Unilever Plc · LSE:ULVR
Unilever — H1 2021 Earnings Presentation
27 slides from Unilever's earnings presentation, Jul 22, 2021
Slide 1: Unilever Half Year 2021 Results
Unilever Half Year 2021 Results Alan Jope & Graeme Pitkethly 22nd July 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 Half Year 2021 Results 22nd July 2021
Slide 4: Strong delivery despite headwinds
Strong delivery despite headwinds Growth Profit Earnings & Cash Competitiveness H1 Underlying Sales Underlying Operating Current Underlying EPS % Business Winning MAT Growth Margin 5.4% 18.8% (2.0)% 52% +4.3% constant 4.0% (100)bps €2.4bn H1 Underlying Volume Underlying Operating Free Cash Flow Grow
Slide 5: 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 6: Strategic change agenda
Strategic change agenda Develop eB2B Portfolio change High growth segments Share Buy Back business platforms • Announced the acquisition of • Prestige 27% H1 USG • Share buy back of up to €3bn digital-led, cruelty free skin care underway brand Paula’s Choice • Functional Nutrition 18% H1 USG • Refle
Slide 7: Category dynamics
Category dynamics All figures USG% Laundry 6% 7% 4% 2% 0% (1 )% Hygiene 26% 19% 7% 11% 5% (1 0)% Prestige 34% Personal Care 10% 21% 8% (2 )% (3 )% (2 )% (0 )% (2 )% (5 )% Functional Nutrition (1 0)% (1 0)% 54% 39% 45% 33% 9% In Home Out of Home 48% 1 7% 12% 13% 11% 4% 4% (1 8)% (1 6)%(2 0)% (2 )% (4
Slide 8: Beauty & Personal Care
3.3% 1.8% Beauty & Personal Care H1 USG H1 UVG Skin Cleansing H1 (4)% • Skin cleansing lapping household stocking in 2020, remains above 2019 levels • Skin Care, Hair, Oral and Rest of BPC H1 +5% Deodorants all grew as social occasions partially returned • Step up in pricing in Q2 Rest of BPC: Hair
Slide 9: Foods & Refreshment
8.1% 5.8% Foods & Refreshment H1 USG H1 UVG In-home H1 +4% • In-home growth driven by power brands Knorr, Hellmann’s, Magnum • Food Service growth driven by China. Global demand remains Out of home H1 +26% below pre-COVID levels Food Service remains impacted vs 2019 base 2019 base • Ice Cream grew a
Slide 10: Home Care
4.5% 4.8% Home Care H1 USG H1 UVG Home & Hygiene H1 (1)% • Home & Hygiene lapping surge demand • Laundry growth driven by China and strong innovation programme rooted in Clean Laundry H1 +6% Future agenda • Price accelerated through the half 10
Slide 11: Prestige & Functional Nutrition
Prestige & Functional Nutrition Prestige H1 +27% • Strong Prestige performance across on and off line channels • Functional Nutrition growing strongly (Horlicks and Boost Functional Nutrition H1 +18% brands in USG from Q2) • Functional Nutrition LFL growth +31% during the first half Functional Nutri
Slide 12: Ecommerce
Ecommerce China Omnichannel +34% +44% USA Pure play +16% +29% India eB2B >100% +105% H1 USG +50% 11% of group turnover 12
Slide 13: Graeme Pitkethly
Graeme Pitkethly Unilever Half Year 2021 Results 22nd July 2021
Slide 14: Volume and price growth
5.4% 4.0% Volume and price growth H1 USG H1 UVG USG (0.3)% 4.4% 3.5% 5.7% 5.0% • Focus on operational excellence 1.0% and our five strategic choices continues to drive competitive 1.6% growth UPG 4.7% • Pricing stepping up to offset UVG 3.3% commodity inflation headwinds. UPG of 2.2% in June • Opera
Slide 15: Asia / AMET / RUB
7.7% 6.4% Asia / AMET / RUB H1 USG H1 UVG USG (1.8)% 4.5% 2.6% 9.9% 5.7% • C hina: continued strong consumer demand driven by online 1.2% • India: strong growth with UPG lockdown impact less severe 4.5% than last year UVG • Turkey: volume-led double digit growth across all divisions • SEA: markets s
Slide 16: Latin America
9.5% 3.1% Latin America H1 USG H1 UVG USG (0.8)% 6.5% 5.8% 7.2% 11.9% • Strong pricing action in response to high commodity inflation and currency devaluation 7.4% • Brazil: resilient growth during UPG crisis UVG 4.2% • Mexico: strong growth across all divisions • C olombia: operations disrupted by
Slide 17: North America
2.6% 1.0% North America H1 USG H1 UVG USG 9.5% 9.1% 7.1% 4.3% 1.1% • Growth across all divisions despite lapping peak of surge demand • Accelerating price growth with competitiveness improving UPG 0.9% UVG • In-home foods demand remains 3.3% high. Growth impacted by prior 2.2% year household stockin
Slide 18: Europe
1.1% 2.2% Europe H1 USG H1 UVG USG (4.5)% (0.8)% 0.8% (2.3)% 4.0% • Volume growth led by out of home ice cream in Q2 4.7% • Price declined whilst lapping lower promotional intensity UPG (0.6)% UVG • UK & Germany: lapping spike in household stocking in Q2 2020 • France: deflationary retail environmen
Slide 19: Turnover +0.3%
Turnover +0.3% USG 5.4% 1.5% 1.3% (0.1)% 4.0% A & D 1.4% (6.1)% €25.7 bn €25.8 bn 19
Slide 20: Underlying operating margin (100)bps
Underlying operating margin (100)bps C O VID-19 Bps Year impact impact vs H1 Mix (10) 2020 On cost 0 vs H1 Mix (50) 2019 On cost (40) (60)bps 19.8% 40bps 18.8% (80)bps 20
Slide 21: Even higher commodity inflation
Even higher commodity inflation Commodity Crude oil Soy bean oil Freight Packaging inflation +12% +21% +4% +7% vs Q 1 2021 vs Q 1 2021 vs Q 1 2021 vs Q 1 2021 D’19 M’20 J’20 S’20 D’20 M’21 J’21 D’19 M’20 J’20 S’20 D’20 M’21 J’21 D’19 M’20 J’20 S’20 D’20 M’21 J’21 D’19 M’20 J’20 S’20 D’20 M’21 J’21 C
Slide 22: Underlying earnings per share
Underlying earnings per share Current Underlying EPS (2.0)% 0.8% 1.5% 0.4% 2.9% (1.4)% (6.3)% €1.35 Constant Underlying EPS +4.3% €1.33 22
Slide 23: Cash flow & balance sheet
Cash flow & balance sheet Cash Net Debt Pension Surplus Free Cash Flow Net debt / EBITDA €2.4bn 2.0x €1.9bn €(0.4)bn €22.4bn €0.3bn vs H1 2020 Net debt FY 2020 H1 2021 23
Slide 24: Alan Jope
Alan Jope Unilever Half Year 2021 Results 22nd July 2021
Slide 25: Summary & outlook
Summary & outlook Summary Outlook Strong first half underpinned by operational excellence Full year USG well within our 3-5% multi- year framework Continued progress on portfolio evolution Pricing stepping up Full year UOM around flat Cost inflation accelerating in second half 25
Slide 26: Our vision
Vision Our vision is to be the global leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior performance, consistently delivering financial results in the top third of our industry.
Slide 27: Unilever Half Year 2021 Results
Unilever Half Year 2021 Results Alan Jope & Graeme Pitkethly 22nd July 2021