London/ Rotterdam -- (MARKET WIRE) -- May 3, 2007 --FIRST QUARTER RESULTS 2007
KEY FINANCIALS
(unaudited)
EUR million First Quarter 2007
Current Current Constant
rates rates rates
Continuing operations:
Turnover 9 528 0 % 5 %
Operating profit 1 302 (8)% (3)%
Pre-tax profit 1 332 2 % 5 %
Net profit from continuing operations 1 052 5 % 9 %
Net profit from total operations 1 074 1 % 5 %
EPS from continuing operations (Euros) 0.34 6 % 9 %
EPS from total operations (Euros) 0.35 2 % 5 %
HIGHLIGHTS
Financial Highlights
- Underlying sales growth of 5.7%, mostly volume.
- Operating margin of 13.7%, with an improvement of
0.4 percentage points before restructuring, disposals and
impairments.
- Earnings per share from continuing operations up 6%, with
good results from joint ventures and associates, reduced finance
costs and a lower tax rate.
- Currency movements reduced turnover by 5% and earnings per share
by 3%.
Operational Highlights
- Broad-based sales growth across regions and categories.
- Better margin development driven by home and personal care.
- Continuing improvement in Europe with underlying sales growth of
3.6%.
- Strong first quarter innovation with bigger launches driving growth
in personal care and developing and emerging markets.
- Continued pace in the implementation of One Unilever and supply chain
improvement programmes.
GROUP CHIEF EXECUTIVE COMMENT
We have had a good start to 2007, with broad-based sales growth across regions
and categories and improved margin development driven by home and personal care.
Sales benefited from a strong innovation programme, especially in personal care,
with several major launches in the quarter. Our European business performed
well, aided by a strong start in ice cream, the timing of price increases in
some key markets and a favourable comparator. Sales growth has been accompanied
by an underlying improvement in our operating margin.
This performance builds on the progress made in 2006 and is further evidence of
the breadth and depth of our change programme. Our growth strategy is focusing
resources behind clear priorities and delivering bigger, better innovation,
faster roll-outs and more effective marketing mixes. New ways of working are
transforming our ability to deploy these innovations and to service customers in
a more efficient way.
Looking forward, we face a significant headwind from rising agricultural
commodity costs which may require further pricing action. I am confident,
however, that the combined benefit of organic growth in our 3-5% guidance range
and improved efficiency leaves us well placed to achieve our margin objectives
for 2007.
The scale of change that has taken place in our business is very significant and
is showing through in our results. Nevertheless we continue to look for
opportunities to speed up the development of our portfolio through acquisitions
and disposals and to accelerate margin improvement towards world class
benchmarks.
Patrick Cescau, Group Chief Executive
3 May 2007
ENQUIRIES
Media: Media Relations Team
UK +44 20 7822 6805 tim.johns@unilever.com
NL +31 10 217 4844
tanno.massar@unilever.com
Investors: Investor Relations team
UK +44 20 7822 6830 investor.relations@unilever.com
US +1 201 894 2615 investor.relations-NewYork@unilever.com
There will be a web cast of the results presentation available at:
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/default.asp
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