Unilever Plc · LSE:ULVR
Unilever — Q3 2021 Earnings Presentation
26 slides from Unilever's earnings presentation, Oct 20, 2021
Slide 1: Unilever Q3 2021 Trading Statement
Unilever Q3 2021 Trading Statement Alan Jope & Graeme Pitkethly 21st October 2021
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 Q3 2021 Trading Statement 21st October 2021
Slide 4: Q3 headlines
Q3 headlines Summary Outlook unchanged Year on track with 4.4% YTD USG Full year USG well within our 3-5% Cost inflation continues multi-year framework Pricing stepping up Strong operational discipline Full year UOM around flat Strategic choices making an impact 4
Slide 5: Growth
Growth Competitive Q3 Growth YTD Growth Pricing Growth Growth 4.1% Underlying Sales Growth Underlying Sales Growth 2.5% 4.4% 54% 1.6% -1.5% 2.1% % Business Winning MAT 1.0% 0.3% Underlying Volume Growth Underlying Volume Growth FY '20 Q1 '21 Q2 '21 Q3 '21 MAT: Moving Annual Total / Last 52 weeks 5
Slide 6: Challenging operating environment
Challenging operating environment Sustained Inflationary Pressure Covid Q4 ’19 price is Index 100 211 • Uneven Covid recovery • Significant restrictions 182 across SEA 166 136 116 Supply Chain • Volatile operating environment • Unilever on-shelf Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 availa
Slide 7: Guided by our strategic choices
Guided by our strategic choices 1. Develop our portfolio into high growth spaces 2. Win with our brands as a force for good, powered by purpose & innovation 3. Accelerate in USA, India, China and leverage EM strength 4. Lead in the channels of the future 5. Build a purpose-led, future-fit organisati
Slide 8: Portfolio evolution into high growth spaces
Portfolio evolution into high growth spaces Functional Nutrition ~€1.5bn Prestige Beauty ~€1bn Q3 USG 20% / YTD USG 20% Q3 USG 24% / YTD USG 26% • VMS on track for €1.0bn • 50% eCommerce • Roll out into China • Roll out into China Contribution to Unilever USG: 60bps Q3, 50bps YTD Functional Nutritio
Slide 9: Winning with our brands
Winning with our brands Innovation Brand performance Dove €5bn / 8% USG YTD >60% 2X Knorr of turnover tested winning vs. average project size. competition 2022 vs. 2019 €4bn / 9% USG YTD 94% of turnover is winning or parity Dirt is Good €4bn / 4% USG YTD Turnover referenced full year 2020 9
Slide 10: Accelerating in key markets
Accelerating in key markets USA India China Size of business ~€9bn ~€5bn ~€3bn Q3 USG 2% 11% 9% YTD USG 3% 14% 17% 10
Slide 11: Channels - eCommerce
Channels - eCommerce China Omnichannel +14% +23% USA Pure play +11% +24% India eB2B >200% +75% Q3 USG +38% 12% of group turnover 11
Slide 12: Organisation and culture
Organisation and culture E Digital Learning Employee Price and Savings Engagement Q3 UPG eCommerce 82% accelerator training 4.1% >15,000 75% €2bn certifications since April FY savings 2018 2021 12
Slide 13: Graeme Pitkethly
Graeme Pitkethly Unilever Q3 2021 Trading Statement 21st October 2021 13
Slide 14: Unilever group growth
Unilever group growth 2.5% Q3 USG (1.5)% Q3 UVG 4.1% Q3 UPG USG 4.4% 3.5% 5.7% 5.0% 2.5% 1.0% • Operational grip and strategy driving faster competitive growth 1.6% UPG • Pricing stepping up further. €2bn 4.7% FY savings to counter commodity UVG 3.3% 4.1% inflation • Markets remain varied impacting
