We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Unilever Plc | LSE:ULVR | London | Ordinary Share | GB00B10RZP78 | ORD 3 1/9P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
27.00 | 0.63% | 4,306.00 | 4,305.00 | 4,307.00 | 4,323.00 | 4,297.00 | 4,307.00 | 416,800 | 10:08:14 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Perfume,cosmetic,toilet Prep | 59.6B | 6.49B | 2.5958 | 16.60 | 107.66B |
TIDMULVR
RNS Number : 5163F
Unilever PLC
10 March 2020
Unilever PLC ("Unilever")
2019 Annual Financial Report Announcement
Unilever announces that the following documents are available on its website www.unilever.com/investorrelations:
Unilever Annual Report and Accounts 2019
Unilever Annual Report on Form 20-F 2019
A copy of each of the documents listed has been submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM . A copy of the Unilever Annual Report on Form 20-F 2019 has also been filed with the U.S. Securities and Exchange Commission and is available at: www.sec.gov/edgar.shtml.
Attached to this announcement is the additional information for the purposes of compliance with the Disclosure and Transparency Rules including principal risk factors, details of related party issues and a responsibility statement.
The unaudited 2019 Full Year and Fourth Quarter Results for the year ended 31 December 2019, which were announced on 30 January 2020, were prepared in accordance with IAS 34.
ADDITIONAL INFORMATION
Principal Risk Factors
These are the risks that we see as most material to Unilever's business and performance at this time. There may be other risks that could emerge in the future.
We set out below certain mitigating actions that we believe help us to manage these risks. However, we may not be successful in deploying some or all of these mitigating actions. If the circumstances in these risks occur or are not successfully mitigated, our cash flow, operating results, financial position, business and reputation could be materially adversely affected. In addition, risks and uncertainties could cause actual results to vary from those described, which may include forward-looking statements, or could impact on our ability to meet our targets or be detrimental to our profitability or reputation.
DESCRIPTION OF RISK WHAT WE ARE DOING TO MANAGE THE RISK BRAND PREFERENCE Our success depends on the value We monitor external market trends and relevance of our brands and and collate consumer, customer products to consumers around the and shopper insights in order world and on our ability to innovate to develop category and brand and remain competitive. strategies. We invest in markets and segments where we have built, Consumer tastes, preferences and or are confident that we can build, behaviours are changing more rapidly competitive advantage. than ever before. We see a growing trend for consumers preferring Our brand communication strategies brands which both meet their functional are designed to optimise digital needs and have an explicit social communication opportunities. We purpose. develop and customise brand messaging content specifically for each Technological change is disrupting of our chosen communication channels our traditional brand communication (both traditional and digital) models. Our ability to develop to ensure that our brand messages and deploy the right communication, reach our target consumers. Brand both teams are driving social purpose in terms of messaging content into their brand's proposition and medium is critical to the and communication. continued strength of our brands. Our Research and Development function We are dependent on creating innovative actively searches for ways in products that continue to meet which to translate the trends the needs of our consumers and in consumer preference and taste getting these new products to into new technologies for incorporation market with speed. into future products. Risk change since last year: No Our innovation management process change converts category strategies into projects which deliver new products to market. We develop product ideas both in house and with selected partners to enable us to respond to rapidly changing consumer trends with speed. ------------------------------------------------ PORTFOLIO MANAGEMENT Unilever's strategic investment Our strategy and our business choices will affect the long-term plans are designed to ensure that growth and profits of our business. resources are prioritised towards those categories and markets having Unilever's growth and profitability the greatest long-term potential are determined by our portfolio for Unilever. Our acquisition of divisions, geographies and activity is driven by our portfolio channels and how these evolve strategy with a clear, defined over time. If Unilever does not evaluation process. make optimal strategic investment decisions, then opportunities for growth and improved margin could be missed. Risk change since last year: No change ------------------------------------------------ CLIMATE CHANGE Climate change and governmental As part of our sustainability actions to reduce such changes targets we monitor climate change may disrupt our operations and/or and are responding by ensuring reduce consumer demand for our we reduce the carbon intensity products. of operations and by developing products with a lower carbon footprint Climate change is occurring around or that require less water during the world which may impact our consumer use. business in various ways. It could lead to water shortages which We aim to minimise our impact would reduce demand for those on climate change by committing of our products that require a to emission reduction targets significant amount of water during and have developed a roadmap to consumer use. It could also lead be carbon positive by 2030. to an increase in raw material and packaging prices or reduced We monitor trends in raw material availability. G overnments may availability and pricing due to take action to reduce climate short term weather impacts, and change such as the introduction proactively reformulate our products of a carbon tax or zero net deforestation