Unilever: third quarter and nine month results 2006 and interim dividends

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Overig advies 02/11/2006 08:13
FINANCIAL HIGHLIGHTS
(unaudited)
Third Quarter 2006 € million Nine Months 2006
Current rates Current rates Constant rates Current rates Constant rates
Continuing operations:
10 122 2% 4% Turnover 29 915 4% 3%
1 501 (3)% (2)% Operating profit 4 346 7% 5%
1 128 (20)% (19)% Pre-tax profit 3 789 4% 2%
779 (22)% (21)% Net profit from continuing operations 2 787 5% 4%
812 (45)% (45)% Net profit from total operations 2 915 (10)% (11)%

0.25 (24)% (24)% EPS from continuing operations (Euros) 0.90 5% 4%
0.25 (47)% (47)% EPS from total operations (Euros) 0.94 (11)% (12)%

• Underlying sales growth of 4.8% in the quarter and 3.9% in the first nine months.
• Operating margin of 14.8% in the quarter and 14.5% in the first nine months.
• Increased investment in advertising and promotions behind key mid-year innovations.
• Pricing actions and productivity gains fully offset cost increases.
• Provision of €300 million taken for possible compensation payments relating to the 2005 conversion of preference shares, issued by Unilever N.V. in 1999.
• Interim dividend of €0.23 for NV and 15.62p for PLC.
• €750 million additional one-off dividend (€0.26 for NV and 17.66p for PLC), replacing 2006 share buy-back of €500 million. Share buy-back programme of €1.5 billion planned to commence in 2007.

GROUP CHIEF EXECUTIVE’S COMMENT
We continue to see good progress with another quarter of broad-based growth. All categories and regions grew, with a notable contribution from Europe. Stronger innovation and additional investment behind our priorities are driving the growth of our brands.
Pricing actions and continued productivity gains fully offset higher than expected input costs. The ‘One Unilever’ programme is making a substantial contribution to our cost competitiveness drive. Our global capability programme, now also extended to research and development, is progressing well.
During the quarter we announced the sale of frozen foods businesses in Europe at a good price and expect to complete it shortly. Also we have announced today an increase in the cash to be returned to shareholders in 2006 and plans for additional returns through share buy-backs, starting in 2007.
I am pleased with the sustained improvement in the top line, maintaining the momentum of the first half. Looking ahead our priority is to improve our operating margin, while delivering our growth ambitions. We are confident we will achieve this through a combination of savings, mix improvement and appropriate pricing actions.
Patrick Cescau, Group Chief Executive



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