Slide 15: Turnover +4.0%
Turnover +4.0% USG 2.5% 1.6% (0.1)% (0.1)% 4.1% €13.5 bn (1.5)% A & D 1.6% €12.9 bn 15
Slide 16: Category dynamics
Category dynamics All figures USG% Laundry 6% 7% 4% 4% 2% (1 )% Hygiene 26% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 19% 11% 5% (1 0 )% (6 )% Prestige Personal Care 34% 10% Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 21% 24% 4% 8% (0 )% (3 )% (2 )% (5 )% (1 0 )% Functional Nutrition (1 0 )% Q2'20 Q3'20 Q4'20 Q1'
Slide 17: Beauty & Personal Care
Beauty & Personal Care 2.6% Q3 USG (1.3)% Q3 UVG 3.9% Q3 UPG Deodorant, Hair & Skin Care 4% • Price led growth across Deodorant, Hair, & Oral • Strong Skin Care growth as social occasions return Skin Cleansing (5)% • Strong Prestige growth • Skin Cleansing lapping high prior year comparators. +15% v
Slide 18: Foods & Refreshment
Foods & Refreshment 3.0% Q3 USG (0.8)% Q3 UVG 3.8% Q3 UPG Out of home 17% • Strong out of home Ice Cream growth led by price • Food Service growth driven by China In-home (1)% • In-home demand remains strong as we lap higher comparators • Hellmann’s strong growth whilst focussing on reduced food was
Slide 19: Home Care
1.4% (3.2)% 4.8% Home Care Q3 USG Q3 UVG Q3 UPG Laundry 4% • Laundry growth driven by pricing initiatives in key markets Home & Hygiene (8)% • Home & Hygiene lapping surge demand. +9% vs. 2019 • Step up in pricing across all categories 19
Slide 20: Asia / AMET / RUB
Asia / AMET / RUB 2.3% Q3 USG (1.9)% Q3 UVG 4.2% Q3 UPG USG 4.5% 2.6% 9.9% 5.7% 2.3% • C hina: Continued strong growth across all divisions 1.2% • India: Recovery with price and UPG volume-led growth 4.5% UVG 4.2% • SEA: Conditions remain challenging as lockdowns and -1.9% restrictions impact region
Slide 21: Latin America
Latin America 8.7% Q3 USG (0.4)% Q3 UVG 9.1% Q3 UPG USG 6.5% 5.8% 7.2% 11.9% 8.7% 7.4% • Pricing continues to step up in response to growing inflation UPG • Brazil: Strong double digit UVG 9.1% pricing landed to offset high 4.2% commodity inflation -0.4% • Mexico:Strong volume and price growth '20 Q
Slide 22: North America
North America 2.0% Q3 USG (0.9)% Q3 UVG 2.9% Q3 UPG USG 9.1% 7.1% 4.3% 1.1% 2.0% • Continued price growth with competitiveness improving • Demand for in-home food UPG 0.9% remains strong UVG 3.3% 2.2% 2.9% • Out of home food continues to recover (1.1)% -0.9% • Strong Prestige and VMS '20 Q3 '20 Q4 '
Slide 23: Europe
Europe 0.3% Q3 USG (1.8)% Q3 UVG 2.1% Q3 UPG USG (0.8)% 0.8% (2.3)% 4.0% 0.3% • UK: Lapping strong comparator 4.7% • Germany: Poor weather 2.1% impacted ice cream sales UPG (0.6)% UVG -1.8% • Italy and Spain: Good growth but remain below pre-Covid levels • France: Retail environment remains deflatio
Slide 24: Cost inflation pressures
Cost inflation pressures Landing Pricing 4.1% • List price • Mix 1.6% 1.0% • Promotion 0.3% • Pack size FY '20 Q1 '21 Q2 '21 Q3 '21 • Trade term Managing Inflation Understanding Elasticity Q4’19 price is Index 100 211 182 • Savings • Differs by category 166 and market 136 • Hedging 116 • Relative pr
Slide 25: Outlook
Outlook Full year USG well within our 3-5% multi-year framework Full year UOM around flat 25
Slide 26: Unilever Q3 2021 Trading Statement
Unilever Q3 2021 Trading Statement Alan Jope & Graeme Pitkethly 21st October 2021