Unilever Half Year Report

[idpickering]

First half highlights

· Underlying sales declined 0.1% with volume declining 0.3% and price growth of 0.2%

· Turnover decreased 1.6% including a positive impact of 1.1% from acquisitions net of disposals and negative impact of 2.5% from currency

· Underlying operating profit excluding currency increased 3.8%, before a negative impact of 3.2% from currency

· Underlying earnings per share up 6.4%, including a negative impact of 3.7% from currency

· Free cash flow up €1.3 billion to €2.9 billion, reflecting our objective to protect cash during the crisis

· Quarterly shareholder dividend maintained at €0.4104 per share

· Completed acquisitions of Horlicks brand from GSK, enhancing presence in healthy nutrition

· Announced plans to unify the Group legal structure under a single parent company

And later;

The Boards have determined to pay a quarterly interim dividend for Q2 2020 at the following rates which are equivalent in value between the two companies at the rate of exchange applied under the terms of the Equalisation Agreement:

Div 0.3698 per share

Ex div 6 Aug 20, paid 9 Sep 20.

https://www.investegate.co.uk/unilever- ... 00088196T/

https://www.investegate.co.uk/unilever- ... 00088196T/

[Dod101]

Thanks Ian. These results look good to me, and it is great that paying the dividend is not an issue. I see that they are to sell most of their tea business.

Dod

[Gengulphus]

The Boards have determined to pay a quarterly interim dividend for Q2 2020 at the following rates which are equivalent in value between the two companies at the rate of exchange applied under the terms of the Equalisation Agreement:

Div 0.3698 per share

Ex div 6 Aug 20, paid 9 Sep 20.

https://www.investegate.co.uk/unilever- ... 00088196T/

A small clarification, as the currency symbol seems to have gone missing from the quote: that's the sterling dividend £ 0.3698, which is up about 2.3% on the Q1 dividend of £ 0.3614. For context, the euro dividend is € 0.4104, unchanged from the Q1 dividend (as completely usual for Unilever), so the rise is purely due to exchange rate.

Gengulphus

[idpickering]

Thanks Ian. These results look good to me, and it is great that paying the dividend is not an issue. I see that they are to sell most of their tea business.

Dod

You're welcome Dod. I saw that re the tea business. The results apparently beat estimates according to Bloomberg, but I don't recall the figures concerned. I wish all my shares performed like the steady Eddie that is Unilever. Watch out for an up coming interview of the CEO of ULVR on Bloomberg.

Ian.

[idpickering]

The Boards have determined to pay a quarterly interim dividend for Q2 2020 at the following rates which are equivalent in value between the two companies at the rate of exchange applied under the terms of the Equalisation Agreement:

Div 0.3698 per share

Ex div 6 Aug 20, paid 9 Sep 20.

https://www.investegate.co.uk/unilever- ... 00088196T/

A small clarification, as the currency symbol seems to have gone missing from the quote: that's the sterling dividend £ 0.3698, which is up about 2.3% on the Q1 dividend of £ 0.3614. For context, the euro dividend is € 0.4104, unchanged from the Q1 dividend (as completely usual for Unilever), so the rise is purely due to exchange rate.

Gengulphus

Thanks for that Gengulphus. Serves me right for trying to win the fastest finger competition! It was early after all.


Ian.

[Dod101]

Interesting, the effect of exchange rates. The same can be said of AstraZeneca for the last few years where it has held its dividend in US Dollars but then I thought if AstraZeneca were reporting in sterling their increase in dividend would be down purely to exchange rates. Would we complain?

With a company like Unilever, they trade in so many currencies across the world, that exchange rates must play quite a big part in their results and it is very difficult if not impossible to pick out the effect unless you are the Finance Director which is why if you are into these things, it would be better to study the volumes sold. I have often thought that Unilever would be better reporting in US Dollars as their main markets are mostly linked to the USD rather than to the Euro. I think the Dutch influence again. It will be interesting if they proposals for anglification go through whether they change the reporting currency in due course.

Dod

[Charlottesquare]

It will be interesting if they proposals for anglification go through whether they change the reporting currency in due course.

Dod

Surely they will want to report in a stable currency ,so that is unlikely.

[Arborbridge]

Unfortunately (though not unexpectedly) the price is up with events and ULVR's yield is still not quite in "as good as it gets" territory - though it was knocking on that when I topped up in May.
Still, it's a tempter for anyone without a full house of this company.


PS not sure about Horlicks being a "healthy" drink! Though, I do not believe it's full of caffeine, so perhaps it is less "unhealthy".


Arb.

[pyad]

Interesting, the effect of exchange rates. The same can be said of AstraZeneca for the last few years where it has held its dividend in US Dollars but then I thought if AstraZeneca were reporting in sterling their increase in dividend would be down purely to exchange rates. Would we complain?

With a company like Unilever, they trade in so many currencies across the world, that exchange rates must play quite a big part in their results and it is very difficult if not impossible to pick out the effect unless you are the Finance Director which is why if you are into these things, it would be better to study the volumes sold. I have often thought that Unilever would be better reporting in US Dollars as their main markets are mostly linked to the USD rather than to the Euro. I think the Dutch influence again. It will be interesting if they proposals for anglification go through whether they change the reporting currency in due course.

Dod

Very difficult to pick out the FX effect? Impossible? From near the top of this report:

· Turnover decreased 1.6% including a positive impact of 1.1% from acquisitions net of disposals and negative impact of 2.5% from currency

· Underlying operating profit excluding currency increased 3.8%, before a negative impact of 3.2% from currency

· Underlying earnings per share up 6.4%, including a negative impact of 3.7% from currency

And I'm not the Finance Director

[Dod101]

Thank you pyad. I missed that. The results could be said to be pretty good then. The market likes the results as well.

Dod

[yorkshirelad1]

The Boards have determined to pay a quarterly interim dividend for Q2 2020 at the following rates which are equivalent in value between the two companies at the rate of exchange applied under the terms of the Equalisation Agreement:

Div 0.3698 per share

Ex div 6 Aug 20, paid 9 Sep 20.

https://www.investegate.co.uk/unilever- ... 00088196T/

A small clarification, as the currency symbol seems to have gone missing from the quote: that's the sterling dividend £ 0.3698, which is up about 2.3% on the Q1 dividend of £ 0.3614. For context, the euro dividend is € 0.4104, unchanged from the Q1 dividend (as completely usual for Unilever), so the rise is purely due to exchange rate.

Gengulphus

In sterling terms, the first two dividends for this year (total 73.12p) are 1.1% ahead of same last year


(figures in pence/share)