(a) These amounts do not include any price growth in Venezuela. See pages 6-7 on non-GAAP measures for further details.
(b) Unilever announced its agreement to sell the spreads business on 15 December 2017, and has completed the sale on 2 July 2018.
First half highlights
•Underlying sales growth excluding spreads 2.7% with volume 2.5% and price 0.2%
•Truckers'strike in Brazil adversely affected USG by around 60bps
•Emerging markets underlying sales growth 4.1% with volume 3.3% and price 0.8%
•Turnover decreased 5.0% including an adverse translational currency impact of (8.9)%
•Underlying operating margin up 80bps driven by increased gross margin and further reduced overheads
•Underlying earnings per share up 7.8% after a currency impact of (10.8)%, constant underlying EPS up 18.6%
Paul Polman: Chief Executive Officer statement
"Our first half results show solid volume-driven growth across all three divisions, which was achieved despite the effects of an extended truckers'strike in Brazil, one of our biggest markets. Growth was driven by strong innovation and continued expansion in future growth markets. The margin improvement was of high quality and in line with our strategy, driven by further gross margin progression, increased investment behind our brands and strong savings delivery.
The Connected 4 Growth change programme, which makes our organisation more agile and resilient, is driving the step-up in our innovation and savings programmes. As part of the continued portfolio evolution, we have completed the exit from spreads on 2 July 2018. In anticipation of the disposal proceeds, wehave already returned €3 billionaspart of our €6 billionshare buyback programme that will complete before the end of the year. We have also signed an agreement to acquire a 75% stake in the Italian personal care businessEquilibra.
Our expectation for the full year is unchanged. We expect underlying sales growth in the 3% - 5% range, an improvement in underlying operating margin and strong cash flow. We remain on track for our 2020 goals."
19 July 2018
Underlying sales growth (USG), underlying volume growth (UVG), underlying price growth (UPG), underlying operating profit (UOP), underlying operating margin (UOM), underlying earnings per share (underlying EPS), constant underlying EPS, underlying effective tax rate, free cash flow (FCF) and net debt are non-GAAP measures (see pages 6 to 9)
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Unilever plc published this content on 19 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 July 2018 06:16:03 UTC
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