 7.3% USG 0.8% acquisitions USG excl. acquisitions 6.5% 1Health Food Drinks + Vitamins, Minerals &
Slide 13: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 13
Slide 14: 3. Accelerating in USA, India and China
3. Accelerating in USA, India and China €9.9bn €5.6bn €3.3bn FY’21 TO FY’21 TO FY’21 TO USG% Q1 ‘22 8.9% 10.4% 6.4% USG% Q1 ‘21 4.7% 21.4% 30.9% 9.9 5.6 3.3 FY Turnover Growth 8.3 4.6 2.6 (€bn) FY '18 FY '19 FY '20 FY '21 FY '18 FY '19 FY '20 FY '21 FY '18 FY '19 FY '20 FY '21 14
Slide 15: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 15
Slide 16: 4. Channels - eCommerce
4. Channels - eCommerce 27% Channel-specific Innovation Q1 2022 eCom growth Omni Pure play eB2B +5% +8% +67% eCom TO contribution 14% 2% '16 '17 '18 '19 '20 '21 Q1 '22 16
Slide 17: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Move Accelerate Lead in Purpose -led, Win with portfolio into USA, India, channels of future-fit brands and high growth China and the future organisation innovation spaces EMs & culture 17
Slide 18: 5. A new, future-fit organisation
5. A new, future-fit organisation • Simpler, faster, more agile Unilever Corporate Centre • More category-focus Business Groups Beauty & Personal Home Nutrition Ice Cream Wellbeing Care Care • Greater empowerment and accountability • On track for July 2022 Unilever Business Operations 18
Slide 19: Graeme Pitkethly: Q1 2022 Results
Graeme Pitkethly Q1 2022 Results 28th April 2022 19
Slide 20: Underlying Sales Growth
Underlying Sales Growth Results summary 7.3% -1% 8.3% Q1 USG Q1 UVG Q1 UPG USG 5.7% 5.0% 2.5% 4.9% 7.3% • A solid quarter, with a strong topline across all divisions UPG 8.3% • Landing pricing in response to UVG further rises in input costs -1% • Carefully managing volume impact around the business
Slide 21: Regional growth by quarter
Regional growth by quarter Asia / AMET / RUB Latin America €7bn TO €2bn TO 9.8% 9.9% 9.1% 8.5% USG 11.9% 5.7% 5.7% 8.7% 2.3% 7.2% UPG 8.5% 16.4% UVG 0.5% -5.7% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 North America Europe €3bn TO €3bn TO USG 8.5% 0.7% 6.5% 4.3% 4.0% UPG 1.1% 2.0%
Slide 22: Q1 2022: Turnover growth
Q1 2022: Turnover growth +11.8% A&D 0.6% USG 7.3% 3.5% 0.7% (0.1)% 8.3% €13.8bn (1)% €13.5bn €12.3bn 22
Slide 23: Beauty & Personal Care
Beauty & Personal Care Growth Segments Growth Channels 7.1% (0.3)% 7.4% Q1 USG Q1 UVG Q1 UPG • Pricing accelerated across all categories Best 72-hour protection Clear China relaunch • Some volume impact in Hair and Growth Geographies Purposeful Brands Skin Cleansing • Another strong quarter for Pres
Slide 24: Foods & Refreshment
Foods & Refreshment Growth Segments Growth Channels 6.5% (0.6)% 7.1% Q1 USG Q1 UVG Q1 UPG • Good In-home growth off a strong comparator • Hellmann’s double digit growth; Knorr and Magnum high single- Plant-based alternatives The Vegetarian Butcher digit Growth Geographies Purposeful Brands • Food se
Slide 25: Home Care
Home Care 9.2% (2.9)% 12.5% Growth Segments Growth Channels Q1 USG Q1 UVG Q1 UPG • Double digit growth in Fabric Cleaning, led by price • Fabric Enhancers off to a solid Superior fabric conditioner Comfort fragrance beads China start in key markets Growth Geographies Purposeful Brands • Clean Future
Slide 26: Further inflationary pressure
Further inflationary pressure March vs January 50% 35% 32% 33% 30% 21% 16% 12% 13% 11% 5% 0% -6% -9% Based on average spot prices 26 Source: Reuters, World Bank Pink Sheets
Slide 27: Commodities at the top-end of 10-year trading ranges
Commodities at the top-end of 10-year trading ranges Mar ’22 UL commodity basket 10-year ranges index (Proportion of ‘21 spend by commodity group) (avg. spot price for each period) (vs ’20 at 100) 2013 2014 2015 2016 2017 2018 2019 2020 2021 Jan‘22 Feb‘22 Mar‘22 1,777 1,522 Crude 1,345 Palm ~€2.5bn
Slide 28: Unprecedented levels of inflation
Unprecedented levels of inflation Expect margins to be restored during 2023 and 2024 GM (bps) (150) 100 (30) (160) 30 110 10 80 50 60 50 30 (55) (120) UPG% 6.5 6.4 8.3% Q1 10.0 6.36.2 6.1 7.2% 9.0% 6.0 5.9 5.8 8.0% 7.0% 5.7 5.6 4.8% 2.9% 6.0% 5.5 5.4 5.3 3.3% 5.0% 5.2 5.1 5.0 1.6% 4.8 4.0% 4.9 4.8 4
Slide 29: Outlook: 2022 Priorities and Guidance
Outlook 2022 Priorities 2022 Guidance Towards top end of 4.5-6.5% growth range, led by Continuing growth momentum price Invest for growth while managing inflationary Maintain competitive levels of spend in BMI, R&D Managing inflationary pressure pressure while investing for Maintain competitive and
Slide 30: Unilever Q1 2022 Trading Statement
Unilever Q1 2022 Trading Statement Alan Jope & Graeme Pitkethly 28th April 2022