Unilever Plc · LSE:ULVR
Unilever — H1 2023 Earnings Presentation
26 slides from Unilever's earnings presentation, Jul 25, 2023
Slide 1: Unilever H1 2023 Results
Unilever H1 2023 Results HEIN SCHUMACHER & GRAEME PITKETHLY 25 JUL 2023
Slide 2: Safe harbour statement
Safe harbour statement This document 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', 'vision
Slide 3: Unilever H1 2023 Results: Hein Schumacher
Unilever H1 2023 Results HEIN SCHUMACHER
Slide 4: Unilever CEO: first impressions
Unilever CEO: first impressions 4
Slide 5: Unilever H1 2023 Results: Graeme Pitkethly
Unilever H1 2023 Results GRAEME PITKETHLY
Slide 6: Performance highlights
Performance highlights Continued growth across all Business Groups Growth remains price driven with volumes stable Gross margin improving. Brand & marketing investment increased New organisation driving sharper strategies and choices 6
Slide 7: Performance summary
Performance summary Q2 growth H1 growth Price and volume Competitiveness UPG 7.9% 9.1% 13.3% 12.5% 11.2% 10.7% 41% Underlying sales growth Underlying sales growth 8.2% Business Winning MAT1 (0.2)% (0.3)% (2.1)% (1.6)% 8.2% (0.3)% 9.4% (0.2)% (3.6)% UPG UVG UPG UVG UVG Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 1
Slide 8: Business Winning measure at 41%, impacted by three factors
Business Winning measure at 41%, impacted by three factors Conscious choices Pricing dynamics Consumer shifts • SKU rationalisation • Lead on price responsibly • Tier 3 / 4 brands • Where to play • Manage volume impact • Super-premium Strategic choices Portfolio Short term Longer term Focused on bui
Slide 9: Financial highlights
Financial highlights Margin Earnings Cash Underlying operating margin Underlying EPS Free cash flow 17.1% +3.9% €2.5bn +10bps +9.2% +€0.2bn vs H1 2022 Constant underlying EPS vs H1 2022 9
Slide 10: Continued strategic progress
Continued strategic progress Win with brands and Move portfolio into Accelerate USA, India, Lead in channels of innovation high growth spaces China and EMs the future H1 USG 14 €1bn+ brands 10 quarters of double-digit 7.4% 16% growth for Prestige dCom H1 USG and Health & 55% Wellbeing 9.1% of turnov
Slide 11: New organisation driving sharper strategies and choices
New organisation driving sharper strategies and choices Unilever Corporate Centre Beauty & Personal Home Care Nutrition Ice Cream Wellbeing Care Unilever Business Operations Clearer priorities, executed at speed 11
Slide 12: Innovation driving growth in our big brands
Innovation driving growth in our big brands Liquid I.V. Omo Axe First of its kind sugar-free Winning formula in plastic-free World-class fragrance driving hydration powder packaging premiumisation Hellmann’s Magnum Vaseline Extension into fast-growing Continued premiumisation and Extends into anti-a
Slide 13: Underlying sales growth
Underlying sales growth First Half 9.1% (0.2)% 9.4% 10.6% 10.5% USG UVG UPG 9.2% 8.8% 7.9% USG 7.3% • Price growth continues to moderate 4.9% 8.2% UPG 2.5% • Volume growth remains resilient UVG (0.3)% • Continued growth across all Business Groups, but with different price and volume dynamics Q3'21 Q
Slide 14: Beauty & Wellbeing
9.1% 3.8% 5.1% Beauty & Wellbeing H1 USG H1 UVG H1 UPG USG 9.5% 9.3% 8.8% 7.2% 7.7% 7.4% 7.7% 6.7% UPG 4.9% 2.6% UVG (0.6)% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Balanced price and volume • Prestige Beauty and Health & Wellbeing grew double- digit • Hair Care positive volume growth suppo
