2009 THIRD QUARTER AND NINE MONTHS RESULTS CONTINUED GOOD PROGRESS IN VOLUME, MARGIN AND CASH FLOW Third Quarter highlights . Underlying sales growth 3.4%, with volume growth 3.6%. All regions and categories showing positive volumes. . Gross margin up 290 bps from efficiencies and lower costs. . Advertising and promotion spend increased by 130 bps, mainly additional advertising to support innovations and build brands. Overheads up by 90 bps, mainly due to phasing, with full year expected to be down.. Operating margin before RDIs up by 70 bps. . Continued progress on strategic initiatives: o Opening of new Research and Development centre in Shanghai. o Announcement of agreement to acquire the personal care business of Sara Lee. o Disposal of plantations in the Congo and announced sale of stake in JohnsonDiversey. Nine Months Highlights . Underlying sales growth 4.1%, with volumes up 1.4%. Turnover lower by 0.7% after effects of currency movements (-1.7%) and disposals/acquisitions (-3.0%). . Operating margin before RDIs down by 10 bps (including 30 bps of margin dilution from disposals). . Operating profit in the first nine months of 2008 included profits on disposals of EUR1,579 million pre-tax. . Net cash flow from operating activities EUR1.6 billion ahead of last year driven by improved working capital. Paul Polman, Chief Executive Officer: "We have seen further good progress across all regions and the majority of countries and categories. Our market shares are responding to stronger innovations, greater consumer value, increased marketing support and better execution. Market conditions remain challenging and in this environment we will continue to increase investment behind our brands and build long-term capabilities in research and development. We are on track towards our objective of restoring volume growth while protecting margins and cash flow for the year as a whole." To view the full text of this press release, paste the following link into your web browser: http://www.rns-pdf.londonstockexchange.com/rns/9958B_1-2009-11-4.pdf This information is provided by RNS The company news service from the London Stock Exchange END
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