Unilever(UK)(UL)2025-03-13 16:18Financial Performance - Underlying sales growth (USG) for 2024 was 4.2%, driven by a volume increase of 2.9% and price growth of 1.3%[16] - Total turnover for 2024 reached €60.8 billion, reflecting a 1.9% increase year-over-year, despite a (0.7)% impact from currency and (1.5)% from net disposals[25] - Underlying operating profit rose to €11.2 billion, marking a 12.6% increase, while the underlying operating margin improved by 170 basis points to 18.4%[24] - Free cash flow for 2024 was €6.9 billion, with a cash conversion rate of 106%[25] - Full year turnover for Unilever was €60.8 billion, with underlying sales growth (USG) of 4.2% and a turnover of €14.2 billion for Q4 2024[41] - Beauty & Wellbeing segment achieved a full year turnover of €13.2 billion, with USG of 6.5% driven by volume growth of 5.1% and price growth of 1.3%[42] - Personal Care segment reported a full year turnover of €13.6 billion, with USG of 5.2% and volume growth of 3.1%[49] - Home Care segment turnover was €12.3 billion, with USG of 2.9% and volume growth of 4.0%[55] - Foods segment turnover reached €13.4 billion, with USG of 2.6% driven by price growth of 2.4%[61] - Underlying earnings per share increased by 14.7% to €2.98, with constant underlying earnings per share up by 15.4%[88] - Net profit fell by 10.8% to €6,369 million in 2024, compared to €7,140 million in 2023[133] - Basic earnings per share decreased by 10.6% to €2.30 in 2024, down from €2.58 in 2023[134] Future Outlook - The company anticipates underlying sales growth for 2025 to be within the range of 3% to 5%, with a slower start expected due to subdued market growth[13] - The company expects a modest improvement in underlying operating margin for 2025 compared to 18.4% in 2024, with benefits anticipated in the second half of the year[14] - The company plans to separate its Ice Cream business by the end of 2025, aiming to create a world-leading entity with five of the top 10 global ice cream brands[67] Shareholder Returns - In 2024, the company returned €5.8 billion to shareholders through dividends and share buybacks, with a quarterly interim dividend for Q4 raised to €0.4528, up 6.1% compared to Q4 2023[36] - The company completed a €1.5 billion share buyback program in November and announced a new share buyback of up to €1.5 billion to be completed in the first half of 2025[37] - A new share buyback program with a market value of up to €1.5 billion is set to commence on February 13, 2025[94] Cost Management and Productivity - A productivity program was launched targeting €800 million in savings, with 4,300 full-time equivalent roles reduced by the end of 2024[30] - Restructuring costs in 2024 reached €(850) million, compared to €(499) million in 2023, as part of a company-wide productivity program affecting approximately 7,500 jobs[111] Market Performance - The Americas region reported a 5.5% underlying sales growth, with North America achieving 5.3% growth driven by strong performance in Beauty & Wellbeing[80][81] - Emerging markets generated €35.3 billion in turnover with a 4.1% underlying sales growth, while developed markets saw a 4.4% growth[75] Acquisitions and Investments - The company acquired K18, a premium biotech hair care brand, which will contribute to underlying sales growth starting February 2025[46] - Brand and marketing investment increased by 120 basis points to 15.5% of turnover, the highest level in over a decade[25] Financial Position - Net debt increased by €0.9 billion to €24.5 billion, with a net debt to underlying EBITDA ratio of 1.9x[91] - Total assets increased to €79,750 million in 2024, up 5.3% from €75,266 million in 2023[143] - Total liabilities rose to €57,195 million, an increase of 5.0% compared to €54,502 million in 2023[143] - Shareholders' equity increased to €19,990 million, up 10.4% from €18,102 million in 2023[143] Tax and Impairments - The effective tax rate for 2024 was 29.0%, up from 24.1% in 2023[113] - The company recorded an impairment charge of €127 million related to Blueair in 2024[112]