where appropriate to ensure continued requirements which could impact availability of input materials. our business through higher costs or reduced flexibility of operations. We monitor governmental developments around actions to combat climate Increased frequency of extreme change and take proactive action weather (storms and floods) could to minimise the impact on our cause increased incidence of disruption operations. We also advocate for to our manufacturing and distribution changes to public policy frameworks network. Climate change could that will enable accelerated decarbonisation, result therefore in making products in line with the upper level less affordable or less available of ambition of the Paris Agreement for our consumers resulting in on Climate Change. reduced growth and profitability. Risk change since last year: No change ------------------------------------------------ PLASTIC PACKAGING We use a significant amount of We are committed to reducing the plastic to package our products. amount of post-consumer plastic A reduction in the amount of virgin packaging waste going to landfill. plastic we use, the use of recycled We have committed to ensuring plastic and an increase in the 100% of our plastic packaging recyclability of our packaging is reusable, recyclable or compostable are critical to our future success. by 2025. Both consumer and customer responses We aim to halve our use of virgin to the environmental impact of plastic by both reducing usage plastic waste and emerging regulation and accelerating use of recycled
by governments to tax or ban the plastic. This requires us to redesign use of certain plastics requires products by considering modular us to find solutions to reduce packaging, design for disassembly the amount of plastic we use; and reassembly, wider use of refills, increase recycling post-consumer recycling and using post-consumer use; and to source recycled plastic recycled materials in innovative for use in our packaging. We are ways. We are working on innovative also dependent on the work of solutions through new business our industry partners to create models. and improve recycling infrastructures throughout the world. We aim to collect and process more plastic packaging than we Not only is there a risk around sell, enabled through driving finding appropriate replacement systematic change in circular materials, due to high demand thinking at an industry level the cost of recycled plastic or working with partners such as other alternative packaging materials the Ellen MacArthur Foundation. could significantly increase in We are also working with governments, the foreseeable future and this industry partners, suppliers and could impact our business performance. consumers to raise awareness and We could also be exposed to higher find solutions to costs as a result of taxes or improve the recycling infrastructure fines if we are unable to comply for plastics. We are helping consumers with plastic regulations which to understand disposal methods would again impact our profitability and supporting collection schemes and reputation. and facilities. Risk change since last year: Increase ------------------------------------------------ CUSTOMER Successful customer relationships We build and maintain trading are vital to our business and relationships across a broad spectrum continued growth. of channels ranging from centrally managed multinational customers Maintaining strong relationships through to small traders accessed with our existing customers and via distributors in many developing building relationships with new countries. We identify changing customers who have built new technology-enabled shopper habits and build relationships business models to serve changing with new customers, such as those shopper habits are necessary to serving the e-commerce channel. ensure our brands are well presented to our consumers and available We develop joint business plans for purchase at all times. with our key customers that include detailed investment plans and The strength of our customer relationships customer service objectives and also affects our ability to obtain we regularly monitor progress. pricing and competitive trade terms. Failure to maintain strong We have developed capabilities relationships with customers could for customer sales and outlet negatively impact our terms of design which enable us to find business with affected customers new ways to improve customer performance and reduce the availability of and enhance our customer relationships. our products to consumers. We invest in technology to optimise order and stock management processes Risk change since last year: Increase for our distributive trade customers. ------------------------------------------------ TALENT A skilled workforce and agile We have an integrated management ways of working are essential development process which includes for the continued success of our regular performance reviews underpinned business. by a common set of leadership behaviours, skills and competencies. With the rapidly changing nature We have development plans to upskill of work and skills, there is a and reskill employees for future risk that our workforce is not roles and will bring in flexible equipped with the skills required talent to access new skills. for the new environment. We have targeted programmes to Our ability to attract, develop attract and retain top talent and retain a diverse range of and we actively monitor our performance skilled people is critical if in retaining a diverse talent we are to compete and grow effectively. pool within Unilever. This is especially true in our We regularly review our ways of key emerging markets where there working to drive speed and simplicity can be a high level of competition through our business in order for a limited talent pool. The to remain agile and responsive loss of management or other key to market place trends. We are personnel or the inability to moving to agile ways of working identify, attract and retain qualified to unlock internal capacity and personnel could make it difficult prioritise work