Unilever reports Q4 and full-year results - Unilever Group - Brief Article - Statistical Data Included

Eurofood, Feb 13, 2001

Unilever has registered a 16% increase in operating profits as the firm released its fourth quarter and full-year results. In what has been a very busy year for the food industry, Anglo-Dutch consumer goods giant Unilever has also been extremely active. In addition to the major purchase of US firm Bestfoods, Unilever also made 19 other acquisitions during 2000 spending more than [euro]4.4bn, not including the Bestfoods deal. At the same time, Unilever divested some 27 businesses.

Midway through 2000, the Anglo-Dutch group embarked on an ambitious restructuring programme. Firstly it announced that it would split into two global divisions, one for food business and one for home and personal care. Unilever also implemented what it called a "path to growth" strategy, with the company concentrating on its top performing food brands. This strategy involved the firm cutting its brand portfolio from around 1400 products, to just 400. The loss recorded in the fourth quarter reflects planned restructuring costs.

POOR EUROPEAN SUMMER AFFECTED SALES

Operating profit at Unilever rose by 31 % in the quarter and by 16% for the year. Excluding contributions from Bestfoods, the increases stood at 9% and 10% respectively. In Europe, Unilever said its food business made good progress, but overall sales were held back by the poor summer weather affecting ice cream and beverage sales. However, in spreads and cooking oils, Unilever launched its cholesterol lowering pro.activ spread. The firm's culinary business performed well, as well as a successful roll out of its oriental Tchae tea.

Unilever said that despite a modest improvement in trading conditions in Central and Eastern Europe, the financial crisis in Turkey impacted negatively on fourth quarter sales in the region. In the US, sales increased by 9% with ice cream, tea and culinary products all doing well.

Unilever's joint chairmen, N Fitzgerald and A Burgmans said that the firm's decision to focus on its strong brands is already having a positive impact on margins and cash flow. They also said with reference to the acquisitions of Bestfoods, Slim-Fast and Ben & Jerry's: "Their integration is proceeding well and synergy will be delivered on time and in full."

Unilever fourth quarter and full-year result ([euro]m)

                          Q4 2000   % /-   Full-Year 2000   % /-

Turnover                  12 206      19           43 793      7
Operating profits(beia)    1 430      31            5 313     16
Pre-tax profit             (620)   (164)            2 667   (39)
Net profit                 (828)   (232)            1 151   (58)
Net profit (beia)           678      (5)            3 046      2

Source: Unilever
Note: beia (before exceptional items and amortisation)