Unilever(UK)(UL)2025-03-13 15:48Financial Performance - In 2024, Unilever experienced negative net material inflation of €(0.4) billion due to decreased commodity prices towards the end of 2023 and into the first half of 2024[1433]. - Dividends declared for 2024 were £1.48 per share, consistent with the previous year, while dividends paid were £1.47 per share[1429]. - In 2024, sales in Iran accounted for significantly less than 0.5% of Unilever's worldwide turnover, with gross revenues of approximately €2,842,776 and net profits of less than €1,168,954[1448]. - Audit fees for 2024 amounted to €32 million, an increase from €23 million in both 2023 and 2022[1513]. - There have been no material defaults in the payment of principal or interest related to the Group's indebtedness[1498]. Shareholder Engagement - Approximately 40% of Unilever's ordinary shares were held in the United States in 2024, indicating a strong presence in the US market[1424]. - The company announced a share buyback program of up to €1.5 billion on 8 February 2024, completing the program on 5 November 2024, with a total of 27,368,909 shares repurchased at an average price of €54.8 per share[1509]. - Under the first tranche of the buyback, 13,437,701 shares were purchased for an aggregate market value of €700,101,906, while the second tranche involved 13,931,208 shares for €799,897,969[1510]. - PLC received $5,084,322 from Deutsche Bank for processing cash distributions and other reimbursements in relation to the ADS program for fiscal year 2024[1497]. - Any unclaimed dividends after 12 years revert to PLC, and unclaimed amounts may be invested for the benefit of PLC[1505]. Innovation and Research - The company invested approximately €900 million in R&D each year for the last three years, focusing on innovations and sustainable practices[1438]. - Unilever holds over 20,000 patents, with significant advancements in microbiome research leading to new product innovations[1440]. - Unilever's innovation strategy includes the use of digital and automated technology to enhance product development efficiency[1439]. Sustainability Initiatives - The company is committed to sustainability goals, focusing on renewable materials and reducing plastic pollution[1441]. - The company’s sustainability strategy includes 15 external goals across four priority areas: Climate, Nature, Plastics, and Livelihoods[1538]. - Unilever aims for a 100% reduction in Scope 1 and 2 GHG emissions by 2030, using a 2015 baseline[1609]. - The company targets a 42.0% reduction in Scope 3 energy and industrial GHG emissions by 2030, against a 2021 baseline[1610]. - Unilever's Climate Transition Action Plan (CTAP) outlines 2030 climate targets and aims for net zero GHG emissions by 2039[1608]. Cyber Security - Unilever's Cyber Security Risk Management Framework is aligned with industry standards, promoting a culture of cyber security awareness across the organization[1453]. - No known cyber security incidents materially affected Unilever during the year ended December 31, 2024[1455]. - The Chief Financial Officer (CFO) oversees cyber security risk management, supported by a dedicated team and regular briefings to the executive leadership team[1452]. - The Information Protection Council (IPC) actively reviews and prioritizes cyber security risk management initiatives across the enterprise[1459]. - Unilever's cyber security policies are subject to periodic review and modifications based on changes in risk, ensuring continuous improvement in resilience posture[1466]. Operational Footprint - The average number of employees in 2024 included 129 seasonal workers, reflecting a stable relationship with labor unions[1414]. - Unilever operates over 250 factories globally and employs over 120,000 employees[1553]. - The Group currently has no plans to construct or materially expand existing facilities, indicating a stable operational footprint[1450]. - Unilever's properties are predominantly used for production and distribution activities, with no individual property being materially significant to the Group as a whole[1449]. Risk Management - The company has established processes to manage risks related to the integrity of sustainability information disclosed[1552]. - Water withdrawal from operations and upstream value chain could lead to water shortages, particularly in high water stress areas[1592]. - The risk of biodiversity loss could escalate into shock events affecting commodities and financial markets[1593]. - Hazardous waste from product manufacturing and disposal may lead to environmental contamination and public health issues[1594]. - Compliance with Extended Producer Responsibility (EPR) schemes could lead to higher expenses for waste management and packaging redesign[1594].