based on growth to manage the business and could and impact. adversely affect operations and financial results. Risk change since last year: No change ------------------------------------------------ SUPPLY CHAIN Our business depends on purchasing We have contingency plans designed materials, efficient manufacturing to enable us to secure alternative and the timely distribution of key material supplies at short products to our customers. notice, to transfer or share production between manufacturing sites and Our supply chain network is exposed to use substitute materials in to potentially adverse events our product formulations and recipes. such as physical disruptions, environmental and industrial accidents, We have policies and procedures trade restrictions or disruptions designed to ensure the health at a key supplier, which could and safety of our employees and impact our ability to deliver the products in our facilities, orders to our customers. and to deal with major incidents including business continuity The cost of our products can be and disaster recovery. significantly affected by the cost of the underlying commodities Commodity price risk is actively and materials from which they managed through forward buying are made. Fluctuations in these of traded commodities and other costs cannot always be passed hedging mechanisms. Trends are on to the consumer through pricing. monitored and modelled regularly and integrated into our forecasting Changes in trade relationships process. between Europe and the UK as a result of Brexit could give rise to both a supply and cost issue. Risk change since last year: No change ------------------------------------------------ SAFE AND HIGH QUALITY PRODUCTS The quality and safety of our Our product quality processes products are of paramount importance and controls are comprehensive, for our brands and our reputation. from product design to customer shelf. They are verified annually The risk that raw materials are and regularly monitored through accidentally or maliciously contaminated performance indicators that drive throughout the supply chain or improvement activities. Our key that other product defects occur suppliers are externally certified due to human error, equipment and the quality of material received failure or other factors cannot is regularly monitored to ensure be excluded. that it meets the rigorous quality
standards that our products require. Labelling errors can have potentially serious consequences for both In the event of an incident relating consumer safety and brand reputation. to the safety of our consumers Therefore on-pack labelling needs or the quality of our products, to provide clear and accurate incident management teams are ingredient information in order activated in the affected markets that consumers can make informed under the direction of our product decisions regarding the products quality, science and communications they buy. experts, to ensure timely and effective market place action. Risk change since last year: No change We have processes in place to ensure that the data used to generate on-pack labelling is compliant with applicable regulations and with relevant Unilever labelling policies in order to provide the clarity and transparency needed for consumers. ------------------------------------------------ SYSTEMS AND INFORMATION Unilever's operations are increasingly To reduce the impact of external dependent on IT systems and the cyber-attacks impacting our business management of information. we have firewalls and threat monitoring systems in place, complete with The cyber-attack threat of unauthorised immediate response capabilities access and misuse of sensitive to mitigate identified threats. information or disruption to operations We also maintain a global system continues to increase. Such an for the control and reporting attack could inhibit our business of access to our critical IT systems. operations in a number of ways, This is supported by an annual including disruption to sales, programme of testing of access production and cash flows, ultimately controls. impacting our results. We have policies covering the In addition, increasing digital protection of both business and interactions with customers, suppliers personal information, as well and consumers place ever greater as the use of IT systems and applications emphasis on the need for secure by our employees. Our employees and reliable IT systems and infrastructure are trained to understand these and careful management of the requirements. information that is in our possession to ensure data privacy. We also have a set of IT security standards and closely monitor Risk change since last year: No their operation to protect our change systems and information. Hardware that runs and manages core operating data is fully backed up with separate contingency systems to provide real-time backup operations should they ever be required. We have standardised ways of hosting information on our public websites and have systems in place to monitor compliance with appropriate privacy laws and regulations, and with our own policies. ------------------------------------------------ BUSINESS TRANSFORMATION Successful execution of business All acquisitions, disposals and transformation projects is key global organisational transformation to delivering their intended business projects are sponsored by a member benefits and avoiding disruption of the Unilever Leadership Executive. to other business activities. All such projects have steering groups in place led by a senior Unilever is continually engaged executive and regular progress in major change projects, including updates are provided to the Unilever acquisitions, disposals and organisational Leadership Executive. Sound project transformation, to drive continuous disciplines are used in all transformation improvement in our business and projects and these projects are to strengthen our portfolio and resourced by dedicated and appropriately capabilities. Continued digitalisation qualified personnel. of our business models and processes together with enhancing data