Slide 15: Personal Care
10.8% 3.2% 7.3% Personal Care H1 USG H1 UVG H1 UPG 12.7% USG 8.9% 9.1% 9.0% 6.8% 6.7% 4.9% UPG 3.0% 3.4% (0.8)% UVG (3.5)% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Volume growth positive for a second quarter • Deodorants grew double-digit driven by Rexona • Skin Cleansing grew well led by L
Slide 16: Home Care
8.4% (2.5)% 11.2% Home Care H1 USG H1 UVG H1 UPG USG 13.6% 12.2% 12.3% 10.2% 9.2% 6.7% UPG 5.0% 1.4% UVG (3.8)% (2.8)% (2.1)% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Volume closely managed and recovering • In Europe, OMO (Persil) rolled out capsules with plastic-free packaging • Home & Hyg
Slide 17: Nutrition
10.4% (1.9)% 12.6% Nutrition H1 USG H1 UVG H1 UPG USG 11.8% 11.9% 10.1% 8.9% 7.0% 6.2% UPG 4.7% 3.4% (1.3)% UVG (4.1)% (2.6)% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Scratch Cooking growth was price-led with negative volume, particularly in Europe and North America • Unilever Food Solution
Slide 18: Ice Cream
5.7% (5.2)% 11.5% Ice Cream H1 USG H1 UVG H1 UPG 13.2% USG 9.5% 7.1% 6.0% 5.6% 2.3% 2.9% UPG (1.3)% (4.1)% (5.8)% (9.9)% UVG Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Out-of-home grew double-digit through price and volume, continuing to recover post-pandemic • In-home grew low-single digit i
Slide 19: Regional growth by quarter
Regional growth by quarter Asia Pacific Africa North America €13bn TO €7bn TO USG 12.5% 10.7% 9.9% 8.9% 9.0% 8.3% 8.3% 8.1% UPG 5.7% 6.7% 6.5% 3.6% 1.8% 3.0% UVG Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Latin America Europe €4bn TO €6bn TO USG 17.6% 18.7% 16.8% 15.0% 14.3% 9.2% 15
Slide 20: H1 2023: Turnover growth
H1 2023: Turnover growth +2.7% USG 9.1% A&D (2.7)% 9.4% 0.7% (3.4)% (3.2)% (0.2)% €30.4bn €29.6bn * Currency includes both exchange rates changes impact of (5.0)% and extreme price growth in hyperinflationary markets impact of 1.9%. 20
Slide 21: H1 2023: Underlying operating margin
H1 2023: Underlying operating margin +10 bps +€0.4bn vs PY* +€30m R&D vs PY* 17.0% 17.1% * At constant FX rates 21
Slide 22: Gross margin begins to build back
Gross margin begins to build back Gross Margin H1 gross margin drivers (300)bps +30bps vs PY Price coverage of total cost inflation Price coverage - x x x x Mix & SKU rationalisation Mix - x - - + Portfolio change: Portfolio Tea exit change - - - - + Nutrafol acquisition H1'19 H1'20 H1'21 H1'22 H1'2
Slide 23: H1 2023: Underlying earnings per share
H1 2023: Underlying earnings per share Current underlying EPS 3.9% 0.7% 8.1% 0.4% 1.2% (0.0)% (1.2)% (5.3)% €1.46 €1.39 €1.34 9.2% Constant underlying EPS H1 2022 Operational Finance Tax Minorities Share Other H1 2023 Currency H1 2023 performance costs buybacks (Constant) (Current) 23
Slide 24: Capital allocation
Capital allocation Operational investment Portfolio shaping Capital returns BMI +€0.4bn* in H1 Suave disposal Attractive dividend R&D +€30m* in H1 Third Tranche €750m Yasso acquisition Capex of share buyback ca. 3% completed for FY * At constant FX rates 24
Slide 25: 2023 outlook: growth remains the priority
2023 outlook: growth remains the priority Priorities Guidance • Underlying sales growth above 5% Continue growth momentum in new operating model • Price growth to moderate throughout the year Invest for growth • Increased levels of investment in BMI, R&D and Capex • Net material inflation (NMI) arou
Slide 26: Outstanding stain removal
OUTSTANDING STAIN REMOVAL