management The digitalisation of our business capabilities is a critical part is led by a dedicated specialist of our transformation. team together with representatives from all parts of the business We have an extensive programme to ensure an integrated and holistic of transformation projects. Failure approach. A significant part of to execute such initiatives successfully the organisational transformation could result in under-delivery involves the transfer of activities of the expected benefits and there to third parties on and offshore. could be a significant impact New ways of working are being on the value of the business. developed to manage this new business model. Risk change since last year: Increase Unilever also monitors the volume of change programmes under way in an effort to stagger the impact on current operations and to ensure minimal disruption. ------------------------------------------------ ECONOMIC AND POLITICAL INSTABILITY Unilever operates around the globe The breadth of Unilever's portfolio and is exposed to economic and and our geographic reach help political instability that may to mitigate our exposure to any reduce consumer demand for our particular localised risk. Our products, disrupt sales operations flexible business model allows and/or impact the profitability us to adapt our portfolio and of our operations. Adverse economic respond quickly to develop new conditions may affect one or more offerings that suit consumers' countries within a region, or and customers' changing needs may extend globally. during economic downturns. Government actions such as foreign We regularly update our forecast exchange or price controls can of business results and cash flows impact on the growth and profitability and, where necessary, rebalance of our local operations. investment priorities. Unilever has more than half its We believe that many years of turnover in emerging markets which exposure to emerging markets have can offer greater growth opportunities given us experience of operating but also expose Unilever to related and developing our business successfully economic and political volatility. during periods of economic and political volatility. Risk change since last year: No change ------------------------------------------------ TREASURY AND TAX Unilever is exposed to a variety Currency exposures are managed of external financial risks in within prescribed limits and by relation to Treasury and Tax. the use of financial hedging instruments. Further, operating companies borrow
The relative values of currencies in local currency except where can fluctuate widely and could inhibited by local regulations, have a significant impact on business lack of local liquidity or local results. Further, because Unilever market conditions. consolidates its financial statements in euros, it is subject to exchange We seek to maintain access to risks associated with the translation global debt markets through short-term of the underlying net assets and and long-term debt programmes. earnings of its foreign subsidiaries. In addition, we maintain significant undrawn committed credit facilities We are also subject to the imposition for general corporate purposes of exchange controls by individual as disclosed in note 16A. countries which could limit our ability to import materials paid Group treasury regularly monitors in foreign currency or to remit exposure to our banks, tightening dividends to the parent company. counter-party limits where appropriate. Unilever actively manages its A material shortfall in our cash banking exposures on a daily basis. flow could undermine Unilever's We regularly assess and monitor credit rating, impair investor counter-party risk in our suppliers confidence and restrict Unilever's and customers and take appropriate ability to raise funds. In times action to manage our exposures. of financial crisis, there is a further risk that we may not Our Global Tax Principles provide be able to raise funds due to overarching governance and we market liquidity. have a process in place to monitor compliance with the Tax Principles. We are exposed to counter-party We have a Tax Risk Framework in risks with banks, suppliers and place which sets out the controls customers which could result in established to assess and monitor financial losses. tax risk for direct and indirect taxes. We monitor proposed changes Tax is a complex and evolving in taxation legislation and ensure area where laws and their interpretation these are taken into account when are changing regularly, leading we consider our future business to the risk of unexpected tax plans. exposures. International tax reform remains a key focus of attention with the OECD's Base Erosion and Profit Shifting project, and the Digitalising Economy Project, and further potential tax reform in the EU. Risk change since last year: No change ------------------------------------------------ ETHICAL Unilever's brands and reputation Our Code of Business Principles are valuable assets and the way and our Code Policies govern the in which we operate, contribute behaviour of our employees, suppliers, to society and engage with the distributors and other third parties world around us is always under who work with us. Our processes scrutiny both internally and externally. for identifying and resolving breaches of our Code of Business Acting in an ethical manner, consistent Principles and our Code Policies with the expectations of customers, are clearly defined and regularly consumers and other stakeholders, communicated throughout Unilever. is essential for the protection Data relating to such breaches of the reputation of Unilever is reviewed by the Unilever Leadership and its brands. Executive and by relevant Board Committees and helps to determine A key element of our ethical approach the allocation of resources for to business is to reduce inequality future policy development, process and promote fairness. Our activities improvement, training and awareness touch the lives of millions of initiatives. people and it is our responsibility to protect their rights and help Our Responsible Sourcing Policy them live well. The safety of and Responsible Business Partners our employees and the people and Policy help us improve the lives communities we work with is critical. of the people in our supply chains Failure to meet these high standards by ensuring human rights are protected could result in damage to Unilever's and makes a healthy and safe workplace corporate reputation and business a mandatory requirement for our results. suppliers. We have detailed safety standards and monitor safety incidents Risk change since last year: No at the highest level. change Through our Brands with Purpose agenda, a number of our brands are taking action on societal issues such as fairness and equality. ------------------------------------------------ LEGAL AND REGULATORY Compliance with laws and regulations Unilever is committed to complying is an essential part of Unilever's with the laws and regulations business operations. of the countries in which we operate. In specialist areas the relevant Unilever is subject to national teams at global, regional or local and regional laws and regulations levels are responsible for setting in such diverse areas as product detailed standards and ensuring safety, product claims, trademarks, that all employees are aware of copyright, patents, competition, and comply with regulations and employee health and safety, data laws specific and relevant to privacy, the environment, corporate their roles. governance, listing and disclosure, employment and taxes. Our legal and regulatory specialists are heavily involved in monitoring Failure to comply with laws and and reviewing our practices to regulations could expose Unilever provide reasonable assurance that to civil and/or criminal actions we remain aware of and in line leading to damages, fines and with all relevant laws and legal criminal sanctions against us obligations. and/or our employees with possible consequences for our corporate reputation. Changes to laws and regulations could have a material impact on the cost of doing business. Risk change since last year: No change ------------------------------------------------
RELATED PARTY TRANSACTIONS
The following related party balances existed with associate or joint venture businesses at 31 December:
Related party balances EUR million EUR million 2019 2018 Trading and other balances due from joint ventures 123 121 ------------ ------------ Trading and other balances due from/(to) - - associates ------------ ------------
JOINT VENTURES
Sales by Unilever group companies to Unilever FIMA, LDA and Pepsi Lipton joint ventures were EUR108 million and EUR60 million in 2019 (2018: EUR107 million and EUR65 million) respectively. Sales from Unilever FIMA, LDA and from Pepsi Lipton joint ventures to Unilever group companies were EUR67 million and EUR46 million in 2019 (2018: EUR83 million and EUR51 million) respectively. Royalties and service fee paid by Unilever FIMA LDA to Unilever group companies were EUR15 million (2018: EUR16 million). Balances owed by/(to) Unilever FIMA, LDA and Pepsi Lipton joint ventures at 31 December 2019 were EUR128 million and EUR(5) million (2018: EUR127 million and EUR(6) million) respectively.
ASSOCIATES
Langholm Capital Partners invests in private European companies with above-average longer-term growth prospects.
Langholm Capital II was launched in 2009. Unilever has invested EUR64 million in Langholm Capital II, with an outstanding commitment at the end of 2019 of EUR11 million (2018: EUR13 million). During 2019, Unilever received EUR0 million (2018: EUR0.3 million) from its investment in Langholm Capital II.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the Directors confirms that, to the best of his or her knowledge:
-- The Unilever Annual Report and Accounts 2019, taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy;
-- The financial statements which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and as issued by the International Accounting Standards Board (in the case of the consolidated financial statements) and Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101) and UK accounting standards and Part 9 of Book 2 of the Dutch Civil Code (in the case of the NV parent company accounts), give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings included in the consolidation taken as a whole; and
-- The Strategic Report includes a fair review of the development and performance of the business and the position of the Group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
Name Function Nils Andersen Chairman Youngme Moon Vice-Chairman and Senior Independent Alan Jope Director Graeme Pitkethly Chief Executive Officer Laura Cha Chief Financial Officer Vittorio Colao Non-Executive Director Marijn Dekkers Non-Executive Director Judith Hartmann Non-Executive Director Andrea Jung Non-Executive Director Susan Kilsby Non-Executive Director Strive Masiyiwa Non-Executive Director John Rishton Non-Executive Director Feike Sijbesma Non-Executive Director Non-Executive Director --------------------------------------
Safe Harbour
This announcement 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', or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the 'Group'). They are not historical facts, nor are they guarantees of future performance.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; the effect of climate change on Unilever's business; Unilever's ability to find sustainable solutions to its plastic packaging; significant changes or deterioration in customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain and distribution; increases or volatility in the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; execution of acquisitions, divestitures and business transformation projects; economic, social and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters.
These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
10 March 2020.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
ACSKKLFBBXLZBBV
(END) Dow Jones Newswires
March 10, 2020 03:30 ET (07:30 GMT)
1 Year Unilever Chart |
1 Month Unilever Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions