Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover Page [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | UNILEVER PLC |
Entity Central Index Key | 0000217410 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 2,629,243,772 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Address, Country | GB |
Entity Voluntary Filers | No |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | true |
Ordinary shares [member] | |
Cover Page [Line Items] | |
Title of 12(b) Security | Ordinary shares, nominal value of 3 1/9 pence per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
American Depositary Shares [member] | |
Cover Page [Line Items] | |
Trading Symbol | UL |
Title of 12(b) Security | American Depositary Shares (evidenced by Depositary Receipts) each representing one ordinary share of the nominal amount of 3 1/9p each |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Profit or loss [abstract] | ||||
Turnover | € 50,724 | € 51,980 | € 50,982 | |
Operating profit | 8,303 | 8,708 | 12,639 | |
Which includes non-underlying item credits/(charges) of | (1,064) | (1,239) | 3,176 | |
Net finance costs | (505) | (627) | (608) | |
Pensions and similar obligations | [1] | (9) | (30) | (25) |
Finance income | 232 | 224 | 135 | |
Finance costs | (728) | (821) | (718) | |
Which includes non-underlying costs of | (56) | |||
Non-underlying item net monetary gain/(loss) arising from hyperinflationary economies | 20 | 32 | 122 | |
Share of net profit/(loss) of joint ventures and associates | 175 | 176 | 185 | |
Which includes non-underlying item credits/(charges) of | 3 | 32 | ||
Other income/(loss) from non-current investments and associates | 3 | 22 | ||
Profit before taxation | 7,996 | 8,289 | 12,360 | |
Taxation | (1,923) | (2,263) | (2,572) | |
Which includes tax impact of non-underlying items of | 126 | 113 | (288) | |
Net profit | 6,073 | 6,026 | 9,788 | |
Attributable to: | ||||
Non-controlling interests | 492 | 401 | 419 | |
Shareholders' equity | € 5,581 | € 5,625 | € 9,369 | |
Combined earnings per share | ||||
Basic earnings per share (€) | € 2.13 | € 2.15 | € 3.49 | |
Diluted earnings per share (€) | € 2.12 | € 2.14 | € 3.48 | |
[1] | This includes the impact of interest on asset ceiling. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Net profit | € 6,073 | € 6,026 | € 9,788 |
Items that will not be reclassified to profit or loss, net of tax: | |||
Gains/(losses) on equity instruments measured at fair value through other comprehensive income | 78 | 29 | 51 |
Remeasurement of defined benefit pension plans | 215 | 353 | (328) |
Items that may be reclassified subsequently to profit or loss, net of tax: | |||
Gains/(losses) on cash flow hedges | 60 | 176 | (55) |
Currency retranslation gains/(losses) | (2,590) | (15) | (839) |
Total comprehensive income | 3,836 | 6,569 | 8,617 |
Attributable to: | |||
Non-controlling interests | 286 | 407 | 407 |
Shareholders' equity | € 3,550 | € 6,162 | € 8,210 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - EUR (€) € in Millions | Total | Called up share capital [member] | Share Premium Account [member] | Unification Reserves [Member] | Other reserves [member] | Retained profit [member] | Equity Attributable to Owners of Parent [member] | Non-controlling Interests [member] | |
Beginning balance at Dec. 31, 2017 | € 14,198 | € 484 | € 130 | € (13,587) | € 26,413 | € 13,440 | € 758 | ||
Hyperinflation restatement to 1 January 2018 at Dec. 31, 2017 | 393 | 393 | 393 | ||||||
Beginning balance after restatement at Dec. 31, 2017 | 14,591 | 484 | 130 | (13,587) | 26,806 | 13,833 | 758 | ||
Profit or loss for the period | 9,788 | 9,369 | 9,369 | 419 | |||||
Other comprehensive income net of tax: | |||||||||
Gains/(losses) on equity instruments measured at fair value through other comprehensive income | 51 | 51 | 51 | ||||||
Cash flow hedges | (55) | (56) | (56) | 1 | |||||
Remeasurement of defined benefit pension plans | (328) | (330) | (330) | 2 | |||||
Currency retranslation gains/(losses) | (839) | (814) | (10) | (824) | (15) | ||||
Total comprehensive income | 8,617 | (819) | 9,029 | 8,210 | 407 | ||||
Dividends on ordinary capital | (4,081) | (4,081) | (4,081) | ||||||
Repurchase of shares | [1] | (6,020) | (6,020) | (6,020) | |||||
Cancellation of treasury shares | [2] | (20) | 5,069 | (5,049) | |||||
Movements in treasury shares | [3] | (253) | (8) | (245) | (253) | ||||
Share-based payment credit | [4] | 196 | 196 | 196 | |||||
Dividends paid to non-controlling interests | (342) | (342) | |||||||
Currency retranslation gains/(losses) net of tax | (1) | (1) | (1) | ||||||
Hedging gain/(loss) transferred to non-financial assets | 71 | 71 | 71 | ||||||
Other movements in equity | [5] | (661) | 76 | (634) | (558) | (103) | |||
Ending balance at Dec. 31, 2018 | 12,117 | 464 | 129 | (15,218) | 26,022 | 11,397 | 720 | ||
Impact of adopting IFRIC 23 at Dec. 31, 2018 | (38) | (38) | (38) | ||||||
Beginning balance after restatement at Dec. 31, 2018 | 12,079 | 464 | 129 | (15,218) | 25,984 | 11,359 | 720 | ||
Profit or loss for the period | 6,026 | 5,625 | 5,625 | 401 | |||||
Other comprehensive income net of tax: | |||||||||
Gains/(losses) on equity instruments measured at fair value through other comprehensive income | 29 | 25 | 25 | 4 | |||||
Cash flow hedges | 176 | 176 | 176 | ||||||
Remeasurement of defined benefit pension plans | 353 | 352 | 352 | 1 | |||||
Currency retranslation gains/(losses) | (15) | (18) | 2 | (16) | 1 | ||||
Total comprehensive income | 6,569 | 183 | 5,979 | 6,162 | 407 | ||||
Dividends on ordinary capital | (4,223) | (4,223) | (4,223) | ||||||
Cancellation of treasury shares | [2] | (44) | 9,416 | (9,372) | |||||
Movements in treasury shares | [3] | (167) | 64 | (231) | (167) | ||||
Share-based payment credit | [4] | 151 | 151 | 151 | |||||
Dividends paid to non-controlling interests | (435) | (435) | |||||||
Currency retranslation gains/(losses) net of tax | 5 | 5 | 5 | ||||||
Hedging gain/(loss) transferred to non-financial assets | 32 | 32 | 32 | ||||||
Other movements in equity | (125) | (51) | (76) | (127) | 2 | ||||
Ending balance at Dec. 31, 2019 | 13,886 | 420 | 134 | (5,574) | 18,212 | 13,192 | 694 | ||
Profit or loss for the period | 6,073 | 5,581 | 5,581 | 492 | |||||
Other comprehensive income net of tax: | |||||||||
Gains/(losses) on equity instruments measured at fair value through other comprehensive income | 78 | 68 | 68 | 10 | |||||
Cash flow hedges | 60 | 62 | 62 | (2) | |||||
Remeasurement of defined benefit pension plans | 215 | 217 | 217 | (2) | |||||
Currency retranslation gains/(losses) | (2,590) | (2,356) | (22) | (2,378) | (212) | ||||
Total comprehensive income | 3,836 | (2,226) | 5,776 | 3,550 | 286 | ||||
Dividends on ordinary capital | (4,300) | (4,300) | (4,300) | ||||||
Issue of PLC ordinary shares as part of Unification | [6] | 51 | (51) | ||||||
Cancellation of NV ordinary shares as part of Unification | [6] | (233) | (20) | 253 | |||||
Other effects of Unification | [7] | (146) | 73,364 | € (73,364) | 132 | 14 | |||
Movements in treasury shares | [3] | 62 | 220 | (158) | 62 | ||||
Share-based payment credit | [4] | 108 | 108 | 108 | |||||
Dividends paid to non-controlling interests | (559) | (559) | |||||||
Currency retranslation gains/(losses) net of tax | (6) | (6) | (6) | ||||||
Hedging gain/(loss) transferred to non-financial assets | 12 | 10 | 10 | 2 | |||||
Net gain arising from Horlicks acquisition | [8] | 4,848 | 2,930 | 2,930 | 1,918 | ||||
Other movements in equity | [5] | (232) | (44) | (236) | (280) | 48 | |||
Ending balance at Dec. 31, 2020 | € 17,655 | € 92 | € 73,472 | € (73,364) | € (7,482) | € 22,548 | € 15,266 | € 2,389 | |
[1] | Repurchase of shares reflects the cost of acquiring ordinary shares as part of the share buyback programmes announced on 19 April 2018 and 6 April 2017. | ||||||||
[2] | During 2019, 254,012,896 NV ordinary shares and 18,660,634 PLC ordinary shares were cancelled and in 2018 122,965,077 PLC ordinary shares were cancelled. The amount paid to repurchase these shares was initially recognised in other reserves and is transferred to retained profit on cancellation. | ||||||||
[3] | Includes purchases and sales of treasury shares, and transfer from treasury shares to retained profit of share-settled schemes arising from prior years and differences between exercise and grant price of share options. | ||||||||
[4] | The share-based payment credit relates to the non-cash charge recorded against operating profit in respect of the fair value of share options and awards granted to employees. | ||||||||
[5] | 2020 includes €163 million paid for purchase of the non-controlling interest in Unilever Malaysia. 2018 includes a €662 million premium paid for purchase of the non-controlling interest in Unilever South Africa from Remgro. | ||||||||
[6] | As part of Unification (see note 1 for further details), the shareholders of NV were issued new PLC ordinary shares, and all NV shares in issue were cancelled. The net impact is recognised in retained profit. | ||||||||
[7] | Includes the reduction of PLC’s share capital following the cessation of the Equalisation Agreement. Prior to Unification, a conversion rate of £1= €5.143 was used in accordance with the Equalisation Agreement to translate PLC’s share capital. Following Unification, PLC’s share capital has been translated using the exchange rate at the date of Unification. To reflect the legal share capital of the PLC company, an increase to share premium of €73,364 million and a debit unification reserve for the same amount have been recorded as there is no change in the net assets of the group. This debit is not a loss as a matter of law. | ||||||||
[8] | Consideration for the Main Horlicks Acquisition included the issuance of shares in a group subsidiary, Hindustan Unilever Limited, which resulted in a net gain being recognised within equity. See note 21 for further details. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) € in Millions | 12 Months Ended | ||
Dec. 31, 2020EUR (€) | Dec. 31, 2019Conversionshares | Dec. 31, 2018EUR (€)shares | |
Unilever Malaysia [member] | |||
Premium paid for purchase of non-controlling interest | € 163 | ||
Unilever South Africa [member] | |||
Premium paid for purchase of non-controlling interest | € 662 | ||
NV Member | |||
Number of shares cancelled | shares | 254,012,896 | ||
PLC Member | |||
Number of shares cancelled | shares | 18,660,634 | 122,965,077 | |
Conversion rate / £ | Conversion | 5.143 | ||
Other effects of Unification | € 73,364 |
Consolidated Balance Sheet
Consolidated Balance Sheet - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current assets | |||
Goodwill | € 18,942 | € 18,067 | |
Intangible assets | 15,999 | 12,962 | |
Property, plant and equipment | 10,558 | 12,062 | |
Pension asset for funded schemes in surplus | 2,722 | 2,422 | |
Deferred tax assets | 1,474 | 1,336 | |
Financial assets | [1] | 876 | 874 |
Other non-current assets | 931 | 653 | |
Total non-current assets | 51,502 | 48,376 | |
Current assets | |||
Inventories | 4,462 | 4,164 | |
Trade and other current receivables | 4,939 | 6,695 | |
Current tax assets | 372 | 397 | |
Cash and cash equivalents | [1] | 5,548 | 4,185 |
Other financial assets | [1] | 808 | 907 |
Assets held for sale | 28 | 82 | |
Current assets | 16,157 | 16,430 | |
Total assets | 67,659 | 64,806 | |
Current liabilities | |||
Financial liabilities | [2] | 4,461 | 4,691 |
Trade payables and other current liabilities | 14,132 | 14,768 | |
Current tax liabilities | 1,451 | 898 | |
Provisions | 547 | 620 | |
Liabilities held for sale | 1 | 1 | |
Total current liabilities | 20,592 | 20,978 | |
Non-current liabilities | |||
Financial liabilities | [2] | 22,844 | 23,566 |
Non-current tax liabilities | 149 | 182 | |
Pensions and post-retirement healthcare liabilities: | |||
Funded schemes in deficit | 1,109 | 1,157 | |
Unfunded schemes | 1,326 | 1,461 | |
Provisions | 583 | 664 | |
Deferred tax liabilities | 3,166 | 2,573 | |
Other non-current liabilities | 235 | 339 | |
Total non current liabilities | 29,412 | 29,942 | |
Total liabilities | 50,004 | 50,920 | |
Equity | |||
Shareholders' equity | 15,266 | 13,192 | |
Non-controlling interests | 2,389 | 694 | |
Total equity | 17,655 | 13,886 | |
Total liabilities and equity | € 67,659 | € 64,806 | |
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[2] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of cash flows [abstract] | ||||
Net profit | € 6,073 | € 6,026 | € 9,788 | |
Taxation | 1,923 | 2,263 | 2,572 | |
Share of net (profit)/loss of joint ventures/associates and other (income)/loss from non-current investments and associates | (178) | (176) | (207) | |
Net monetary (gain)/loss arising from hyperinflationary economies | (20) | (32) | (122) | |
Net finance costs | 505 | 627 | 608 | |
Operating profit | 8,303 | 8,708 | 12,639 | |
Depreciation, amortisation and impairment | 2,018 | 1,982 | 2,216 | |
Changes in working capital: | 680 | (9) | (793) | |
Inventories | (587) | 313 | (471) | |
Trade and other receivables | 1,125 | (445) | (1,298) | |
Trade payables and other liabilities | 142 | 123 | 976 | |
Pensions and similar obligations less payments | (182) | (260) | (128) | |
Provisions less payments | (53) | 7 | 55 | |
Elimination of (profits)/losses on disposals | 60 | 60 | (4,313) | |
Non-cash charge for share-based compensation | 108 | 151 | 196 | |
Other adjustments | [1] | (1) | 2 | (260) |
Cash flow from operating activities | 10,933 | 10,641 | 9,612 | |
Income tax paid | (1,875) | (2,532) | (2,294) | |
Net cash flow from operating activities | 9,058 | 8,109 | 7,318 | |
Interest received | 169 | 146 | 110 | |
Purchase of intangible assets | (158) | (210) | (203) | |
Purchase of property, plant and equipment | (863) | (1,316) | (1,329) | |
Disposal of property, plant and equipment | 89 | 97 | 108 | |
Acquisition of businesses and investments in joint ventures and associates | (1,426) | (1,122) | (1,336) | |
Disposal of businesses, joint ventures and associates | 39 | 177 | 7,093 | |
Acquisition of other non-current investments | (128) | (160) | (94) | |
Disposal of other non-current investments | 51 | 55 | 151 | |
Dividends from joint ventures, associates and other current/non-current investments | 188 | 164 | 154 | |
(Purchase)/sale of financial assets | 558 | (68) | (10) | |
Net cash flow (used in)/from investing activities | (1,481) | (2,237) | 4,644 | |
Dividends paid on ordinary share capital | (4,279) | (4,209) | (4,066) | |
Interest paid | (624) | (694) | (571) | |
Net change in short-term borrowings | 722 | 337 | (4,026) | |
Additional financial liabilities | 3,117 | 5,911 | 10,595 | |
Repayment of financial liabilities | (3,577) | (4,912) | (6,594) | |
Capital element of lease payments | (443) | (435) | (481) | |
Repurchase of shares | (6,020) | |||
Other movements on treasury shares | (201) | (257) | ||
Other financing activities | [2] | (720) | (464) | (693) |
Net cash flow (used in)/from financing activities | (5,804) | (4,667) | (12,113) | |
Net increase/(decrease) in cash and cash equivalents | 1,773 | 1,205 | (151) | |
Cash and cash equivalents at the beginning of the year | 4,116 | 3,090 | 3,169 | |
Effect of foreign exchange rate changes | (414) | (179) | 72 | |
Cash and cash equivalents at the end of the year | € 5,475 | € 4,116 | € 3,090 | |
[1] | 2018 includes a non-cash credit of €277 million from early settlement of contingent consideration relating to Blueair. | |||
[2] | Other financing activities include cash paid for the purchase of non-controlling interests and dividends paid to minority interest. |
Consolidated Cash Flow Statem_2
Consolidated Cash Flow Statement (Parenthetical) € in Millions | 12 Months Ended |
Dec. 31, 2018EUR (€) | |
Blueair [member] | |
Statement 1 [Line Items] | |
Non-cash credit from early settlement of contingent consideration | € 277 |
Accounting Information and Poli
Accounting Information and Policies | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Accounting Information and Policies | 1. Accounting information and policies Unification On 29 November 2020, the Unilever Group underwent a reorganisation so that there were no longer two parent companies, Unilever N.V. (“NV”) and Unilever PLC (“PLC”), but one parent company PLC. This reorganisation is referred to as “Unification” in the Group consolidated financial statements. Prior to 29 November 2020, the Group operated with two parent companies, NV and PLC, who together with the group companies operated as a single economic entity. NV and PLC had the same Directors and were linked by a series of agreements, including an Equalisation Agreement, which were designed so that the positions of the shareholders of both companies were as closely as possible as if they held shares in a single company. NV and PLC together formed a single reporting entity for the purposes of presenting consolidated financial statements and group companies included in the consolidation included those companies controlled by NV or PLC. Following Unification, all group companies are now controlled solely by PLC. There is no change to the companies included in the Group as a result of Unification, other than NV ceasing to exist. Unification was implemented through a Cross-Border Merger, as a result of which (i) PLC acquired all of the assets, liabilities and legal relationships of NV by universal succession of title; (ii) NV was dissolved; and (iii) PLC issued and allotted shares in its capital to former NV shareholders, except for a very small minority of NV shareholders that chose to receive cash instead of PLC shares. The shareholders of NV received one new PLC share in exchange for each NV share held, consistent with the 1 to 1 equalisation ratio as set out in the Equalisation Agreement. The transfer of assets and liabilities from NV to PLC that occurred as part of the Cross-Border Merger was within the Group so there is no revaluation of these assets and liabilities in the Group financial statements. The only impact to the consolidated balance sheet from Unification is within equity due to the cancellation of NV shares and issuance of PLC shares. Basis of consolidation Group companies included in the consolidated financial statements for 2020 are PLC and all subsidiary undertakings, which are those entities controlled by PLC. Control exists when the Group has the power to direct the activities of an entity so as to affect the return on investment. Due to the operational and contractual arrangements referred to above, prior to Unification NV and PLC formed a single reporting entity for the purposes of presenting consolidated financial statements. Accordingly, group companies included in the comparative information provided in the consolidated financial statements, for 2019 and 2018, are PLC and NV and those companies controlled by NV or PLC during those years. The net assets and results of acquired businesses are included in the consolidated financial statements from their respective dates of acquisition, being the date on which the Group obtains control. As noted above, Unification did not cause the acquisition by the Group of any new business. All companies controlled by NV before Unification are included in the Group consolidation for the year ending 31 December 2020 and they were already Group companies prior to Unification. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal, being the date control ceases. Intra-group transactions and balances are eliminated. Companies legislation and accounting standards The consolidated financial statements have been prepared in accordance with international accounting standards in conformity with the requirements of the international financial reporting standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and IFRS as issued by the International Accounting Standards Board. These financial statements are prepared under the historical cost convention unless otherwise indicated. These financial statements have been prepared on a going concern basis. Accounting policies The accounting policies adopted are the same as those which were applied for the previous financial year, except as set out above under the headings ‘Unification’ and ‘Basis of consolidation’ and below under the heading ‘Recent accounting developments’. Accounting policies are included in the relevant notes to the consolidated financial statements. These are presented as text highlighted in grey on pages 116 to 167. The accounting policies below are applied throughout the financial statements. Foreign currencies The consolidated financial statements are presented in euros. The functional currency of PLC is pound sterling. Items included in the financial statements of individual group companies are recorded in their respective functional currency which is the currency of the primary economic environment in which each entity operates. Foreign currency transactions in individual group companies are translated into functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and liabilities at year-end In preparing the consolidated financial statements, the balances in individual group companies are translated from their functional currency into euros. Apart from the financial statements of group companies in hyperinflationary economies (see below), the income statement, the cash flow statement and all other movements in assets and liabilities are translated at average rates of exchange as a proxy for the transaction rate, or at the transaction rate itself if more appropriate. Assets and liabilities are translated at year-end The financial statements of group companies whose functional currency is the currency of a hyperinflationary economy are adjusted for inflation and then translated into euros using the balance sheet exchange rate. Amounts shown for prior years for comparative purposes are not modified. To determine the existence of hyperinflation, the Group assesses the qualitative and quantitative characteristics of the economic environment of the country, such as the cumulative inflation rate over the previous three years. The ordinary share capital of PLC is translated to euro using the historical rate at the date the shares were issued (see note 15B on page 144). The effect of exchange rate changes during the year on net assets of foreign operations is recorded in equity. For this purpose net assets include loans between group companies and any related foreign exchange contracts where settlement is neither planned nor likely to occur in the foreseeable future. The Group applies hedge accounting to certain exchange differences arising between the functional currencies of a foreign operation and PLC, regardless of whether the net investment is held directly or through an intermediate parent. Differences arising on retranslation of a financial liability designated as a foreign currency net investment hedge are recorded in equity to the extent that the hedge is effective. These differences are reported within profit or loss to the extent that the hedge is ineffective. Cumulative exchange differences arising since the date of transition to IFRS of 1 January 2004 are reported as a separate component of other reserves. In the event of disposal or part disposal of an interest in a group company either through sale or as a result of a repayment of capital, the cumulative exchange difference is recognised in the income statement as Hyperinflationary economies The Argentinian economy was designated as hyperinflationary from 1 July 2018. As a result, application of IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ has been applied to all Unilever entities whose functional currency is the Argentinian Peso. The application of IAS 29 includes: • Adjustment of historical cost non-monetary • Adjustment of the income statement for inflation during the reporting period; • The income statement is translated at the period end foreign exchange rate instead of an average rate; and • Adjustment of the income statement to reflect the impact of inflation and exchange rate movement on holding monetary assets and liabilities in local currency. The main effects of the Group consolidated financial statements for 2020 are: • Total assets are reduced by €68 million • Turnover is reduced by €58 million • Operating profit is reduced by €23 million Critical accounting estimates and judgements The preparation of financial statements requires management to make estimates and judgements in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future period affected. The following estimates are those that management believe have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: • Measurement of defined benefit obligations – the valuations of the Group’s defined benefit pension plan obligations are dependent on a number of assumptions. These include discount rates, inflation and life expectancy of scheme members. Details of these assumptions and sensitivities are in note 4B. • Measurement of consideration and assets and liabilities acquired as part of business combinations – estimates are required to value the assets and liabilities acquired in business combinations. Intangible assets such as brands are commonly a core part of an acquired business as they allow us to obtain more value than would otherwise be possible. During 2020 Unilever completed several acquisitions, as explained in note 21. The Horlicks brand acquired in 2020 was valued at €2.7 billion based on the expected cashflows of the brand. We involved external professionals to advise on the valuation techniques and key assumptions in the valuation. This input, combined with our internal knowledge and expertise on the relevant market growth opportunities, enabled us to determine the appropriate brand valuation. Additionally, contingent consideration depends on an acquired business achieving targets within a fixed period. Estimates of future performance are required to calculate the obligations at the time of acquisition and at each subsequent reporting date. See note 21 for further information. The following judgements are those that management believe have the most significant effect on the amounts recognised in the Group’s financial statements: • Separate presentation of items in the income statement – certain items of income or expense are presented separately as non-underlying items • Utilisation of tax losses and recognition of other deferred tax assets – The Group operates in many countries and is subject to taxes in numerous jurisdictions. Management uses judgement to assess the recoverability of tax assets such as whether there will be sufficient future taxable profits to utilise losses – see note 6B. • Likelihood of occurrence of provisions and contingent liabilities – events can occur where there is uncertainty over future obligations. Judgement is required to determine if an outflow of economic resources is probable, or possible but not probable. Where it is probable, a liability is recognised and further judgement is used to determine the level of the provision. Where it is possible but not probable, further judgement is used to determine if the likelihood is remote, in which case no disclosures are provided; if the likelihood is not remote then judgement is used to determine the contingent liability disclosed. Unilever does not have provisions and contingent liabilities for the same matters. External advice is obtained for any material cases. See notes 6A, 19 and 20. • Recognition of pension surplus – where there is an accounting surplus on a defined benefit plan, management uses judgement to determine whether the Group can realise the surplus through refunds, reductions in future combinations or a combination of both. Recent accounting developments adopted by the Group The Group applied for the first-time amendments to the following standards from 1 January 2020. Applicable standard Key requirements Impact on Group Interest Rate Benchmark Reform (Phase 1) Amendments to IFRS 9, IAS 39 and IFRS 7 The amendments modified specific hedge accounting requirements so entities can continue to forecast future cash flows assuming that the interest rate benchmark continue despite ongoing reviews of interest rate benchmark reform. As a result there is no requirement for an entity to discontinue hedge relationships or to reassess the economic relationships between hedged items and hedging instruments as a result of the uncertainties of the interest rate benchmark reform. We do not have significant derivatives that refer to an interest rate benchmark so these amendments have not had a material impact on Unilever. All other standards or amendments to standards that have been issued by the IASB and were effective by 1 January 2020 were not applicable or material to Unilever. New standards, amendments and interpretations of existing standards that are not yet effective and have not been early adopted by the Group The following new standards have been released but are not yet adopted by the Group. The expected impact and progress is shown below. In addition to the above, based on an initial review the Group does not currently believe adoption of the following standard/amendments will have a material impact on the consolidated results or financial position of the Group. Applicable standard Key requirements or changes in accounting policy Interest Rate Benchmark Reform (Phase 2) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Effective from the year ended 31 December 2021 The amendments are applicable when an existing interest rate benchmark is replaced by another interest rate benchmark. The amendments provide a practical expedient that modifications to asset and liability values as a direct consequence of the interest rate benchmark reform and made on an economically equivalent basis (i.e. where the basis for determining contractual cash flows is the same), can be accounted for by only updating the effective interest rate. Additionally, hedge accounting is not discontinued solely because of the replacement of another interest rate benchmark. Hedging relationships (and related documentation) must instead be amended to reflect modifications to the hedged item, hedging instrument and hedged risk. IFRS 17 ‘Insurance Contracts’ Effective from the year ended 31 December 2023 This standard introduces a new model for accounting for insurance contracts. Work continues to review existing arrangements to determine the impact on adoption. All other standards or amendments to standards that have been issued by the IASB and are effective from 1 January 2021 onwards are not applicable or material to Unilever. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
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Segment Information | 2. Segment information Segmental reporting Beauty & Personal Care • primarily sales of skin cleansing (soap, shower), hair care (shampoo, conditioner, styling), skin care (face, hand and body moisturisers) and deodorants categories. Foods & Refreshment • primarily sales of ice cream, savoury (soups, bouillons, seasoning), dressings (mayonnaise, ketchup) and tea categories. Home Care • primarily sales of fabric category (washing powders and liquids, rinse conditioners) and includes a wide range of cleaning products. Revenue Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs and are based on the contractual arrangements with each customer. Discounts can either be immediately deducted from the sales value on the invoice or off-invoice off-invoice. Customer contracts generally contain a single performance obligation and turnover is recognised when control of the products being sold has transferred to our customer as there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the customer but depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance. This is considered the appropriate point where the performance obligations in our contracts are satisfied as Unilever no longer has control over the inventory. Our customers have the contractual right to return goods only when authorised by Unilever. At 31 December 2020, an estimate has been made of goods that will be returned and a liability has been recognised for this amount. An asset has also been recorded for the corresponding inventory that is estimated to return to Unilever using a best estimate based on accumulated experience. Some of our customers are distributors who may be able to return unsold goods in consignment arrangements. Underlying operating profit Underlying operating profit means operating profit before the impact of non-underlying Our segments are comprised of similar product categories. 10 categories (2019: 9; 2018: 9) individually accounted for 5% or more of our revenue in one or more of the last three years. The following table shows the relevant contribution of these categories to Group revenue for the periods shown: Category Segment 2020 2019 2018 Fabric Home Care 14 % 15 % 15 % Ice cream Foods & Refreshment 13 % 13 % 13 % Skin Cleansing Beauty & Personal Care 12 % 10 % 10 % Hair care Beauty & Personal Care 11 % 12 % 12 % Savoury Foods & Refreshment 11 % 11 % 11 % Deodorants Beauty & Personal Care 8 % 8 % 8 % Skin care Beauty & Personal Care 7 % 8 % 7 % Dressings Foods & Refreshment 6 % 5 % 5 % Tea Foods & Refreshment 6 % 6 % 6 % Home & Hygiene Home Care 5 % 4 % 4 % Other 8 % 7 % 9 % The Group operating segment information is provided based on three product areas: Beauty & Personal Care, Foods & Refreshment and Home Care. Notes € million € million € million € million 2020 Turnover 21,124 19,140 10,460 50,724 Operating profit 4,311 2,749 1,243 8,303 Non-underlying 3 280 508 276 1,064 Underlying operating profit 4,591 3,257 1,519 9,367 Share of net profit/(loss) of joint ventures and associates 7 163 5 175 Significant non-cash Within underlying operating profit: Depreciation and amortisation 710 946 362 2,018 Share-based compensation and other non-cash (a) 77 85 41 203 Within non-underlying Impairment and other non-cash (b) 38 77 35 150 2019 Turnover 21,868 19,287 10,825 51,980 Operating profit 4,520 2,811 1,377 8,708 Non-underlying 3 440 571 228 1,239 Underlying operating profit 4,960 3,382 1,605 9,947 Share of net profit/(loss) of joint ventures and associates 1 171 4 176 Significant non-cash Within underlying operating profit: Depreciation and amortisation 693 902 369 1,964 Share-based compensation and other non-cash (a) 62 56 50 168 Within non-underlying Impairment and other non-cash (b) 105 159 46 310 2018 Turnover 20,624 20,227 10,131 50,982 Operating profit 4,165 7,287 1,187 12,639 Non-underlying 3 378 (3,711 ) 157 (3,176 ) Underlying operating profit 4,543 3,576 1,344 9,463 Share of net profit/(loss) of joint ventures and associates (1 ) 183 3 185 Significant non-cash Within underlying operating profit: Depreciation and amortisation 686 949 373 2,008 Share-based compensation and other non-cash (a) 102 102 46 250 Within non-underlying Impairment and other non-cash (b) 122 164 263 549 (a) Other non-cash charges within underlying operating profit include movements in provisions from underlying activities, excluding movements arising from non- underlying activities. (b) Other non-cash non-underlying The Unilever Group is not reliant on turnover from transactions with any single customer and does not receive 10% or more of its turnover from transactions with any single customer. Segment assets and liabilities are not provided because they are not reported to or reviewed by our chief operating decision-maker, which is the Unilever Leadership Executive (ULE). As part of Unification, Unilever PLC became the single parent of the Group and the United Kingdom became the country of domicile. Before Unification, the countries of domicile were the United Kingdom and the Netherlands. Turnover and non-current € million € million € million € million € million United Kingdom United States India Others (a) Total 2020 Turnover 2,391 9,363 4,993 33,977 50,724 Non-current (b) 3,587 12,946 6,264 23,633 46,430 2019 Turnover 2,306 8,702 4,964 36,009 51,980 Non-current (b) 3,891 13,326 1,137 25,391 43,744 2018 Turnover 2,385 8,305 4,565 35,727 50,982 Non-current (b) 3,160 12,471 1,080 25,400 42,111 (a) Includes the Netherlands that was presented as country of domicile in prior years. (b) For the purpose of this table, non-current assets include goodwill, intangible assets, property, plant and equipment and other non-current assets as shown on the consolidated balance sheet. Goodwill is attributed to countries where acquired business operated at the time of acquisition; all other assets are attributed to the countries where they were acquired. No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total. Additional information by geographies Although the Group’s operations are managed by product area, we provide additional information based on geographies. The analysis of turnover by geographical area is stated on the basis of origin. € million Asia/ (a) € million (b) € million € million 2020 Turnover 23,440 16,080 11,204 50,724 Operating profit 4,137 2,723 1,443 8,303 Non-underlying 409 249 406 1,064 Underlying operating profit 4,546 2,973 1,848 9,367 Share of net profit/(loss) of joint ventures and associates 8 122 45 175 2019 Turnover 24,129 16,482 11,369 51,980 Operating profit 4,418 2,683 1,607 8,708 Non-underlying 439 395 405 1,239 Underlying operating profit 4,857 3,078 2,012 9,947 Share of net profit/(loss) of joint ventures and associates (5 ) 126 55 176 2018 Turnover 22,868 16,020 12,094 50,982 Operating profit 4,824 3,621 4,194 12,639 Non-underlying (437 ) (892 ) (1,847 ) (3,176 ) Underlying operating profit 4,387 2,729 2,347 9,463 Share of net profit/(loss) of joint ventures and associates — 114 71 185 (a) Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus. (b) Americas sales in North America were €10,117 Disaggregation of sales by markets are: € million € million € million Emerging markets 29,281 31,021 29,654 Developed markets 21,443 20,959 21,328 Transactions between the Unilever Group’s geographical regions are carried out on an arm’s length basis and their net impact is immaterial. |
Operating costs and non-underly
Operating costs and non-underlying items | 12 Months Ended |
Dec. 31, 2020 | |
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Operating Costs and Non-underlying Items | 3. Operating costs and non-underlying Operating costs Operating costs include cost of sales, brand and marketing investment and overheads. (i) Cost of sales Cost of sales includes the cost of inventories sold during the period and distribution costs. The cost of inventories are raw and packaging materials and related production costs. Distribution costs are charged to the income statement as incurred. (ii) Brand and marketing investment Brand and marketing investment include costs related to creating and maintaining brand equity and brand awareness. This includes media, advertising production, promotional materials and engagement with consumers. These costs are charged to the income statement as incurred. (iii) Overheads Overheads include staff costs associated with sales activities and central functions such as finance, human resources and research and development costs. Research and development costs are staff costs, material costs, depreciation of property, plant and equipment and other costs that are directly attributable to research and product development activities. These costs are charged to the income statement as incurred. Non-underlying These items are relevant to an understanding of our financial performance due to their nature and/or frequency of occurrence. (i) Non-underlying These are gains and losses on business disposals, acquisition and disposal-related costs, restructuring costs, impairments and other items within operating profit classified here due to their nature and/or frequency. Restructuring costs are charges associated with activities planned by management that significantly change either the scope of the business or the manner in which it is conducted. (ii) Non-underlying These are net monetary gain or loss arising from hyperinflationary economies and significant and unusual items in net finance cost, share of profit/ (loss) of joint ventures and associates and taxation. € million € million € million 2020 2019 2018 Turnover 50,724 51,980 50,982 Cost of sales (28,684 ) (29,102 ) (28,703 ) of which: Distribution costs (3,104 ) (3,089 ) (3,057 ) Production costs (3,696 ) (3,701 ) (3,732 ) Raw and packaging materials and goods purchased for resale (20,400 ) (20,769 ) (20,516 ) Other (1,484 ) (1,543 ) (1,398 ) Gross profit 22,040 22,878 22,279 Selling and administrative expenses (12,673 ) (12,931 ) (12,816 ) of which: Brand and marketing investment (7,091 ) (7,272 ) (7,150 ) Overheads (5,582 ) (5,659 ) (5,666 ) of which: Research and development (800 ) (840 ) (900 ) Non-underlying (1,064 ) (1,239 ) 3,176 Operating profit 8,303 8,708 12,639 Exchange losses within operating costs in 2020 are €45 million (2019: €41 million; 2018: €49 million). Non-underlying Non-underlying € million € million € million 2020 2019 2018 Non-underlying (1,064 ) (1,239 ) 3176 Acquisition and disposal-related costs (69 ) (132 ) 76 Gain on disposal of group companies (a) 8 70 4,331 Restructuring costs (b) (916 ) (1,159 ) (914 ) Impairments (c) — (18 ) (208 ) Other (d) (87 ) — (109 ) Tax on non-underlying 272 309 (259 ) Non-underlying (792 ) (930 ) 2,917 Non-underlying (36 ) 35 154 Share of gain on disposal of Spreads business in Portugal JV — 3 32 Interest related to the UK tax audit of intangible income and centralised services (56 ) — — Net monetary gain arising from hyperinflationary economies 20 32 122 Tax impact of non-underlying (146 ) (196 ) (29 ) Impact of US tax reform — — (29 ) Taxes related to the reorganisation of our European business (58 ) (175 ) — Taxes related to share buyback as part of Unification (30 ) — — Taxes related to the UK tax audit of intangible income and centralised services (53 ) — — Hyperinflation adjustment for Argentina deferred tax (5 ) (21 ) — Non-underlying (182 ) (161 ) 125 Non-underlying (e) (974 ) (1,091 ) 3,042 Attributable to: Non-controlling (23 ) (28 ) 18 Shareholders’ equity (951 ) (1,063 ) 3,024 (a) 2020 gain relates to a laundry bar business disposal. 2019 includes a gain of €57 (b) Restructuring costs are comprised of various supply chain optimisation projects and organisational change programmes across markets. (c) 2019 includes a charge of €18 (d) 2020 includes a charge of €87 (e) Non-underlying items after tax is calculated as non-underlying items within operating profit after tax plus non-underlying items not in operating profit but within net profit after tax. |
Employees
Employees | 12 Months Ended |
Dec. 31, 2020 | |
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Employees | 4. Employees 4A. Staff and management costs € million € million € million Staff costs 2020 2019 2018 Wages and salaries (5,051 ) (5,364 ) (5,346 ) Social security costs (519 ) (541 ) (571 ) Other pension costs (419 ) (334 ) (439 ) Share-based compensation costs (108 ) (151 ) (196 ) (6,097 ) (6,390 ) (6,552 ) ‘000 ‘000 ‘000 Average number of employees during the year 2020 2019 2018 Asia/AMET/RUB 83 84 88 The Americas 38 40 40 Europe 29 29 30 150 153 158 € million € million € million Key management compensation 2020 2019 2018 Salaries and short-term employee benefits (28 ) (42 ) (40 ) Post-employment benefits — — — Share-based benefits (a) (5 ) (16 ) (13 ) (33 ) (58 ) (53 ) Of which: Executive Directors (6 ) (9 ) (13 ) Other (b) (27 ) (49 ) (40 ) Non-Executive (2 ) (2 ) (2 ) (35 ) (60 ) (55 ) (a) Share-based benefits are expenses recognised for the period. Share-based benefits compensation on a vesting basis is € 10 17 19 (b) Other includes all members of the Unilever Leadership Executive, other than Executive Directors. Key management are defined as the members of Unilever Leadership Executive (ULE) and the Non-Executive 4B. Pensions and similar obligations For defined benefit plans, operating and finance costs are recognised separately in the income statement. The amount charged to operating cost in the income statement is the cost of accruing pension benefits promised to employees over the year, plus the costs of individual events such as past service benefit changes, settlements and curtailments (such events are recognised immediately in the income statement). The amount charged or credited to finance costs is a net interest expense calculated by applying the liability discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are recognised immediately in the statement of comprehensive income. The defined benefit plan surplus or deficit on the balance sheet comprises the total for each plan of the fair value of plan assets less the present value of the defined benefit liabilities (using a discount rate based on high-quality corporate bonds, or a suitable alternative where there is no active corporate bond market). All defined benefit plans are subject to regular actuarial review using the projected unit method by external consultants. The Group policy is that the most material plans, representing approximately 85% of the defined benefit liabilities, are formally valued every year. Other material plans, accounting for a further 11% of the liabilities, have their liabilities updated each year. Group policy for the remaining plans requires a full actuarial valuation at least every three years. Asset values for all plans are updated every year. For defined contribution plans, the charges to the income statement are the company contributions payable, as the company’s obligation is limited Description of plans The Group increasingly operates a number of defined contribution plans, the assets of which are held in external funds. In certain countries the Group operates defined benefit pension plans based on employee pensionable remuneration and length of service. The majority of defined benefit plans are either career average, final salary or hybrid plans and operate on a funded basis with assets held in external funds. Benefits are determined by the plan rules and are linked to inflation in some countries. Our largest plans are in the UK and the Netherlands. In the UK, we currently operate a combination of an open career average defined benefit plan with a salary limit for benefit accrual, and a defined contribution plan. The career average defined benefit plan will be closed to new entrants later in 2021. In the Netherlands, we operate a collective defined contribution plan for all new benefit accrual and a closed career average defined benefit plan for benefits built up to April 2015. The Group also provides other post-employment benefits, mainly post-employment healthcare plans in the United States. These plans are predominantly unfunded. Governance The majority of the Group’s externally funded plans are established as trusts, foundations or similar entities. The operation of these entities is governed by local regulations and practice in each country, as is the nature of the relationship between the Group and the Trustees (or equivalent) and their composition. Where Trustees (or equivalent) are in place to operate plans, they are generally required to act on behalf of the plan’s stakeholders. They are tasked with periodic reviews of the solvency of the plan in accordance with local legislation and play a role in the long-term investment and funding strategy. The Group also has an internal body, the Pensions and Equity Committee, that is responsible for setting the company’s policies and decision-making on plan matters, including but not limited to design, funding, investments, risk management and governance. Investment strategy The Group’s investment strategy in respect of its funded plans is implemented within the framework of the various statutory requirements of the territories where the plans are based. The Group has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Group of the benefits provided. To achieve this, investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The plans continue to invest a good proportion of the assets in equities, which the Group believes offer the best returns over the long term, commensurate with an acceptable level of risk. The plans expose the Group to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and, in certain markets, inflation risk. There are no unusual entity or plan-specific risks to the Group. For risk control, the pension funds also have significant investments in liability matching assets (bonds) as well as in property and other alternative assets; additionally, the Group uses derivatives to further mitigate the impact of the risks outlined above. The majority of assets are managed by a number of external fund managers with a small proportion managed in-house. Assumptions With the objective of presenting the assets and liabilities of the pensions and other post-employment benefit plans at their fair value on the balance sheet, assumptions under IAS 19 are set by reference to market conditions at the valuation date. The actuarial assumptions used to calculate the benefit liabilities vary according to the country in which the plan is situated. The following table shows the assumptions, weighted by liabilities, used to value the principal defined benefit plans (representing approximately 96% of total pension liabilities and other post-employment benefit liabilities). 31 December 2020 31 December 2019 Defined benefit Other post- Defined benefit Other post- Discount rate 1.3 % 3.3 % 1.9 % 3.9 % Inflation 2.2 % n/a 2.3 % n/a Rate of increase in salaries 2.9 % 3.0 % 2.9 % 3.0 % Rate of increase for pensions in payment (where provided) 2.1 % n/a 2.2 % n/a Rate of increase for pensions in deferment (where provided) 2.3 % n/a 2.4 % n/a Long-term medical cost inflation n/a 5.1 % n/a 5.4 % The valuations of other post-employment benefit plans generally assume a higher initial level of medical cost inflation, which falls from 6% to the long-term rate within the next four years. Assumed healthcare cost trend rates have a significant effect on the amounts reported for healthcare plans. During 2020, refinements were made in assumption setting methodologies to reflect changes being made more generally by corporates and their advisers in setting discount rates and future inflation rates, specifically in the UK, which resulted in a €880 million lower liability. For the UK and Netherlands pension plans, representing approximately 70% of all defined benefit pension liabilities, the assumptions used at 31 December 2020 and 2019 were: United Kingdom Netherlands 2020 2019 2020 2019 Discount rate 1.4 % 2.0 % 0.7 % 1.1 % Inflation 2.7 % 2.9 % 1.5 % 1.5 % Rate of increase in salaries 3.3 % 3.2 % 2.0 % 2.0 % Rate of increase for pensions in payment (where provided) 2.7 % 2.8 % 1.5 % 1.5 % Rate of increase for pensions in deferment (where provided) 2.7 % 2.8 % 1.5 % 1.5 % Number of years a current pensioner is expected to live beyond age 65: Men 21.7 21.6 21.5 22.6 Women 23.4 23.4 23.6 24.1 Number of years a future pensioner currently aged 45 is expected to live beyond age 65: Men 22.7 22.6 23.4 24.5 Women 24.6 24.6 25.4 26.2 Demographic assumptions, such as mortality rates, are set with having regard to the latest trends in life expectancy (including expectations of future improvements), plan experience and other relevant data. These assumptions are reviewed and updated as necessary as part of the periodic actuarial valuation of the pension plans. The years of life expectancy for 2020 above have been translated from the following tables: UK: Netherlands: in-built The remaining defined benefit plans are considered immaterial. Their assumptions vary due to a number of factors including the currency and long-term economic conditions of the countries where they are situated. Income statement The charge to the income statement comprises: € million € million € million Notes 2020 2019 2018 Charged to operating profit: Defined benefit pension and other benefit plans: Current service cost (223 ) (216 ) (220 ) Employee contributions 17 17 17 Special termination benefits (37 ) (5 ) (16 ) Past service cost including (losses)/gains on curtailments 20 65 (41 ) Settlements 7 (2 ) — Defined contribution plans (203 ) (193 ) (179 ) Total operating cost 4A (419 ) (334 ) (439 ) Finance income/(cost) (a) 5 (9 ) (30 ) (25 ) Net impact on the income statement (before tax) (428 ) (364 ) (464 ) (a) This includes the impact of interest on asset ceiling. Statement of comprehensive income Amounts recognised in the statement of comprehensive income on the remeasurement of the net defined benefit liability/asset. € million € million € million Return on plan assets excluding amounts included in net finance income/(cost) 1,494 2,385 (1,108 ) Change in asset ceiling, excluding amounts included in finance cost 2 (37 ) — Actuarial gains/(losses) arising from changes in demographic assumptions 246 183 42 Actuarial gains/(losses) arising from changes in financial assumptions (1,414 ) (2,138 ) 611 Experience gains/(losses) arising on pension plan and other benefit plan liabilities (78 ) (12 ) 18 Total of defined benefit costs recognised in other comprehensive income 250 381 (437 ) Balance sheet The assets, liabilities and surplus/(deficit) position of the pension and other post-employment benefit plans at the balance sheet date were: € million 2020 € million 2019 Pension plans Other post- Pension plans Other post- Fair value of assets 24,023 9 23,749 14 Present value of liabilities (23,272 ) (447 ) (23,438 ) (484 ) Computed net assets/(liabilities) 751 (438 ) 311 (470 ) Irrecoverable surplus (a) (26 ) — (37 ) — Net pension assets/(liabilities) 725 (438 ) 274 (470 ) Of which in respect of: Funded plans in surplus: Liabilities (18,043 ) — (17,772 ) — Assets 20,790 1 20,229 2 Aggregate Surplus: 2,747 1 2,457 2 Irrecoverable surplus (26 ) — (37 ) — Pension asset net of liabilities 2,721 1 2,420 2 Funded plans in deficit: Liabilities (4,310 ) (40 ) (4,657 ) (32 ) Assets 3,233 8 3,520 12 Pension liability net of assets (1,077 ) (32 ) (1,137 ) (20 ) Unfunded plans: Pension liability (919 ) (407 ) (1,009 ) (452 ) (a) A surplus is deemed recoverable to the extent that the Group can benefit economically from the surplus. Unilever assesses the maximum economic benefit available through a combination of refunds and reductions in future contributions in accordance with local legislation and individual financing arrangements with each of our funded defined benefit plans. Reconciliation of change in assets and liabilities The group of plans within ‘Rest of world’ category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure. Movements in assets during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January 12,122 5,522 6,082 23,726 10,329 4,996 5,555 20,880 Employee contributions — — 17 17 — — 17 17 Settlements — — (67 ) (67 ) — — — — Actual return on plan assets (excluding amounts in net finance income/charge) 1,109 206 179 1,494 1,233 588 564 2,385 Change in asset ceiling, excluding amounts included in finance cost — — 2 2 — — (37 ) (37 ) Interest income (a) 230 60 146 436 292 89 192 573 Employer contributions 104 12 282 398 94 14 293 401 Benefit payments (467 ) (166 ) (507 ) (1,140 ) (455 ) (165 ) (588 ) (1,208 ) Others 46 (47 ) 21 20 — — 2 2 Currency retranslation (645 ) — (235 ) (880 ) 629 — 84 713 31 December 12,499 5,587 5,920 24,006 12,122 5,522 6,082 23,726 (a) This includes the impact of interest on asset ceiling. Movements in liabilities during the year: UK Netherlands Rest € UK Netherlands Rest of € million 1 January (11,001 ) (5,097 ) (7,824 ) (23,922 ) (9,739 ) (4,664 ) (7,351 ) (21,754 ) Current service cost (114 ) (3 ) (106 ) (223 ) (104 ) (4 ) (108 ) (216 ) Special termination benefits — — (37 ) (37 ) — — (5 ) (5 ) Past service costs including (losses)/gains on curtailments 17 — 3 20 56 — 9 65 Settlements — — 74 74 — — (2 ) (2 ) Interest cost (208 ) (55 ) (182 ) (445 ) (276 ) (82 ) (245 ) (603 ) Actuarial gain/(loss) arising from changes in demographic assumptions (1 ) 245 2 246 157 14 12 183 Actuarial gain/(loss) arising from changes in financial assumptions (806 ) (354 ) (254 ) (1,414 ) (955 ) (511 ) (672 ) (2,138 ) Actuarial gain/(loss) arising from experience adjustments (67 ) (6 ) (5 ) (78 ) (44 ) (15 ) 47 (12 ) Benefit payments 467 166 507 1,140 455 165 588 1,208 Others (44 ) 44 (38 ) (38 ) — — (20 ) (20 ) Currency retranslation 609 — 349 958 (551 ) — (77 ) (628 ) 31 December (11,148 ) (5,060 ) (7,511 ) (23,719 ) (11,001 ) (5,097 ) (7,824 ) (23,922 ) Movements in (deficit)/surplus during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January 1,121 425 (1,742 ) (196 ) 590 332 (1,796 ) (874 ) Current service cost (114 ) (3 ) (106 ) (223 ) (104 ) (4 ) (108 ) (216 ) Employee contributions — — 17 17 — — 17 17 Special termination benefits — — (37 ) (37 ) — — (5 ) (5 ) Past service costs including (losses)/gains on curtailments 17 — 3 20 56 — 9 65 Settlements — — 7 7 — — (2 ) (2 ) Actual return on plan assets (excluding amounts in net finance income/charge) 1,109 206 179 1,494 1,233 588 564 2,385 Change in asset ceiling, excluding amounts included in finance cost — — 2 2 — — (37 ) (37 ) Interest cost (208 ) (55 ) (182 ) (445 ) (276 ) (82 ) (245 ) (603 ) Interest income (a) 230 60 146 436 292 89 192 573 Actuarial gain/(loss) arising from changes in demographic assumptions (1 ) 245 2 246 157 14 12 183 Actuarial gain/(loss) arising from changes in financial assumptions (806 ) (354 ) (254 ) (1,414 ) (955 ) (511 ) (672 ) (2,138 ) Actuarial gain/(loss) arising from experience adjustments (67 ) (6 ) (5 ) (78 ) (44 ) (15 ) 47 (12 ) Employer contributions 104 12 282 398 94 14 293 401 Benefit payments — — — — — — — — Others 2 (3 ) (17 ) (18 ) — — (18 ) (18 ) Currency retranslation (36 ) — 114 78 78 — 7 85 31 December 1,351 527 (1,591 ) 287 1,121 425 (1,742 ) (196 ) (a) This includes the impact of interest on asset ceiling. The actual return on plan assets during 2020 was €1,930 million, being €1,494 million of asset returns and €436 million of interest income shown in the tables above (2019: €2,958 million). Movements in irrecoverable surplus during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January — — (37 ) (37 ) — — — — Interest income — — (1 ) (1 ) — — — — Change in irrecoverable surplus in excess of interest — — 2 2 — — (37 ) (37 ) Currency retranslations — — 10 10 — — — — 31 December — — (26 ) (26 ) — — (37 ) (37 ) The duration of the principal defined benefit plan liabilities (representing 96% of total pension liabilities and other post-employment benefit liabilities) and the split of liabilities between different categories of plan participants are: UK Netherlands Rest of (a) 2020 UK Netherlands Rest of (a) 2019 Duration (years) 18 18 13 7 to 22 18 19 13 7 to 23 Active members 12 % 12 % 20 % 14 % 14 % 14 % 21 % 16 % Deferred members 35 % 43 % 17 % 32 % 34 % 41 % 17 % 31 % Retired members 53 % 45 % 63 % 54 % 52 % 45 % 62 % 53 % (a) Rest of world numbers shown are weighted averages by liabilities. Plan assets The group of plans within ‘Rest of world’ category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure. The fair value of plan assets, which are reported net of fund liabilities that are not employee benefits, at the end of the reporting period for each category are as follows: € million 31 December 2020 € million UK Netherlands Rest of 2020 UK Netherlands Rest of 2019 Total plan assets 12,499 5,587 5,937 24,023 12,122 5,522 6,105 23,749 Assets Equities total 4,653 1,837 1,694 8,184 4,173 1,831 1,752 7,756 Europe 921 437 506 1,864 930 517 583 2,030 North America 2,740 894 747 4,381 2,312 825 707 3,844 Other 992 506 441 1,939 931 489 462 1,882 Fixed income total 5,819 2,766 3,108 11,693 5,317 2,795 3,250 11,362 Government bonds 3,292 798 1,367 5,457 2,711 765 1,369 4,845 Investment grade corporate bonds 1,167 540 1,111 2,818 1,120 542 1,272 2,934 Other fixed income 1,360 1,428 630 3,418 1,486 1,488 609 3,583 Private equity 274 64 9 347 325 65 6 396 Property and real estate 835 456 332 1,623 916 491 321 1,728 Hedge funds 318 — 62 380 688 — 69 757 Other 470 320 377 1,167 454 289 415 1,158 Other plans — — 370 370 — — 300 300 Assets/fund (liabilities) that are not employee benefits Derivatives 130 144 (15 ) 259 249 51 (8 ) 292 The fair values of the above equity and fixed income instruments are determined based on quoted market prices in active markets. The fair value of private equity, properties, derivatives and hedge funds are not based on quoted market prices in active markets. The Group uses derivatives and other instruments to hedge some of its exposure to inflation and interest rate risk – the degree of this hedging of liabilities was 70% for interest rate and 70% for inflation for the UK plan and 33% for interest rate and 20% for inflation for the Netherlands plan. Foreign currency exposures in part are also hedged by the use of forward foreign exchange contracts. Assets included in the Other category are cash and insurance contracts which are also unquoted assets. Equity securities include Unilever securities amounting to €9 million (0.04% of total plan assets) and €12 million (0.05% of total plan assets) at 31 December 2020 and 2019 respectively. Property includes property occupied by Unilever amounting to €29 million and €30 million at 31 December 2020 and 2019 respectively. The pension assets above exclude the assets in a Special Benefits Trust amounting to €44 million (2019: €54 million) to fund pension and similar obligations in the United States (see also note 17A on page 157). Sensitivities The sensitivity of the overall pension liabilities to changes in the weighted key assumptions are: Change in liabilities Change in assumption UK Netherlands Total Discount rate Increase by 0.5 % (8 )% (9 )% (8 )% Inflation rate Increase by 0.5 % 6 % 9 % 6 % Life expectancy Increase by 1 year 5 % 5 % 5 % Long-term medical cost inflation (a) Increase by 1.0 % 0 % 0 % 3 % (a) Long-term medical cost inflation only relates to post-retirement medical plans and its impact on these liabilities. An equivalent decrease in each assumption would have an equal and opposite impact on liabilities. The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period. Cash flow Group cash flow in respect of pensions and similar post-employment benefits comprises company contributions paid to funded plans and benefits paid by the company in respect of unfunded plans. The table below sets out these amounts: € million € million € million € million Estimate 2020 2019 2018 Company contributions to funded plans: Defined benefit (a) 285 266 244 238 Defined contributions 220 203 193 179 Benefits paid by the company in respect of unfunded plans: Defined benefit 135 132 157 144 Group cash flow in respect of pensions and similar benefits 640 601 594 561 (a) Following the conclusion of the 2019 Funding valuation of the US Unicare Pension Plan, the Group contributed $100 The Group’s funding policy is to periodically review the contributions made to the plans while taking account of local legislation. 4C. Share-based compensation plans The fair value of awards at grant date is calculated using observable market price. This value is expensed over their vesting period, with a corresponding credit to equity. The expense is reviewed and adjusted to reflect changes to the level of awards expected to vest, except where this arises from a failure to meet a market condition. Any cancellations are recognised immediately in the income statement. As at 31 December 2020 the Group had share-based compensation plans in the form of performance shares and other share awards. Following Unification (see note 1 for more information on Unification), all continuing plans are now awarded in shares of PLC, and awards and rights under plans in existence at the time of Unification have been converted into awards and rights over PLC shares. Unification does not result in modification to the previously granted awards, any shares that vest will be PLC shares. The numbers in this note include those for Executive Directors and key management shown in note 4A on page 122. Non-Executive Directors do not participate in any of the share-based compensation plans. The charge in each of the last three years is shown below, and relates to equity-settled plans: € million € million € million Income statement charge 2020 2019 2018 Performance share plans (98 ) (142 ) (183 ) Other plans (10 ) (9 ) (13 ) (108 ) (151 ) (196 ) Performance share plans Performance share awards are made in respect of the Management Co-Investment The MCIP allowed Unilever’s managers to invest up to 100% of their annual bonus (a minimum of 33% and maximum of 67% for Executive Directors) in shares in Unilever, and to receive a corresponding award of performance-related shares. The performance measures for MCIP are underlying sales growth, underlying EPS growth, return on invested capital and sustainability progress index for the Group. MCIP awards made will vest after four years. Under the GSIP, Unilever’s managers received annual awards of PLC shares. The performance measures for GSIP are underlying sales growth, underlying operating margin, and cumulative operating cash flow for the Group. There is an additional target based on relative total shareholder return for senior executives. GSIP awards vest after three years. A summary of the status of the Performance Share Plans as at 31 December 2020, 2019 and 2018 and changes during the years ended on these dates is presented below: 2020 shares 2019 2018 Outstanding at 1 January 11,137,801 13,634,518 13,684,747 Awarded 4,395,633 4,538,771 6,870,882 Vested (3,240,738 ) (6,041,011 ) (5,854,388 ) Forfeited (921,260 ) (994,477 ) (1,066,723 ) Outstanding at 31 December 11,371,436 11,137,801 13,634,518 2020 2019 2018 Share award value information Fair value per share award during the year € 43.91 € 48.22 € 42.44 Additional information At 31 December 2020 shares in PLC totalling 12,283,872 were outstanding in respect of share-based compensation plans of PLC and its subsidiaries, including North American plans. At 31 December 2019 shares in NV and PLC totalling 11,944,106 were outstanding in respect of share-based compensation plans of NV, PLC and its subsidiaries, including North American plans. Shortly before Unification, 4,523,367 NV and PLC ordinary shares, 892,155 NV NYRSs and 468,989 PLC ADSs held by NV in connection with share-based compensation plans were transferred to an employee share ownership trust that will satisfy the awards granted. At 31 December 2020 the employee share ownership trust held 5,884,511 PLC shares and PLC and its subsidiaries held 1,382,155 PLC shares which are held as treasury shares. At 31 December 2019 PLC and NV shares totalling 12,419,009 were held by NV as treasury shares. In the future either the employee share ownership trust or subsidiaries of PLC will buy PLC shares in the open market to satisfy share-based payment obligations. The book value of €483 million of the shares held by the trust and by Unilever PLC and its subsidiaries in respect of share-based compensation plans is eliminated on consolidation by deduction from other reserves (2019: €640 million of shares were held as treasury shares by NV). Their market value at 31 December 2020 was €357 million (2019: €635 million). Shares held to satisfy awards are accounted for in accordance with IAS 32 ‘Financial Instruments: Presentation’. All differences between the purchase price of the shares held to satisfy awards granted and the proceeds received for the shares, whether on exercise or lapse, are charged to reserves. Between 31 December 2020 and 23 February 2021 (the latest practicable date for inclusion in this report), nil shares were granted, 2,232,282 shares vested and 43,435 shares were forfeited related to the Performance Share Plans. |
Net Finance Costs
Net Finance Costs | 12 Months Ended |
Dec. 31, 2020 | |
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Net Finance Costs | 5. Net finance costs Net finance costs are comprised of finance costs and finance income, including net finance costs in relation to pensions and similar obligations. Finance income includes income on cash and cash equivalents and income on other financial assets. Finance costs include interest costs in relation to financial liabilities. This includes interest on lease liabilities which represents the unwind of the discount rate applied to lease liabilities. Borrowing costs are recognised based on the effective interest method. Net finance costs Notes € million € million € million Finance costs (672 ) (821 ) (718 ) Bank loans and overdrafts (32 ) (46 ) (44 ) Interest on bonds and other loans (a) (533 ) (617 ) (560 ) Interest on lease liabilities (82 ) (100 ) (127 ) Net gain/(loss) on transactions for which hedge accounting is not applied (25 ) (58 ) 13 On foreign exchange derivatives 275 (321 ) 144 Exchange difference on underlying items (b) (300 ) 263 (131 ) Finance income (c) 232 224 135 Pensions and similar obligations 4B (9 ) (30 ) (25 ) Net finance costs before non-underlying (d) (449 ) (627 ) (608 ) Interest related to the UK tax audit of intangible income and centralised services 3 (56 ) — — (505 ) (627 ) (608 ) (a) Interest on bonds and other loans includes the impact of interest rate derivatives that are part of hedge accounting relationships and the related recycling of results from the hedge accounting reserve. Includes an amount of €(21) million (2019: €(6) million) relating to unwinding of discount on deferred consideration for acquisitions. (b) 2020 includes Nil (2019: €(40) million) finance cost due to change in functional currency in Group’s operating entities in Zimbabwe from US dollar to RTGS dollar. For further details of derivatives for which hedge accounting is not applied, please refer to note 16C. (c) Includes an amount of €90 million (2019: €70 million) that relates to interest on tax settlement in Brazil and € 27 Nil (d) See note 3 for explanation of non-underlying |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2020 | |
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Taxation | 6. Taxation 6A. Income tax Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years. Current tax in the consolidated income statement will differ from the income tax paid in the consolidated cash flow statement primarily because of deferred tax arising on temporary differences and payment dates for income tax occurring after the balance sheet date. Unilever is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by management and the government authorities. These matters of judgement give rise to the need to create provisions for tax payments that may arise in future years with respect to transactions already undertaken. Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. The provision is estimated based on one of two methods, the expected value method (the sum of the probability weighted amounts in a range of possible outcomes) or the single most likely amount method, depending on which is expected to better predict the resolution of the uncertainty. € million € million € million Tax charge in income statement 2020 2019 2018 Current tax Current year (2,128 ) (2,098 ) (2,647 ) Over/(under) provided in prior years (154 ) 119 (10 ) (2,282 ) (1,979 ) (2,657 ) Deferred tax Origination and reversal of temporary differences 344 (255 ) 5 Changes in tax rates (19 ) (59 ) (12 ) Recognition of previously unrecognised losses brought forward 34 30 92 359 (284 ) 85 (1,923 ) (2,263 ) (2,572 ) The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever companies, and the actual rate of taxation charged is as follows: Reconciliation of effective tax rate % 2020 % 2019 % 2018 Computed rate of tax (a) 23 24 25 Differences between computed rate of tax and effective tax rate due to: Incentive tax credits (2 ) (2 ) (3 ) Withholding tax on dividends 2 3 2 Expenses not deductible for tax purposes 1 1 1 Irrecoverable withholding tax 1 1 1 Income tax reserve adjustments – current and prior year (1 ) — 1 Transfer to/(from) unrecognised deferred tax assets — (2 ) — Others (1 ) 1 (1 ) Underlying effective tax rate 23 26 26 Non-underlying (b) — — (1 ) Taxes related to the UK tax audit of intangible income and centralised services (b) 1 — — Impact of Spreads disposal (b) — — (4 ) Taxes related to the reorganisation of our European business (b) 1 2 — Effective tax rate 25 28 21 (a) The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For this reason, the rate may vary from year to year according to the mix of profit and related tax rates. (b) See note 3 for explanation of non-underlying Our tax rate is reduced by incentive tax credits, the benefit from preferential tax regimes that have been legislated by the countries and provinces concerned in order to promote economic development and investment. The tax rate is increased by business expenses which are not deductible for tax, such as entertainment costs and some interest expense and by irrecoverable withholding taxes on dividends paid by subsidiary companies and on other cross-border payments such as royalties and service fees, which cannot be offset against other taxes due. Uncertain tax provisions including the related interest and penalties amounted to €879 The Group’s future tax charge and effective tax rate could be affected by several factors, including changes in tax laws and their interpretation and the continuing OECD international tax reform work, as well as the impact of acquisitions, disposals and any restructuring of our businesses. 6B. Deferred tax Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Group. Certain temporary differences are not provided for as follows: • goodwill not deductible for tax purposes; • the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and • differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, at the year end. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Movements in 2020 and 2019 € million € million statement € million € million As at € million € million € million € million Pensions and similar obligations 272 (97 ) (95 ) 80 404 (81 ) (51 ) 272 Provisions and accruals 756 38 (96 ) 698 821 (73 ) 8 756 Goodwill and intangible assets (2,096 ) 23 (661 ) (2,734 ) (1,911 ) (31 ) (154 ) (2,096 ) Accelerated tax depreciation (685 ) 9 35 (641 ) (679 ) 12 (18 ) (685 ) Tax losses 184 32 (26 ) 190 130 63 (9 ) 184 Fair value gains (50 ) 12 (14 ) (52 ) 155 (200 ) (5 ) (50 ) Fair value losses 15 (6 ) 36 45 22 (2 ) (5 ) 15 Share-based payments 156 (30 ) 20 146 175 (39 ) 20 156 Lease liability 319 9 (34 ) 294 428 (113 ) 4 319 Right of use asset (269 ) (4 ) 29 (244 ) (370 ) 107 (6 ) (269 ) Other (a) 161 373 (8 ) 526 77 73 11 161 (1,237 ) 359 (814 ) (1,692 ) (748 ) (284 ) (205 ) (1,237 ) (a) The deferred tax - other includes the recognition of an asset of €345 At the balance sheet date, the Group had unused tax losses of €4,808 million (2019: €4,790 million) and tax credits amounting to €454 million (2019: €524 million) available for offset against future taxable profits. Deferred tax assets have not been recognised in respect of unused tax losses of €4,246 million (2019: €4,272 million) and tax credits of €429 million (2019: €497 million), as it is not probable that there will be future taxable profits within the entities against which the losses and credits can be utilised. Of these losses €4,195 million (2019: €4,108 million) have expiry dates, the majority being corporate income tax losses in the Netherlands which expire between now and 2027. Deferred tax assets have not been recognised in respect of other deductible temporary differences of as it is not expected they will be utilised. Of these differences At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was €2,097 million (2019: €2,476 million). No liability has been recognised in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated balance sheet: € million € million € million € million € million € million Assets Assets Liabilities Liabilities Total Total Movements in 2020 and 2019 2020 2019 2020 2019 2020 2019 Pensions and similar obligations 404 402 (324 ) (130 ) 80 272 Provisions and accruals 408 495 290 261 698 756 Goodwill and intangible assets 330 248 (3,064 ) (2,344 ) (2,734 ) (2,096 ) Accelerated tax depreciation (37 ) (67 ) (604 ) (618 ) (641 ) (685 ) Tax losses 161 153 29 31 190 184 Fair value gains (1 ) (14 ) (51 ) (36 ) (52 ) (50 ) Fair value losses 27 — 18 15 45 15 Share-based payments 26 31 120 125 146 156 Lease liability 157 170 137 149 294 319 Right of use asset (128 ) (142 ) (116 ) (127 ) (244 ) (269 ) Other 127 60 399 101 526 161 1,474 1,336 (3,166 ) (2,573 ) (1,692 ) (1,237 ) Of which deferred tax to be recovered/(settled) after more than 12 months 1,230 1,030 (3,311 ) (2,681 ) (2,081 ) (1,651 ) 6C. Tax on items recognised in equity or other comprehensive income Income tax is recognised in equity or other comprehensive income for items recognised directly in equity or other comprehensive income. Tax effects directly recognised in equity or other comprehensive income were as follows: € million € million € million € million Tax € million Tax € million Before (charge)/ After Before (charge)/ After tax credit tax tax credit tax Movements in 2020 and 2019 2020 2020 2020 2019 2019 2019 Gains/(losses) on: Equity instruments at fair value through other comprehensive income 77 1 78 35 (6 ) 29 Cash flow hedges 87 (27 ) 60 198 (22 ) 176 Remeasurements of defined benefit pension plans 250 (35 ) 215 381 (28 ) 353 Currency retranslation gains/(losses) (2,646 ) 56 (2,590 ) 6 (21 ) (15 ) (2,232 ) (5 ) (2,237 ) 620 (77 ) 543 |
Combined Earnings Per Share
Combined Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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Combined Earnings Per Share | 7. Combined earnings per share The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held as treasury shares. In calculating diluted earnings per share and underlying earnings per share, a number of adjustments are made to the number of shares, principally, the exercise of share plans by employees. Underlying earnings per share is calculated as underlying profit attributable to shareholders’ equity divided by the diluted average number of ordinary shares. In calculating underlying profit attributable to shareholders’ equity, net profit attributable to shareholders’ equity is adjusted to eliminate the post-tax non-underlying Earnings per share for total operations for the 12 months were as follows: € 2020 € 2019 € 2018 Basic earnings per share 2.13 2.15 3.49 Diluted earnings per share 2.12 2.14 3.48 Underlying earnings per share 2.48 2.55 2.35 Millions of share units Calculation of average number of share units (a) 2020 2019 2018 Average number of shares: PLC 1,351.1 1,175.5 1,264.0 NV 1,278.1 1,598.0 1,714.7 Less treasury shares held by employee share trusts and companies (8.9 ) (157.0 ) (295.4 ) Average number of shares – used for basic earnings per share 2,620.3 2,616.5 2,683.3 Add dilutive effect of share-based compensation plans 9.5 10.2 11.5 Diluted average number of shares – used for diluted and underlying earnings per share 2,629.8 2,626.7 2,694.8 (a) In the calculation of the weighted average number of share units, NV shares are included only for the period they were issued (until 29 € million € million € million Calculation of earnings Notes 2020 2019 2018 Net profit 6,073 6,026 9,788 Non-controlling (492 ) (401 ) (419 ) Net profit attributable to shareholders’ equity – used for basic and diluted earnings per share 5,581 5,625 9,369 Post tax impact of non-underlying 3 951 1,063 (3,024 ) Underlying profit attributable to shareholders’ equity – used for underlying earnings per share 6,532 6,688 6,345 |
Dividends on Ordinary Capital
Dividends on Ordinary Capital | 12 Months Ended |
Dec. 31, 2020 | |
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Dividends on Ordinary Capital | 8. Dividends on ordinary capital Dividends are recognised on the date that the shareholder’s right to receive payment is established. This is generally the date when the dividend is declared. € million € million € million Dividends on ordinary capital during the year 2020 2019 2018 PLC dividends (1,911 ) (1,871 ) (1,819 ) NV dividends (a) (2,389 ) (2,352 ) (2,262 ) (4,300 ) (4,223 ) (4,081 ) (a) Amount relates to NV dividends paid prior to Unification. Four quarterly interim dividends were declared and paid during 2020 totalling €1.64 (2019: €1.62) per NV ordinary share and £1.45 (2019: £1.42) per PLC ordinary share. A quarterly dividend of €1,125 million (2019: €1,073 million) was declared on 4 February 2021, to be paid in March 2021; £0.38 per PLC ordinary share (2019: £0.35). Total dividends declared in relation to 2020 were £1.48 (2019: £1.43) per PLC ordinary share. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Goodwill and Intangible Assets | 9. Goodwill and intangible assets Goodwill Goodwill is initially recognised based on the accounting policy for business combinations (see note 21). Goodwill is subsequently measured at cost less amounts provided for impairment. Goodwill acquired in a business combination is assessed to determine whether new cash generating units are created, and if not, is allocated to the Group’s CGUs, or groups of CGUs, that are expected to benefit from the synergies of the combination. These might not always be the same as the CGUs that include the assets and liabilities of the acquired business. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes, and is not larger than an operating segment. The Group has ten cash generating units (CGUs) based on the three geographical areas and three divisions as well as a health and wellbeing CGU which was recognised in 2019 following the acquisition of the OLLY business. Intangible assets Separately purchased intangible assets are initially measured at cost, being the purchase price as at the date of acquisition. On acquisition of new interests in group companies, Unilever recognises any specifically identifiable intangible assets separately from goodwill. These intangible assets are initially measured at fair value as at the date of acquisition. Expenditure to support development of internally-produced intangible assets is recognised in profit or loss as incurred. Indefinite-life intangibles mainly comprise trademarks and brands, for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These are considered to have an indefinite life, given the strength and durability of our brands and the level of marketing support. These assets are not amortised but are subject to a review for impairment annually, or more frequently if events or circumstances indicate this is necessary. Any impairment is charged to the income statement as it arise Finite-life intangible assets mainly comprise software, patented and non-patented know-how € million € million € million € million € million Finite-life intangible Movements during 2020 Goodwill Indefinite-life Software Other Total Cost 1 January 2020 19,246 12,121 2,991 1,161 35,519 Additions through business combinations (a) 2,407 4,244 — (31 ) 6,620 Disposal of businesses (1 ) — — — (1 ) Additions — — 156 2 158 Disposals and other movements — — (144 ) — (144 ) Hyperinflationary adjustment (38 ) (5 ) — — (43 ) Currency retranslation (1,496 ) (940 ) (184 ) (58 ) (2,678 ) 31 December 2020 20,118 15,420 2,819 1,074 39,431 Accumulated amortisation and impairment 1 January 2020 (1,179 ) (212 ) (2,292 ) (807 ) (4,490 ) Amortisation/impairment for the year — — (279 ) (54 ) (333 ) Disposals and other movements — — 139 — 139 Currency retranslation 3 1 150 40 194 31 December 2020 (1,176 ) (211 ) (2,282 ) (821 ) (4,490 ) Net book value 31 December 2020 (b) 18,942 15,209 537 253 34,941 € million € million € million € million € million Finite-life intangible assets Movements during 2019 Goodwill Indefinite-life Software Other Total Cost 1 January 2019 18,502 11,247 2,689 1,103 33,541 Additions through business combinations 444 726 — 50 1,220 Disposal of businesses (2 ) (1 ) — (5 ) (8 ) Reclassification to held for sale (2 ) — — — (2 ) Additions — — 205 3 208 Disposals — — (11 ) (2 ) (13 ) Currency retranslation 313 150 108 12 583 Hyperinflationary adjustment (9 ) (1 ) — — (10 ) 31 December 2019 19,246 12,121 2,991 1,161 35,519 Accumulated amortisation and impairment 1 January 2019 (1,161 ) (212 ) (1,927 ) (748 ) (4,048 ) Amortisation/impairment for the year (18 ) — (296 ) (56 ) (370 ) Disposals of group companies — — — 5 5 Disposals — — 5 1 6 Currency retranslation — — (74 ) (9 ) (83 ) 31 December 2019 (1,179 ) (212 ) (2,292 ) (807 ) (4,490 ) Net book value 31 December 2019 (b) 18,067 11,909 699 354 31,029 (a) Includes the provisional fair value of goodwill and intangibles for acquisitions made in 2020 as well as subsequent changes to the fair value of goodwill and intangibles for acquisitions made in 2019 where the initial acquisition accounting was provisional at the end of 2019. See note 21 for further details. (b) Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 million (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional. Impairment We have tested goodwill and indefinite-life intangible assets for impairment. No impairment was identified. In 2019, a €18 million charge was recognised in non-underlying Significant CGUs The goodwill and indefinite-life intangible assets held in the CGUs relating to Foods & Refreshment Europe, Foods & Refreshment The Americas, Foods & Refreshment Asia/AMET/RUB, Beauty & Personal Care The Americas and Beauty & Personal Care Asia/AMET/RUB are considered significant within the total carrying amounts of goodwill and indefinite-life intangible assets at 31 December 2020. 2020 CGUs 2019 CGUs € billion € billion € billion € billion Indefinite-life Indefinite-life Goodwill intangible assets Goodwill intangible assets Foods & Refreshment Europe 4.0 1.7 4.1 1.7 Foods & Refreshment The Americas 3.4 1.9 4.0 2.1 Foods & Refreshment Asia/AMET/RUB (a) 3.7 3.7 1.9 0.5 Beauty & Personal Care The Americas 3.8 3.1 4.3 3.1 Beauty & Personal Care Asia/AMET/RUB 1.6 1.9 1.7 2.0 Total significant CGUs 16.5 12.3 16.0 9.4 Others (b) 2.4 2.9 2.1 2.5 Total CGUs 18.9 15.2 18.1 11.9 (a) The Main Horlicks Acquisition increased goodwill by €2.0 billion and indefinite-life intangible assets by €3.3 billion in 2020. These values are provisional. (b) Included within Others are individually insignificant amounts of goodwill and intangible assets that have been allocated between multiple cash generating units. Key assumptions The recoverable amount of each CGU has been calculated based on its value in use, estimated as the present value of projected future cash flows. The growth rates and margins for the significant CGUs are set out below: For the year 2020 Foods & Foods & Foods & Beauty & Beauty & Longer-term sustainable growth rates 1.1 % 1.7 % 3.9 % 1.7 % 3.9 % Average near-term nominal growth rates (1.0 )% 0.1 % 4.9 % 2.5 % 3.4 % Average operating margins 13 % 15 % 16 % 22 % 22 % For the year 2019 Foods & Foods & Foods & Beauty & Beauty & Longer-term sustainable growth rates 1.1 % 1.7 % 3.9 % 1.7 % 3.9 % Average near-term nominal growth rates 1.2 % (1.2 )% 6.5 % 1.6 % 5.3 % Average operating margins 16 % 15 % 18 % 21 % 22 % Projected cash flows include specific estimates for a period of five years. The growth rates and operating margins used to estimate cash flows for the first five years are based on past performance and on the Group’s three-year strategic plan, which includes the impact on our business of climate change and activities we are undertaking to reduce carbon emissions, extended to years four and five. The estimated cash flows after year five are extrapolated using a longer-term sustainable growth rate, which is determined as the lower of our own three-year average market growth projection and external forecasts for the relevant market. In 2020, the projected cash flows are discounted using pre-tax 6.0%-7.4% There are no reasonably possible changes in key assumptions that would cause the carrying amount of a CGU to exceed its recoverable amount. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
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Property, Plant and Equipment | 10. Property, plant and equipment The Group’s property, plant and equipment is comprised of owned assets (note 10A) and leased assets (note 10B). Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment losses. Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is necessary. If an indication of impairment exists, the asset’s or cash generating unit’s recoverable amount is estimated and any impairment loss is charged to the income statement as it arises. Owned assets Owned assets are initially measured at historical cost. Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed at least annually. Estimated useful lives by major class of assets are as follows: • freehold buildings (no depreciation on freehold land) 40 years • leasehold land and buildings 40 years (or life of lease if less) • plant and equipment 2–20 years Leased assets The cost of a leased asset is measured as the lease liability at inception of the lease contract and other direct costs less any incentives granted by the lessor. The Group has not capitalised leases which are less than 12 months or leases of low value assets. These mainly relate to IT equipment, office equipment, furniture and fitting and other peripheral items. When a lease liability is remeasured, the related lease asset is adjusted by the same amount. Depreciation is provided on a straight-line basis from the commencement € million € million Property, plant and equipment Notes 2020 2019 Owned assets 10A 8,909 10,249 Leased assets 10B 1,649 1,813 Total 10,558 12,062 10A. Owned assets Movements during 2020 € million € million € million Cost 1 January 2020 4,498 15,844 20,342 Additions through business combinations 122 44 166 Additions 107 756 863 Disposals and other movements (90 ) (901 ) (991 ) Hyperinflationary adjustment (18 ) (27 ) (45 ) Reclassification as held for sale (19 ) (81 ) (100 ) Currency retranslation (397 ) (1,330 ) (1,727 ) 31 December 2020 4,203 14,305 18,508 Accumulated depreciation 1 January 2020 (1,479 ) (8,614 ) (10,093 ) Depreciation charge for the year (135 ) (1,093 ) (1,228 ) Disposals and other movements 54 814 868 Hyperinflationary adjustment 6 20 26 Reclassification as held for sale 11 60 71 Currency retranslation 103 654 757 31 December 2020 (1,440 ) (8,159 ) (9,599 ) Net book value 31 December 2020 (a) 2,763 6,146 8,909 Includes capital expenditures for assets under construction 75 660 735 The Group has commitments to purchase property, plant and equipment of €251 million (2019: €264 million). Movements during 2019 € million € million € million Cost 1 January 2019 4,386 15,216 19,602 Additions through business combinations 7 28 35 Additions 175 1,141 1,316 Disposals and other movements (72 ) (649 ) (721 ) Hyperinflationary adjustment (3 ) (28 ) (31 ) Reclassification as held for sale (63 ) (116 ) (179 ) Currency retranslation 68 252 320 31 December 2019 4,498 15,844 20,342 Accumulated depreciation 1 January 2019 (1,390 ) (7,998 ) (9,388 ) Depreciation charge for the year (134 ) (1,022 ) (1,156 ) Disposals and other movements 28 456 484 Hyperinflationary adjustment 5 30 35 Reclassification as held for sale 38 81 119 Currency retranslation (26 ) (161 ) (187 ) 31 December 2019 (1,479 ) (8,614 ) (10,093 ) Net book value 31 December 2019 (a) 3,019 7,230 10,249 Includes capital expenditures for assets under construction 78 872 950 (a) Includes €347 million (2019: €319 million) of freehold 10B. Leased assets Movements during 2020 € million € million € million Cost 1 January 2020 2,874 827 3,701 Additions through business combinations 30 3 33 Additions 390 189 579 Disposals and other movements (436 ) (188 ) (624 ) Hyperinflationary adjustment (3 ) — (3 ) Currency retranslation (216 ) (63 ) (279 ) 31 December 2020 2,639 768 3,407 Accumulated depreciation 1 January 2020 (1,397 ) (491 ) (1,888 ) Depreciation charge for the year (315 ) (142 ) (457 ) Disposals and other movements 300 150 450 Currency retranslation 101 36 137 31 December 2020 (1,311 ) (447 ) (1,758 ) Net book value 31 December 2020 1,328 321 1,649 Movements during 2019 € million € million € million Cost 1 January 2019 2,770 816 3,586 Additions 278 174 452 Disposals and other movements (240 ) (180 ) (420 ) Hyperinflationary adjustment 23 — 23 Currency retranslation 43 17 60 31 December 2019 2,874 827 3,701 Accumulated depreciation 1 January 2019 (1,241 ) (471 ) (1,712 ) Depreciation charge for the year (297 ) (159 ) (456 ) Disposals and other movements 154 150 304 Hyperinflationary adjustment 9 — 9 Currency retranslation (22 ) (11 ) (33 ) 31 December 2019 (1,397 ) (491 ) (1,888 ) Net book value 31 December 2019 1,477 336 1,813 Our leases mainly comprise of land and buildings and plant and equipment. The Group leases land and buildings for manufacturing, warehouse facilities and office space and also sublets some property. Plant and equipment includes leases for vehicles. The Group has recognised in the income statement, a charge of €96 million (2019: €97 million) for short-term leases and €77 million (2019: €79 million) on leases for low-value During the year, the Group recognised an income of €19 million (2019: €25 million) from sublet properties. Cash flows: Lease liabilities: |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Other Non-current Assets | 11. Other non-current Joint ventures are undertakings in which the Group has an interest and which are jointly controlled by the Group and one or more other parties. Associates are undertakings where the Group has an investment in which it does not have control or joint control but can exercise significant influence. Interests in joint ventures and associates are accounted for using the equity method and are stated in the consolidated balance sheet at cost, adjusted for the movement in the Group’s share of their net assets and liabilities. The Group’s share of the profit or loss after tax of joint ventures and associates is included in the Group’s consolidated profit before taxation. Where the Group’s share of losses exceeds its interest in the equity accounted investee, the carrying amount of the investment is reduced to zero and the recognition of further losses is discontinued, except to the extent that the Group has an obligation to make payments on behalf of the investee. Biological assets are measured at fair value less costs to sell with any changes recognised in the income statement. € million € million Interest in net assets of joint ventures 29 35 Interest in net assets of associates 34 37 Long-term trade and other receivables (a) 465 380 Fair value of biological assets 12 17 Other non-current (b) 391 184 931 653 (a) Mainly relates to indirect tax receivables where we do not have the contractual right to receive payment within 12 months. (b) Includes direct tax assets, withholding tax assets, interest on tax assets and contingent assets. During 2020 contingent assets of €73 million were recognised as part of the Horlicks acquisition, see note 21 for further details. Movements during 2020 and 2019 € million € million Joint ventures (a) 1 January 35 14 Additions 1 — Dividends received/reductions (182 ) (158 ) Share of net profit/(loss) 177 179 Currency retranslation (2 ) — 31 December 29 35 Associates (b) 1 January 37 40 Additions 1 1 Dividend received/reductions — — Share of net profit/(loss) (2 ) (3 ) Currency retranslation (2 ) (1 ) 31 34 37 (a) Our principal joint ventures are Unilever FIMA Lda for Portugal, Binzagr Unilever Distribution and Al Gurg Unilever for Middle East, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International Ltd for the rest of the world. (b) Associates as at 31 December 2020 primarily comprise our investments in Langholm Capital Partners. The joint ventures and associates have no contingent liabilities to which the Group is exposed, and the Group has no contingent liabilities in relation to its interests in the joint ventures and associates. The Group has no outstanding capital commitments to joint ventures. Outstanding balances with joint ventures and associates are shown in note 23 on page 166. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
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Inventories | 12. Inventories Inventories are valued at the lower of weighted average cost and net realisable value. Cost comprises direct costs and, where appropriate, a proportion of attributable production overheads. Net realisable value is the estimated selling price less the estimated costs necessary to make the sale. Inventories € million € million Raw materials and consumables 1,523 1,399 Finished goods and goods for resale 3,223 3,053 Total inventories 4,746 4,452 Provision for inventories (284 ) (288 ) 4,462 4,164 Provisions for inventories € million € million 1 January 288 205 Charge to income statement 116 153 Reduction/releases (97 ) (71 ) Currency translations (26 ) — Others(a) 3 1 31 284 288 (a) Others include the amount relating to the acquisition/disposal of businesses. Inventories with a value of €204 million (2019: €159 million) are carried at net realisable value, this being lower than cost. During 2020, a total expense of €381 million (2019: €363 million) was recognised in the income statement for inventory write downs and losses. |
Trade and Other Current Receiva
Trade and Other Current Receivables | 12 Months Ended |
Dec. 31, 2020 | |
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Trade and Other Current Receivables | 13. Trade and other current receivables Trade and other current receivables are initially recognised at fair value plus any directly attributable transaction We do not consider the fair values of trade and other current receivables to be significantly different from their carrying values. Concentrations of credit risk with respect to trade receivables are limited, due to the Group’s customer base being large and diverse. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low across territories and so trade receivables are considered to be a single class of financial assets. Impairment for trade receivables are calculated for specific receivables with known or anticipated issues affecting the likelihood of recovery and for balances past due with a probability of default based on historical data as well as relevant forward-looking information. Trade and other current receivables € million € million Due within one year Trade receivables (a) 3,433 4,916 Prepayments and accrued income 423 579 Other receivables 1,083 1,200 4,939 6,695 (a) 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. Included within trade receivables are discounts due to our customers of €2,082 million (2019: €2,423 million). The decrease from 2019 is primarily driven by differences in the timing of promotional activities and the settlement of customer invoices compared to last year. Other receivables comprise financial assets of €214 million (2019: €208 million), and non-financial Non-financial Ageing of trade receivables € million € million Not overdue 2,849 3,856 Past due less than three months 481 827 Past due more than three months but less than six months 99 186 Past due more than six months but less than one year 73 94 Past due more than one year 124 164 Total trade receivables 3,626 5,127 Impairment provision for trade receivables (193 ) (211 ) 3,433 4,916 The total impairment provision includes €193 million (2019: €211 million) for current trade receivables, €20 million (2019: €26 million) for other current receivables and €63 million (2019: €84 million) for non-current Impairment provision for total trade and other receivables € million € million 1 January 321 214 Charge to income statement 66 79 Reduction/releases (68 ) (54 ) Reclassifications (a) 1 86 Currency translations (44 ) (4 ) 31 December 276 321 (a) 2019 includes an amount transferred from provisions relating to Brazil indirect taxes. |
Trade Payables and Other Liabil
Trade Payables and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Trade Payables and Other Liabilities | Trade payables Trade payables are initially recognised at fair value less any directly attributable transaction costs. Trade payables are subsequently measured at amortised cost, using the effective interest method. Other liabilities Other liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent measurement depends on the type of liability: • accruals are subsequently measured at amortised cost, using the effective interest method; • social security and sundry taxes are subsequently measured at amortised cost, using the effective interest method; • deferred consideration is subsequently measured at fair value with changes in the income statement as explained below; and • others are subsequently measured either at amortised cost, using the effective interest method or at fair value, with changes being recognised in the income statement. Deferred Consideration Deferred consideration represents any payments to the sellers of a business that occur after the acquisition date. These typically comprise contingent consideration and fixed deferred consideration: • fixed deferred consideration is a payment with a due date after acquisition that is not dependent on future conditions; and • contingent consideration is a payment which is dependent on certain conditions being met in the future and is often variable. All deferred consideration is initially recognised at fair value as at the acquisition date, which includes a present value discount. Subsequently, deferred consideration is measured to reflect the unwinding of discount on the liability, with changes recognised in finance cost within the income statement. In the balance sheet it is remeasured to reflect the latest estimate of the achievement of the conditions on which the consideration is based; changes in value other than the discount unwind are recognised as acquisition and disposal-related costs within non-underlying We do not consider the fair values of trade payables and other liabilities to be significantly different from their carrying values. Trade payables and other liabilities € million € million Current: due within one year Trade payables (a) 8,375 9,190 Accruals 4,266 4,153 Social security and sundry taxes 401 507 Deferred consideration 43 39 Others 1,047 879 14,132 14,768 Non-current: Accruals 81 117 Deferred consideration 121 169 Others 33 53 235 339 Total trade payables and other liabilities 14,367 15,107 (a) 2020 includes €5 million (2019: €359 million) due to KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever provided services to KKR for two years from completion of the disposal and paid KKR for amounts collected on its behalf. See also trade receivables on page 141. Included within trade payables and other liabilities are discounts due to our customers of €1,770 million (2019: €1,053 million). The increase from 2019 is primarily driven by differences in the timing of promotional activities and the settlement of customer invoices compared to last year. Included within others are IT and consulting services. Deferred Consideration At 31 December 2020 the total balance of deferred consideration for acquisitions is €164 million (2019: €208 million), which includes contingent consideration of €140 million (2019: €154 million). These contingent consideration payments are dependent on acquired businesses achieving contractually agreed financial targets (mainly relates to cumulative increases in turnover and profit before tax) and fall due up until 2025, with a maximum contractual amount of €718 million. Supplier financing arrangements for trade payables Some of our suppliers elect to factor some of their receivables from the Group with financial institutions. In some instances we provide suppliers and/ or banks with visibility of invoices approved for payment, which helps them receive cash from the bank before the invoice due date, if they choose to do so. Payment dates and terms for Unilever do not vary based on whether the supplier chooses to factor their receivable. If a receivable is purchased by a third party bank, that third party bank does not benefit from additional security when compared to the security originally enjoyed by the supplier. The Group evaluates these arrangements to assess if the payable holds the characteristics of a trade payable or should be classified as a financial liability. At 31 December 2020 and 31 December 2019 all such liabilities were classified as trade payables. |
Capital and Funding
Capital and Funding | 12 Months Ended |
Dec. 31, 2020 | |
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Capital and Funding | 15. Capital and funding Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Share-based compensation The Group operates a number of share-based compensation plans involving awards of ordinary shares. Full details of these plans are given in note 4C on pages 129 and 130. Unification reserve The Group recognised a separate Unification Reserve within Equity as a result of PLC Share Premium that arose from Unification. Other reserves Other reserves include the fair value reserve, the foreign currency translation reserve, the capital redemption reserve and treasury shares. Shares held by employee share trusts and group companies An employee share trust and group companies purchase and hold shares to satisfy performance shares granted and other share awards (see note 4C). The assets and liabilities of the trust and shares held by the trust and group companies are included in the consolidated financial statements. The book value of shares held is deducted from other reserves, and the trust’s borrowings are included in the Group’s liabilities. The costs of the trust are included in the results of the Group. The shares held by the trust and group companies are excluded from the calculation of earnings per share. Financial liabilities Financial liabilities are initially recognised at fair value, less any directly related transaction costs. When bonds are designated as being part of a fair value hedge relationship in those cases bonds are carried at amortised cost, adjusted for the fair value of the risk being hedged, with changes in value shown in profit and loss. Other financial liabilities, excluding derivatives, are subsequently carried at amortised cost, with the exception of: • financial liabilities which the Group has elected to measure at fair value through profit or loss; • derivative financial liabilities – see note 16 on page 149; and • contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies. Such contingent consideration is subsequently measured at fair value through profit or loss. Lease liabilities Lease liabilities are initially measured at the present value of the lease payments that are not yet paid at the start of the lease term. This is discounted using an appropriate borrowing rate determined by the Group, where none is readily available in the lease contract. The lease liability is subsequently reduced by cash payments and increased by interest costs. The lease liability is remeasured when the Group assesses that there will be a change in the amount expected to be paid during the lease term. The Group’s Treasury activities are designed to: • maintain a competitive balance sheet in line with at least A/A2 rating (see below); • secure funding at lowest costs for the Group’s operations, M&A activity and external dividend payments (see below); • protect the Group’s financial results and position from financial risks (see note 16); • maintain market risks within acceptable parameters, while optimising returns (see note 16); and • protect the Group’s financial investments, while maximising returns (see note 17) The Treasury department provides central deposit taking, funding and foreign exchange management services for the Group’s operations. The department is governed by standards and processes which are approved by Unilever Leadership Executive (ULE). In addition to guidelines and exposure limits, a system of authorities and extensive independent reporting covers all major areas of activity. Performance is monitored closely by senior management. Reviews are undertaken periodically by corporate audit. Key instruments used by the treasury department are: • short-term and long-term borrowings; • cash and cash equivalents; and • plain vanilla derivatives, including cross currency interest rate swaps and foreign exchange contracts. The Treasury department maintains a list of approved financial instruments. The use of any new instrument must be approved by the Chief Financial Officer. The use of leveraged instruments is not permitted. Unilever considers the following components of its balance sheet to be managed capital: • total equity – retained profit, other reserves, share capital, share premium, non-controlling • short-term debt – current financial liabilities (note 15C); and • long-term debt – non-current The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders through an appropriate balance of debt and equity. The capital structure of the Group is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day Our current long-term credit rating is A+/A1 and our short-term credit rating is A1/P1. We aim to maintain a competitive balance sheet which we consider to be the equivalent of a credit rating of at least A/A2 in the long term. This provides us with: • appropriate access to the debt and equity markets; • sufficient flexibility for acquisitions; • sufficient resilience against economic and financial uncertainty while ensuring ample liquidity; and • optimal weighted average cost of capital, given the above constraints. Unilever monitors the qualitative and quantitative factors utilised by the rating agencies. This information is publicly available and is updated by the credit rating agencies on a regular basis. 15A. Share capital Unilever N.V. Authorised 2020 € million Issued, called up and fully paid (a) 2020 € million Authorised Issued, NV ordinary shares of €0.16 each — — 480 274 NV ordinary shares of €428.57 each (shares numbered 1 to 2,400 — ‘Special Shares’) — — 1 1 Internal holdings eliminated on consolidation (€428.57 shares) — — — (1 ) Cancellation of treasury shares (b) — — — (41 ) — — 481 233 Unilever PLC £ million £ million PLC ordinary shares of 3 1 9 36.4 37.0 PLC deferred stock of £1 each — 0.1 Internal holding eliminated on consolidation (£1 stock) — (0.1 ) Shares issued to NV shareholders (c) 45.4 — Cancellation of treasury shares (b) — (0.6 ) 81.8 36.4 € million € million Euro equivalent in millions (d) 92 187 Unilever Group € million € million Ordinary share capital of NV (c) — 233 Ordinary share capital of PLC (c) 92 187 92 420 (a) At 31 December 2020, 2,629,243,772 of PLC ordinary shares were in issue, no NV shares were in issue. The NV special ordinary shares and PLC deferred stock were cancelled before Unification. At 31 December 2019, 1,168,530,650 of PLC ordinary shares, 100,000 of PLC deferred stock, 1,460,714,804 of NV ordinary shares and 2,400 of NV special ordinary shares were in issue. (b) At 31 December 2019, 254,012,896 of NV ordinary shares and 18,660,634 of PLC ordinary shares that were repurchased as part of the share buyback programme in 2018 and prior years were cancelled. (c) As a result of Unification, the shareholders of NV were issued 1,460,713,122 PLC ordinary shares, and all NV shares in issue were cancelled. (d) Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. A nominal dividend of 6% was paid on the PLC deferred stock in 2020. 15B. Equity Basis of consolidation Unilever is the majority shareholder of all material subsidiaries and has control in all cases. Information in relation to significant subsidiaries is provided on page 167. Subsidiaries with significant non-controlling interests Unilever has one subsidiary company which has a material non-controlling interest, Hindustan Unilever Limited (HUL). Summary financial information in relation to HUL is shown below. HUL balance sheet as at 31 December € million 2020 € million Non-current 6,173 1,030 Current assets 1,258 1,438 Current liabilities (1,127 ) (1,117 ) Non-current (1,139 ) (332 ) HUL comprehensive income for the year ended 31 December Turnover 4,957 4,937 Profit after tax 866 730 Total comprehensive income 374 740 HUL cash flow for the year ended 31 December € million 2020 € million Net increase/(decrease) in cash and cash-equivalents 48 145 HUL non-controlling 1 January (328 ) (299 ) Share of (profit)/loss for the year ended 31 December (319 ) (239 ) Other comprehensive income 3 (6 ) Dividend paid to the non-controlling 392 218 Currency translation 192 (2 ) Net gain arising from Horlicks acquisition (1,918 ) — 31 December (1,978 ) (328 ) Analysis of other reserves € million Total 2020 € million € million Fair value reserves - see next page 250 110 (123 ) Currency retranslation of group companies – see next page (7,068 ) (4,712 ) (4,694 ) Adjustment on translation of PLC’s ordinary capital (b) — (148 ) (150 ) Capital redemption reserve 21 37 32 Book value of treasury shares – see following table (483 ) (703 ) (10,181 ) Other (a) (202 ) (158 ) (102 ) (7,482 ) (5,574 ) (15,218 ) (a) Relates to the options to purchase non-controlling (b) Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. Unilever acquired none of its own shares (2019: 3,754,000 shares) through purchases on the stock exchanges during the year and prior to Unification. Out of the 7,266,666 shares held as treasury shares in connection with share-based compensation plans and which formed part of other reserves as at 29 November 2020, 5,884,511 shares were transferred to an employee share trust at their carrying value, prior to Unification. The shares held by the employee share trust are shown as deduction from other reserves. At 31 December 2020, 5,884,511 shares were held by employee share ownership trust and 1,382,155 shares were held by other group companies in connection with share-based compensation plans. The total number of treasury shares held in connection with share-based compensation plans at 31 December 2019 was 12,419,009 shares. (See note 4C on pages 129 and 130). Treasury shares – movements during the year € million 2020 € million 1 January (703 ) (10,181 ) Cancellation of NV and PLC shares — 9,416 Other purchases and utilisations 220 64 Adjustment on translation of PLC’s ordinary capital — (2 ) 31 December (a) (483 ) (703 ) (a) Shortly before Unification 4,523,367 NV and PLC ordinary shares, 892,155 NV NYRSs and 468,989 PLC ADSs held by NV in connection with share-based compensation plans were transferred to an employee share ownership trust at their carrying value. See note 4C for details. Currency retranslation reserve – movements during the year € million € million 1 January (4,712 ) (4,694 ) Currency retranslation of group companies net assets and liabilities during the year (1,490 ) (341 ) Movement in net investment hedges and exchange differences in net investments in foreign operations (866 ) 326 Recycled to income statement — (3 ) 31 December (7,068 ) (4,712 ) Fair value reserves – movements during the year € million € million 1 January 110 (123 ) Movements in Other comprehensive income, net of tax Gains/(losses) on equity instruments 68 25 Gains/(losses) on cash flow hedges 62 176 Hedging gains/(losses) transferred to non-financial 10 32 31 December 250 110 Refer to the consolidated statement of comprehensive income on page 112, the consolidated statement of changes in equity on page 113, and note 6C on page 133. Remeasurement of defined benefit pension plans net of tax € million € million 1 January (1,146 ) (1,499 ) Movement during the year 215 353 31 December (931 ) (1,146 ) Refer to the consolidated statement of comprehensive income on page 112, the consolidated statement of changes in equity on page 113, note 4B from pages 123 to 129 and note 6C on page 133. Currency retranslation gains/(losses) – movements during the year € million € million 1 January (5,084 ) (5,069 ) Currency retranslation during the year: Other reserves (2,356 ) (18 ) Retained profit (22 ) 2 Non-controlling (212 ) 1 31 December (7,674 ) (5,084 ) Share premium account On 29 November 2020 PLC issued 1,460,713,122 PLC ordinary shares to former NV shareholders in return for the assets and liabilities of NV. The fair value of the consideration received has been determined as the NV market capitalisation as at that date and the excess over the nominal value of the shares that were issued is recognised as share premium. 15C. Financial liabilities Financial liabilities (a) € million € million Non-current € million € million € million € million Bank loans and overdrafts (b) 407 4 411 390 463 853 Bonds and other loans 3,499 21,086 24,585 3,677 21,355 25,032 Lease liabilities 380 1,391 1,771 383 1,536 1,919 Derivatives 58 257 315 116 154 270 Other financial liabilities (c) 117 106 223 125 58 183 4,461 22,844 27,305 4,691 23,566 28,257 (a) For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. (b) Bank loans and overdrafts include €2.6 million (2019: €Nil) of secured liabilities. (c) Includes options and other financial liabilities to acquire non-controlling Reconciliation of liabilities arising from financing activities Non-cash Movements in 2020 and 2019 Opening Cash Business € million Foreign Fair Other Closing 2020 Bank loans and overdrafts (a) (853 ) 386 (1 ) 54 — 3 (411 ) Bonds and other loans (a) (25,032 ) (658 ) — 1,131 10 (36 ) (24,585 ) Lease liabilities (b) (1,919 ) 473 (27 ) 142 — (440 ) (1,771 ) Derivatives (270 ) — — — (45 ) — (315 ) Other financial liabilities (a) (183 ) — — (2 ) 20 (58 ) (223 ) Total (28,257 ) 201 (28 ) 1,325 (15 ) (531 ) (27,305 ) 2019 Bank loans and overdrafts (a) (814 ) (29 ) (1 ) (9 ) — — (853 ) Bonds and other loans (a) (23,391 ) (1,273 ) (3 ) (365 ) (1 ) 1 (25,032 ) Lease liabilities (b) (1,981 ) 452 (7 ) (25 ) — (358 ) (1,919 ) Derivatives (402 ) — — — 132 — (270 ) Other financial liabilities (a) (150 ) 30 — (8 ) — (55 ) (183 ) Total (26,738 ) (820 ) (11 ) (407 ) 131 (412 ) (28,257 ) (a) These cash movements are included within the following lines in the consolidated cash flow statement: net change in short-term borrowings, additional financial liabilities and repayment of financial liabilities. The difference of €10 million (2019: €64 million) represents cash movements in overdrafts that are not included in financing cash flows. (b) Lease liabilities cash movement is included within capital element of lease payments in the consolidated cash flow statement. The difference of €30 million (2019: €17 million) represents gain or loss from termination and modification of lease contracts. € million € million Unilever PLC 1.125% Notes 2022 (£) 387 408 1.375% Notes 2024 (£) 276 292 1.875% Notes 2029 (£) 274 290 1.500% Notes 2026 (£) 550 580 1.500% Notes 2039 (€) 646 646 Total PLC 2,133 2,216 Other group companies The Netherlands (a) 1.625% Notes 2033 (€) 793 792 1.750% Bonds 2020 (€) — 750 0.500% Notes 2022 (€) 749 747 1.375% Notes 2029 (€) 744 743 1.125% Bonds 2027 (€) 697 697 1.125% Bonds 2028 (€) 695 694 0.875% Notes 2025 (€) 648 647 0.500% Bonds 2025 (€) 645 644 1.375% Notes 2030 (€) 643 642 0.375% Notes 2023 (€) 599 599 1.000% Notes 2027 (€) 598 598 1.000% Notes 2023 (€) 498 498 0.000% Notes 2021 (€) 499 498 0.500% Notes 2023 (€) 498 498 0.500% Notes 2024 (€) 496 495 0.000% Notes 2020 (€) — 300 1.250% Notes 2025 (€) 999 — 1.750% Notes 2030 (€) 994 — Switzerland Other 16 24 United States 4.250% Notes 2021 ($) 812 892 5.900% Bonds 2032 ($) 809 883 2.900% Notes 2027 ($) 803 879 2.200% Notes 2022 ($) 689 755 1.800% Notes 2020 ($) — 714 3.500% Notes 2028 ($) 641 703 2.000% Notes 2026 ($) 563 616 1.375% Notes 2021 ($) (b) — 489 3.125% Notes 2023 ($) 445 488 2.100% Notes 2020 ($) — 446 3.000% Notes 2022 ($) 406 444 3.250% Notes 2024 ($) 404 443 3.100% Notes 2025 ($) 403 442 2.600% Notes 2024 ($) 404 442 3.500% Bonds 2028 ($) 402 441 2.750% Bonds 2021 ($) 324 356 3.375% Notes 2025 ($) 283 309 7.250% Bonds 2026 ($) 238 260 6.625% Bonds 2028 ($) 189 206 5.150% Notes 2020 ($) — 135 5.600% Bonds 2097 ($) 74 82 2.125% Notes 2029 ($) 683 749 2.600% Notes 2024 ($) 415 457 1.375% Notes 2030 ($) 395 — 0.375% Notes 2023 ($) 405 — Commercial paper ($) 1,848 1,276 Other countries 6 43 Total other group companies 22,452 22,816 Total bonds and other loans 24,585 25,032 (a) As part of Unification, these bonds which were previously issued by Unilever N.V. were transferred to Unilever Finance Netherlands B.V. with effect from 26 November 2020. (b) Bond repaid (Make-Whole) on 9 October 2020. Information in relation to the derivatives used to hedge bonds and other loans within a fair value hedge relationship is shown in note 16. |
Treasury Risk Management
Treasury Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Treasury Risk Management | 16. Treasury risk management Derivatives and hedge accounting Derivatives are measured at fair value with any related transaction costs expensed as incurred. The treatment of changes in the value of derivatives depends on their use as explained below. (i) Fair value hedges (a) Certain derivatives are held to hedge the risk of changes in value of a specific bond or other loan. In these situations, the Group designates the liability and related derivative to be part of a fair value hedge relationship. The carrying value of the bond is adjusted by the fair value of the risk being hedged, with changes going to the income statement. Gains and losses on the corresponding derivative are also recognised in the income statement. The amounts recognised are offset in the income statement to the extent that the hedge is effective. Ineffectiveness may occur if the critical terms do not exactly match, or if there is a value adjustment resulting from a change in credit risk (in either the Group or the counter-party to the derivative) that is not matched by the hedged item. When the relationship no longer meets the criteria for hedge accounting, the fair value hedge adjustment made to the bond is amortised to the income statement using the effective interest method. (ii) Cash flow hedges (a) Derivatives are also held to hedge the uncertainty in timing or amount of future forecast cash flows. Such derivatives are classified as being part of cash flow hedge relationships. For an effective hedge, gains and losses from changes in the fair value of derivatives are recognised in equity. Cost of hedging, where material and opted for, is recorded in a separate account within equity. Any ineffective elements of the hedge are recognised in the income statement. Ineffectiveness may occur if there are changes to the expected timing of the hedged transaction. If the hedged cash flow relates to a non-financial When a derivative no longer qualifies for hedge accounting, any cumulative gain or loss remains in equity until the related cash flow occurs. When the cash flow takes place, the cumulative gain or loss is taken to the income statement. If the hedged cash flow is no longer expected to occur, the cumulative gain or loss is taken to the income statement immediately. (iii) Net investment hedges (a) Certain derivatives are designated as hedges of the currency risk on the Group’s investment in foreign subsidiaries. The accounting policy for these arrangements is set out in note 1. (iv) Derivatives for which hedge accounting is not applied Derivatives not classified as hedges are held in order to hedge certain balance sheet items and commodity exposures. No hedge accounting is applied to these derivatives, which are carried at fair value with changes being recognised in the income statement. (a) Applying hedge accounting has not led to material ineffectiveness being recognised in the income statement for both 2020 and 2019. Fair value changes on basis spread is recorded in a separate account within equity. The Group is exposed to the following risks that arise from its use of financial instruments, the management of which is described in the following sections: • liquidity risk (see note 16A); • market risk (see note 16B); and • credit risk (see note 17B). The Group’s risk management framework is established to set appropriate risk limits and controls, and to maintain adherence to these limits. 16A. Management of liquidity risk Liquidity risk is the risk that the Group will face in meeting its obligations associated with its financial liabilities. The Group’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could undermine the Group’s credit rating, impair investor confidence and also restrict the Group’s ability to raise funds. The Group’s funding strategy was supported by cash delivery from the business, coupled with the proceeds from bond issuances. Surplus cash balance have been invested conservatively with low risk counter-parties at maturities of less than six months. In its liquidity assessment the Group does not consider any supplier financing arrangements as these arrangements are non-recourse Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day On 31 December 2020 Unilever had undrawn revolving 364-day 364-day The following table shows Unilever’s contractually agreed undiscounted cash flows, including expected interest payments, which are payable under financial liabilities at the balance sheet date: € million € million € million € million € million € million € million € million Undiscounted cash flows Due within 1 year Due between 1 and 2 years Due between 2 and 3 years Due between 3 and 4 years Due between 4 and 5 years Due after 5 years Total Net amount as shown in balance sheet 2020 Non-derivative Bank loans and overdrafts (413 ) (2 ) (1 ) — — (1 ) (417 ) (411 ) Bonds and other loans (3,926 ) (2,626 ) (2,824 ) (2,326 ) (3,278 ) (13,020 ) (28,000 ) (24,585 ) Lease liabilities (442 ) (352 ) (292 ) (234 ) (187 ) (591 ) (2,098 ) (1,771 ) Other financial liabilities (117 ) (12 ) (33 ) (23 ) (51 ) — (236 ) (223 ) Trade payables, accruals and other liabilities (13,585 ) (46 ) (15 ) (17 ) (4 ) (32 ) (13,699 ) (13,699 ) Deferred consideration (60 ) (12 ) (76 ) (35 ) (8 ) — (191 ) (164 ) (18,543 ) (3,050 ) (3,241 ) (2,635 ) (3,528 ) (13,644 ) (44,641 ) (40,853 ) Derivative financial liabilities: Interest rate derivatives: (257 ) Derivative contracts – receipts 174 1,069 40 441 29 877 2,630 Derivative contracts – payments (134 ) (1,148 ) (21 ) (479 ) (19 ) (977 ) (2,778 ) Foreign exchange derivatives: (158 ) Derivative contracts – receipts 6,163 — — — — — 6,163 Derivative contracts – payments (6,333 ) — — — — — (6,333 ) Commodity derivatives: (3 ) Derivative contracts – receipts — — — — — — — Derivative contracts – payments (3 ) — — — — — (3 ) (133 ) (79 ) 19 (38 ) 10 (100 ) (321 ) (418 ) Total (18,676 ) (3,129 ) (3,222 ) (2,673 ) (3,518 ) (13,744 ) (44,962 ) (41,271 ) 2019 Non-derivative Bank loans and overdrafts (399 ) (9 ) (289 ) (164 ) — (2 ) (863 ) (853 ) Bonds and other loans (4,169 ) (2,661 ) (2,745 ) (2,449 ) (2,454 ) (14,431 ) (28,909 ) (25,032 ) Lease liabilities (432 ) (392 ) (302 ) (242 ) (191 ) (720 ) (2,279 ) (1,919 ) Other financial liabilities (125 ) — (24 ) (31 ) (26 ) — (206 ) (183 ) Trade payables, accruals and other liabilities (14,166 ) (93 ) (13 ) (8 ) (14 ) (42 ) (14,336 ) (14,336 ) Deferred consideration (39 ) (124 ) (8 ) — (64 ) — (235 ) (208 ) (19,330 ) (3,279 ) (3,381 ) (2,894 ) (2,749 ) (15,195 ) (46,828 ) (42,531 ) Derivative financial liabilities: Interest rate derivatives: (154 ) Derivative contracts – receipts 776 164 805 37 478 957 3,217 Derivative contracts – payments (756 ) (141 ) (797 ) (17 ) (473 ) (949 ) (3,133 ) Foreign exchange derivatives: (168 ) Derivative contracts – receipts 8,783 — — — — — 8,783 Derivative contracts – payments (8,952 ) — — — — — (8,952 ) Commodity derivatives: (4 ) Derivative contracts – receipts — — — — — — — Derivative contracts – payments (4 ) — — — — — (4 ) (153 ) 23 8 20 5 8 (89 ) (326 ) Total (19,483 ) (3,256 ) (3,373 ) (2,874 ) (2,744 ) (15,187 ) (46,917 ) (42,857 ) The Group has sublet a small proportion of leased properties. Related future minimum sublease payments are €63 million (2019: €21 million). The following table shows cash flows for which cash flow hedge accounting is applied. The derivatives in the cash flow hedge relationships are expected to have an impact on profit and loss in the same periods as the cash flows occur. € million € million € million € million € million € million € million € million Due Due Due Due Net carrying Due between between between between Due amount of within 1 and 2 and 3 and 4 and after related 1 year 2 years 3 years 4 years 5 years 5 years Total derivatives (a) 2020 Foreign exchange cash inflows 3,136 — — — — — 3,136 — Foreign exchange cash outflows (3,205 ) — — — — — (3,205 ) (50 ) Interest rate swaps cash inflows 403 1,077 488 436 24 849 3,277 — Interest rate swaps cash outflows (347 ) (1,147 ) (464 ) (473 ) (13 ) (936 ) (3,380 ) (221 ) Commodity contracts cash inflows 40 — — — — — 40 40 Commodity contracts cash outflows (3 ) — — — — — (3 ) (3 ) 2019 Foreign exchange cash inflows 2,254 — — — — — 2,254 — Foreign exchange cash outflows (2,259 ) — — — — — (2,259 ) — Interest rate swaps cash inflows 811 442 1,182 536 478 957 4,406 — Interest rate swaps cash outflows (756 ) (347 ) (1,147 ) (464 ) (473 ) (949 ) (4,136 ) (29 ) Commodity contracts cash inflows 31 — — — — — 31 31 Commodity contracts cash outflows (4 ) — — — — — (4 ) (4 ) (a) See note 16C. 16B. Management of market risk Unilever’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments: • commodity price risk; • currency risk; and • interest rate risk. The above risks may affect the Group’s income and expenses, or the value of its financial instruments. The objective of the Group’s management of market risk is to maintain this risk within acceptable parameters, while optimising returns. Generally, the Group applies hedge accounting to manage the volatility in profit and loss arising from market risk. Where the Group uses hedge accounting to mitigate the above risks, it is normally implemented centrally by either the Treasury or Commodity Risk Management teams, in line with their respective frameworks and strategies. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship continues to exist between the hedged item and hedging instrument. The Group generally enters into hedge relationships where the critical terms of the hedging instrument match exactly with the hedged item, meaning that the economic relationship between the hedged item and hedging instrument is evident, so only a qualitative assessment is performed. When a qualitative assessment is not considered sufficient, for example when the critical terms of the hedging instrument do not match exactly with the hedged item, a quantitative assessment of hedge effectiveness will also be performed. The hedge ratio is set on inception for all hedge relationships and is dependent on the alignment of the critical terms of the hedging instrument to the hedged item (in most instances these are matched, so the hedge ratio is 1:1). The Group’s exposure to, and management of, these risks is explained below. It often includes derivative financial instruments, the uses of which are described in note 16C. Potential impact of risk Management policy and hedging strategy Sensitivity to the risk (i) Commodity price risk The Group is exposed to the risk of changes in commodity prices in relation to its purchase of certain raw materials. At 31 December 2020, the Group had hedged its exposure to future commodity purchases with commodity derivatives valued at €276 million (2019: €439 million). Hedges of future commodity purchases resulted in cumulative losses of €89 million (2019: losses of €52 million ) being reclassified to the income statement and losses of €66 million (2019: losses of €28 million) being recognised as a basis adjustment to inventory purchased. The Group uses commodity forwards, futures, swaps and option contracts to hedge against this risk. All commodity forward contracts hedge future purchases of raw materials and the contracts are settled either in cash or by physical delivery. The Group also hedges risk, components of commodities where it is not possible to hedge the commodity in full. This is done with reference to the contract to purchase the hedged commodity. Commodity derivatives are generally designated as hedging instruments in cash flow hedge accounting relations. All commodity derivative contracts are done in line with approvals from the Global Commodity Executive which is chaired by the Unilever Chief Supply Chain Officer (CSCO) or the Global Commodity Operating Team which is chaired by the Chief Procurement Officer. A 10% increase in commodity prices as at 31 December 2020 would have led to a €35 million gain on the commodity derivatives in the cash flow hedge reserve (2019: €56 million gain in the cash flow hedge reserve). A decrease of 10% in commodity prices on a full-year basis would have the equal but opposite effect. Potential impact of risk Management policy and hedging strategy Sensitivity to the risk (ii) Currency risk Currency risk on sales, purchases and borrowings Because of Unilever’s global reach, it is subject to the risk that changes in foreign currency values impact the Group’s sales, purchases and borrowings. The Group manages the foreign currency risk by hedging forecasted sales and purchase transactions that are expected to occur within a maximum 12-month At 31 December 2020, the exposure to the Group from companies holding financial assets and liabilities other than in their functional currency amounted to €274 million (2019: €317 million). The Group manages currency exposures within prescribed limits, mainly through the use of forward foreign currency exchange contracts. Operating companies manage foreign exchange exposures within prescribed limits. The aim of the Group’s approach to management of currency risk is to leave the Group with no material residual risk. This aim has been achieved in all years presented. As an estimation of the approximate impact of the residual risk, with respect to financial instruments, the Group has calculated the impact of a 10% change in exchange rates. Impact on income statement A 10% strengthening of the respective functional currencies of group companies against the foreign currencies would have led to an additional €27 million gain in the income statement (2019: €32 million gain). A 10% weakening of the respective functional currencies of group companies against the foreign currencies would have led to an equal but opposite effect. As at year end, the Group had the below notional amount of currency derivatives outstanding to which cash flow hedge accounting is applied: Currency 2020 2019 EUR* (920 ) (743 ) GBP (414 ) (325 ) USD 588 640 SEK (100 ) (94 ) CAD (110 ) (108 ) PLN (70 ) (67 ) Others (176 ) (192 ) Total (1,202 ) (889 ) * Euro exposure relates to group companies having non-euro functional currencies. Impact on equity – trade-related cash flow hedges A 10% strengthening of foreign currencies against the respective functional currencies of group companies hedging future trade cash flows and applying cash flow hedge accounting, would have led to €120 million loss (2019: €89 million loss). A 10% weakening of the same would have led to an equal but opposite effect. Currency risk on the Group’s net investments The Group is also subject to currency risk in relation to the translation of the net investments of its foreign operations into euros for inclusion in its consolidated financial statements. These net investments include Group financial loans, which are monetary items that form part of our net investment in foreign operations, of €9.2 billion (2019: €7.6 billion), of which €5.5 billion (2019: €3.5 billion) is denominated in GBP. In accordance with IAS 21, the exchange differences on these financial loans are booked through reserves. Part of the currency exposure on the Group’s investments is also managed using US$ net investment hedges with a nominal value of €4.0 billion (2019: €4.0 billion) for US$. At 31 December 2020, the net exposure of the net investments in foreign currencies amounts to €24.6 billion (2019: €22.0 billion). Unilever aims to minimise this currency risk on the Group’s net investment exposure by borrowing in local currency in the operating companies themselves. In some locations, however, the Group’s ability to do this is inhibited by local regulations, lack of local liquidity or by local market conditions. Where the residual risk from these countries exceeds prescribed limits, Treasury may decide on a case-by-case Where local currency borrowings, or forward contracts, are used to hedge the currency risk in relation to the Group’s net investment in foreign subsidiaries, these relationships are designated as net investment hedges for accounting purposes. Exchange risk related to the principal amount of the US$ denominated debt either forms part of hedging relationship itself, or is hedged through forward contracts. Impact on equity – net investment hedges A 10% strengthening of the euro against other currencies would have led to a €404 million (2019: €396 million) loss on the net investment hedges used to manage the currency exposure on the Group’s investments. A 10% weakening of the euro against other currencies would have led to an equal but opposite effect. Impact on equity – net investments in group companies A 10% strengthening of the euro against all other currencies would have led to a €2,461 million negative retranslation effect (2019: €2,203 million negative retranslation effect). A 10% weakening of the euro against all other currencies would have led to an equal but opposite effect. In line with accepted hedge accounting treatment and our accounting policy for financial loans, the retranslation differences would be recognised in equity. Potential impact of risk (iii) Interest rate risk (a) The Group is exposed to market interest rate fluctuations on its floating rate debt. Increases in benchmark interest rates could increase the interest cost of our floating-rate debt and increase the cost of future borrowings. The Group’s ability to manage interest costs also has an impact on reported results. The Group does not have any material floating interest bearing financial assets or any significant long-term fixed interest bearing financial assets. Consequently the Group’s interest rate risk arises mainly from financial liabilities other than lease liabilities. Taking into account the impact of interest rate swaps, at 31 December 2020, interest rates were fixed on approximately 87% of the expected financial liabilities (excluding lease liabilities) for 2021, and 75% for 2022 (82% for 2020 and 73% for 2021 at 31 December 2019). As at 31 December 2020, the Group had USD 3,700 million (2019: USD 4,500 million) of outstanding cross currency interest rate swaps (on which cash flow hedge accounting is applied). As at 31 December 2020, the Group had USD 500 million (2019: Nil) of outstanding fixed to float interest rate swaps (on which fair value hedge accounting is applied). The carrying amount of the hedged item recognised under ‘Bond and other loans’ is €395 million (2019: Nil), which includes accumulated amount of fair value hedge adjustment of €(10) million (2019: Nil). For interest management purposes, transactions with a maturity shorter than six months from inception date are not included as fixed interest transactions. The average interest rate on short-term borrowings in 2020 was 1.6% (2019: 2.5%). Management policy and hedging strategy Unilever’s interest rate management approach aims for an optimal balance between fixed and floating-rate interest rate exposures on expected financial liabilities. The objective of this approach is to minimise annual interest costs. This is achieved either by issuing fixed or floating-rate long-term debt, or by modifying interest rate exposure through the use of interest rate swaps. The majority of the Group’s existing interest rate derivatives are designated as cash flow hedges and are expected to be effective. The fair value movement of these derivatives is recognised in the income statement, along with any changes in the relevant fair value of the underlying hedged asset or liability. Sensitivity to the risk Impact on income statement Assuming that all other variables remain constant, a 1.0 percentage point increase in floating interest rates on a full-year basis as at 31 December 2020 would have led to an additional €40 million of finance cost (2019: €37 million additional finance costs). A 1.0 percentage point decrease in floating interest rates on a full-year basis would have an equal but opposite effect. Impact on equity – cash flow hedges Assuming that all other variables remain constant, a 1.0 percentage point increase in interest rates on a full-year basis as at 31 December 2020 would have led to an additional €11 million credit in equity from derivatives in cash flow hedge relationships (2019: €8 million credit). A 1.0 percentage point decrease in interest rates on a full-year basis would have led to an additional €12 million debit in equity from derivatives in cash flow hedge relationships (2019: €8 million debit). (a) See the weighted average amount of financial liabilities with fixed rate interest shown in the following table. The following table shows the split in fixed and floating-rate interest exposures, taking into account the impact of interest rate swaps and cross-currency swaps: € million € million 2020 2019 Current financial liabilities (4,461 ) (4,691 ) Non-current (22,844 ) (23,566 ) Total financial liabilities (27,305 ) (28,257 ) Less: lease liabilities (1,771 ) (1,919 ) Financial liabilities (excluding lease liabilities) (25,534 ) (26,338 ) Of which: Fixed rate (weighted average amount of fixing for the following year) (21,561 ) (22,618 ) 16C. Derivatives and hedging The Group does not use derivative financial instruments for speculative purposes. The uses of derivatives and the related values of derivatives are summarised in the following table. Derivatives used to hedge: € million € million € million € million € million € million € million Trade Current Non- current Trade payables Current Non- current and other financial financial and other financial financial receivables assets assets liabilities liabilities liabilities Total 31 December 2020 Foreign exchange derivatives Fair value hedges — — — — — — — Cash flow hedges 24 — — (74 ) — — (50 ) Hedges of net investments in foreign operations — — — — (149 ) (a) — (149 ) Hedge accounting not applied 14 54 (a) — (26 ) 91 (a) — 133 Interest rate derivatives Fair value hedges — — — — — (10 ) (10 ) Cash flow hedges — 5 21 — — (247 ) (221 ) Hedge accounting not applied — — — — — — — Commodity contracts Cash flow hedges 40 — — (3 ) — — 37 Hedge accounting not applied — — — — — — — 78 59 21 (103 ) (58 ) (257 ) (260 ) Total assets 158 Total liabilities (418 ) (260 ) 31 December 2019 Foreign exchange derivatives Fair value hedges — — — — — — — Cash flow hedges 38 — — (38 ) — — — Hedges of net investments in foreign operations — 30 (a) — — (14 ) (a) — 16 Hedge accounting not applied 5 (10 ) (a) — (14 ) (102 ) (a) — (121 ) Interest rate derivatives Fair value hedges — — — — — — — Cash flow hedges — — 114 — — (143 ) (29 ) Hedge accounting not applied — — — — — (11 ) (11 ) Commodity contracts Cash flow hedges 31 — — (4 ) — — 27 Hedge accounting not applied — — — — — — — 74 20 114 (56 ) (116 ) (154 ) (118 ) Total assets 208 Total liabilities (326 ) (118 ) (a) Swaps that hedge the currency risk on intra-group loans and offset ‘Hedges of net investments in foreign operations’ are included within ‘Hedge accounting not applied’. See below for further details. Master netting or similar agreements A number of legal entities within our Group enter into derivative transactions under International Swap and Derivatives Association (ISDA) master netting agreements. In general, under such agreements the amounts owed by each counter-party on a single day in respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other. In certain circumstances, such as when a credit event such as a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all transactions. The ISDA agreements do not meet the criteria for offsetting the positive and negative values in the consolidated balance sheet. This is because the Group does not have any currently legally enforceable right to offset recognised amounts, between various Group and bank affiliates, because the right to offset is enforceable only on the occurrence of future credit events such as a default. The column ‘Related amounts not set off in the balance sheet — Financial instruments’ shows the netting impact of our ISDA agreements, assuming the agreements are respected in the relevant jurisdiction. (i) Financial assets The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements. Related amounts not set off in the balance sheet € million € million € million € million € million € million Gross amounts of Gross amounts of recognised financial assets set off in the Net amounts of financial assets Financial Cash collateral As at 31 December 2020 financial assets balance sheet balance sheet instruments received Net amount Derivative financial assets 306 (148 ) 158 (91 ) (16 ) 51 As at 31 December 2019 Derivative financial assets 253 (45 ) 208 (130 ) (24 ) 54 (ii) Financial liabilities The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements. Related amounts not set off in the balance sheet € million € million € million € million € million € million Gross amounts of Gross amounts of recognised financial liabilities set off in the Net amounts of presented in the Financial Cash collateral As at 31 December 2020 financial liabilities balance sheet balance sheet instruments received Net amount Derivative financial liabilities (566 ) 148 (418 ) 91 — (327 ) As at 31 December 2019 Derivative financial liabilities (371 ) 45 (326 ) 130 — (196 ) |
Investment and Return
Investment and Return | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Investment and Return | 17. Investment and return Cash and cash equivalents Cash and cash equivalents in the balance sheet include deposits, investments in money market funds and highly liquid investments. To be classified as cash and cash equivalents, an asset must: • be readily convertible into cash; • have an insignificant risk of changes in value; and • have a maturity period of typically three months or less at acquisition. Cash and cash equivalents in the cash flow statement also include bank overdrafts and are recorded at amortised cost. Other financial assets The Group classifies its financial assets into the following measurement categories: • those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and • those to be measured at amortised cost. This classification depends on our business model for managing the financial asset and the contractual terms of the cash flows. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. All financial assets are either debt instruments or equity instruments. Debt instruments are those that provide the Group with a contractual right to receive cash or another asset. Equity instruments are those where the Group has no contractual right to receive cash or another asset. Debt instruments The subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories that debt instruments are classified as: • financial assets at amortised cost; • financial assets at fair value through other comprehensive income; or • financial assets at fair value through profit or loss. (i) Amortised cost Assets measured at amortised cost are those which are held to collect contractual cash flows on the repayment of principal or interest (SPPI). A gain or loss on a debt investment recognised at amortised cost on de-recognition (ii) Fair value through other comprehensive income Assets that are held at fair value through other comprehensive income are those that are held to collect contractual cash flows on the repayment of principal and interest and which are held to recognise a capital gain through the sale of the asset. Movements in the carrying amount are recognised in other comprehensive income except for the recognition of impairment, interest income and foreign exchange gains or losses which are recognised in profit or loss. On de-recognition, (iii) Fair value through profit or loss Assets that do not meet the criteria for either amortised cost or fair value through other comprehensive income are measured as fair value through profit or loss. Related transaction costs are expensed as incurred. Unless they form part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement. Interest income from these assets is included within finance income. Equity instruments The Group subsequently measures all equity instruments at fair value. Where the Group has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains or losses to profit or loss. Dividends from these investments continue to be recognised in profit or loss. Impairment of financial assets Financial instruments classified as amortised cost and debt instruments classified as fair value through other comprehensive income are assessed for impairment. The Group assesses the probability of default of an asset at initial recognition and then whether there has been a significant increase in credit risk on an ongoing basis. To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Macroeconomic information (such as market interest rates or growth rates) is also considered. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. Impairment losses on assets classified as amortised cost are recognised in profit or loss. When a later event causes the impairment losses to decrease, the reduction in impairment loss is also recognised in profit or loss. Permanent impairment losses on debt instruments classified as fair value through other comprehensive income are recognised in profit or loss. 17A. Financial assets The Group’s Treasury function aims to protect the Group’s financial investments, while maximising returns. The fair value of financial assets is the same as the carrying amount for 2020 and 2019. The Group’s cash resources and other financial assets are shown below. € million € million € million € million € million € million Current Non-current Total Current Non-current Total Financial assets (a) 2020 2020 2020 2019 2019 2019 Cash and cash equivalents Cash at bank and in hand 2,764 — 2,764 2,457 — 2,457 Short-term deposits (b) 2,764 — 2,764 1,693 — 1,693 Other cash equivalents 20 — 20 35 — 35 5,548 — 5,548 4,185 — 4,185 Other financial assets Financial assets at amortised cost (c) 468 138 606 578 220 798 Financial assets at fair value through other comprehensive income (d) 9 361 370 — 266 266 Financial assets at fair value through profit or loss: Derivatives 59 21 80 20 114 134 Other (e) 272 356 628 309 274 583 808 876 1,684 907 874 1,781 Total 6,356 876 7,232 5,092 874 5,966 (a) For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. (b) Short-term deposits typically have maturity of up to 3 months. (c) Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current (d) Included within non-current The fair value movement in 2020 of these equity investments was €78 million (2019: €31 million). (e) Current Other Financial assets at fair value through profit or loss include A- There were no significant changes on account of change in business model in classification of financial assets since 31 December 2019. There are no financial assets that are designated at fair value through profit or loss, which would otherwise have been measured at fair value through other comprehensive income. € € million Cash and cash equivalents reconciliation to the cash flow statement 2020 2019 Cash and cash equivalents per balance sheet 5,548 4,185 Less: bank overdrafts (73 ) (69 ) Cash and cash equivalents per cash flow statement 5,475 4,116 Approximately €3.0 billion (or 54%) of the Group’s cash and cash equivalents are held in the parent and central finance companies, for maximum flexibility. These companies provide loans to our subsidiaries that are also funded through retained earnings and third party borrowings. We maintain access to global debt markets through an infrastructure of short and long-term debt programmes. We make use of plain vanilla derivatives, such as interest rate swaps and foreign exchange contracts, to help mitigate risks. More detail is provided in notes 16, 16A, 16B and 16C on pages 149 to 155. The remaining €2.5 billion (or 46%) of the Group’s cash and cash equivalents are held in foreign subsidiaries which repatriate distributable reserves on a regular basis. For most countries, this is done through dividends which are in some cases subject to withholding or distribution tax. This balance includes €98 million (2019: €146 million, 2018: €154 million) of cash that is held in a few countries where we face cross-border foreign exchange controls and/or other legal restrictions that inhibit our ability to make these balances available for general use by the wider business. The cash will generally be invested or held in the relevant country and, given the other capital resources available to the Group, does not significantly affect the ability of the Group to meet its cash obligations. 17B. Credit risk Credit risk is the risk of financial loss to the Group if a customer or counter-party fails to meet its contractual obligations. Additional information in relation to credit risk on trade receivables is given in note 13. These risks are generally managed by local controllers. Credit risk related to the use of treasury instruments, including those held at amortised cost and at fair value through other comprehensive income, is managed on a Group basis. This risk arises from transactions with financial institutions involving cash and cash equivalents, deposits and derivative financial instruments. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. To reduce this risk, Unilever has concentrated its main activities with a limited number of counter-parties which have secure credit ratings. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Group’s treasury department. Netting agreements are also put in place with Unilever’s principal counter-parties. In the case of a default, these arrangements would allow Unilever to net assets and liabilities across transactions with that counter-party. To further reduce the Group’s credit exposures on derivative financial instruments, Unilever has collateral agreements with Unilever’s principal counter-parties in relation to derivative financial instruments. Under these arrangements, counter-parties are required to deposit securities and/or cash as a collateral for their obligations in respect of derivative financial instruments. At 31 December 2020 the collateral held by Unilever under such arrangements amounted to €18 million (2019: €24 million), of which €16 million (2019: €24 million) was in cash, and €2 million (2019: €Nil) was in the form of bond securities. The non-cash Further details in relation to the Group’s exposure to credit risk are shown in note 13 and note 16A. |
Financial Instruments Fair Valu
Financial Instruments Fair Value Risk | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Financial Instruments Fair Value Risk | 18. Financial instruments fair value risk The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair values and carrying amounts of financial instruments. € million € million € million € million Carrying Carrying Fair value Fair value amount amount Fair values of financial assets and financial liabilities 2020 2019 2020 2019 Financial assets Cash and cash equivalents 5,548 4,185 5,548 4,185 Financial assets at amortised cost 606 798 606 798 Financial assets at fair value through other comprehensive income 370 266 370 266 Financial assets at fair value through profit or loss: Derivatives 80 134 80 134 Other 628 583 628 583 7,232 5,966 7,232 5,966 Financial liabilities Bank loans and overdrafts (411 ) (853 ) (411 ) (853 ) Bonds and other loans (26,936 ) (26,525 ) (24,585 ) (25,032 ) Lease liabilities (1,771 ) (1,919 ) (1,771 ) (1,919 ) Derivatives (315 ) (270 ) (315 ) (270 ) Other financial liabilities (223 ) (183 ) (223 ) (183 ) (29,656 ) (29,750 ) (27,305 ) (28,257 ) The fair value of trade receivables and payables is considered to be equal to the carrying amount of these items due to their short-term nature. The instruments that have a fair value that is different from the carrying amount are classified as Level 2 for both 2019 and 2020. Fair value hierarchy The fair values shown in notes 15C and 17A have been classified into three categories depending on the inputs used in the valuation technique. The categories used are as follows: • Level 1: quoted prices for identical instruments; • Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and • Level 3: inputs which are not based on observable market data. For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below: € million € million € million € million € million € million € million € million Total fair Total fair Level 1 Level 1 Level 2 Level 2 Level 3 Level 3 value value Notes 2020 2019 2020 2019 2020 2019 2020 2019 Assets at fair value Financial assets at fair value through other comprehensive income 17A 5 7 3 4 362 255 370 266 Financial assets at fair value through profit or loss: Derivatives (a) 16C — — 158 208 — — 158 208 Other 17A 300 311 — — 328 272 628 583 Liabilities at fair value Derivatives (b) 16C — — (418 ) (326 ) — — (418 ) (326 ) Contingent consideration 14 — — — — (140 ) (154 ) (140 ) (154 ) (a) Includes €78 million (2019: €74 million) derivatives, reported within trade receivables, that hedge trading activities. (b) Includes €(103) million (2019: €(56) million) derivatives, reported within trade payables, that hedge trading activities. There were no significant changes in classification of fair value of financial assets and financial liabilities since 31 December 2019. There were also no significant movements between the fair value levels since 31 December 2019. The impact in 2020 income statement due to Level 3 instruments is a loss of €22 million (2019: loss of €9 million). Reconciliation of Level 3 fair value measurements of financial assets and financial liabilities is given below: € million € million Reconciliation of movements in Level 3 valuations 2020 2019 1 January 373 241 Gains and losses recognised in income statement (22 ) (9 ) Gains and losses recognised in other comprehensive income 75 43 Purchases and new issues 41 83 Sales and settlements 83 15 31 December 550 373 Significant unobservable inputs used in Level 3 fair values Assets valued using Level 3 techniques include €494 million (2019: €403 million) relating to a number of unlisted investments within Unilever Ventures companies, none of which are individually material; €51 million (2019: €nil) for an option over a non-controlling interest; and €106 million (2019: €114 million) of long-term cash receivables under life insurance policies. Valuation techniques used are specific to each asset and for all assets a change in one or more of the inputs to reasonably possible alternative assumptions would not change the value significantly. Calculation of fair values The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used in the year ended 31 December 2019. Assets and liabilities carried at fair value • The fair values of quoted investments falling into Level 1 are based on current bid prices. • The fair values of unquoted financial assets at fair value through other comprehensive income and at fair value through profit or loss are based on recent trades in liquid markets, observable market rates, discounted cash flow analysis and statistical modelling techniques such as the Monte Carlo simulation. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. • Derivatives are valued using valuation techniques with market observable inputs. The models incorporate various inputs including the credit quality of counter-parties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying commodities. • For listed securities where the market is not liquid, and for unlisted securities, valuation techniques are used. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same and discounted cash flow calculations. Other financial assets and liabilities (fair values for disclosure purposes only) • Cash and cash equivalents, trade and other current receivables, bank loans and overdrafts, trade payables and other current liabilities have fair values that approximate to their carrying amounts due to their short-term nature. • The fair values of listed bonds are based on their market value. • Non-listed non-current Policies and processes used in relation to the calculation of level 3 fair values Assets valued using Level 3 valuation techniques are primarily made up of long-term cash receivables and unlisted investments. Valuation techniques used are specific to the circumstances involved. Unlisted investments include €494 million (2019: €403 million) of investments within Unilever Ventures companies. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2020 | |
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Provisions | 19. Provisions Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable. € million € million Provisions 2020 2019 Due within one year 547 620 Due after one year 583 664 Total provisions 1,130 1,284 € million € million € million € million € million Brazil Movements during 2020 Restructuring Legal indirect taxes Other Total 1 January 2020 470 149 128 537 1,284 Additions through business combinations — 4 — 57 61 Income Statement: Charges 151 129 4 140 424 Releases (87 ) (5 ) (20 ) (59 ) (171 ) Utilisation (252 ) (27 ) (1 ) (44 ) (324 ) Currency translation (18 ) (23 ) (37 ) (66 ) (144 ) 31 December 2020 264 227 74 565 1,130 Restructuring provisions primarily include people costs such as redundancy costs and the cost of compensation where manufacturing, distribution, service or selling agreements are to be terminated. The Group expects these provisions to be substantially utilised within the next few years. The Group is involved from time to time in legal and arbitration proceedings arising in the ordinary course of business. As previously disclosed, along with other consumer products companies and retail customers, Unilever is involved in a number of ongoing investigations by national competition authorities. These proceedings and investigations are at various stages and concern a variety of product markets. Where specific issues arise, provisions are made to the extent appropriate. Due to the nature of the legal cases, the timing of utilisation of these provisions is uncertain. Provisions for Brazil indirect taxes are comprised of disputes with Brazilian authorities, in particular relating to tax credits that can be taken for the PIS and COFINS indirect taxes. These provisions are separate from the matters listed as contingent liabilities in note 20. Unilever does not have provisions and contingent liabilities for the same matters. Due to the nature of disputed indirect taxes, the timing of utilisation of these provisions is uncertain. Other includes provisions for indirect taxes in countries other than Brazil, interest on tax provisions and provisions for various other matters. The timing of utilisation of these provisions is uncertain. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Commitments and Contingent Liabilities | 20. Commitments and contingent liabilities Commitments Lease commitments are the future cash out flows from the lease contracts which are not recorded in the measurement of lease liabilities. These include potential future payments related to leases of low value assets, leases which are less than twelve months, variable leases, extension and termination options and leases not yet commenced but which we have committed to. Other commitments principally comprise commitments under contract to purchase materials and services. They do not include commitments to purchase property, plant and equipment, which are reported in note 10 on pages 137 to 139. Lease commitments and other commitments fall due as follows: € million € million € million € million Within 1 69 69 844 791 Later than 1 5 80 111 694 684 Later than 5 9 43 18 23 158 223 1,556 1,498 Contingent liabilities Contingent liabilities are either possible obligations that will probably not require a transfer of economic benefits, or present obligations that may, but probably will not, require a transfer of economic benefits. It is not appropriate to make provisions for contingent liabilities, but there is a chance that they will result in an obligation in the future. Assessing the amount of liabilities that are not probable is highly judgemental, so contingent liabilities are disclosed on the basis of the known maximum exposure. Contingent liabilities arise in respect of litigations against group companies, investigations by competition, regulatory and fiscal authorities and obligations arising under environmental legislation. In many markets, there is a high degree of complexity involved in the local tax regimes. The majority of contingent liabilities are in respect of fiscal matters in Brazil. In case of fiscal matters, the known maximum exposure is the amount included in a tax assessment. € million € million Summary of contingent liabilities 2020 2019 Corporate reorganisation – IPI, PIS and COFINS taxes and penalties 2,040 2,235 Inputs for PIS and COFINS taxes 35 43 Goodwill amortisation 137 184 Other tax assessments – approximately 600 cases 650 959 Total Brazil tax 2,862 3,421 Other contingent liabilities 648 789 Total contingent liabilities 3,510 4,210 Brazil tax During 2004, and in common with many other businesses operating in Brazil, one of our Brazilian subsidiaries received a notice of infringement from the Federal Revenue Service in respect of indirect taxes regarding corporate reorganisation. The notice alleges that a 2001 reorganisation of our local corporate structure was undertaken without a valid business purpose. The 2001 reorganisation was comparable with restructuring done by many companies in Brazil. The original dispute was resolved in the courts in the Group’s favour. However, in 2013 a new assessment was raised in respect of a similar matter. Additionally, during the course of 2014 and between 2017 and 2020, other notices of infringement were issued based on the same grounds argued in the previous assessments. The total amount of the tax assessments in respect of this matter is €2,040 million (2019: €2,235 million). The Group believes that the likelihood that the Brazilian tax authorities will ultimately prevail is low, however there can be no guarantee of success in court. In each case we believe our position is strong, so they have not been provided for and are considered to be contingent liabilities. Due to the fiscal environment in Brazil, the possibility of further tax assessments related to the same matters cannot be ruled out. We expect that two of our largest tax litigation cases, which represent around €863 million of contingent liabilities, will move from the Administrative to the Judicial Courts during 2021, although the exact timing is uncertain. When this happens, we will be required to make a judicial deposit or provide a guarantee in respect of the disputed tax, interest and penalties. The judicial process in Brazil is likely to take a number of years to conclude. The contingent liabilities reported for indirect taxes relating to disputes with the Brazilian authorities are separate from the provisions listed in note 19. Unilever does not have provision and contingent liabilities for the same matters. Other contingent liabilities In 2019, a tax assessment was issued in connection with a UK tax audit that commenced in 2015. The total amount of the tax assessment in respect of this matter was €141 million and was included in other contingent liabilities at 31 December 2019. The UK tax authorities were reviewing the allocation of taxable income related to intangible assets and centralised group services as between Unilever N.V. and Unilever PLC and whether Unilever N.V. had a permanent establishment in the UK. During 2020 the UK tax audit was concluded, and we have included the outcome of the tax assessment in this year’s profit and loss account, hence there is no contingent liability as at 31 December 2020. As noted last year, we will be pursuing a Mutual Agreement Procedure with the Dutch and UK tax authorities to ensure we are not subject to double taxation. |
Acquisitions and Disposals
Acquisitions and Disposals | 12 Months Ended |
Dec. 31, 2020 | |
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Acquisitions and Disposals | 21. Acquisitions and disposals Business combinations are accounted for using the acquisition accounting method as at the acquisition date, which is the date at which control is transferred to the Group. Goodwill is measured at the acquisition date as the fair value of consideration transferred, plus non-controlling Transaction costs are expensed as incurred, within non-underlying Changes in ownership that do not result in a change of control are accounted for as equity transactions and therefore do not have any impact on goodwill. The difference between consideration and the non-controlling 2020 In 2020, the Group completed the business acquisitions and disposals as listed below. In each case, 100% of the businesses were acquired unless stated otherwise. Total consideration for 2020 acquisitions is €6,337 million (2019: €1,167 million for acquisitions completed during that year). More information related to the 2020 acquisitions is provided on page 163 to 164. Deal completion date Acquired/disposed business 1 April 2020 Acquired the health food drinks business of GlaxoSmithKline plc in India and 20 other predominantly Asian markets (“the Main Horlicks Acquisition”). The acquisition added leading brands such as Horlicks and Boost in certain markets, increasing Unilever’s presence in functional nutrition. As a significant acquisition for the Group, further details are disclosed separately below. 25 June 2020 Acquired Vwash, a leading intimate hygiene business in India. The acquisition complements our beauty and personal care portfolio and increase our presence in fast-growing segments in India. 30 June 2020 The Group acquired 82% of GlaxoSmithKline Bangladesh Limited, a health food drink business in Bangladesh. The Bangladesh Horlicks Acquisition was a separate transaction to the Main Horlicks Acquisition. 15 July 2020 Sold the Ice Cream business in Chile to Carozzi. 1 October 2020 Acquired Liquid IV, a US-based health-science nutrition and wellness company, known for its portfolio of electrolyte drink mixes that enhance rapid hydration. This acquisition increases our presence in functional nutrition. 23 December 2020 Acquired SmartyPants Vitamins, a vitamin, mineral and supplement company based in the US. The acquisition complements Unilever’s existing portfolio in functional nutrition. Horlicks Acquisitions The Main Horlicks Acquisition was composed of the following related transactions on 1 April 2020: • Hindustan Unilever Limited (HUL), a subsidiary of the Group, obtained control of the business of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) via an all equity merger under which 4.39 shares of HUL were allotted for every share of GSKCH; • HUL purchased the Horlicks intellectual property rights, being mainly legal rights to the Horlicks brand (the ‘HFD IP’) for India and Unilever N.V. and Unilever PLC purchased the HFD IP outside of India and Bangladesh (subsequently the Bangladesh HFD IP was acquired by Unilever PLC in a separate transaction); and • Unilever Foods (Malaysia) Sdn Bhd and Unilever Asia Pacific Limited (Singapore) purchased the Horlicks commercial operations of GSK in 20 other predominantly Asian markets (“Local Distribution Assets”). The Bangladesh Horlicks Acquisition is separate to the Main Horlicks Acquisition and completed on 30 June 2020. Unilever Overseas Holding B.V. purchased 82% of GSK Bangladesh Limited and Unilever PLC purchased the HFD IP in Bangladesh. The following disclosures relate only to the Main Horlicks Acquisition. Main Horlicks Acquisition The purpose of the acquisition was to add the Horlicks and Boost brands in certain geographical markets to Unilever’s portfolio to increase presence in healthy nutrition and in high-growth emerging markets. The total consideration paid was €5,294 million comprised of €449 million in cash and €4,845 million in shares of Hindustan Unilever Limited valued based on the share price of HUL on the completion date and the exchange rate on the same date (83.05 INR/€). The provisional fair value of net assets for the acquisition that is recognised on the balance sheet is €3,204 million. Balances are provisional as we are finalising our review of the asset valuations. The main assets acquired were brands which were valued using an income approach model by estimating future cashflows generated by the brand and discounting them to present value using rates in line with a market participant expectation. The key assumptions in the brand valuations are revenue growth and discount rates. More information related to each major class of assets and liabilities acquired is provided on page 164. At the date of acquisition we expected around €1.3 billion of the goodwill to be deductible for tax purposes. While we believe there is legal basis to claim the Horlicks goodwill as tax deductible, we note that the Indian Budget on 1 February 2021 includes a proposal to exclude goodwill from the definition of tax depreciable assets effective 1 April 2020. If enacted this would have no material impact on the income statement. Since the acquisition date, foreign exchange has decreased this goodwill in euros by €159 million. The gross contractual value of trade and other receivables as at the dates of acquisition amounted to €77 million which is expected to be fully recoverable. Within the acquired net assets, contingent liabilities amounting to €123 million in respect of ongoing litigation against GlaxoSmithKline Consumer Healthcare Limited have been recognised based on management’s estimate of the values of exposures and their assessment of the probability of the related claims being settled by the Group. The contingent liabilities mainly relate to direct and indirect tax disputes with the Indian tax authorities. There are several matters being disputed and in each case we believe that the likelihood that the Indian tax authorities will ultimately prevail is no higher than moderate, however we expect that most of these disputes will not be resolved for several years. Contingent assets of €73 million are also recognised, measured on the same basis, for the Group’s right to future indemnification by GlaxoSmithKline Pte Limited and Horlicks Limited in relation to certain claims. Impact of dilution of Group interest in Hindustan Unilever Limited The acquisition of GSKCH by HUL was settled through the issue of (184.6 million) new shares of Hindustan Unilever Limited and so resulted in dilution of Unilever’s interest in Hindustan Unilever Limited from 67.2% to 61.9%. The table below shows the impact of the decrease in shareholding on the equity attributable to shareholders of the Group. € million 67.2% share of HUL’s net assets acquired before acquisition of GSKCH 718 61.9% share of HUL’s net assets acquired after acquisition of GSKCH 661 Loss recognised in equity due to dilution (57 ) Gain arising from proportionate share of GSKCH’s net assets acquired 3,001 Net gain arising from the Main Horlicks Acquisition recognised in equity 2,944 Acquisition-related costs related to Horlicks of €42 million have been recorded within non-underlying The Main Horlicks Acquisition contributed €415 million to Group turnover and €119 million to Group operating profit since the acquisition date. If the acquisition had taken place at the beginning of the year, Group turnover would have been €50,867 million and Group operating profit would have been €8,342 million. Effect on consolidated income statement The overall impact of the Main Horlicks Acquisition and the other acquisitions on the consolidated income statement is as follows: The acquisition deals completed in 2020 have contributed €476 million to Group revenue and €124 million to Group operating profit since the relevant acquisition dates. If the acquisition deals completed in 2020 had all taken place at the beginning of the year, Group turnover would have been €51,116 million and Group operating profit would have been €8,371 million. 2019 In 2019 the Group completed the following business acquisitions and disposals as listed below. For all businesses acquired, the acquisition accounting has been finalised. Subsequent changes to the provisional numbers published last year are immaterial. Deal completion date Acquired/disposed business 28 January 2019 Acquired the Laundress, a global premium eco-friendly laundry care business in the US. The acquisition expands our portfolio into the premium home care market. 5 February 2019 Acquired Graze, the leading healthy snacking business in the UK. The acquisition accelerates our presence in the healthy snacking and out of home markets. 1 March 2019 Sold the global Alsa baking and dessert business to Dr. Oetker. 5 April 2019 Acquired Garancia, a derma-cosmetic business in France. The acquisition strengthens our prestige portfolio in the pharmacy channel. 21 May 2019 Acquired Olly Nutrition, a US based vitamins, minerals and supplements business that accelerates our presence and competitiveness in the wellness market. 28 June 2019 Acquired Fluocaril and Parogencyl oral care businesses in France and Spain. The acquisition complements our existing oral care portfolio and strengthens our distribution in the European pharmacy channel. 26 July 2019 Acquired 95% of Tatcha, a leading prestige skin care business in the US. Tatcha is a modern skin care brand with a focus on natural ingredients, product experience, premium design and packaging quality. 30 August 2019 Acquired Astrix, a personal and home care business in Bolivia that further strengthens our local market competitiveness. 1 October 2019 Acquired 70% of Lenor, a premium skin care business based in Japan. The acquisition expands our portfolio into Japanese beauty, premium face and derma care in Japan and China. 1 October 2019 Acquired 75% of FruFru, a healthy food business in Romania which accelerates our local presence and competitiveness in the healthy food market. Effect on consolidated balance sheet Acquisitions The following table sets out the overall effect of the Main Horlicks Acquisition and the other acquisitions in 2020, 2019 and 2018 on the consolidated balance sheet. The fair values currently used for opening balances of all acquisitions made in 2020 are provisional. Balances remain provisional due to missing relevant information about facts and circumstances that existed as of the acquisition date and where valuation work is still ongoing. € million 2020 € million € million Net assets acquired 3,857 771 815 Non-controlling (27 ) (25 ) (17 ) Goodwill 2,507 421 496 Total payment for acquisition 6,337 1,167 1,294 Exchange rate gain/(loss) on cash flow hedge — — (100 ) Total consideration 6,337 1,167 1,194 In 2020 the net assets acquired and total payment for acquisitions consist of: Main Horlicks Other € million 2020 Intangible assets 3,345 737 4,082 Other non-current 249 35 284 Trade and other receivables 77 26 103 Other current assets (a) 560 95 655 Non-current (b) (905 ) (202 ) (1,107 ) Current liabilities (122 ) (38 ) (160 ) Net assets acquired 3,204 653 3,857 Non-controlling — (27 ) (27 ) Goodwill 2,090 417 2,507 Exchange rate gain/(loss) on cash flow hedges — — — Total consideration 5,294 1,043 6,337 Of which Consideration paid (c) 5,294 1,019 6,313 Deferred consideration — 24 24 (a) Other current assets include financial (b) Non-current (c) For the Main Horlick Acquisition consideration paid was €449 Goodwill represents the future value which the Group believes it will obtain through operational synergies and the application of acquired company ideas to existing Unilever channels and businesses. Detailed information relating to goodwill is provided in note 9 on pages 134 to 136. No material contingent liabilities were acquired in the other acquisitions described above. Disposals Total consideration for 2020 disposals is €35 million (2019: €169 million for disposals completed during that year). The following table sets out the effect of the disposals in 2020, 2019 and 2018 on the consolidated balance sheet. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal. € million € million € million Goodwill and intangible assets 1 82 2,510 Other non-current 21 19 666 Current assets 5 15 261 Trade creditors and other payables (1 ) (12 ) (107 ) Net assets sold 26 104 3,330 (Gain)/loss on recycling of currency retranslation on disposal — — (71 ) Profit/(loss) on sale attributable to Unilever 9 65 4,331 Consideration 35 169 7,590 Cash 34 168 7,135 Cash balances of businesses sold — 1 321 Non-cash 1 — 134 35 169 7,590 In 2020 business disposal was mainly related to the sale of Unilever Ice Cream business in Chile to Carozzi. |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 12 Months Ended |
Dec. 31, 2020 | |
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Assets and Liabilities Held for Sale | 22. Assets and liabilities held for sale Non-current Immediately prior to classification as held for sale, the assets or groups of assets are remeasured in accordance with the Group’s accounting policies. Subsequently, assets and disposal groups classified as held for sale are valued at the lower of book value or fair value less disposal costs. Assets held for sale are neither depreciated nor amortised. € million € million Disposal groups held for sale (a) Goodwill and intangibles 1 3 Property, plant and equipment 4 13 Inventories 6 9 Trade and other receivables — 1 Other — 3 11 29 Property, plant and equipment held for sale (b) 17 53 Assets held for sale 28 82 Liabilities held for sale 1 1 (a) In 2020, disposal groups held for sale consists of assets mainly relating to manufacturing assets. (b) 2019 includes manufacturing assets held for sale in various countries. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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Related Party Transactions | 23. Related party transactions A related party is a person or entity that is related to the Group. These include both people and entities that have, or are subject to, the influence or control of the Group. Joint ventures The following related party balances existed with associate or joint venture businesses at 31 December: Related party balances € million € million Sales to joint ventures 1,004 839 Purchases from joint ventures 118 113 Receivables from joint ventures 80 92 Payables to joint ventures 43 38 Loans to joint ventures 255 289 Royalties and service fees 21 23 Significant joint ventures are Unilever FIMA Lda for Portugal, Binzagr Unilever Distribution and Al Gurg Unilever for Middle East, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International Ltd for the rest of the world. Associates There are no trading balances from/to associates. Langholm Capital II was launched in 2009. Unilever has invested €64 million in Langholm II, with an outstanding commitment at the end of 2020 of €2 million (2019: €11 million). During 2020, Unilever received €nil (2019: €nil) from its investment in Langholm Capital II. |
Remuneration of Auditors
Remuneration of Auditors | 12 Months Ended |
Dec. 31, 2020 | |
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Remuneration of Auditors | 24. Remuneration of auditors € million € million € million Fees payable to the Group’s auditors for the audit of the consolidated and parent Company Accounts of Unilever N.V. and Unilever PLC (a) 6 5 6 Fees payable to the Group’s auditors for the audit of accounts of subsidiaries of Unilever N.V. and Unilever PLC pursuant to legislation (b)(c) 13 12 10 Total statutory audit fees 19 17 16 Fees payable to the Group’s auditors for the audit of non-statutory 6 (d) — 4 (d) Audit-related assurance services — (e) — (e) — (e) Other taxation advisory services — — — Services relating to corporate finance transactions — — — Other assurance services 1 (f) — 1 (f) All other non-audit — (e) — (e) — (e) Total fees payable 26 17 21 (a) Of which €nil million was payable to KPMG Accountants N.V. (2019: €1 million; 2018: €1 million) and €6 million was payable to KPMG LLP (2019: €4 million; 2018: €5 million). (b) Comprises fees payable to the KPMG network of independent member firms affiliated with KPMG International Cooperative for audit work on statutory financial statements and Group reporting returns of subsidiary companies. (c) Amount payable to KPMG in respect of services supplied to associated pension schemes was less than €1 million individually and in aggregate (2019: less than €1 million individually and in aggregate; 2018: less than €1 million individually and in aggregate). (d) 2020 includes €6 million for the audit of carve-out carve-out (e) Amounts paid in relation to each type of service are less than €1 million individually and in aggregate (2019: less than €1 million and in aggregate; 2018: less than €1 million). (f) 2020 includes €1 million for assurance work on Unification. 2018 includes €1 million for assurance work on Simplification . |
Events After The Balance Sheet
Events After The Balance Sheet Date | 12 Months Ended |
Dec. 31, 2020 | |
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Events After The Balance Sheet Date | 25. Events after the balance sheet date Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of these events is adjusted within the financial statements. Otherwise, events after the balance sheet date of a material size or nature are disclosed below. Dividend On 4 February 2021 Unilever announced a quarterly dividend with the 2020 fourth quarter results of £0.3760 per PLC ordinary share. The total value of the announced dividend is €1,125 million. |
Significant Subsidiaries
Significant Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
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Significant Subsidiaries | 26. Significant subsidiaries The following represents the significant subsidiaries of the Group at 31 December 2020, that principally affect the turnover, profit and net assets of the Group. The percentage of share capital is shown below represents the aggregate percentage of equity capital directly or indirectly held by Unilever PLC in the company. The companies are incorporated and principally operated in the countries under which they are shown except where stated otherwise. Country Name of company Shareholding% Argentina Unilever de Argentina S.A. 100.00 Australia Unilever Australia Limited 100.00 Bangladesh Unilever Bangladesh Limited 60.75 Brazil Unilever Brasil Ltda. 100.00 Canada Unilever Canada Inc. 100.00 China Unilever Services (Hefei) Co. Ltd 100.00 China Walls (China) Co. Limited 100.00 England and Wales Unilever UK & CN Holdings Limited 100.00 England and Wales Unilever Global IP Ltd 100.00 England and Wales Unilever U.K. Holdings Limited 100.00 England and Wales Unilever UK Limited 100.00 England and Wales Unilever U.K. Central Resources Limited 100.00 France Unilever France S.A.S 99.99 Germany Unilever Deutschland GmbH 100.00 Germany Unilever Deutschland Holding GmbH 100.00 India Hindustan Unilever Limited 61.90 Indonesia PT Unilever Indonesia Tbk 84.99 Italy Unilever Italia Mkt Operations S.R.L. 100.00 Korea Carver Korea Co., Ltd 100.00 Mexico Unilever de Mexico, S. de R.I. de C.V. 100.00 Netherlands Mixhold B.V. 100.00 Netherlands Unilever Finance International B.V. 100.00 Netherlands Unilever Finance Netherlands B.V. 100.00 Netherlands Unilever IP Holdings B.V. 100.00 Netherlands Unilever Nederland B.V. 100.00 Netherlands Unilever Europe B.V. 100.00 Netherlands UNUS Holding B.V. 100.00 Pakistan Unilever Pakistan Limited 99.28 Philippines Unilever Philippines, Inc. 100.00 Russia OOO Unilever Rus 100.00 Singapore Unilever Asia Private Limited 100.00 South Africa Unilever South Africa (Pty) Limited 100.00 Switzerland Unilever ASCC AG 100.00 Switzerland Unilever Finance International AG 100.00 Switzerland Unilever Supply Chain Company AG 100.00 Thailand Unilever Thai Trading Limited 100.00 Turkey Unilever Sanayi ve Ticaret Turk A.S 99.98 United States of America Conopco, Inc. 100.00 United States of America Unilever Capital Corporation 100.00 United States of America Unilever North America Supply Chain Company LLC 100.00 United States of America Unilever United States, Inc. 100.00 United States of America Ben & Jerry’s Homemade, Inc. 100.00 Vietnam Unilever Vietnam International Company Limited 100.00 Due to the inclusion of certain partnerships in the consolidated group financial statements of Unilever, para 264(b) of the German trade law grants an exemption from the duty to prepare individual statutory financial statements and management reports in accordance with the requirements for limited liability companies and to have these audited and published. |
Accounting Information and Po_2
Accounting Information and Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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Unification | Unification On 29 November 2020, the Unilever Group underwent a reorganisation so that there were no longer two parent companies, Unilever N.V. (“NV”) and Unilever PLC (“PLC”), but one parent company PLC. This reorganisation is referred to as “Unification” in the Group consolidated financial statements. Prior to 29 November 2020, the Group operated with two parent companies, NV and PLC, who together with the group companies operated as a single economic entity. NV and PLC had the same Directors and were linked by a series of agreements, including an Equalisation Agreement, which were designed so that the positions of the shareholders of both companies were as closely as possible as if they held shares in a single company. NV and PLC together formed a single reporting entity for the purposes of presenting consolidated financial statements and group companies included in the consolidation included those companies controlled by NV or PLC. Following Unification, all group companies are now controlled solely by PLC. There is no change to the companies included in the Group as a result of Unification, other than NV ceasing to exist. Unification was implemented through a Cross-Border Merger, as a result of which (i) PLC acquired all of the assets, liabilities and legal relationships of NV by universal succession of title; (ii) NV was dissolved; and (iii) PLC issued and allotted shares in its capital to former NV shareholders, except for a very small minority of NV shareholders that chose to receive cash instead of PLC shares. The shareholders of NV received one new PLC share in exchange for each NV share held, consistent with the 1 to 1 equalisation ratio as set out in the Equalisation Agreement. The transfer of assets and liabilities from NV to PLC that occurred as part of the Cross-Border Merger was within the Group so there is no revaluation of these assets and liabilities in the Group financial statements. The only impact to the consolidated balance sheet from Unification is within equity due to the cancellation of NV shares and issuance of PLC shares. |
Basis of consolidation | Basis of consolidation Group companies included in the consolidated financial statements for 2020 are PLC and all subsidiary undertakings, which are those entities controlled by PLC. Control exists when the Group has the power to direct the activities of an entity so as to affect the return on investment. Due to the operational and contractual arrangements referred to above, prior to Unification NV and PLC formed a single reporting entity for the purposes of presenting consolidated financial statements. Accordingly, group companies included in the comparative information provided in the consolidated financial statements, for 2019 and 2018, are PLC and NV and those companies controlled by NV or PLC during those years. The net assets and results of acquired businesses are included in the consolidated financial statements from their respective dates of acquisition, being the date on which the Group obtains control. As noted above, Unification did not cause the acquisition by the Group of any new business. All companies controlled by NV before Unification are included in the Group consolidation for the year ending 31 December 2020 and they were already Group companies prior to Unification. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal, being the date control ceases. Intra-group transactions and balances are eliminated. |
Companies legislation and accounting standards | Companies legislation and accounting standards The consolidated financial statements have been prepared in accordance with international accounting standards in conformity with the requirements of the international financial reporting standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and IFRS as issued by the International Accounting Standards Board. These financial statements are prepared under the historical cost convention unless otherwise indicated. These financial statements have been prepared on a going concern basis. |
Accounting policies | Accounting policies The accounting policies adopted are the same as those which were applied for the previous financial year, except as set out above under the headings ‘Unification’ and ‘Basis of consolidation’ and below under the heading ‘Recent accounting developments’. Accounting policies are included in the relevant notes to the consolidated financial statements. These are presented as text highlighted in grey on pages 116 to 167. The accounting policies below are applied throughout the financial statements. |
Foreign currencies | Foreign currencies The consolidated financial statements are presented in euros. The functional currency of PLC is pound sterling. Items included in the financial statements of individual group companies are recorded in their respective functional currency which is the currency of the primary economic environment in which each entity operates. Foreign currency transactions in individual group companies are translated into functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and liabilities at year-end In preparing the consolidated financial statements, the balances in individual group companies are translated from their functional currency into euros. Apart from the financial statements of group companies in hyperinflationary economies (see below), the income statement, the cash flow statement and all other movements in assets and liabilities are translated at average rates of exchange as a proxy for the transaction rate, or at the transaction rate itself if more appropriate. Assets and liabilities are translated at year-end The financial statements of group companies whose functional currency is the currency of a hyperinflationary economy are adjusted for inflation and then translated into euros using the balance sheet exchange rate. Amounts shown for prior years for comparative purposes are not modified. To determine the existence of hyperinflation, the Group assesses the qualitative and quantitative characteristics of the economic environment of the country, such as the cumulative inflation rate over the previous three years. The ordinary share capital of PLC is translated to euro using the historical rate at the date the shares were issued (see note 15B on page 144). The effect of exchange rate changes during the year on net assets of foreign operations is recorded in equity. For this purpose net assets include loans between group companies and any related foreign exchange contracts where settlement is neither planned nor likely to occur in the foreseeable future. The Group applies hedge accounting to certain exchange differences arising between the functional currencies of a foreign operation and PLC, regardless of whether the net investment is held directly or through an intermediate parent. Differences arising on retranslation of a financial liability designated as a foreign currency net investment hedge are recorded in equity to the extent that the hedge is effective. These differences are reported within profit or loss to the extent that the hedge is ineffective. Cumulative exchange differences arising since the date of transition to IFRS of 1 January 2004 are reported as a separate component of other reserves. In the event of disposal or part disposal of an interest in a group company either through sale or as a result of a repayment of capital, the cumulative exchange difference is recognised in the income statement as |
Hyperinflationary economies | Hyperinflationary economies The Argentinian economy was designated as hyperinflationary from 1 July 2018. As a result, application of IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ has been applied to all Unilever entities whose functional currency is the Argentinian Peso. The application of IAS 29 includes: • Adjustment of historical cost non-monetary • Adjustment of the income statement for inflation during the reporting period; • The income statement is translated at the period end foreign exchange rate instead of an average rate; and • Adjustment of the income statement to reflect the impact of inflation and exchange rate movement on holding monetary assets and liabilities in local currency. The main effects of the Group consolidated financial statements for 2020 are: • Total assets are reduced by €68 million • Turnover is reduced by €58 million • Operating profit is reduced by €23 million |
Critical accounting estimates and judgements | Critical accounting estimates and judgements The preparation of financial statements requires management to make estimates and judgements in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future period affected. The following estimates are those that management believe have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are: • Measurement of defined benefit obligations – the valuations of the Group’s defined benefit pension plan obligations are dependent on a number of assumptions. These include discount rates, inflation and life expectancy of scheme members. Details of these assumptions and sensitivities are in note 4B. • Measurement of consideration and assets and liabilities acquired as part of business combinations – estimates are required to value the assets and liabilities acquired in business combinations. Intangible assets such as brands are commonly a core part of an acquired business as they allow us to obtain more value than would otherwise be possible. During 2020 Unilever completed several acquisitions, as explained in note 21. The Horlicks brand acquired in 2020 was valued at €2.7 billion based on the expected cashflows of the brand. We involved external professionals to advise on the valuation techniques and key assumptions in the valuation. This input, combined with our internal knowledge and expertise on the relevant market growth opportunities, enabled us to determine the appropriate brand valuation. Additionally, contingent consideration depends on an acquired business achieving targets within a fixed period. Estimates of future performance are required to calculate the obligations at the time of acquisition and at each subsequent reporting date. See note 21 for further information. The following judgements are those that management believe have the most significant effect on the amounts recognised in the Group’s financial statements: • Separate presentation of items in the income statement – certain items of income or expense are presented separately as non-underlying items • Utilisation of tax losses and recognition of other deferred tax assets – The Group operates in many countries and is subject to taxes in numerous jurisdictions. Management uses judgement to assess the recoverability of tax assets such as whether there will be sufficient future taxable profits to utilise losses – see note 6B. • Likelihood of occurrence of provisions and contingent liabilities – events can occur where there is uncertainty over future obligations. Judgement is required to determine if an outflow of economic resources is probable, or possible but not probable. Where it is probable, a liability is recognised and further judgement is used to determine the level of the provision. Where it is possible but not probable, further judgement is used to determine if the likelihood is remote, in which case no disclosures are provided; if the likelihood is not remote then judgement is used to determine the contingent liability disclosed. Unilever does not have provisions and contingent liabilities for the same matters. External advice is obtained for any material cases. See notes 6A, 19 and 20. • Recognition of pension surplus – where there is an accounting surplus on a defined benefit plan, management uses judgement to determine whether the Group can realise the surplus through refunds, reductions in future combinations or a combination of both. |
Recent accounting developments adopted by the group | Recent accounting developments adopted by the Group The Group applied for the first-time amendments to the following standards from 1 January 2020. Applicable standard Key requirements Impact on Group Interest Rate Benchmark Reform (Phase 1) Amendments to IFRS 9, IAS 39 and IFRS 7 The amendments modified specific hedge accounting requirements so entities can continue to forecast future cash flows assuming that the interest rate benchmark continue despite ongoing reviews of interest rate benchmark reform. As a result there is no requirement for an entity to discontinue hedge relationships or to reassess the economic relationships between hedged items and hedging instruments as a result of the uncertainties of the interest rate benchmark reform. We do not have significant derivatives that refer to an interest rate benchmark so these amendments have not had a material impact on Unilever. All other standards or amendments to standards that have been issued by the IASB and were effective by 1 January 2020 were not applicable or material to Unilever. New standards, amendments and interpretations of existing standards that are not yet effective and have not been early adopted by the Group The following new standards have been released but are not yet adopted by the Group. The expected impact and progress is shown below. In addition to the above, based on an initial review the Group does not currently believe adoption of the following standard/amendments will have a material impact on the consolidated results or financial position of the Group. Applicable standard Key requirements or changes in accounting policy Interest Rate Benchmark Reform (Phase 2) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Effective from the year ended 31 December 2021 The amendments are applicable when an existing interest rate benchmark is replaced by another interest rate benchmark. The amendments provide a practical expedient that modifications to asset and liability values as a direct consequence of the interest rate benchmark reform and made on an economically equivalent basis (i.e. where the basis for determining contractual cash flows is the same), can be accounted for by only updating the effective interest rate. Additionally, hedge accounting is not discontinued solely because of the replacement of another interest rate benchmark. Hedging relationships (and related documentation) must instead be amended to reflect modifications to the hedged item, hedging instrument and hedged risk. IFRS 17 ‘Insurance Contracts’ Effective from the year ended 31 December 2023 This standard introduces a new model for accounting for insurance contracts. Work continues to review existing arrangements to determine the impact on adoption. All other standards or amendments to standards that have been issued by the IASB and are effective from 1 January 2021 onwards are not applicable or material to Unilever. |
Segment information | Segmental reporting Beauty & Personal Care • primarily sales of skin cleansing (soap, shower), hair care (shampoo, conditioner, styling), skin care (face, hand and body moisturisers) and deodorants categories. Foods & Refreshment • primarily sales of ice cream, savoury (soups, bouillons, seasoning), dressings (mayonnaise, ketchup) and tea categories. Home Care • primarily sales of fabric category (washing powders and liquids, rinse conditioners) and includes a wide range of cleaning products. Revenue Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs and are based on the contractual arrangements with each customer. Discounts can either be immediately deducted from the sales value on the invoice or off-invoice off-invoice. Customer contracts generally contain a single performance obligation and turnover is recognised when control of the products being sold has transferred to our customer as there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the customer but depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance. This is considered the appropriate point where the performance obligations in our contracts are satisfied as Unilever no longer has control over the inventory. Our customers have the contractual right to return goods only when authorised by Unilever. At 31 December 2020, an estimate has been made of goods that will be returned and a liability has been recognised for this amount. An asset has also been recorded for the corresponding inventory that is estimated to return to Unilever using a best estimate based on accumulated experience. Some of our customers are distributors who may be able to return unsold goods in consignment arrangements. Underlying operating profit Underlying operating profit means operating profit before the impact of non-underlying |
Operating costs and non-underlying items | Operating costs and non-underlying Operating costs Operating costs include cost of sales, brand and marketing investment and overheads. (i) Cost of sales Cost of sales includes the cost of inventories sold during the period and distribution costs. The cost of inventories are raw and packaging materials and related production costs. Distribution costs are charged to the income statement as incurred. (ii) Brand and marketing investment Brand and marketing investment include costs related to creating and maintaining brand equity and brand awareness. This includes media, advertising production, promotional materials and engagement with consumers. These costs are charged to the income statement as incurred. (iii) Overheads Overheads include staff costs associated with sales activities and central functions such as finance, human resources and research and development costs. Research and development costs are staff costs, material costs, depreciation of property, plant and equipment and other costs that are directly attributable to research and product development activities. These costs are charged to the income statement as incurred. Non-underlying These items are relevant to an understanding of our financial performance due to their nature and/or frequency of occurrence. (i) Non-underlying These are gains and losses on business disposals, acquisition and disposal-related costs, restructuring costs, impairments and other items within operating profit classified here due to their nature and/or frequency. Restructuring costs are charges associated with activities planned by management that significantly change either the scope of the business or the manner in which it is conducted. (ii) Non-underlying These are net monetary gain or loss arising from hyperinflationary economies and significant and unusual items in net finance cost, share of profit/ (loss) of joint ventures and associates and taxation. |
Pensions and similar obligations | 4B. Pensions and similar obligations For defined benefit plans, operating and finance costs are recognised separately in the income statement. The amount charged to operating cost in the income statement is the cost of accruing pension benefits promised to employees over the year, plus the costs of individual events such as past service benefit changes, settlements and curtailments (such events are recognised immediately in the income statement). The amount charged or credited to finance costs is a net interest expense calculated by applying the liability discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are recognised immediately in the statement of comprehensive income. The defined benefit plan surplus or deficit on the balance sheet comprises the total for each plan of the fair value of plan assets less the present value of the defined benefit liabilities (using a discount rate based on high-quality corporate bonds, or a suitable alternative where there is no active corporate bond market). All defined benefit plans are subject to regular actuarial review using the projected unit method by external consultants. The Group policy is that the most material plans, representing approximately 85% of the defined benefit liabilities, are formally valued every year. Other material plans, accounting for a further 11% of the liabilities, have their liabilities updated each year. Group policy for the remaining plans requires a full actuarial valuation at least every three years. Asset values for all plans are updated every year. For defined contribution plans, the charges to the income statement are the company contributions payable, as the company’s obligation is limited |
Share-based compensation plans | 4C. Share-based compensation plans The fair value of awards at grant date is calculated using observable market price. This value is expensed over their vesting period, with a corresponding credit to equity. The expense is reviewed and adjusted to reflect changes to the level of awards expected to vest, except where this arises from a failure to meet a market condition. Any cancellations are recognised immediately in the income statement. |
Net finance costs | Net finance costs Net finance costs are comprised of finance costs and finance income, including net finance costs in relation to pensions and similar obligations. Finance income includes income on cash and cash equivalents and income on other financial assets. Finance costs include interest costs in relation to financial liabilities. This includes interest on lease liabilities which represents the unwind of the discount rate applied to lease liabilities. Borrowing costs are recognised based on the effective interest method. |
Income tax | Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years. Current tax in the consolidated income statement will differ from the income tax paid in the consolidated cash flow statement primarily because of deferred tax arising on temporary differences and payment dates for income tax occurring after the balance sheet date. Unilever is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by management and the government authorities. These matters of judgement give rise to the need to create provisions for tax payments that may arise in future years with respect to transactions already undertaken. Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. The provision is estimated based on one of two methods, the expected value method (the sum of the probability weighted amounts in a range of possible outcomes) or the single most likely amount method, depending on which is expected to better predict the resolution of the uncertainty. |
Deferred tax | Deferred tax Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Group. Certain temporary differences are not provided for as follows: • goodwill not deductible for tax purposes; • the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and • differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, at the year end. |
Tax on items recognised in equity or other comprehensive income | Tax on items recognised in equity or other comprehensive income |
Combined earnings per share | Combined earnings per share The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held as treasury shares. In calculating diluted earnings per share and underlying earnings per share, a number of adjustments are made to the number of shares, principally, the exercise of share plans by employees. Underlying earnings per share is calculated as underlying profit attributable to shareholders’ equity divided by the diluted average number of ordinary shares. In calculating underlying profit attributable to shareholders’ equity, net profit attributable to shareholders’ equity is adjusted to eliminate the post-tax non-underlying |
Dividends on ordinary capital | Dividends on ordinary capital Dividends are recognised on the date that the shareholder’s right to receive payment is established. This is generally the date when the dividend is declared. |
Goodwill | Goodwill Goodwill is initially recognised based on the accounting policy for business combinations (see note 21). Goodwill is subsequently measured at cost less amounts provided for impairment. Goodwill acquired in a business combination is assessed to determine whether new cash generating units are created, and if not, is allocated to the Group’s CGUs, or groups of CGUs, that are expected to benefit from the synergies of the combination. These might not always be the same as the CGUs that include the assets and liabilities of the acquired business. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes, and is not larger than an operating segment. The Group has ten cash generating units (CGUs) based on the three geographical areas and three divisions as well as a health and wellbeing CGU which was recognised in 2019 following the acquisition of the OLLY business. |
Intangible assets | Intangible assets Separately purchased intangible assets are initially measured at cost, being the purchase price as at the date of acquisition. On acquisition of new interests in group companies, Unilever recognises any specifically identifiable intangible assets separately from goodwill. These intangible assets are initially measured at fair value as at the date of acquisition. Expenditure to support development of internally-produced intangible assets is recognised in profit or loss as incurred. Indefinite-life intangibles mainly comprise trademarks and brands, for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These are considered to have an indefinite life, given the strength and durability of our brands and the level of marketing support. These assets are not amortised but are subject to a review for impairment annually, or more frequently if events or circumstances indicate this is necessary. Any impairment is charged to the income statement as it arises. Finite-life intangible assets mainly comprise software, patented and non-patented know-how |
Property, plant and equipment | Property, plant and equipment The Group’s property, plant and equipment is comprised of owned assets (note 10A) and leased assets (note 10B). Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment losses. Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is necessary. If an indication of impairment exists, the asset’s or cash generating unit’s recoverable amount is estimated and any impairment loss is charged to the income statement as it arises. Owned assets Owned assets are initially measured at historical cost. Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed at least annually. Estimated useful lives by major class of assets are as follows: • freehold buildings (no depreciation on freehold land) 40 years • leasehold land and buildings 40 years (or life of lease if less) • plant and equipment 2–20 years Leased assets The cost of a leased asset is measured as the lease liability at inception of the lease contract and other direct costs less any incentives granted by the lessor. The Group has not capitalised leases which are less than 12 months or leases of low value assets. These mainly relate to IT equipment, office equipment, furniture and fitting and other peripheral items. When a lease liability is remeasured, the related lease asset is adjusted by the same amount. commencement |
Other non-current assets | Other non-current Joint ventures are undertakings in which the Group has an interest and which are jointly controlled by the Group and one or more other parties. Associates are undertakings where the Group has an investment in which it does not have control or joint control but can exercise significant influence. Interests in joint ventures and associates are accounted for using the equity method and are stated in the consolidated balance sheet at cost, adjusted for the movement in the Group’s share of their net assets and liabilities. The Group’s share of the profit or loss after tax of joint ventures and associates is included in the Group’s consolidated profit before taxation. Where the Group’s share of losses exceeds its interest in the equity accounted investee, the carrying amount of the investment is reduced to zero and the recognition of further losses is discontinued, except to the extent that the Group has an obligation to make payments on behalf of the investee. Biological assets are measured at fair value less costs to sell with any changes recognised in the income statement. |
Inventories | Inventories |
Trade and other current receivables | Trade and other current receivables Trade and other current receivables are initially recognised at fair value plus any directly attributable transaction |
Trade payables and Other liabilities | Trade payables Trade payables are initially recognised at fair value less any directly attributable transaction costs. Trade payables are subsequently measured at amortised cost, using the effective interest method. Other liabilities Other liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent measurement depends on the type of liability: • accruals are subsequently measured at amortised cost, using the effective interest method; • social security and sundry taxes are subsequently measured at amortised cost, using the effective interest method; • deferred consideration is subsequently measured at fair value with changes in the income statement as explained below; and • others are subsequently measured either at amortised cost, using the effective interest method or at fair value, with changes being recognised in the income statement. Deferred Consideration Deferred consideration represents any payments to the sellers of a business that occur after the acquisition date. These typically comprise contingent consideration and fixed deferred consideration: • fixed deferred consideration is a payment with a due date after acquisition that is not dependent on future conditions; and • contingent consideration is a payment which is dependent on certain conditions being met in the future and is often variable. All deferred consideration is initially recognised at fair value as at the acquisition date, which includes a present value discount. Subsequently, deferred consideration is measured to reflect the unwinding of discount on the liability, with changes recognised in finance cost within the income statement. In the balance sheet it is remeasured to reflect the latest estimate of the achievement of the conditions on which the consideration is based; changes in value other than the discount unwind are recognised as acquisition and disposal-related costs within non-underlying |
Ordinary shares | Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. |
Share-based compensation | Share-based compensation The Group operates a number of share-based compensation plans involving awards of ordinary shares. Full details of these plans are given in note 4C on pages 129 and 130. |
Unification reserve | Unification reserve The Group recognised a separate Unification Reserve within Equity as a result of PLC Share Premium that arose from Unification. |
Other reserves | Other reserves Other reserves include the fair value reserve, the foreign currency translation reserve, the capital redemption reserve and treasury shares. |
Shares held by employee share trusts and group companies | Shares held by employee share trusts and group companies An employee share trust and group companies purchase and hold shares to satisfy performance shares granted and other share awards (see note 4C). The assets and liabilities of the trust and shares held by the trust and group companies are included in the consolidated financial statements. The book value of shares held is deducted from other reserves, and the trust’s borrowings are included in the Group’s liabilities. The costs of the trust are included in the results of the Group. The shares held by the trust and group companies are excluded from the calculation of earnings per share. |
Financial liabilities | Financial liabilities Financial liabilities are initially recognised at fair value, less any directly related transaction costs. When bonds are designated as being part of a fair value hedge relationship in those cases bonds are carried at amortised cost, adjusted for the fair value of the risk being hedged, with changes in value shown in profit and loss. Other financial liabilities, excluding derivatives, are subsequently carried at amortised cost, with the exception of: • financial liabilities which the Group has elected to measure at fair value through profit or loss; • derivative financial liabilities – see note 16 on page 149; and • contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies. Such contingent consideration is subsequently measured at fair value through profit or loss. |
Lease liabilities | Lease liabilities Lease liabilities are initially measured at the present value of the lease payments that are not yet paid at the start of the lease term. This is discounted using an appropriate borrowing rate determined by the Group, where none is readily available in the lease contract. The lease liability is subsequently reduced by cash payments and increased by interest costs. The lease liability is remeasured when the Group assesses that there will be a change in the amount expected to be paid during the lease term. |
Derivatives and hedge accounting | Derivatives and hedge accounting Derivatives are measured at fair value with any related transaction costs expensed as incurred. The treatment of changes in the value of derivatives depends on their use as explained below. (i) Fair value hedges (a) Certain derivatives are held to hedge the risk of changes in value of a specific bond or other loan. In these situations, the Group designates the liability and related derivative to be part of a fair value hedge relationship. The carrying value of the bond is adjusted by the fair value of the risk being hedged, with changes going to the income statement. Gains and losses on the corresponding derivative are also recognised in the income statement. The amounts recognised are offset in the income statement to the extent that the hedge is effective. Ineffectiveness may occur if the critical terms do not exactly match, or if there is a value adjustment resulting from a change in credit risk (in either the Group or the counter-party to the derivative) that is not matched by the hedged item. When the relationship no longer meets the criteria for hedge accounting, the fair value hedge adjustment made to the bond is amortised to the income statement using the effective interest method. (ii) Cash flow hedges (a) Derivatives are also held to hedge the uncertainty in timing or amount of future forecast cash flows. Such derivatives are classified as being part of cash flow hedge relationships. For an effective hedge, gains and losses from changes in the fair value of derivatives are recognised in equity. Cost of hedging, where material and opted for, is recorded in a separate account within equity. Any ineffective elements of the hedge are recognised in the income statement. Ineffectiveness may occur if there are changes to the expected timing of the hedged transaction. If the hedged cash flow relates to a non-financial asset, the amount accumulated in equity is subsequently included within the carrying value of that asset. For other cash flow hedges, amounts deferred in equity are taken to the income statement at the same time as the related cash flow. When a derivative no longer qualifies for hedge accounting, any cumulative gain or loss remains in equity until the related cash flow occurs. When the cash flow takes place, the cumulative gain or loss is taken to the income statement. If the hedged cash flow is no longer expected to occur, the cumulative gain or loss is taken to the income statement immediately. (iii) Net investment hedges (a) Certain derivatives are designated as hedges of the currency risk on the Group’s investment in foreign subsidiaries. The accounting policy for these arrangements is set out in note 1. (iv) Derivatives for which hedge accounting is not applied Derivatives not classified as hedges are held in order to hedge certain balance sheet items and commodity exposures. No hedge accounting is applied to these derivatives, which are carried at fair value with changes being recognised in the income statement. (a) Applying hedge accounting has not led to material ineffectiveness being recognised in the income statement for both 2020 and 2019. Fair value changes on basis spread is recorded in a separate account within equity. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents in the balance sheet include deposits, investments in money market funds and highly liquid investments. To be classified as cash and cash equivalents, an asset must: • be readily convertible into cash; • have an insignificant risk of changes in value; and • have a maturity period of typically three months or less at acquisition. Cash and cash equivalents in the cash flow statement also include bank overdrafts and are recorded at amortised cost. |
Other financial assets | Other financial assets The Group classifies its financial assets into the following measurement categories: • those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and • those to be measured at amortised cost. This classification depends on our business model for managing the financial asset and the contractual terms of the cash flows. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. All financial assets are either debt instruments or equity instruments. Debt instruments are those that provide the Group with a contractual right to receive cash or another asset. Equity instruments are those where the Group has no contractual right to receive cash or another asset. |
Debt instruments | Debt instruments The subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories that debt instruments are classified as: • financial assets at amortised cost; • financial assets at fair value through other comprehensive income; or • financial assets at fair value through profit or loss. (i) Amortised cost Assets measured at amortised cost are those which are held to collect contractual cash flows on the repayment of principal or interest (SPPI). A gain or loss on a debt investment recognised at amortised cost on de-recognition (ii) Fair value through other comprehensive income Assets that are held at fair value through other comprehensive income are those that are held to collect contractual cash flows on the repayment of principal and interest and which are held to recognise a capital gain through the sale of the asset. Movements in the carrying amount are recognised in other comprehensive income except for the recognition of impairment, interest income and foreign exchange gains or losses which are recognised in profit or loss. On de-recognition, (iii) Fair value through profit or loss Assets that do not meet the criteria for either amortised cost or fair value through other comprehensive income are measured as fair value through profit or loss. Related transaction costs are expensed as incurred. Unless they form part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement. Interest income from these assets is included within finance income. |
Equity instruments | Equity instruments The Group subsequently measures all equity instruments at fair value. Where the Group has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains or losses to profit or loss. Dividends from these investments continue to be recognised in profit or loss. |
Impairment of financial assets | Impairment of financial assets Financial instruments classified as amortised cost and debt instruments classified as fair value through other comprehensive income are assessed for impairment. The Group assesses the probability of default of an asset at initial recognition and then whether there has been a significant increase in credit risk on an ongoing basis. To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Macroeconomic information (such as market interest rates or growth rates) is also considered. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. Impairment losses on assets classified as amortised cost are recognised in profit or loss. When a later event causes the impairment losses to decrease, the reduction in impairment loss is also recognised in profit or loss. Permanent impairment losses on debt instruments classified as fair value through other comprehensive income are recognised in profit or loss. |
Provisions | Provisions |
Commitments and contingent liabilities | Commitments and contingent liabilities |
Acquisitions and disposals | Business combinations are accounted for using the acquisition accounting method as at the acquisition date, which is the date at which control is transferred to the Group. Goodwill is measured at the acquisition date as the fair value of consideration transferred, plus non-controlling Transaction costs are expensed as incurred, within non-underlying Changes in ownership that do not result in a change of control are accounted for as equity transactions and therefore do not have any impact on goodwill. The difference between consideration and the non-controlling |
Assets and liabilities held for sale | Assets and liabilities held for sale Non-current Immediately prior to classification as held for sale, the assets or groups of assets are remeasured in accordance with the Group’s accounting policies. Subsequently, assets and disposal groups classified as held for sale are valued at the lower of book value or fair value less disposal costs. Assets held for sale are neither depreciated nor amortised. |
Related party transactions | Related party transactions |
Events after the balance sheet date | Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of these events is adjusted within the financial statements. Otherwise, events after the balance sheet date of a material size or nature are disclosed below. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Products and Services | Our segments are comprised of similar product categories. 10 categories (2019: 9; 2018: 9) individually accounted for 5% or more of our revenue in one or more of the last three years. The following table shows the relevant contribution of these categories to Group revenue for the periods shown: Category Segment 2020 2019 2018 Fabric Home Care 14 % 15 % 15 % Ice cream Foods & Refreshment 13 % 13 % 13 % Skin Cleansing Beauty & Personal Care 12 % 10 % 10 % Hair care Beauty & Personal Care 11 % 12 % 12 % Savoury Foods & Refreshment 11 % 11 % 11 % Deodorants Beauty & Personal Care 8 % 8 % 8 % Skin care Beauty & Personal Care 7 % 8 % 7 % Dressings Foods & Refreshment 6 % 5 % 5 % Tea Foods & Refreshment 6 % 6 % 6 % Home & Hygiene Home Care 5 % 4 % 4 % Other 8 % 7 % 9 % |
Summary of Operating Results of Reportable Segments | The Group operating segment information is provided based on three product areas: Beauty & Personal Care, Foods & Refreshment and Home Care. Notes € million € million € million € million 2020 Turnover 21,124 19,140 10,460 50,724 Operating profit 4,311 2,749 1,243 8,303 Non-underlying 3 280 508 276 1,064 Underlying operating profit 4,591 3,257 1,519 9,367 Share of net profit/(loss) of joint ventures and associates 7 163 5 175 Significant non-cash Within underlying operating profit: Depreciation and amortisation 710 946 362 2,018 Share-based compensation and other non-cash (a) 77 85 41 203 Within non-underlying Impairment and other non-cash (b) 38 77 35 150 2019 Turnover 21,868 19,287 10,825 51,980 Operating profit 4,520 2,811 1,377 8,708 Non-underlying 3 440 571 228 1,239 Underlying operating profit 4,960 3,382 1,605 9,947 Share of net profit/(loss) of joint ventures and associates 1 171 4 176 Significant non-cash Within underlying operating profit: Depreciation and amortisation 693 902 369 1,964 Share-based compensation and other non-cash (a) 62 56 50 168 Within non-underlying Impairment and other non-cash (b) 105 159 46 310 2018 Turnover 20,624 20,227 10,131 50,982 Operating profit 4,165 7,287 1,187 12,639 Non-underlying 3 378 (3,711 ) 157 (3,176 ) Underlying operating profit 4,543 3,576 1,344 9,463 Share of net profit/(loss) of joint ventures and associates (1 ) 183 3 185 Significant non-cash Within underlying operating profit: Depreciation and amortisation 686 949 373 2,008 Share-based compensation and other non-cash (a) 102 102 46 250 Within non-underlying Impairment and other non-cash (b) 122 164 263 549 (a) Other non-cash charges within underlying operating profit include movements in provisions from underlying activities, excluding movements arising from non- underlying activities. (b) Other non-cash non-underlying |
Summary of Operating Results by Geographical Areas | As part of Unification, Unilever PLC became the single parent of the Group and the United Kingdom became the country of domicile. Before Unification, the countries of domicile were the United Kingdom and the Netherlands. Turnover and non-current € million € million € million € million € million United Kingdom United States India Others (a) Total 2020 Turnover 2,391 9,363 4,993 33,977 50,724 Non-current (b) 3,587 12,946 6,264 23,633 46,430 2019 Turnover 2,306 8,702 4,964 36,009 51,980 Non-current (b) 3,891 13,326 1,137 25,391 43,744 2018 Turnover 2,385 8,305 4,565 35,727 50,982 Non-current (b) 3,160 12,471 1,080 25,400 42,111 (a) Includes the Netherlands that was presented as country of domicile in prior years. (b) For the purpose of this table, non-current assets include goodwill, intangible assets, property, plant and equipment and other non-current assets as shown on the consolidated balance sheet. Goodwill is attributed to countries where acquired business operated at the time of acquisition; all other assets are attributed to the countries where they were acquired. |
Summary of Additional Information by Geographies | The analysis of turnover by geographical area is stated on the basis of origin. € million Asia/ (a) € million (b) € million € million 2020 Turnover 23,440 16,080 11,204 50,724 Operating profit 4,137 2,723 1,443 8,303 Non-underlying 409 249 406 1,064 Underlying operating profit 4,546 2,973 1,848 9,367 Share of net profit/(loss) of joint ventures and associates 8 122 45 175 2019 Turnover 24,129 16,482 11,369 51,980 Operating profit 4,418 2,683 1,607 8,708 Non-underlying 439 395 405 1,239 Underlying operating profit 4,857 3,078 2,012 9,947 Share of net profit/(loss) of joint ventures and associates (5 ) 126 55 176 2018 Turnover 22,868 16,020 12,094 50,982 Operating profit 4,824 3,621 4,194 12,639 Non-underlying (437 ) (892 ) (1,847 ) (3,176 ) Underlying operating profit 4,387 2,729 2,347 9,463 Share of net profit/(loss) of joint ventures and associates — 114 71 185 (a) Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus. (b) Americas sales in North America were €10,117 |
Summary of Disaggregation of sales by markets | € million € million € million Emerging markets 29,281 31,021 29,654 Developed markets 21,443 20,959 21,328 |
Operating costs and non-under_2
Operating costs and non-underlying items (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Gross Profit and Operating Cost | € million € million € million 2020 2019 2018 Turnover 50,724 51,980 50,982 Cost of sales (28,684 ) (29,102 ) (28,703 ) of which: Distribution costs (3,104 ) (3,089 ) (3,057 ) Production costs (3,696 ) (3,701 ) (3,732 ) Raw and packaging materials and goods purchased for resale (20,400 ) (20,769 ) (20,516 ) Other (1,484 ) (1,543 ) (1,398 ) Gross profit 22,040 22,878 22,279 Selling and administrative expenses (12,673 ) (12,931 ) (12,816 ) of which: Brand and marketing investment (7,091 ) (7,272 ) (7,150 ) Overheads (5,582 ) (5,659 ) (5,666 ) of which: Research and development (800 ) (840 ) (900 ) Non-underlying (1,064 ) (1,239 ) 3,176 Operating profit 8,303 8,708 12,639 |
Non-underlying Items | € million € million € million 2020 2019 2018 Non-underlying (1,064 ) (1,239 ) 3176 Acquisition and disposal-related costs (69 ) (132 ) 76 Gain on disposal of group companies (a) 8 70 4,331 Restructuring costs (b) (916 ) (1,159 ) (914 ) Impairments (c) — (18 ) (208 ) Other (d) (87 ) — (109 ) Tax on non-underlying 272 309 (259 ) Non-underlying (792 ) (930 ) 2,917 Non-underlying (36 ) 35 154 Share of gain on disposal of Spreads business in Portugal JV — 3 32 Interest related to the UK tax audit of intangible income and centralised services (56 ) — — Net monetary gain arising from hyperinflationary economies 20 32 122 Tax impact of non-underlying (146 ) (196 ) (29 ) Impact of US tax reform — — (29 ) Taxes related to the reorganisation of our European business (58 ) (175 ) — Taxes related to share buyback as part of Unification (30 ) — — Taxes related to the UK tax audit of intangible income and centralised services (53 ) — — Hyperinflation adjustment for Argentina deferred tax (5 ) (21 ) — Non-underlying (182 ) (161 ) 125 Non-underlying (e) (974 ) (1,091 ) 3,042 Attributable to: Non-controlling (23 ) (28 ) 18 Shareholders’ equity (951 ) (1,063 ) 3,024 (a) 2020 gain relates to a laundry bar business disposal. 2019 includes a gain of €57 (b) Restructuring costs are comprised of various supply chain optimisation projects and organisational change programmes across markets. (c) 2019 includes a charge of €18 (d) 2020 includes a charge of €87 (e) Non-underlying items after tax is calculated as non-underlying items within operating profit after tax plus non-underlying items not in operating profit but within net profit after tax. |
Employees (Tables)
Employees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Staff Cost, Average Number of Employees and Key Management Compensation | € million € million € million Staff costs 2020 2019 2018 Wages and salaries (5,051 ) (5,364 ) (5,346 ) Social security costs (519 ) (541 ) (571 ) Other pension costs (419 ) (334 ) (439 ) Share-based compensation costs (108 ) (151 ) (196 ) (6,097 ) (6,390 ) (6,552 ) ‘000 ‘000 ‘000 Average number of employees during the year 2020 2019 2018 Asia/AMET/RUB 83 84 88 The Americas 38 40 40 Europe 29 29 30 150 153 158 € million € million € million Key management compensation 2020 2019 2018 Salaries and short-term employee benefits (28 ) (42 ) (40 ) Post-employment benefits — — — Share-based benefits (a) (5 ) (16 ) (13 ) (33 ) (58 ) (53 ) Of which: Executive Directors (6 ) (9 ) (13 ) Other (b) (27 ) (49 ) (40 ) Non-Executive (2 ) (2 ) (2 ) (35 ) (60 ) (55 ) (a) Share-based benefits are expenses recognised for the period. Share-based benefits compensation on a vesting basis is € 10 17 19 (b) Other includes all members of the Unilever Leadership Executive, other than Executive Directors. |
Summary of Assumptions, Weighted by Liabilities for Valuation of Defined Benefit Plans | The following table shows the assumptions, weighted by liabilities, used to value the principal defined benefit plans (representing approximately 96% of total pension liabilities and other post-employment benefit liabilities). 31 December 2020 31 December 2019 Defined benefit Other post- Defined benefit Other post- Discount rate 1.3 % 3.3 % 1.9 % 3.9 % Inflation 2.2 % n/a 2.3 % n/a Rate of increase in salaries 2.9 % 3.0 % 2.9 % 3.0 % Rate of increase for pensions in payment (where provided) 2.1 % n/a 2.2 % n/a Rate of increase for pensions in deferment (where provided) 2.3 % n/a 2.4 % n/a Long-term medical cost inflation n/a 5.1 % n/a 5.4 % For the UK and Netherlands pension plans, representing approximately 70% of all defined benefit pension liabilities, the assumptions used at 31 December 2020 and 2019 were: United Kingdom Netherlands 2020 2019 2020 2019 Discount rate 1.4 % 2.0 % 0.7 % 1.1 % Inflation 2.7 % 2.9 % 1.5 % 1.5 % Rate of increase in salaries 3.3 % 3.2 % 2.0 % 2.0 % Rate of increase for pensions in payment (where provided) 2.7 % 2.8 % 1.5 % 1.5 % Rate of increase for pensions in deferment (where provided) 2.7 % 2.8 % 1.5 % 1.5 % Number of years a current pensioner is expected to live beyond age 65: Men 21.7 21.6 21.5 22.6 Women 23.4 23.4 23.6 24.1 Number of years a future pensioner currently aged 45 is expected to live beyond age 65: Men 22.7 22.6 23.4 24.5 Women 24.6 24.6 25.4 26.2 |
Summary of Charge to Operating Profit | The charge to the income statement comprises: € million € million € million Notes 2020 2019 2018 Charged to operating profit: Defined benefit pension and other benefit plans: Current service cost (223 ) (216 ) (220 ) Employee contributions 17 17 17 Special termination benefits (37 ) (5 ) (16 ) Past service cost including (losses)/gains on curtailments 20 65 (41 ) Settlements 7 (2 ) — Defined contribution plans (203 ) (193 ) (179 ) Total operating cost 4A (419 ) (334 ) (439 ) Finance income/(cost) (a) 5 (9 ) (30 ) (25 ) Net impact on the income statement (before tax) (428 ) (364 ) (464 ) (a) This includes the impact of interest on asset ceiling. |
Summary of Amounts Recognised in Statement of Comprehensive Income on Remeasurement of Net Defined Benefit Liability | Amounts recognised in the statement of comprehensive income on the remeasurement of the net defined benefit liability/asset. € million € million € million Return on plan assets excluding amounts included in net finance income/(cost) 1,494 2,385 (1,108 ) Change in asset ceiling, excluding amounts included in finance cost 2 (37 ) — Actuarial gains/(losses) arising from changes in demographic assumptions 246 183 42 Actuarial gains/(losses) arising from changes in financial assumptions (1,414 ) (2,138 ) 611 Experience gains/(losses) arising on pension plan and other benefit plan liabilities (78 ) (12 ) 18 Total of defined benefit costs recognised in other comprehensive income 250 381 (437 ) |
Summary of Assets, Liabilities and Surplus/ (Deficit) Position of Pension and Other Post-Employment Benefit Plans at Balance Sheet Date | The assets, liabilities and surplus/(deficit) position of the pension and other post-employment benefit plans at the balance sheet date were: € million 2020 € million 2019 Pension plans Other post- Pension plans Other post- Fair value of assets 24,023 9 23,749 14 Present value of liabilities (23,272 ) (447 ) (23,438 ) (484 ) Computed net assets/(liabilities) 751 (438 ) 311 (470 ) Irrecoverable surplus (a) (26 ) — (37 ) — Net pension assets/(liabilities) 725 (438 ) 274 (470 ) Of which in respect of: Funded plans in surplus: Liabilities (18,043 ) — (17,772 ) — Assets 20,790 1 20,229 2 Aggregate Surplus: 2,747 1 2,457 2 Irrecoverable surplus (26 ) — (37 ) — Pension asset net of liabilities 2,721 1 2,420 2 Funded plans in deficit: Liabilities (4,310 ) (40 ) (4,657 ) (32 ) Assets 3,233 8 3,520 12 Pension liability net of assets (1,077 ) (32 ) (1,137 ) (20 ) Unfunded plans: Pension liability (919 ) (407 ) (1,009 ) (452 ) (a) A surplus is deemed recoverable to the extent that the Group can benefit economically from the surplus. Unilever assesses the maximum economic benefit available through a combination of refunds and reductions in future contributions in accordance with local legislation and individual financing arrangements with each of our funded defined benefit plans. |
Summary of Movements in Assets | The group of plans within ‘Rest of world’ category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure. Movements in assets during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January 12,122 5,522 6,082 23,726 10,329 4,996 5,555 20,880 Employee contributions — — 17 17 — — 17 17 Settlements — — (67 ) (67 ) — — — — Actual return on plan assets (excluding amounts in net finance income/charge) 1,109 206 179 1,494 1,233 588 564 2,385 Change in asset ceiling, excluding amounts included in finance cost — — 2 2 — — (37 ) (37 ) Interest income (a) 230 60 146 436 292 89 192 573 Employer contributions 104 12 282 398 94 14 293 401 Benefit payments (467 ) (166 ) (507 ) (1,140 ) (455 ) (165 ) (588 ) (1,208 ) Others 46 (47 ) 21 20 — — 2 2 Currency retranslation (645 ) — (235 ) (880 ) 629 — 84 713 31 December 12,499 5,587 5,920 24,006 12,122 5,522 6,082 23,726 (a) This includes the impact of interest on asset ceiling. |
Summary of Movements in Liabilities | Movements in liabilities during the year: UK Netherlands Rest € UK Netherlands Rest of € million 1 January (11,001 ) (5,097 ) (7,824 ) (23,922 ) (9,739 ) (4,664 ) (7,351 ) (21,754 ) Current service cost (114 ) (3 ) (106 ) (223 ) (104 ) (4 ) (108 ) (216 ) Special termination benefits — — (37 ) (37 ) — — (5 ) (5 ) Past service costs including (losses)/gains on curtailments 17 — 3 20 56 — 9 65 Settlements — — 74 74 — — (2 ) (2 ) Interest cost (208 ) (55 ) (182 ) (445 ) (276 ) (82 ) (245 ) (603 ) Actuarial gain/(loss) arising from changes in demographic assumptions (1 ) 245 2 246 157 14 12 183 Actuarial gain/(loss) arising from changes in financial assumptions (806 ) (354 ) (254 ) (1,414 ) (955 ) (511 ) (672 ) (2,138 ) Actuarial gain/(loss) arising from experience adjustments (67 ) (6 ) (5 ) (78 ) (44 ) (15 ) 47 (12 ) Benefit payments 467 166 507 1,140 455 165 588 1,208 Others (44 ) 44 (38 ) (38 ) — — (20 ) (20 ) Currency retranslation 609 — 349 958 (551 ) — (77 ) (628 ) 31 December (11,148 ) (5,060 ) (7,511 ) (23,719 ) (11,001 ) (5,097 ) (7,824 ) (23,922 ) |
Summary of Movements in (Deficit)/Surplus | Movements in (deficit)/surplus during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January 1,121 425 (1,742 ) (196 ) 590 332 (1,796 ) (874 ) Current service cost (114 ) (3 ) (106 ) (223 ) (104 ) (4 ) (108 ) (216 ) Employee contributions — — 17 17 — — 17 17 Special termination benefits — — (37 ) (37 ) — — (5 ) (5 ) Past service costs including (losses)/gains on curtailments 17 — 3 20 56 — 9 65 Settlements — — 7 7 — — (2 ) (2 ) Actual return on plan assets (excluding amounts in net finance income/charge) 1,109 206 179 1,494 1,233 588 564 2,385 Change in asset ceiling, excluding amounts included in finance cost — — 2 2 — — (37 ) (37 ) Interest cost (208 ) (55 ) (182 ) (445 ) (276 ) (82 ) (245 ) (603 ) Interest income (a) 230 60 146 436 292 89 192 573 Actuarial gain/(loss) arising from changes in demographic assumptions (1 ) 245 2 246 157 14 12 183 Actuarial gain/(loss) arising from changes in financial assumptions (806 ) (354 ) (254 ) (1,414 ) (955 ) (511 ) (672 ) (2,138 ) Actuarial gain/(loss) arising from experience adjustments (67 ) (6 ) (5 ) (78 ) (44 ) (15 ) 47 (12 ) Employer contributions 104 12 282 398 94 14 293 401 Benefit payments — — — — — — — — Others 2 (3 ) (17 ) (18 ) — — (18 ) (18 ) Currency retranslation (36 ) — 114 78 78 — 7 85 31 December 1,351 527 (1,591 ) 287 1,121 425 (1,742 ) (196 ) (a) This includes the impact of interest on asset ceiling. |
Movements In Irrevocable Surplus | Movements in irrecoverable surplus during the year: UK Netherlands Rest of € million UK Netherlands Rest of € million 1 January — — (37 ) (37 ) — — — — Interest income — — (1 ) (1 ) — — — — Change in irrecoverable surplus in excess of interest — — 2 2 — — (37 ) (37 ) Currency retranslations — — 10 10 — — — — 31 December — — (26 ) (26 ) — — (37 ) (37 ) |
Summary of Principal Defined Benefit Liabilities and Split of Liabilities Between Different Categories of Plan Participants | The duration of the principal defined benefit plan liabilities (representing 96% of total pension liabilities and other post-employment benefit liabilities) and the split of liabilities between different categories of plan participants are: UK Netherlands Rest of (a) 2020 UK Netherlands Rest of (a) 2019 Duration (years) 18 18 13 7 to 22 18 19 13 7 to 23 Active members 12 % 12 % 20 % 14 % 14 % 14 % 21 % 16 % Deferred members 35 % 43 % 17 % 32 % 34 % 41 % 17 % 31 % Retired members 53 % 45 % 63 % 54 % 52 % 45 % 62 % 53 % (a) Rest of world numbers shown are weighted averages by liabilities. |
Schedule of Fair Value of Plans Assets, Which Are Reported Net of Fund Liabilities That Are Not Employee Benefits | The group of plans within ‘Rest of world’ category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure. The fair value of plan assets, which are reported net of fund liabilities that are not employee benefits, at the end of the reporting period for each category are as follows: € million 31 December 2020 € million UK Netherlands Rest of 2020 UK Netherlands Rest of 2019 Total plan assets 12,499 5,587 5,937 24,023 12,122 5,522 6,105 23,749 Assets Equities total 4,653 1,837 1,694 8,184 4,173 1,831 1,752 7,756 Europe 921 437 506 1,864 930 517 583 2,030 North America 2,740 894 747 4,381 2,312 825 707 3,844 Other 992 506 441 1,939 931 489 462 1,882 Fixed income total 5,819 2,766 3,108 11,693 5,317 2,795 3,250 11,362 Government bonds 3,292 798 1,367 5,457 2,711 765 1,369 4,845 Investment grade corporate bonds 1,167 540 1,111 2,818 1,120 542 1,272 2,934 Other fixed income 1,360 1,428 630 3,418 1,486 1,488 609 3,583 Private equity 274 64 9 347 325 65 6 396 Property and real estate 835 456 332 1,623 916 491 321 1,728 Hedge funds 318 — 62 380 688 — 69 757 Other 470 320 377 1,167 454 289 415 1,158 Other plans — — 370 370 — — 300 300 Assets/fund (liabilities) that are not employee benefits Derivatives 130 144 (15 ) 259 249 51 (8 ) 292 |
Schedule of Sensitivity of Pension Liabilities to Changes in the Weighted Key Assumptions | The sensitivity of the overall pension liabilities to changes in the weighted key assumptions are: Change in liabilities Change in assumption UK Netherlands Total Discount rate Increase by 0.5 % (8 )% (9 )% (8 )% Inflation rate Increase by 0.5 % 6 % 9 % 6 % Life expectancy Increase by 1 year 5 % 5 % 5 % Long-term medical cost inflation (a) Increase by 1.0 % 0 % 0 % 3 % (a) Long-term medical cost inflation only relates to post-retirement medical plans and its impact on these liabilities. |
Schedule of Cash Flow in Respect of Pensions and Similar Post-employment Benefits | The table below sets out these amounts: € million € million € million € million Estimate 2020 2019 2018 Company contributions to funded plans: Defined benefit (a) 285 266 244 238 Defined contributions 220 203 193 179 Benefits paid by the company in respect of unfunded plans: Defined benefit 135 132 157 144 Group cash flow in respect of pensions and similar benefits 640 601 594 561 (a) Following the conclusion of the 2019 Funding valuation of the US Unicare Pension Plan, the Group contributed $100 million into the plan in 2020. Deficit contributions to the US Pension plan are expected to be nil for the following few years. |
Schedule of Income Statement Charge | The charge in each of the last three years is shown below, and relates to equity-settled plans: € million € million € million Income statement charge 2020 2019 2018 Performance share plans (98 ) (142 ) (183 ) Other plans (10 ) (9 ) (13 ) (108 ) (151 ) (196 ) |
Summary of Status of Performance Share Plans, Related Changes and Share Award Value Information | A summary of the status of the Performance Share Plans as at 31 December 2020, 2019 and 2018 and changes during the years ended on these dates is presented below: 2020 2019 2018 Outstanding at 1 January 11,137,801 13,634,518 13,684,747 Awarded 4,395,633 4,538,771 6,870,882 Vested (3,240,738 ) (6,041,011 ) (5,854,388 ) Forfeited (921,260 ) (994,477 ) (1,066,723 ) Outstanding at 31 December 11,371,436 11,137,801 13,634,518 2020 2019 2018 Share award value information Fair value per share award during the year € 43.91 € 48.22 € 42.44 |
Net Finance Costs (Tables)
Net Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Net Finance Costs | Net finance costs Notes € million € million € million Finance costs (672 ) (821 ) (718 ) Bank loans and overdrafts (32 ) (46 ) (44 ) Interest on bonds and other loans (a) (533 ) (617 ) (560 ) Interest on lease liabilities (82 ) (100 ) (127 ) Net gain/(loss) on transactions for which hedge accounting is not applied (25 ) (58 ) 13 On foreign exchange derivatives 275 (321 ) 144 Exchange difference on underlying items (b) (300 ) 263 (131 ) Finance income (c) 232 224 135 Pensions and similar obligations 4B (9 ) (30 ) (25 ) Net finance costs before non-underlying (d) (449 ) (627 ) (608 ) Interest related to the UK tax audit of intangible income and centralised services 3 (56 ) — — (505 ) (627 ) (608 ) (a) Interest on bonds and other loans includes the impact of interest rate derivatives that are part of hedge accounting relationships and the related recycling of results from the hedge accounting reserve. Includes an amount of €(21) million (2019: €(6) million) relating to unwinding of discount on deferred consideration for acquisitions. (b) 2020 includes Nil (2019: €(40) million) finance cost due to change in functional currency in Group’s operating entities in Zimbabwe from US dollar to RTGS dollar. For further details of derivatives for which hedge accounting is not applied, please refer to note 16C. (c) Includes an amount of €90 million (2019: €70 million) that relates to interest on tax settlement in Brazil and € 27 Nil (d) See note 3 for explanation of non-underlying |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Tax Charge in Income Statement | € million € million € million Tax charge in income statement 2020 2019 2018 Current tax Current year (2,128 ) (2,098 ) (2,647 ) Over/(under) provided in prior years (154 ) 119 (10 ) (2,282 ) (1,979 ) (2,657 ) Deferred tax Origination and reversal of temporary differences 344 (255 ) 5 Changes in tax rates (19 ) (59 ) (12 ) Recognition of previously unrecognised losses brought forward 34 30 92 359 (284 ) 85 (1,923 ) (2,263 ) (2,572 ) |
Summary of Reconciliation of Effective Tax Rate | The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever companies, and the actual rate of taxation charged is as follows: Reconciliation of effective tax rate % 2020 % 2019 % 2018 Computed rate of tax (a) 23 24 25 Differences between computed rate of tax and effective tax rate due to: Incentive tax credits (2 ) (2 ) (3 ) Withholding tax on dividends 2 3 2 Expenses not deductible for tax purposes 1 1 1 Irrecoverable withholding tax 1 1 1 Income tax reserve adjustments – current and prior year (1 ) — 1 Transfer to/(from) unrecognised deferred tax assets — (2 ) — Others (1 ) 1 (1 ) Underlying effective tax rate 23 26 26 Non-underlying (b) — — (1 ) Taxes related to the UK tax audit of intangible income and centralised services (b) 1 — — Impact of Spreads disposal (b) — — (4 ) Taxes related to the reorganisation of our European business (b) 1 2 — Effective tax rate 25 28 21 (a) The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For this reason, the rate may vary from year to year according to the mix of profit and related tax rates. (b) See note 3 for explanation of non-underlying |
Summary of Movements in Deferred Tax Asset (Liability) | Movements in 2020 and 2019 € million € million statement € million € million As at € million € million € million € million Pensions and similar obligations 272 (97 ) (95 ) 80 404 (81 ) (51 ) 272 Provisions and accruals 756 38 (96 ) 698 821 (73 ) 8 756 Goodwill and intangible assets (2,096 ) 23 (661 ) (2,734 ) (1,911 ) (31 ) (154 ) (2,096 ) Accelerated tax depreciation (685 ) 9 35 (641 ) (679 ) 12 (18 ) (685 ) Tax losses 184 32 (26 ) 190 130 63 (9 ) 184 Fair value gains (50 ) 12 (14 ) (52 ) 155 (200 ) (5 ) (50 ) Fair value losses 15 (6 ) 36 45 22 (2 ) (5 ) 15 Share-based payments 156 (30 ) 20 146 175 (39 ) 20 156 Lease liability 319 9 (34 ) 294 428 (113 ) 4 319 Right of use asset (269 ) (4 ) 29 (244 ) (370 ) 107 (6 ) (269 ) Other (a) 161 373 (8 ) 526 77 73 11 161 (1,237 ) 359 (814 ) (1,692 ) (748 ) (284 ) (205 ) (1,237 ) (a) The deferred tax - other includes the recognition of an asset of €345 |
Summary of Deferred Tax Assets and Liabilities | € million € million € million € million € million € million Assets Assets Liabilities Liabilities Total Total Movements in 2020 and 2019 2020 2019 2020 2019 2020 2019 Pensions and similar obligations 404 402 (324 ) (130 ) 80 272 Provisions and accruals 408 495 290 261 698 756 Goodwill and intangible assets 330 248 (3,064 ) (2,344 ) (2,734 ) (2,096 ) Accelerated tax depreciation (37 ) (67 ) (604 ) (618 ) (641 ) (685 ) Tax losses 161 153 29 31 190 184 Fair value gains (1 ) (14 ) (51 ) (36 ) (52 ) (50 ) Fair value losses 27 — 18 15 45 15 Share-based payments 26 31 120 125 146 156 Lease liability 157 170 137 149 294 319 Right of use asset (128 ) (142 ) (116 ) (127 ) (244 ) (269 ) Other 127 60 399 101 526 161 1,474 1,336 (3,166 ) (2,573 ) (1,692 ) (1,237 ) Of which deferred tax to be recovered/(settled) after more than 12 months 1,230 1,030 (3,311 ) (2,681 ) (2,081 ) (1,651 ) |
Summary of Tax Effects of Components of Other Comprehensive Income | Tax effects directly recognised in equity or other comprehensive income were as follows: € million € million € million € million Tax € million Tax € million Before (charge)/ After Before (charge)/ After tax credit tax tax credit tax Movements in 2020 and 2019 2020 2020 2020 2019 2019 2019 Gains/(losses) on: Equity instruments at fair value through other comprehensive income 77 1 78 35 (6 ) 29 Cash flow hedges 87 (27 ) 60 198 (22 ) 176 Remeasurements of defined benefit pension plans 250 (35 ) 215 381 (28 ) 353 Currency retranslation gains/(losses) (2,646 ) 56 (2,590 ) 6 (21 ) (15 ) (2,232 ) (5 ) (2,237 ) 620 (77 ) 543 |
Combined Earnings Per Share (Ta
Combined Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Computation of Earnings Per Share | Earnings per share for total operations for the 12 months were as follows: € 2020 € 2019 € 2018 Basic earnings per share 2.13 2.15 3.49 Diluted earnings per share 2.12 2.14 3.48 Underlying earnings per share 2.48 2.55 2.35 Millions of share units Calculation of average number of share units (a) 2020 2019 2018 Average number of shares: PLC 1,351.1 1,175.5 1,264.0 NV 1,278.1 1,598.0 1,714.7 Less treasury shares held by employee share trusts and companies (8.9 ) (157.0 ) (295.4 ) Average number of shares – used for basic earnings per share 2,620.3 2,616.5 2,683.3 Add dilutive effect of share-based compensation plans 9.5 10.2 11.5 Diluted average number of shares – used for diluted and underlying earnings per share 2,629.8 2,626.7 2,694.8 (a) In the calculation of the weighted average number of share units, NV shares are included only for the period they were issued (until 29 € million € million € million Calculation of earnings Notes 2020 2019 2018 Net profit 6,073 6,026 9,788 Non-controlling (492 ) (401 ) (419 ) Net profit attributable to shareholders’ equity – used for basic and diluted earnings per share 5,581 5,625 9,369 Post tax impact of non-underlying 3 951 1,063 (3,024 ) Underlying profit attributable to shareholders’ equity – used for underlying earnings per share 6,532 6,688 6,345 |
Dividends on Ordinary Capital (
Dividends on Ordinary Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Dividends on Ordinary Capital | € million € million € million Dividends on ordinary capital during the year 2020 2019 2018 PLC dividends (1,911 ) (1,871 ) (1,819 ) NV dividends (a) (2,389 ) (2,352 ) (2,262 ) (4,300 ) (4,223 ) (4,081 ) (a) Amount relates to NV dividends paid prior to Unification. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Movements in Goodwill and Intangible Assets | € million € million € million € million € million Finite-life intangible Movements during 2020 Goodwill Indefinite-life Software Other Total Cost 1 January 2020 19,246 12,121 2,991 1,161 35,519 Additions through business combinations (a) 2,407 4,244 — (31 ) 6,620 Disposal of businesses (1 ) — — — (1 ) Additions — — 156 2 158 Disposals and other movements — — (144 ) — (144 ) Hyperinflationary adjustment (38 ) (5 ) — — (43 ) Currency retranslation (1,496 ) (940 ) (184 ) (58 ) (2,678 ) 31 December 2020 20,118 15,420 2,819 1,074 39,431 Accumulated amortisation and impairment 1 January 2020 (1,179 ) (212 ) (2,292 ) (807 ) (4,490 ) Amortisation/impairment for the year — — (279 ) (54 ) (333 ) Disposals and other movements — — 139 — 139 Currency retranslation 3 1 150 40 194 31 December 2020 (1,176 ) (211 ) (2,282 ) (821 ) (4,490 ) Net book value 31 December 2020 (b) 18,942 15,209 537 253 34,941 € million € million € million € million € million Finite-life intangible assets Movements during 2019 Goodwill Indefinite-life Software Other Total Cost 1 January 2019 18,502 11,247 2,689 1,103 33,541 Additions through business combinations 444 726 — 50 1,220 Disposal of businesses (2 ) (1 ) — (5 ) (8 ) Reclassification to held for sale (2 ) — — — (2 ) Additions — — 205 3 208 Disposals — — (11 ) (2 ) (13 ) Currency retranslation 313 150 108 12 583 Hyperinflationary adjustment (9 ) (1 ) — — (10 ) 31 December 2019 19,246 12,121 2,991 1,161 35,519 Accumulated amortisation and impairment 1 January 2019 (1,161 ) (212 ) (1,927 ) (748 ) (4,048 ) Amortisation/impairment for the year (18 ) — (296 ) (56 ) (370 ) Disposals of group companies — — — 5 5 Disposals — — 5 1 6 Currency retranslation — — (74 ) (9 ) (83 ) 31 December 2019 (1,179 ) (212 ) (2,292 ) (807 ) (4,490 ) Net book value 31 December 2019 (b) 18,067 11,909 699 354 31,029 (a) Includes the provisional fair value of goodwill and intangibles for acquisitions made in 2020 as well as subsequent changes to the fair value of goodwill and intangibles for acquisitions made in 2019 where the initial acquisition accounting was provisional at the end of 2019. See note 21 for further details. (b) Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 million (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional. |
Summary of Goodwill and Indefinite-life Intangible Assets Held in Significant CGUs | 2020 CGUs 2019 CGUs € billion € billion € billion € billion Indefinite-life Indefinite-life Goodwill intangible assets Goodwill intangible assets Foods & Refreshment Europe 4.0 1.7 4.1 1.7 Foods & Refreshment The Americas 3.4 1.9 4.0 2.1 Foods & Refreshment Asia/AMET/RUB (a) 3.7 3.7 1.9 0.5 Beauty & Personal Care The Americas 3.8 3.1 4.3 3.1 Beauty & Personal Care Asia/AMET/RUB 1.6 1.9 1.7 2.0 Total significant CGUs 16.5 12.3 16.0 9.4 Others (b) 2.4 2.9 2.1 2.5 Total CGUs 18.9 15.2 18.1 11.9 (a) The Main Horlicks Acquisition increased goodwill by €2.0 billion and indefinite-life intangible assets by €3.3 billion in 2020. These values are provisional. (b) Included within Others are individually insignificant amounts of goodwill and intangible assets that have been allocated between multiple cash generating units. |
Summary of Key Assumptions Used in Discounted Cash Flow Projections | For the year 2020 Foods & Foods & Foods & Beauty & Beauty & Longer-term sustainable growth rates 1.1 % 1.7 % 3.9 % 1.7 % 3.9 % Average near-term nominal growth rates (1.0 )% 0.1 % 4.9 % 2.5 % 3.4 % Average operating margins 13 % 15 % 16 % 22 % 22 % For the year 2019 Foods & Foods & Foods & Beauty & Beauty & Longer-term sustainable growth rates 1.1 % 1.7 % 3.9 % 1.7 % 3.9 % Average near-term nominal growth rates 1.2 % (1.2 )% 6.5 % 1.6 % 5.3 % Average operating margins 16 % 15 % 18 % 21 % 22 % |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of leased and owned assets | € million € million Property, plant and equipment Notes 2020 2019 Owned assets 10A 8,909 10,249 Leased assets 10B 1,649 1,813 Total 10,558 12,062 |
Summary of Movements in Owned Assets | Movements during 2020 € million € million € million Cost 1 January 2020 4,498 15,844 20,342 Additions through business combinations 122 44 166 Additions 107 756 863 Disposals and other movements (90 ) (901 ) (991 ) Hyperinflationary adjustment (18 ) (27 ) (45 ) Reclassification as held for sale (19 ) (81 ) (100 ) Currency retranslation (397 ) (1,330 ) (1,727 ) 31 December 2020 4,203 14,305 18,508 Accumulated depreciation 1 January 2020 (1,479 ) (8,614 ) (10,093 ) Depreciation charge for the year (135 ) (1,093 ) (1,228 ) Disposals and other movements 54 814 868 Hyperinflationary adjustment 6 20 26 Reclassification as held for sale 11 60 71 Currency retranslation 103 654 757 31 December 2020 (1,440 ) (8,159 ) (9,599 ) Net book value 31 December 2020 (a) 2,763 6,146 8,909 Includes capital expenditures for assets under construction 75 660 735 The Group has commitments to purchase property, plant and equipment of €251 million (2019: €264 million). Movements during 2019 € million € million € million Cost 1 January 2019 4,386 15,216 19,602 Additions through business combinations 7 28 35 Additions 175 1,141 1,316 Disposals and other movements (72 ) (649 ) (721 ) Hyperinflationary adjustment (3 ) (28 ) (31 ) Reclassification as held for sale (63 ) (116 ) (179 ) Currency retranslation 68 252 320 31 December 2019 4,498 15,844 20,342 Accumulated depreciation 1 January 2019 (1,390 ) (7,998 ) (9,388 ) Depreciation charge for the year (134 ) (1,022 ) (1,156 ) Disposals and other movements 28 456 484 Hyperinflationary adjustment 5 30 35 Reclassification as held for sale 38 81 119 Currency retranslation (26 ) (161 ) (187 ) 31 December 2019 (1,479 ) (8,614 ) (10,093 ) Net book value 31 December 2019 (a) 3,019 7,230 10,249 Includes capital expenditures for assets under construction 78 872 950 (a) Includes €347 million (2019: €319 million) of freehold |
Summary of Movements in Leased Assets | Movements during 2020 € million € million € million Cost 1 January 2020 2,874 827 3,701 Additions through business combinations 30 3 33 Additions 390 189 579 Disposals and other movements (436 ) (188 ) (624 ) Hyperinflationary adjustment (3 ) — (3 ) Currency retranslation (216 ) (63 ) (279 ) 31 December 2020 2,639 768 3,407 Accumulated depreciation 1 January 2020 (1,397 ) (491 ) (1,888 ) Depreciation charge for the year (315 ) (142 ) (457 ) Disposals and other movements 300 150 450 Currency retranslation 101 36 137 31 December 2020 (1,311 ) (447 ) (1,758 ) Net book value 31 December 2020 1,328 321 1,649 Movements during 2019 € million € million € million Cost 1 January 2019 2,770 816 3,586 Additions 278 174 452 Disposals and other movements (240 ) (180 ) (420 ) Hyperinflationary adjustment 23 — 23 Currency retranslation 43 17 60 31 December 2019 2,874 827 3,701 Accumulated depreciation 1 January 2019 (1,241 ) (471 ) (1,712 ) Depreciation charge for the year (297 ) (159 ) (456 ) Disposals and other movements 154 150 304 Hyperinflationary adjustment 9 — 9 Currency retranslation (22 ) (11 ) (33 ) 31 December 2019 (1,397 ) (491 ) (1,888 ) Net book value 31 December 2019 1,477 336 1,813 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Other Non-current Assets | € million € million Interest in net assets of joint ventures 29 35 Interest in net assets of associates 34 37 Long-term trade and other receivables (a) 465 380 Fair value of biological assets 12 17 Other non-current (b) 391 184 931 653 (a) Mainly relates to indirect tax receivables where we do not have the contractual right to receive payment within 12 months. (b) Includes direct tax assets, withholding tax assets, interest on tax assets and contingent assets. During 2020 contingent assets of €73 million were recognised as part of the Horlicks acquisition, see note 21 for further details. |
Movements in Interest in Joint Ventures and Associates | Movements during 2020 and 2019 € million € million Joint ventures (a) 1 January 35 14 Additions 1 — Dividends received/reductions (182 ) (158 ) Share of net profit/(loss) 177 179 Currency retranslation (2 ) — 31 December 29 35 Associates (b) 1 January 37 40 Additions 1 1 Dividend received/reductions — — Share of net profit/(loss) (2 ) (3 ) Currency retranslation (2 ) (1 ) 31 34 37 (a) Our principal joint ventures are Unilever FIMA Lda for Portugal, Binzagr Unilever Distribution and Al Gurg Unilever for Middle East, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International Ltd for the rest of the world. (b) Associates as at 31 December 2020 primarily comprise our investments in Langholm Capital Partners. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Inventories | Inventories € million € million Raw materials and consumables 1,523 1,399 Finished goods and goods for resale 3,223 3,053 Total inventories 4,746 4,452 Provision for inventories (284 ) (288 ) 4,462 4,164 |
Summary of Other Provisions for Inventories | Provisions for inventories € million € million 1 January 288 205 Charge to income statement 116 153 Reduction/releases (97 ) (71 ) Currency translations (26 ) — Others(a) 3 1 31 284 288 (a) Others include the amount relating to the acquisition/disposal of businesses. |
Trade and Other Current Recei_2
Trade and Other Current Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Trade and Other Current Receivables | Trade and other current receivables € million € million Due within one year Trade receivables (a) 3,433 4,916 Prepayments and accrued income 423 579 Other receivables 1,083 1,200 4,939 6,695 (a) 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. |
Summary of Ageing of Trade Receivables | Ageing of trade receivables € million € million Not overdue 2,849 3,856 Past due less than three months 481 827 Past due more than three months but less than six months 99 186 Past due more than six months but less than one year 73 94 Past due more than one year 124 164 Total trade receivables 3,626 5,127 Impairment provision for trade receivables (193 ) (211 ) 3,433 4,916 |
Summary of Impairment Provision for Trade and Other Receivables | Impairment provision for total trade and other receivables € million € million 1 January 321 214 Charge to income statement 66 79 Reduction/releases (68 ) (54 ) Reclassifications (a) 1 86 Currency translations (44 ) (4 ) 31 December 276 321 (a) 2019 includes an amount transferred from provisions relating to Brazil indirect taxes. |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Trade Payables and Other Liabilities | Trade payables and other liabilities € million € million Current: due within one year Trade payables (a) 8,375 9,190 Accruals 4,266 4,153 Social security and sundry taxes 401 507 Deferred consideration 43 39 Others 1,047 879 14,132 14,768 Non-current: Accruals 81 117 Deferred consideration 121 169 Others 33 53 235 339 Total trade payables and other liabilities 14,367 15,107 (a) 2020 includes €5 million (2019: €359 million) due to KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever provided services to KKR for two years from completion of the disposal and paid KKR for amounts collected on its behalf. See also trade receivables on page 141. |
Capital and Funding (Tables)
Capital and Funding (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [Line Items] | |
Summary of Share Capital | Share capital Unilever N.V. Authorised Issued, (a) Authorised Issued, NV ordinary shares of €0.16 each — — 480 274 NV ordinary shares of €428.57 each (shares numbered 1 to 2,400 — ‘Special Shares’ — — 1 1 Internal holdings eliminated on consolidation (€428.57 shares) — — — (1 ) Cancellation of treasury shares (b) — — — (41 ) — — 481 233 Unilever PLC £ million £ million PLC ordinary shares of 3 1/9 36.4 37.0 PLC deferred stock of £1 each — 0.1 Internal holding eliminated on consolidation (£1 stock) — (0.1 ) Shares issued to NV shareholders (c) 45.4 — Cancellation of treasury shares (b) — (0.6 ) 81.8 36.4 € million € million Euro equivalent in millions (d) 92 187 Unilever Group € million € million Ordinary share capital of NV (c) — 233 Ordinary share capital of PLC (c) 92 187 92 420 (a) At 31 (b) At 31 (c) As a result of Unification, the shareholders of NV were issued 1,460,713,122 PLC ordinary shares, and all NV shares in issue were cancelled. (d) Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. |
Summary Combined Financial Information in Relation to HUL | Summary financial information in relation to HUL is shown below. HUL balance sheet as at 31 December € million € million Non-current 6,173 1,030 Current assets 1,258 1,438 Current liabilities (1,127 ) (1,117 ) Non-current (1,139 ) (332 ) HUL comprehensive income for the year ended 31 December Turnover 4,957 4,937 Profit after tax 866 730 Total comprehensive income 374 740 HUL cash flow for the year ended 31 December € million € million Net increase/(decrease) in cash and cash-equivalents 48 145 HUL non-controlling 1 January (328 ) (299 ) Share of (profit)/loss for the year ended 31 December (319 ) (239 ) Other comprehensive income 3 (6 ) Dividend paid to the non-controlling 392 218 Currency translation 192 (2 ) Net gain arising from Horlicks acquisition (1,918 ) — 31 December (1,978 ) (328 ) |
Summary of Consolidated Statement of Changes in Equity: Analysis of Other Reserves | € million € million € million Fair value reserves - 250 110 (123 ) Currency retranslation of group companies – see next page (7,068 ) (4,712 ) (4,694 ) Adjustment on translation of PLC’s ordinary capital (b) — (148 ) (150 ) Capital redemption reserve 21 37 32 Book value of treasury shares – see following table (483 ) (703 ) (10,181 ) Other (a) (202 ) (158 ) (102 ) (7,482 ) (5,574 ) (15,218 ) (a) Relates to the options to purchase non-controlling (b) Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. |
Summary of Treasury Shares Movements | Treasury shares – movements during the year € million € million 1 January (703 ) (10,181 ) Cancellation of NV and PLC shares — 9,416 Other purchases and utilisations 220 64 Adjustment on translation of PLC’s ordinary capital — (2 ) 31 December (a) (483 ) (703 ) (a) Shortly before Unification 4,523,367 NV and PLC ordinary shares, 892,155 NV NYRSs and 468,989 PLC ADSs hel d |
Disclosure of Currency Retranslation Reserve | Currency retranslation reserve – movements during the year € million € million 1 January (4,712 ) (4,694 ) Currency retranslation of group companies net assets and liabilities during the year (1,490 ) (341 ) Movement in net investment hedges and exchange differences in net investments in foreign operations (866 ) 326 Recycled to income statement — (3 ) 31 December (7,068 ) (4,712 ) |
Disclosure of Fair Value Reserve | Fair value reserves – movements during the year € million € million 1 January 110 (123 ) Movements in Other comprehensive income, net of tax Gains/(losses) on equity instruments 68 25 Gains/(losses) on cash flow hedges 62 176 Hedging gains/(losses) transferred to non-financial 10 32 31 December 250 110 |
Disclosure of Remeasurement of Defined Benefit Pension Plans Net of Tax | Remeasurement of defined benefit pension plans net of tax € million € million 1 January (1,146 ) (1,499 ) Movement during the year 215 353 31 December (931 ) (1,146 ) |
Disclosure of Currency Retranslation Gains Losses | Currency retranslation gains/(losses) – movements during the year € million € million 1 January (5,084 ) (5,069 ) Currency retranslation during the year: Other reserves (2,356 ) (18 ) Retained profit (22 ) 2 Non-controlling (212 ) 1 31 December (7,674 ) (5,084 ) |
Summary of Financial Liabilities | Financial liabilities (a) € million € million Non-current € million € million € million € million Bank loans and overdrafts (b) 407 4 411 390 463 853 Bonds and other loans 3,499 21,086 24,585 3,677 21,355 25,032 Lease liabilities 380 1,391 1,771 383 1,536 1,919 Derivatives 58 257 315 116 154 270 Other financial liabilities (c) 117 106 223 125 58 183 4,461 22,844 27,305 4,691 23,566 28,257 (a) For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. (b) Bank loans and overdrafts include €2.6 million (2019: €Nil) of secured liabilities. (c) Includes options and other financial liabilities to acquire non-controlling |
Reconciliation of Liabilities Arising from Financing Activities | Reconciliation of liabilities arising from financing activities Non-cash Movements in 2020 and 2019 Opening Cash Business € million Foreign Fair Other Closing 2020 Bank loans and overdrafts (a) (853 ) 386 (1 ) 54 — 3 (411 ) Bonds and other loans (a) (25,032 ) (658 ) — 1,131 10 (36 ) (24,585 ) Lease liabilities (b) (1,919 ) 473 (27 ) 142 — (440 ) (1,771 ) Derivatives (270 ) — — — (45 ) — (315 ) Other financial liabilities (a) (183 ) — — (2 ) 20 (58 ) (223 ) Total (28,257 ) 201 (28 ) 1,325 (15 ) (531 ) (27,305 ) 2019 Bank loans and overdrafts (a) (814 ) (29 ) (1 ) (9 ) — — (853 ) Bonds and other loans (a) (23,391 ) (1,273 ) (3 ) (365 ) (1 ) 1 (25,032 ) Lease liabilities (b) (1,981 ) 452 (7 ) (25 ) — (358 ) (1,919 ) Derivatives (402 ) — — — 132 — (270 ) Other financial liabilities (a) (150 ) 30 — (8 ) — (55 ) (183 ) Total (26,738 ) (820 ) (11 ) (407 ) 131 (412 ) (28,257 ) (a) These cash movements are included within the following lines in the consolidated cash flow statement: net change in short-term borrowings, additional financial liabilities and repayment of financial liabilities. The difference of €10 million (2019: €64 million) represents cash movements in overdrafts that are not included in financing cash flows. (b) Lease liabilities cash movement is included within capital element of lease payments in the consolidated cash flow statement. The difference of €30 million (2019: €17 million) represents gain or loss from termination and modification of lease contracts. |
Summary of Analysis of Bonds and Other Loans | € million € million Unilever PLC 1.125% Notes 2022 (£) 387 408 1.375% Notes 2024 (£) 276 292 1.875% Notes 2029 (£) 274 290 1.500% Notes 2026 (£) 550 580 1.500% Notes 2039 (€) 646 646 Total PLC 2,133 2,216 Other group companies The Netherlands (a) 1.625% Notes 2033 (€) 793 792 1.750% Bonds 2020 (€) — 750 0.500% Notes 2022 (€) 749 747 1.375% Notes 2029 (€) 744 743 1.125% Bonds 2027 (€) 697 697 1.125% Bonds 2028 (€) 695 694 0.875% Notes 2025 (€) 648 647 0.500% Bonds 2025 (€) 645 644 1.375% Notes 2030 (€) 643 642 0.375% Notes 2023 (€) 599 599 1.000% Notes 2027 (€) 598 598 1.000% Notes 2023 (€) 498 498 0.000% Notes 2021 (€) 499 498 0.500% Notes 2023 (€) 498 498 0.500% Notes 2024 (€) 496 495 0.000% Notes 2020 (€) — 300 1.250% Notes 2025 (€) 999 — 1.750% Notes 2030 (€) 994 — Switzerland Other 16 24 United States 4.250% Notes 2021 ($) 812 892 5.900% Bonds 2032 ($) 809 883 2.900% Notes 2027 ($) 803 879 2.200% Notes 2022 ($) 689 755 1.800% Notes 2020 ($) — 714 3.500% Notes 2028 ($) 641 703 2.000% Notes 2026 ($) 563 616 1.375% Notes 2021 ($) (b) — 489 3.125% Notes 2023 ($) 445 488 2.100% Notes 2020 ($) — 446 3.000% Notes 2022 ($) 406 444 3.250% Notes 2024 ($) 404 443 3.100% Notes 2025 ($) 403 442 2.600% Notes 2024 ($) 404 442 3.500% Bonds 2028 ($) 402 441 2.750% Bonds 2021 ($) 324 356 3.375% Notes 2025 ($) 283 309 7.250% Bonds 2026 ($) 238 260 6.625% Bonds 2028 ($) 189 206 5.150% Notes 2020 ($) — 135 5.600% Bonds 2097 ($) 74 82 2.125% Notes 2029 ($) 683 749 2.600% Notes 2024 ($) 415 457 1.375% Notes 2030 ($) 395 — 0.375% Notes 2023 ($) 405 — Commercial paper ($) 1,848 1,276 Other countries 6 43 Total other group companies 22,452 22,816 Total bonds and other loans 24,585 25,032 (a) As part of Unification, these bonds which were previously issued by Unilever N.V. were transferred to Unilever Finance Netherlands B.V. with effect from 26 November 2020. (b) Bond repaid (Make-Whole) on 9 October 2020. |
Treasury Risk Management (Table
Treasury Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities | The following table shows Unilever’s contractually agreed undiscounted cash flows, including expected interest payments, which are payable under financial liabilities at the balance sheet date: € million € million € million € million € million € million € million € million Undiscounted cash flows Due within 1 year Due between 1 and 2 years Due between 2 and 3 years Due between 3 and 4 years Due between 4 and 5 years Due after 5 years Total Net amount as shown in balance sheet 2020 Non-derivative Bank loans and overdrafts (413 ) (2 ) (1 ) — — (1 ) (417 ) (411 ) Bonds and other loans (3,926 ) (2,626 ) (2,824 ) (2,326 ) (3,278 ) (13,020 ) (28,000 ) (24,585 ) Lease liabilities (442 ) (352 ) (292 ) (234 ) (187 ) (591 ) (2,098 ) (1,771 ) Other financial liabilities (117 ) (12 ) (33 ) (23 ) (51 ) — (236 ) (223 ) Trade payables, accruals and other liabilities (13,585 ) (46 ) (15 ) (17 ) (4 ) (32 ) (13,699 ) (13,699 ) Deferred consideration (60 ) (12 ) (76 ) (35 ) (8 ) — (191 ) (164 ) (18,543 ) (3,050 ) (3,241 ) (2,635 ) (3,528 ) (13,644 ) (44,641 ) (40,853 ) Derivative financial liabilities: Interest rate derivatives: (257 ) Derivative contracts – receipts 174 1,069 40 441 29 877 2,630 Derivative contracts – payments (134 ) (1,148 ) (21 ) (479 ) (19 ) (977 ) (2,778 ) Foreign exchange derivatives: (158 ) Derivative contracts – receipts 6,163 — — — — — 6,163 Derivative contracts – payments (6,333 ) — — — — — (6,333 ) Commodity derivatives: (3 ) Derivative contracts – receipts — — — — — — — Derivative contracts – payments (3 ) — — — — — (3 ) (133 ) (79 ) 19 (38 ) 10 (100 ) (321 ) (418 ) Total (18,676 ) (3,129 ) (3,222 ) (2,673 ) (3,518 ) (13,744 ) (44,962 ) (41,271 ) 2019 Non-derivative Bank loans and overdrafts (399 ) (9 ) (289 ) (164 ) — (2 ) (863 ) (853 ) Bonds and other loans (4,169 ) (2,661 ) (2,745 ) (2,449 ) (2,454 ) (14,431 ) (28,909 ) (25,032 ) Lease liabilities (432 ) (392 ) (302 ) (242 ) (191 ) (720 ) (2,279 ) (1,919 ) Other financial liabilities (125 ) — (24 ) (31 ) (26 ) — (206 ) (183 ) Trade payables, accruals and other liabilities (14,166 ) (93 ) (13 ) (8 ) (14 ) (42 ) (14,336 ) (14,336 ) Deferred consideration (39 ) (124 ) (8 ) — (64 ) — (235 ) (208 ) (19,330 ) (3,279 ) (3,381 ) (2,894 ) (2,749 ) (15,195 ) (46,828 ) (42,531 ) Derivative financial liabilities: Interest rate derivatives: (154 ) Derivative contracts – receipts 776 164 805 37 478 957 3,217 Derivative contracts – payments (756 ) (141 ) (797 ) (17 ) (473 ) (949 ) (3,133 ) Foreign exchange derivatives: (168 ) Derivative contracts – receipts 8,783 — — — — — 8,783 Derivative contracts – payments (8,952 ) — — — — — (8,952 ) Commodity derivatives: (4 ) Derivative contracts – receipts — — — — — — — Derivative contracts – payments (4 ) — — — — — (4 ) (153 ) 23 8 20 5 8 (89 ) (326 ) Total (19,483 ) (3,256 ) (3,373 ) (2,874 ) (2,744 ) (15,187 ) (46,917 ) (42,857 ) |
Summary of Derivative Cash Flow Hedges | The following table shows cash flows for which cash flow hedge accounting is applied. The derivatives in the cash flow hedge relationships are expected to have an impact on profit and loss in the same periods as the cash flows occur. € million € million € million € million € million € million € million € million Due Due Due Due Net carrying Due between between between between Due amount of within 1 and 2 and 3 and 4 and after related 1 year 2 years 3 years 4 years 5 years 5 years Total derivatives (a) 2020 Foreign exchange cash inflows 3,136 — — — — — 3,136 — Foreign exchange cash outflows (3,205 ) — — — — — (3,205 ) (50 ) Interest rate swaps cash inflows 403 1,077 488 436 24 849 3,277 — Interest rate swaps cash outflows (347 ) (1,147 ) (464 ) (473 ) (13 ) (936 ) (3,380 ) (221 ) Commodity contracts cash inflows 40 — — — — — 40 40 Commodity contracts cash outflows (3 ) — — — — — (3 ) (3 ) 2019 Foreign exchange cash inflows 2,254 — — — — — 2,254 — Foreign exchange cash outflows (2,259 ) — — — — — (2,259 ) — Interest rate swaps cash inflows 811 442 1,182 536 478 957 4,406 — Interest rate swaps cash outflows (756 ) (347 ) (1,147 ) (464 ) (473 ) (949 ) (4,136 ) (29 ) Commodity contracts cash inflows 31 — — — — — 31 31 Commodity contracts cash outflows (4 ) — — — — — (4 ) (4 ) (a) See note 16C. |
Summary Of Currency Derivatives Outstanding To Which Cash Flow Hedge Accounting | As at year end, the Group had the below notional amount of currency derivatives outstanding to which cash flow hedge * Euro exposure relates to group companies having non-euro functional currencies. Currency 2020 2019 EUR* (920 ) (743 ) GBP (414 ) (325 ) USD 588 640 SEK (100 ) (94 ) CAD (110 ) (108 ) PLN (70 ) (67 ) Others (176 ) (192 ) Total (1,202 ) (889 ) * Euro exposure relates to group companies having non-euro functional currencies. |
Impact of Interest Rate Swaps and Cross-Currency Swaps | The following table shows the split in fixed and floating-rate interest exposures, taking into account the impact of interest rate swaps and cross-currency swaps: € million € million 2020 2019 Current financial liabilities (4,461 ) (4,691 ) Non-current (22,844 ) (23,566 ) Total financial liabilities (27,305 ) (28,257 ) Less: lease liabilities (1,771 ) (1,919 ) Financial liabilities (excluding lease liabilities) (25,534 ) (26,338 ) Of which: Fixed rate (weighted average amount of fixing for the following year) (21,561 ) (22,618 ) |
Summary of Derivatives Used to Hedge | The Group does not use derivative financial instruments for speculative purposes. The uses of derivatives and the related values of derivatives are summarised in the following table. Derivatives used to hedge: € million € million € million € million € million € million € million Trade Current Non- current Trade payables Current Non- current and other financial financial and other financial financial receivables assets assets liabilities liabilities liabilities Total 31 December 2020 Foreign exchange derivatives Fair value hedges — — — — — — — Cash flow hedges 24 — — (74 ) — — (50 ) Hedges of net investments in foreign operations — — — — (149 ) (a) — (149 ) Hedge accounting not applied 14 54 (a) — (26 ) 91 (a) — 133 Interest rate derivatives Fair value hedges — — — — — (10 ) (10 ) Cash flow hedges — 5 21 — — (247 ) (221 ) Hedge accounting not applied — — — — — — — Commodity contracts Cash flow hedges 40 — — (3 ) — — 37 Hedge accounting not applied — — — — — — — 78 59 21 (103 ) (58 ) (257 ) (260 ) Total assets 158 Total liabilities (418 ) (260 ) 31 December 2019 Foreign exchange derivatives Fair value hedges — — — — — — — Cash flow hedges 38 — — (38 ) — — — Hedges of net investments in foreign operations — 30 (a) — — (14 ) (a) — 16 Hedge accounting not applied 5 (10 ) (a) — (14 ) (102 ) (a) — (121 ) Interest rate derivatives Fair value hedges — — — — — — — Cash flow hedges — — 114 — — (143 ) (29 ) Hedge accounting not applied — — — — — (11 ) (11 ) Commodity contracts Cash flow hedges 31 — — (4 ) — — 27 Hedge accounting not applied — — — — — — — 74 20 114 (56 ) (116 ) (154 ) (118 ) Total assets 208 Total liabilities (326 ) (118 ) (a) Swaps that hedge the currency risk on intra-group loans and offset ‘Hedges of net investments in foreign operations’ are included within ‘Hedge accounting not applied’. See below for further details. |
Summary of Financial Assets are Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements | The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements. Related amounts not set off in the balance sheet € million € million € million € million € million € million Gross amounts of Gross amounts of recognised financial assets set off in the Net amounts of financial assets Financial Cash collateral As at 31 December 2020 financial assets balance sheet balance sheet instruments received Net amount Derivative financial assets 306 (148 ) 158 (91 ) (16 ) 51 As at 31 December 2019 Derivative financial assets 253 (45 ) 208 (130 ) (24 ) 54 |
Summary of Financial Liabilities are Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements | The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements. Related amounts not set off in the balance sheet € million € million € million € million € million € million Gross amounts of Gross amounts of recognised financial liabilities set off in the Net amounts of presented in the Financial Cash collateral As at 31 December 2020 financial liabilities balance sheet balance sheet instruments received Net amount Derivative financial liabilities (566 ) 148 (418 ) 91 — (327 ) As at 31 December 2019 Derivative financial liabilities (371 ) 45 (326 ) 130 — (196 ) |
Investment and Return (Tables)
Investment and Return (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Cash Resources and Other Financial Assets | 17A. Financial assets The Group’s Treasury function aims to protect the Group’s financial investments, while maximising returns. The fair value of financial assets is the same as the carrying amount for 2020 and 2019. The Group’s cash resources and other financial assets are shown below. € million € million € million € million € million € million Current Non-current Total Current Non-current Total Financial assets (a) 2020 2020 2020 2019 2019 2019 Cash and cash equivalents Cash at bank and in hand 2,764 — 2,764 2,457 — 2,457 Short-term deposits (b) 2,764 — 2,764 1,693 — 1,693 Other cash equivalents 20 — 20 35 — 35 5,548 — 5,548 4,185 — 4,185 Other financial assets Financial assets at amortised cost (c) 468 138 606 578 220 798 Financial assets at fair value through other comprehensive income (d) 9 361 370 — 266 266 Financial assets at fair value through profit or loss: Derivatives 59 21 80 20 114 134 Other (e) 272 356 628 309 274 583 808 876 1,684 907 874 1,781 Total 6,356 876 7,232 5,092 874 5,966 (a) For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. (b) Short-term deposits typically have maturity of up to 3 months. (c) Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current (d) Included within non-current The fair value movement in 2020 of these equity investments was €78 million (2019: €31 million). (e) Current Other Financial assets at fair value through profit or loss include A- |
Schedule of Cash and Cash Equivalents Reconciliation to Cash Flow Statement | € € million Cash and cash equivalents reconciliation to the cash flow statement 2020 2019 Cash and cash equivalents per balance sheet 5,548 4,185 Less: bank overdrafts (73 ) (69 ) Cash and cash equivalents per cash flow statement 5,475 4,116 |
Financial Instruments Fair Va_2
Financial Instruments Fair Value Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Fair Values of Financial Assets and Financial Liabilities | The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair values and carrying amounts of financial instruments. € million € million € million € million Carrying Carrying Fair value Fair value amount amount Fair values of financial assets and financial liabilities 2020 2019 2020 2019 Financial assets Cash and cash equivalents 5,548 4,185 5,548 4,185 Financial assets at amortised cost 606 798 606 798 Financial assets at fair value through other comprehensive income 370 266 370 266 Financial assets at fair value through profit or loss: Derivatives 80 134 80 134 Other 628 583 628 583 7,232 5,966 7,232 5,966 Financial liabilities Bank loans and overdrafts (411 ) (853 ) (411 ) (853 ) Bonds and other loans (26,936 ) (26,525 ) (24,585 ) (25,032 ) Lease liabilities (1,771 ) (1,919 ) (1,771 ) (1,919 ) Derivatives (315 ) (270 ) (315 ) (270 ) Other financial liabilities (223 ) (183 ) (223 ) (183 ) (29,656 ) (29,750 ) (27,305 ) (28,257 ) |
Summary of Assets and Liabilities Carried at Fair Value, Classification of Fair Value Calculations by Category | For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below: € million € million € million € million € million € million € million € million Total fair Total fair Level 1 Level 1 Level 2 Level 2 Level 3 Level 3 value value Notes 2020 2019 2020 2019 2020 2019 2020 2019 Assets at fair value Financial assets at fair value through other comprehensive income 17A 5 7 3 4 362 255 370 266 Financial assets at fair value through profit or loss: Derivatives (a) 16C — — 158 208 — — 158 208 Other 17A 300 311 — — 328 272 628 583 Liabilities at fair value Derivatives (b) 16C — — (418 ) (326 ) — — (418 ) (326 ) Contingent consideration 14 — — — — (140 ) (154 ) (140 ) (154 ) (a) Includes €78 million (2019: €74 million) derivatives, reported within trade receivables, that hedge trading activities. (b) Includes €(103) million (2019: €(56) million) derivatives, reported within trade payables, that hedge trading activities. |
Summary of Reconciliation of Movements in Level 3 Valuations | € million € million Reconciliation of movements in Level 3 valuations 2020 2019 1 January 373 241 Gains and losses recognised in income statement (22 ) (9 ) Gains and losses recognised in other comprehensive income 75 43 Purchases and new issues 41 83 Sales and settlements 83 15 31 December 550 373 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Other Provisions | € million € million Provisions 2020 2019 Due within one year 547 620 Due after one year 583 664 Total provisions 1,130 1,284 € million € million € million € million € million Brazil Movements during 2020 Restructuring Legal indirect taxes Other Total 1 January 2020 470 149 128 537 1,284 Additions through business combinations — 4 — 57 61 Income Statement: Charges 151 129 4 140 424 Releases (87 ) (5 ) (20 ) (59 ) (171 ) Utilisation (252 ) (27 ) (1 ) (44 ) (324 ) Currency translation (18 ) (23 ) (37 ) (66 ) (144 ) 31 December 2020 264 227 74 565 1,130 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Lease and Other Commitments | Lease commitments and other commitments fall due as follows: € million € million € million € million Within 1 69 69 844 791 Later than 1 5 80 111 694 684 Later than 5 9 43 18 23 158 223 1,556 1,498 |
Summary of Contingent Liabilities | € million € million Summary of contingent liabilities 2020 2019 Corporate reorganisation – IPI, PIS and COFINS taxes and penalties 2,040 2,235 Inputs for PIS and COFINS taxes 35 43 Goodwill amortisation 137 184 Other tax assessments – approximately 600 cases 650 959 Total Brazil tax 2,862 3,421 Other contingent liabilities 648 789 Total contingent liabilities 3,510 4,210 |
Acquisitions and Disposals (Tab
Acquisitions and Disposals (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Impact of the Decrease in Shareholding on the Equity Attributable to Shareholders of the Group | The table below shows the impact of the decrease in shareholding on the equity attributable to shareholders of the Group. € million 67.2% share of HUL’s net assets acquired before acquisition of GSKCH 718 61.9% share of HUL’s net assets acquired after acquisition of GSKCH 661 Loss recognised in equity due to dilution (57 ) Gain arising from proportionate share of GSKCH’s net assets acquired 3,001 Net gain arising from the Main Horlicks Acquisition recognised in equity 2,944 |
Effect of Acquisitions on Consolidated Balance Sheet | € million 2020 € million € million Net assets acquired 3,857 771 815 Non-controlling (27 ) (25 ) (17 ) Goodwill 2,507 421 496 Total payment for acquisition 6,337 1,167 1,294 Exchange rate gain/(loss) on cash flow hedge — — (100 ) Total consideration 6,337 1,167 1,194 In 2020 the net assets acquired and total payment for acquisitions consist of: Main Horlicks Other € million 2020 Intangible assets 3,345 737 4,082 Other non-current 249 35 284 Trade and other receivables 77 26 103 Other current assets (a) 560 95 655 Non-current (b) (905 ) (202 ) (1,107 ) Current liabilities (122 ) (38 ) (160 ) Net assets acquired 3,204 653 3,857 Non-controlling — (27 ) (27 ) Goodwill 2,090 417 2,507 Exchange rate gain/(loss) on cash flow hedges — — — Total consideration 5,294 1,043 6,337 Of which Consideration paid (c) 5,294 1,019 6,313 Deferred consideration — 24 24 (a) Other current assets include financial (b) Non-current (c) For the Main Horlick Acquisition consideration paid was €449 |
Summary of Impact of Disposals | The following table sets out the effect of the disposals in 2020, 2019 and 2018 on the consolidated balance sheet. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal. € million € million € million Goodwill and intangible assets 1 82 2,510 Other non-current 21 19 666 Current assets 5 15 261 Trade creditors and other payables (1 ) (12 ) (107 ) Net assets sold 26 104 3,330 (Gain)/loss on recycling of currency retranslation on disposal — — (71 ) Profit/(loss) on sale attributable to Unilever 9 65 4,331 Consideration 35 169 7,590 Cash 34 168 7,135 Cash balances of businesses sold — 1 321 Non-cash 1 — 134 35 169 7,590 |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Assets and Liabilities Classified as Held for Sale | € million € million Disposal groups held for sale (a) Goodwill and intangibles 1 3 Property, plant and equipment 4 13 Inventories 6 9 Trade and other receivables — 1 Other — 3 11 29 Property, plant and equipment held for sale (b) 17 53 Assets held for sale 28 82 Liabilities held for sale 1 1 (a) In 2020, disposal groups held for sale consists of assets mainly relating to manufacturing assets. (b) 2019 includes manufacturing assets held for sale in various countries. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Related Party Transactions | The following related party balances existed with associate or joint venture businesses at 31 December: Related party balances € million € million Sales to joint ventures 1,004 839 Purchases from joint ventures 118 113 Receivables from joint ventures 80 92 Payables to joint ventures 43 38 Loans to joint ventures 255 289 Royalties and service fees 21 23 |
Remuneration of Auditors (Table
Remuneration of Auditors (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Summary of Services from Auditors and its Associates | € million € million € million Fees payable to the Group’s auditors for the audit of the consolidated and parent Company Accounts of Unilever N.V. and Unilever PLC (a) 6 5 6 Fees payable to the Group’s auditors for the audit of accounts of subsidiaries of Unilever N.V. and Unilever PLC pursuant to legislation (b)(c) 13 12 10 Total statutory audit fees 19 17 16 Fees payable to the Group’s auditors for the audit of non-statutory 6 (d) — 4 (d) Audit-related assurance services — (e) — (e) — (e) Other taxation advisory services — — — Services relating to corporate finance transactions — — — Other assurance services 1 (f) — 1 (f) All other non-audit — (e) — (e) — (e) Total fees payable 26 17 21 (a) Of which €nil million was payable to KPMG Accountants N.V. (2019: €1 million; 2018: €1 million) and €6 million was payable to KPMG LLP (2019: €4 million; 2018: €5 million). (b) Comprises fees payable to the KPMG network of independent member firms affiliated with KPMG International Cooperative for audit work on statutory financial statements and Group reporting returns of subsidiary companies. (c) Amount payable to KPMG in respect of services supplied to associated pension schemes was less than €1 million individually and in aggregate (2019: less than €1 million individually and in aggregate; 2018: less than €1 million individually and in aggregate). (d) 2020 includes €6 million for the audit of carve-out carve-out (e) Amounts paid in relation to each type of service are less than €1 million individually and in aggregate (2019: less than €1 million and in aggregate; 2018: less than €1 million). (f) 2020 includes €1 million for assurance work on Unification. 2018 includes €1 million for assurance work on Simplification . |
Significant Subsidiaries (Table
Significant Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
Schedule of Significant Subsidiaries | The following represents the significant subsidiaries of the Group at 31 December 2020, that principally affect the turnover, profit and net assets of the Group. The percentage of share capital is shown below represents the aggregate percentage of equity capital directly or indirectly held by Unilever PLC in the company. The companies are incorporated and principally operated in the countries under which they are shown except where stated otherwise. Country Name of company Shareholding% Argentina Unilever de Argentina S.A. 100.00 Australia Unilever Australia Limited 100.00 Bangladesh Unilever Bangladesh Limited 60.75 Brazil Unilever Brasil Ltda. 100.00 Canada Unilever Canada Inc. 100.00 China Unilever Services (Hefei) Co. Ltd 100.00 China Walls (China) Co. Limited 100.00 England and Wales Unilever UK & CN Holdings Limited 100.00 England and Wales Unilever Global IP Ltd 100.00 England and Wales Unilever U.K. Holdings Limited 100.00 England and Wales Unilever UK Limited 100.00 England and Wales Unilever U.K. Central Resources Limited 100.00 France Unilever France S.A.S 99.99 Germany Unilever Deutschland GmbH 100.00 Germany Unilever Deutschland Holding GmbH 100.00 India Hindustan Unilever Limited 61.90 Indonesia PT Unilever Indonesia Tbk 84.99 Italy Unilever Italia Mkt Operations S.R.L. 100.00 Korea Carver Korea Co., Ltd 100.00 Mexico Unilever de Mexico, S. de R.I. de C.V. 100.00 Netherlands Mixhold B.V. 100.00 Netherlands Unilever Finance International B.V. 100.00 Netherlands Unilever Finance Netherlands B.V. 100.00 Netherlands Unilever IP Holdings B.V. 100.00 Netherlands Unilever Nederland B.V. 100.00 Netherlands Unilever Europe B.V. 100.00 Netherlands UNUS Holding B.V. 100.00 Pakistan Unilever Pakistan Limited 99.28 Philippines Unilever Philippines, Inc. 100.00 Russia OOO Unilever Rus 100.00 Singapore Unilever Asia Private Limited 100.00 South Africa Unilever South Africa (Pty) Limited 100.00 Switzerland Unilever ASCC AG 100.00 Switzerland Unilever Finance International AG 100.00 Switzerland Unilever Supply Chain Company AG 100.00 Thailand Unilever Thai Trading Limited 100.00 Turkey Unilever Sanayi ve Ticaret Turk A.S 99.98 United States of America Conopco, Inc. 100.00 United States of America Unilever Capital Corporation 100.00 United States of America Unilever North America Supply Chain Company LLC 100.00 United States of America Unilever United States, Inc. 100.00 United States of America Ben & Jerry’s Homemade, Inc. 100.00 Vietnam Unilever Vietnam International Company Limited 100.00 |
Accounting Information and Po_3
Accounting Information and Policies - Additional Information (Detail) € in Millions | 12 Months Ended |
Dec. 31, 2020EUR (€) | |
Horlicks Brand [Member] | |
Disclosure Of Summary Of Significant Accounting Policies [Line Items] | |
Acquired brand value | € 2,700 |
Hyperinflation restatement [member] | |
Disclosure Of Summary Of Significant Accounting Policies [Line Items] | |
Reduction in total assets | 68 |
Reduction in turnover | 58 |
Reduction in operating profit | € 23 |
Segment Information - Summary o
Segment Information - Summary of Products and Services (Detail) - product | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of products individually accounted for 5% or more of revenue in each year | 10 | 9 | 9 |
Fabric [member] | Home Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 14.00% | 15.00% | 15.00% |
Ice Cream [member] | Foods and Refreshment [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 13.00% | 13.00% | 13.00% |
Skin Cleasning [member] | Beauty And Personal Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 12.00% | 10.00% | 10.00% |
Hair Care [member] | Beauty And Personal Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 11.00% | 12.00% | 12.00% |
Savoury [member] | Foods and Refreshment [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 11.00% | 11.00% | 11.00% |
Deodorants [member] | Beauty And Personal Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 8.00% | 8.00% | 8.00% |
Skin Care [member] | Beauty And Personal Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 7.00% | 8.00% | 7.00% |
Dressings [member] | Foods and Refreshment [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 6.00% | 5.00% | 5.00% |
Tea [member] | Foods and Refreshment [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 6.00% | 6.00% | 6.00% |
Home and Hygiene [member] | Home Care [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 5.00% | 4.00% | 4.00% |
Other [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Percentage of entity's revenue | 8.00% | 7.00% | 9.00% |
Segment Information - Summary_2
Segment Information - Summary of Operating Results of Reportable Segments (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of Operating Segments [Line Items] | ||||
Turnover | € 50,724 | € 51,980 | € 50,982 | |
Operating profit | 8,303 | 8,708 | 12,639 | |
Non-underlying items | 1,064 | 1,239 | (3,176) | |
Underlying operating profit | 9,367 | 9,947 | 9,463 | |
Share of net profit/(loss) of joint ventures and associates | 175 | 176 | 185 | |
Significant non-cash charges within underlying operating profit: | ||||
Depreciation and amortisation | 2,018 | 1,964 | 2,008 | |
Share-based compensation and other non-cash charges | [1] | 203 | 168 | 250 |
Significant non-cash charges within non-underlying items: | ||||
Impairment and other non-cash charges | [2] | 150 | 310 | 549 |
Beauty & Personal Care [member] | ||||
Disclosure of Operating Segments [Line Items] | ||||
Turnover | 21,124 | 21,868 | 20,624 | |
Operating profit | 4,311 | 4,520 | 4,165 | |
Non-underlying items | 280 | 440 | 378 | |
Underlying operating profit | 4,591 | 4,960 | 4,543 | |
Share of net profit/(loss) of joint ventures and associates | 7 | 1 | (1) | |
Significant non-cash charges within underlying operating profit: | ||||
Depreciation and amortisation | 710 | 693 | 686 | |
Share-based compensation and other non-cash charges | [1] | 77 | 62 | 102 |
Significant non-cash charges within non-underlying items: | ||||
Impairment and other non-cash charges | [2] | 38 | 105 | 122 |
Foods & Refreshment [member] | ||||
Disclosure of Operating Segments [Line Items] | ||||
Turnover | 19,140 | 19,287 | 20,227 | |
Operating profit | 2,749 | 2,811 | 7,287 | |
Non-underlying items | 508 | 571 | (3,711) | |
Underlying operating profit | 3,257 | 3,382 | 3,576 | |
Share of net profit/(loss) of joint ventures and associates | 163 | 171 | 183 | |
Significant non-cash charges within underlying operating profit: | ||||
Depreciation and amortisation | 946 | 902 | 949 | |
Share-based compensation and other non-cash charges | [1] | 85 | 56 | 102 |
Significant non-cash charges within non-underlying items: | ||||
Impairment and other non-cash charges | [2] | 77 | 159 | 164 |
Home Care [member] | ||||
Disclosure of Operating Segments [Line Items] | ||||
Turnover | 10,460 | 10,825 | 10,131 | |
Operating profit | 1,243 | 1,377 | 1,187 | |
Non-underlying items | 276 | 228 | 157 | |
Underlying operating profit | 1,519 | 1,605 | 1,344 | |
Share of net profit/(loss) of joint ventures and associates | 5 | 4 | 3 | |
Significant non-cash charges within underlying operating profit: | ||||
Depreciation and amortisation | 362 | 369 | 373 | |
Share-based compensation and other non-cash charges | [1] | 41 | 50 | 46 |
Significant non-cash charges within non-underlying items: | ||||
Impairment and other non-cash charges | [2] | € 35 | € 46 | € 263 |
[1] | Other non-cash charges within underlying operating profit include movements in provisions from underlying activities, excluding movements arising from non-underlying activities. | |||
[2] | Other non-cash charges within non-underlying items includes movements in restructuring provisions and movements in certain legal provisions. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Description of revenue from customers | The Unilever Group is not reliant on turnover from transactions with any single customer and does not receive 10% or more of its turnover from transactions with any single customer. |
Description of turnover from other countries | No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total. |
Segment Information - Summary_3
Segment Information - Summary of Operating Results by Geographical Areas (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of geographical areas [line items] | ||||
Turnover | € 50,724 | € 51,980 | € 50,982 | |
Non-current assets | [1] | 46,430 | 43,744 | 42,111 |
Country of Domicile [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Turnover | 2,391 | 2,306 | 2,385 | |
Non-current assets | [1] | 3,587 | 3,891 | 3,160 |
United States [member] | ||||
Disclosure of geographical areas [line items] | ||||
Turnover | 9,363 | 8,702 | 8,305 | |
Non-current assets | [1] | 12,946 | 13,326 | 12,471 |
India [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Turnover | 4,993 | 4,964 | 4,565 | |
Non-current assets | [1] | 6,264 | 1,137 | 1,080 |
Others [Member] | ||||
Disclosure of geographical areas [line items] | ||||
Turnover | [2] | 33,977 | 36,009 | 35,727 |
Non-current assets | [1],[2] | € 23,633 | € 25,391 | € 25,400 |
[1] | For the purpose of this table, non-current assets include goodwill, intangible assets, property, plant and equipment and other non-current assets as shown on the consolidated balance sheet. Goodwill is attributed to countries where acquired business operated at the time of acquisition; all other assets are attributed to the countries where they were acquired. | |||
[2] | Includes the Netherlands that was presented as country of domicile in prior years. |
Segment Information - Summary_4
Segment Information - Summary of Additional Information by Geographies (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Additional information by geographies [line items] | ||||
Turnover | € 50,724 | € 51,980 | € 50,982 | |
Operating profit | 8,303 | 8,708 | 12,639 | |
Non-underlying items | 1,064 | 1,239 | (3,176) | |
Underlying operating profit | 9,367 | 9,947 | 9,463 | |
Share of net profit/(loss) of joint ventures and associates | 175 | 176 | 185 | |
Asia/AMET/RUB [member] | ||||
Additional information by geographies [line items] | ||||
Turnover | [1] | 23,440 | 24,129 | 22,868 |
Operating profit | [1] | 4,137 | 4,418 | 4,824 |
Non-underlying items | [1] | 409 | 439 | (437) |
Underlying operating profit | [1] | 4,546 | 4,857 | 4,387 |
Share of net profit/(loss) of joint ventures and associates | [1] | 8 | (5) | |
The Americas [member] | ||||
Additional information by geographies [line items] | ||||
Turnover | [2] | 16,080 | 16,482 | 16,020 |
Operating profit | [2] | 2,723 | 2,683 | 3,621 |
Non-underlying items | [2] | 249 | 395 | (892) |
Underlying operating profit | [2] | 2,973 | 3,078 | 2,729 |
Share of net profit/(loss) of joint ventures and associates | [2] | 122 | 126 | 114 |
Europe [member] | ||||
Additional information by geographies [line items] | ||||
Turnover | 11,204 | 11,369 | 12,094 | |
Operating profit | 1,443 | 1,607 | 4,194 | |
Non-underlying items | 406 | 405 | (1,847) | |
Underlying operating profit | 1,848 | 2,012 | 2,347 | |
Share of net profit/(loss) of joint ventures and associates | € 45 | € 55 | € 71 | |
[1] | Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus. | |||
[2] | Americas sales in North America were €10,117 million (2019: €9,411 million; 2018 €9,041 million) and in Latin America were €5,963 million (2019: €7,071 million; 2018: €6,979 million). |
Segment Information - Summary_5
Segment Information - Summary of Additional Information by Geographies (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Additional information by geographies [Line Items] | |||
Revenue | € 50,724 | € 51,980 | € 50,982 |
North America [Member] | |||
Additional information by geographies [Line Items] | |||
Revenue | 10,117 | 9,411 | 9,041 |
Latin America [Member] | |||
Additional information by geographies [Line Items] | |||
Revenue | € 5,963 | € 7,071 | € 6,979 |
Segment information - Summary_6
Segment information - Summary of Disaggregation of sales by markets (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Sales By Markets [Line Items] | |||
Revenue | € 50,724 | € 51,980 | € 50,982 |
Emerging markets [Member] | |||
Disaggregation Of Sales By Markets [Line Items] | |||
Revenue | 29,281 | 31,021 | 29,654 |
Developed markets [Member] | |||
Disaggregation Of Sales By Markets [Line Items] | |||
Revenue | € 21,443 | € 20,959 | € 21,328 |
Operating costs and non-under_3
Operating costs and non-underlying items - Analysis of expenses recognized in Profit or loss by function (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Analysis of expenses recognized in profit or loss by function [Line Items] | |||
Turnover | € 50,724 | € 51,980 | € 50,982 |
Cost of sales | (28,684) | (29,102) | (28,703) |
Gross profit | 22,040 | 22,878 | 22,279 |
Selling and administrative expenses | (12,673) | (12,931) | (12,816) |
Non-underlying items within operating profit before tax | (1,064) | (1,239) | 3,176 |
Operating profit | 8,303 | 8,708 | 12,639 |
Cost of Sales [Member] | |||
Analysis of expenses recognized in profit or loss by function [Line Items] | |||
Distribution costs | (3,104) | (3,089) | (3,057) |
Production costs | (3,696) | (3,701) | (3,732) |
Raw and packaging materials and goods purchased for resale | (20,400) | (20,769) | (20,516) |
Other | (1,484) | (1,543) | (1,398) |
Selling and Administrative Expenses [Member] | |||
Analysis of expenses recognized in profit or loss by function [Line Items] | |||
Brand and marketing investment | (7,091) | (7,272) | (7,150) |
Overheads | (5,582) | (5,659) | (5,666) |
Research and development | € (800) | € (840) | € (900) |
Operating costs and non-under_4
Operating costs and non-underlying items - Summary of Non-underlying items Related to Gross Profit and Operating Costs (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of non underlying items [Abstract] | |||
Non-underlying items within operating profit before tax | € (1,064) | € (1,239) | € 3,176 |
Acquisition and disposal-related costs | (69) | (132) | 76 |
Gain on disposal of group companies | 8 | 70 | 4,331 |
Restructuring costs | (916) | (1,159) | (914) |
Impairments | (18) | (208) | |
Other | (87) | (109) | |
Tax on non-underlying items within operating profit | 272 | 309 | (259) |
Non-underlying items within operating profit after tax | (792) | (930) | 2,917 |
Non-underlying items not in operating profit but within net profit before tax | (36) | 35 | 154 |
Share of gain on disposal of Spreads business in Portugal JV | 3 | 32 | |
Interest related to the UK tax audit of intangible income and centralised services | (56) | ||
Net monetary gain arising from hyperinflationary economies | 20 | 32 | 122 |
Tax impact of non-underlying items not in operating profit but within net profit | (146) | (196) | (29) |
Impact of US tax reform | (29) | ||
Taxes related to the reorganisation of our European business | (58) | (175) | |
Taxes charges related to share buyback as part of Unification | (30) | ||
Taxes related to the UK tax audit of intangible income and centralised services | (53) | ||
Hyperinflation adjustment for Argentina deferred tax | (5) | (21) | |
Non-underlying items not in operating profit but within net profit after tax | (182) | (161) | 125 |
Non-underlying items after tax | (974) | (1,091) | 3,042 |
Attributable to: | |||
Non-controlling interest | (23) | (28) | 18 |
Shareholders' equity | € (951) | € (1,063) | € 3,024 |
Operating Costs and Non-under_5
Operating Costs and Non-underlying Items - Summary of Non-underlying Items Related to Gross Profit and Operating Costs (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-underlying Items [Line Items] | |||
Gain on business disposal | € 57 | € 4,331 | |
Impairment of goodwill | 18 | ||
Non-Current Assets Held for Sale [member] | |||
Non-underlying Items [Line Items] | |||
Impairment of goodwill | € 18 | ||
Legal Cases in Relation to Investigations [Member] | |||
Non-underlying Items [Line Items] | |||
Litigation charges | € 87 |
Operating costs and non-under_6
Operating costs and non-underlying items - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Gross Profit And Operating Costs [Abstract] | |||
Exchange gains/(losses) | € 45 | € 41 | € 49 |
Employees - Summary of Staff Co
Employees - Summary of Staff Cost, Average and Number of Employees (Detail) Employees in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2020EUR (€)Employees | Dec. 31, 2019EUR (€)Employees | Dec. 31, 2018EUR (€)Employees | |
Disclosure Of Staff And Management Costs [Line Items] | |||
Wages and salaries | € (5,051) | € (5,364) | € (5,346) |
Social security costs | (519) | (541) | (571) |
Other pension costs | (419) | (334) | (439) |
Share-based compensation costs | (108) | (151) | (196) |
Gross staff costs | € (6,097) | € (6,390) | € (6,552) |
Average number of employees during the year | Employees | 150 | 153 | 158 |
Asia/AMET/RUB [member] | |||
Disclosure Of Staff And Management Costs [Line Items] | |||
Average number of employees during the year | Employees | 83 | 84 | 88 |
The Americas [member] | |||
Disclosure Of Staff And Management Costs [Line Items] | |||
Average number of employees during the year | Employees | 38 | 40 | 40 |
Europe [member] | |||
Disclosure Of Staff And Management Costs [Line Items] | |||
Average number of employees during the year | Employees | 29 | 29 | 30 |
Employees - Summary of Key Mana
Employees - Summary of Key Management Compensation (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Staff And Management Costs [Line Items] | |||
Salaries and short-term employee benefits | € (28) | € (42) | € (40) |
Share-based benefits | (5) | (16) | (13) |
Key management compensation excluding non-executive director's fee | (33) | (58) | (53) |
Non-Executive Directors' fees | (2) | (2) | (2) |
Key management compensation | (35) | (60) | (55) |
Key management personnel of entity or parent [member] | Executive Directors [Member] | |||
Disclosure Of Staff And Management Costs [Line Items] | |||
Key management compensation | (6) | (9) | (13) |
Key management personnel of entity or parent [member] | Other [Member] | |||
Disclosure Of Staff And Management Costs [Line Items] | |||
Key management compensation | € (27) | € (49) | € (40) |
Employees - Additional Informat
Employees - Additional Information (Detail) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | |
Disclosure Of Pension Plans [Line Items] | ||||
Defined benefit liabilities | 11.00% | 11.00% | ||
Actual return on plan assets | € 1,930 | € 2,958 | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,494 | 2,385 | € (1,108) | |
Interest income | 436 | |||
Property and leases | 1,623 | 1,728 | ||
Contribution payable to the US Unicare Pension Plan in 2020 | $ | $ 100 | |||
Unilever PLC [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Actuarial Assumptions of changes in refinements Benefits | 880 | |||
Property and Leases Occupied by Unilever [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Property and leases | 29 | 30 | ||
Unilever securities [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Equity securities | € 9 | € 12 | ||
Percentage of plan assets in equity securities | (0.04%) | (0.05%) | ||
Pension liabilities [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Defined benefit liabilities | 96.00% | 96.00% | ||
Special Benefits Trust [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Excluded plan assets | € 44 | € 54 | ||
United Kingdom [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Percentage of long term trend future improvements | 1.00% | 1.00% | ||
United Kingdom [Member] | Interest rate risk [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Degree of hedging of liabilities, percentage | 70.00% | 70.00% | ||
United Kingdom [Member] | Inflation rate risk [member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Degree of hedging of liabilities, percentage | 70.00% | 70.00% | ||
Netherlands [Member] | Interest rate risk [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Degree of hedging of liabilities, percentage | 33.00% | 33.00% | ||
Netherlands [Member] | Inflation rate risk [member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Degree of hedging of liabilities, percentage | 20.00% | 20.00% | ||
Other Post-Employment Benefit Plans [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Period of level of medical cost inflation | 4 years | 4 years | ||
Other Post-Employment Benefit Plans [Member] | Bottom of range [member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Rate of level of medical cost inflation | 6.00% | |||
Liabilities [Member] | ||||
Disclosure Of Pension Plans [Line Items] | ||||
Defined benefit liabilities | 85.00% | 85.00% |
Employees - Summary of Assumpti
Employees - Summary of Assumptions, Weighted by Liabilities for Valuation of Defined Benefit Plans Which cover Approximately 00% of Total Pension Plan (Detail) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined benefit pension plans [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.30% | 1.90% |
Inflation | 2.20% | 2.30% |
Rate of increase in salaries | 2.90% | 2.90% |
Rate of increase for pensions in payment (where provided) | 2.10% | 2.20% |
Rate of increase for pensions in deferment (where provided) | 2.30% | 2.40% |
Other Post-Employment Benefit Plans [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 3.30% | 3.90% |
Rate of increase in salaries | 3.00% | 3.00% |
Long-term medical cost inflation | 5.10% | 5.40% |
Employees - Summary of Assump_2
Employees - Summary of Assumptions for Pension Plans Representing Approximately 00% of Defined Benefit Pension Liability (Detail) - yr | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
United Kingdom [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 1.40% | 2.00% |
Inflation | 2.70% | 2.90% |
Rate of increase in salaries | 3.30% | 3.20% |
Number of years a current pensioner is expected to live beyond age 65 - Men | 21.7 | 21.6 |
Number of years a current pensioner is expected to live beyond age 65 - Women | 23.4 | 23.4 |
Number of years a future pensioner currently aged 45 is expected to live beyond age 65 - Men | 22.7 | 22.6 |
Number of years a future pensioner currently aged 45 is expected to live beyond age 65 - Women | 24.6 | 24.6 |
United Kingdom [Member] | Pensions in payment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Rate of increase for pensions in payment (where provided) | 2.70% | 2.80% |
United Kingdom [Member] | Pensions in deferment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Rate of increase for pensions in deferment (where provided) | 2.70% | 2.80% |
Netherlands [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Discount rate | 0.70% | 1.10% |
Inflation | 1.50% | 1.50% |
Rate of increase in salaries | 2.00% | 2.00% |
Number of years a current pensioner is expected to live beyond age 65 - Men | 21.5 | 22.6 |
Number of years a current pensioner is expected to live beyond age 65 - Women | 23.6 | 24.1 |
Number of years a future pensioner currently aged 45 is expected to live beyond age 65 - Men | 23.4 | 24.5 |
Number of years a future pensioner currently aged 45 is expected to live beyond age 65 - Women | 25.4 | 26.2 |
Netherlands [Member] | Pensions in payment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Rate of increase for pensions in payment (where provided) | 1.50% | 1.50% |
Netherlands [Member] | Pensions in deferment [Member] | ||
Disclosure of defined benefit plans [line items] | ||
Rate of increase for pensions in deferment (where provided) | 1.50% | 1.50% |
Employees - Summary of Charge t
Employees - Summary of Charge to Operating Profit (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of defined benefit plans [abstract] | ||||
Current service cost | € (223) | € (216) | € (220) | |
Employee contributions | 17 | 17 | 17 | |
Special termination benefits | (37) | (5) | (16) | |
Past service cost including (losses)/gains on curtailments | 20 | 65 | (41) | |
Settlements | 7 | (2) | ||
Defined contribution plans | (203) | (193) | (179) | |
Total operating cost | (419) | (334) | (439) | |
Finance income/(cost) | [1] | (9) | (30) | (25) |
Net impact on the income statement (before tax) | € (428) | € (364) | € (464) | |
[1] | This includes the impact of interest on asset ceiling. |
Employees - Summary of Amounts
Employees - Summary of Amounts Recognised in Statement of Comprehensive Income on Remeasurement of Net Defined Benefit Liability (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [abstract] | |||
Return on plan assets excluding amounts included in net finance income/(cost) | € 1,494 | € 2,385 | € (1,108) |
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | |
Actuarial gains/(losses) arising from changes in demographic assumptions | 246 | 183 | 42 |
Actuarial gains/(losses) arising from changes in financial assumptions | (1,414) | (2,138) | 611 |
Experience gains/(losses) arising on pension plan and other benefit plan liabilities | (78) | (12) | 18 |
Total of defined benefit costs recognised in other comprehensive income | € 250 | € 381 | € (437) |
Employees - Summary of Assets,
Employees - Summary of Assets, Liabilities and Surplus/ (Deficit) Position of Pension and Other Post-Employment Benefit Plans at Balance Sheet Date (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | € 24,023 | € 23,749 | |
Other Post-Employment Benefit Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Computed net assets/liabilities | (438) | (470) | |
Pension asset net of liabilities | (438) | (470) | |
Other Post-Employment Benefit Plans [Member] | Aggregate Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | 1 | 2 | |
Other Post-Employment Benefit Plans [Member] | Funded Pension Plans in Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | 1 | 2 | |
Other Post-Employment Benefit Plans [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | (32) | (20) | |
Other Post-Employment Benefit Plans [Member] | Unfunded Pension Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | (407) | (452) | |
Assets [Member] | Other Post-Employment Benefit Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 9 | 14 | |
Assets [Member] | Other Post-Employment Benefit Plans [Member] | Funded Pension Plans in Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 1 | 2 | |
Assets [Member] | Other Post-Employment Benefit Plans [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 8 | 12 | |
Liabilities [Member] | Other Post-Employment Benefit Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of liabilities | (447) | (484) | |
Liabilities [Member] | Other Post-Employment Benefit Plans [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of liabilities | (40) | (32) | |
Pension Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Computed net assets/liabilities | 751 | 311 | |
Irrecoverable surplus | [1] | (26) | (37) |
Pension asset net of liabilities | 725 | 274 | |
Pension Plans [Member] | Aggregate Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | 2,747 | 2,457 | |
Pension Plans [Member] | Funded Pension Plans in Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | 2,721 | 2,420 | |
Pension Plans [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | (1,077) | (1,137) | |
Pension Plans [Member] | Unfunded Pension Plans [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Pension asset net of liabilities | (919) | (1,009) | |
Pension Plans [Member] | Assets [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 24,023 | 23,749 | |
Pension Plans [Member] | Assets [Member] | Funded Pension Plans in Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 20,790 | 20,229 | |
Pension Plans [Member] | Assets [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Fair value of assets | 3,233 | 3,520 | |
Pension Plans [Member] | Liabilities [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of liabilities | (23,272) | (23,438) | |
Pension Plans [Member] | Liabilities [Member] | Funded Pension Plans in Surplus [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of liabilities | (18,043) | (17,772) | |
Pension Plans [Member] | Liabilities [Member] | Funded Pension Plans in Deficit [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of liabilities | € (4,310) | € (4,657) | |
[1] | A surplus is deemed recoverable to the extent that the Group can benefit economically from the surplus. Unilever assesses the maximum economic benefit available through a combination of refunds and reductions in future contributions in accordance with local legislation and individual financing arrangements with each of our funded defined benefit plans. |
Employees - Summary of Movement
Employees - Summary of Movements in Assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | € 23,749 | |||
Actual return on plan assets (excluding amounts in net finance income/charge) | (1,494) | € (2,385) | € 1,108 | |
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | ||
Ending balance | 24,023 | 23,749 | ||
Assets [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 23,726 | 20,880 | ||
Employee contributions | 17 | 17 | ||
Settlements | (67) | |||
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,494 | 2,385 | ||
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | ||
Interest income/ (cost) | [1] | 436 | 573 | |
Employer contributions | 398 | 401 | ||
Benefit payments | (1,140) | (1,208) | ||
Others | 20 | 2 | ||
Currency retranslation | (880) | 713 | ||
Ending balance | 24,006 | 23,726 | 20,880 | |
Assets [Member] | United Kingdom [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 12,122 | 10,329 | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,109 | 1,233 | ||
Interest income/ (cost) | [1] | 230 | 292 | |
Employer contributions | 104 | 94 | ||
Benefit payments | (467) | (455) | ||
Others | 46 | |||
Currency retranslation | (645) | 629 | ||
Ending balance | 12,499 | 12,122 | 10,329 | |
Assets [Member] | Netherlands [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 5,522 | 4,996 | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 206 | 588 | ||
Interest income/ (cost) | [1] | 60 | 89 | |
Employer contributions | 12 | 14 | ||
Benefit payments | (166) | (165) | ||
Others | (47) | |||
Ending balance | 5,587 | 5,522 | 4,996 | |
Assets [Member] | All other countries [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 6,082 | 5,555 | ||
Employee contributions | 17 | 17 | ||
Settlements | (67) | |||
Actual return on plan assets (excluding amounts in net finance income/charge) | 179 | 564 | ||
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | ||
Interest income/ (cost) | [1] | 146 | 192 | |
Employer contributions | 282 | 293 | ||
Benefit payments | (507) | (588) | ||
Others | 21 | 2 | ||
Currency retranslation | (235) | 84 | ||
Ending balance | € 5,920 | € 6,082 | € 5,555 | |
[1] | This includes the impact of interest on asset ceiling. |
Employees - Summary of Moveme_2
Employees - Summary of Movements in Liabilities (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Current service cost | € (223) | € (216) | € (220) |
Special termination benefits | (37) | (5) | (16) |
Past service costs including (losses)/gains on curtailments | (20) | (65) | 41 |
Actuarial gain/(loss) arising from changes in demographic assumptions | (246) | (183) | (42) |
Actuarial gain/(loss) arising from changes in financial assumptions | 1,414 | 2,138 | (611) |
Actuarial gain/(loss) arising from experience adjustments | 78 | 12 | (18) |
Liabilities [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Beginning balance | (23,922) | (21,754) | |
Current service cost | (223) | (216) | |
Special termination benefits | (37) | (5) | |
Past service costs including (losses)/gains on curtailments | 20 | 65 | |
Settlements | 74 | (2) | |
Interest cost | (445) | (603) | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 246 | 183 | |
Actuarial gain/(loss) arising from changes in financial assumptions | (1,414) | (2,138) | |
Actuarial gain/(loss) arising from experience adjustments | (78) | (12) | |
Benefit payments | 1,140 | 1,208 | |
Others | (38) | (20) | |
Currency retranslation | 958 | (628) | |
Ending balance | (23,719) | (23,922) | (21,754) |
Liabilities [Member] | United Kingdom [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Beginning balance | (11,001) | (9,739) | |
Current service cost | (114) | (104) | |
Past service costs including (losses)/gains on curtailments | 17 | 56 | |
Interest cost | (208) | (276) | |
Actuarial gain/(loss) arising from changes in demographic assumptions | (1) | 157 | |
Actuarial gain/(loss) arising from changes in financial assumptions | (806) | (955) | |
Actuarial gain/(loss) arising from experience adjustments | (67) | (44) | |
Benefit payments | 467 | 455 | |
Others | (44) | ||
Currency retranslation | 609 | (551) | |
Ending balance | (11,148) | (11,001) | (9,739) |
Liabilities [Member] | Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Beginning balance | (5,097) | (4,664) | |
Current service cost | (3) | (4) | |
Interest cost | (55) | (82) | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 245 | 14 | |
Actuarial gain/(loss) arising from changes in financial assumptions | (354) | (511) | |
Actuarial gain/(loss) arising from experience adjustments | (6) | (15) | |
Benefit payments | 166 | 165 | |
Others | 44 | ||
Ending balance | (5,060) | (5,097) | (4,664) |
Liabilities [Member] | All other countries [member] | |||
Disclosure of defined benefit plans [line items] | |||
Beginning balance | (7,824) | (7,351) | |
Current service cost | (106) | (108) | |
Special termination benefits | (37) | (5) | |
Past service costs including (losses)/gains on curtailments | 3 | 9 | |
Settlements | 74 | (2) | |
Interest cost | (182) | (245) | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 2 | 12 | |
Actuarial gain/(loss) arising from changes in financial assumptions | (254) | (672) | |
Actuarial gain/(loss) arising from experience adjustments | (5) | 47 | |
Benefit payments | 507 | 588 | |
Others | (38) | (20) | |
Currency retranslation | 349 | (77) | |
Ending balance | € (7,511) | € (7,824) | € (7,351) |
Employees - Summary of Moveme_3
Employees - Summary of Movements in (Deficit)/Surplus (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | € (223) | € (216) | € (220) | |
Special termination benefits | (37) | (5) | (16) | |
Past service costs including (losses)/gains on curtailments | 20 | 65 | (41) | |
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,494 | 2,385 | (1,108) | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 246 | 183 | 42 | |
Actuarial gain/(loss) arising from changes in financial assumptions | (1,414) | (2,138) | 611 | |
Actuarial gain/(loss) arising from experience adjustments | (78) | (12) | 18 | |
Liabilities net of assets [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | (196) | (874) | ||
Current service cost | (223) | (216) | ||
Employee contributions | 17 | 17 | ||
Special termination benefits | (37) | (5) | ||
Past service costs including (losses)/gains on curtailments | 20 | 65 | ||
Settlements | 7 | (2) | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,494 | 2,385 | ||
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | ||
Interest cost | (445) | (603) | ||
Interest income | [1] | 436 | 573 | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 246 | 183 | ||
Actuarial gain/(loss) arising from changes in financial assumptions | (1,414) | (2,138) | ||
Actuarial gain/(loss) arising from experience adjustments | (78) | (12) | ||
Employer contributions | 398 | 401 | ||
Others | (18) | (18) | ||
Currency retranslation | 78 | 85 | ||
Ending balance | 287 | (196) | (874) | |
Liabilities net of assets [member] | United Kingdom [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 1,121 | 590 | ||
Current service cost | (114) | (104) | ||
Past service costs including (losses)/gains on curtailments | 17 | 56 | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 1,109 | 1,233 | ||
Interest cost | (208) | (276) | ||
Interest income | [1] | 230 | 292 | |
Actuarial gain/(loss) arising from changes in demographic assumptions | (1) | 157 | ||
Actuarial gain/(loss) arising from changes in financial assumptions | (806) | (955) | ||
Actuarial gain/(loss) arising from experience adjustments | (67) | (44) | ||
Employer contributions | 104 | 94 | ||
Others | 2 | |||
Currency retranslation | (36) | 78 | ||
Ending balance | 1,351 | 1,121 | 590 | |
Liabilities net of assets [member] | Netherlands [Member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | 425 | 332 | ||
Current service cost | (3) | (4) | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 206 | 588 | ||
Interest cost | (55) | (82) | ||
Interest income | [1] | 60 | 89 | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 245 | 14 | ||
Actuarial gain/(loss) arising from changes in financial assumptions | (354) | (511) | ||
Actuarial gain/(loss) arising from experience adjustments | (6) | (15) | ||
Employer contributions | 12 | 14 | ||
Others | (3) | |||
Ending balance | 527 | 425 | 332 | |
Liabilities net of assets [member] | All other countries [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Beginning balance | (1,742) | (1,796) | ||
Current service cost | (106) | (108) | ||
Employee contributions | 17 | 17 | ||
Special termination benefits | (37) | (5) | ||
Past service costs including (losses)/gains on curtailments | 3 | 9 | ||
Settlements | 7 | (2) | ||
Actual return on plan assets (excluding amounts in net finance income/charge) | 179 | 564 | ||
Change in asset ceiling, excluding amounts included in finance cost | 2 | (37) | ||
Interest cost | (182) | (245) | ||
Interest income | [1] | 146 | 192 | |
Actuarial gain/(loss) arising from changes in demographic assumptions | 2 | 12 | ||
Actuarial gain/(loss) arising from changes in financial assumptions | (254) | (672) | ||
Actuarial gain/(loss) arising from experience adjustments | (5) | 47 | ||
Employer contributions | 282 | 293 | ||
Others | (17) | (18) | ||
Currency retranslation | 114 | 7 | ||
Ending balance | € (1,591) | € (1,742) | € (1,796) | |
[1] | This includes the impact of interest on asset ceiling. |
Employees - Summary of Moveme_4
Employees - Summary of Movements in Irrecoverable Surplus (Detail) - Irrecoverable Surplus [Member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of defined benefit plans [line items] | ||
Beginning balance | € (37) | |
Interest Income | (1) | |
Change in irrecoverable surplus in excess of interest | 2 | € (37) |
Currency retranslation | 10 | |
Ending balance | (26) | (37) |
Rest of The World [member] | ||
Disclosure of defined benefit plans [line items] | ||
Beginning balance | (37) | |
Interest Income | (1) | |
Change in irrecoverable surplus in excess of interest | 2 | (37) |
Currency retranslation | 10 | |
Ending balance | € (26) | € (37) |
Employees - Summary of Principa
Employees - Summary of Principal Defined Benefit Liabilities and Split of Liabilities Between Different Categories of Plan Participants (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
United Kingdom [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Duration (years) | 18 years | 18 years | |
Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Duration (years) | 18 years | 19 years | |
Rest of The World [member] | |||
Disclosure of defined benefit plans [line items] | |||
Duration (years) | [1] | 13 years | 13 years |
Bottom of range [member] | |||
Disclosure of defined benefit plans [line items] | |||
Duration (years) | 7 years | 7 years | |
Top of range [member] | |||
Disclosure of defined benefit plans [line items] | |||
Duration (years) | 22 years | 23 years | |
Active members [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 14.00% | 16.00% | |
Active members [Member] | United Kingdom [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 12.00% | 14.00% | |
Active members [Member] | Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 12.00% | 14.00% | |
Active members [Member] | Rest of The World [member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | [1] | 20.00% | 21.00% |
Deferred members [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 32.00% | 31.00% | |
Deferred members [Member] | United Kingdom [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 35.00% | 34.00% | |
Deferred members [Member] | Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 43.00% | 41.00% | |
Deferred members [Member] | Rest of The World [member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | [1] | 17.00% | 17.00% |
Retired members [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 54.00% | 53.00% | |
Retired members [Member] | United Kingdom [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 53.00% | 52.00% | |
Retired members [Member] | Netherlands [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | 45.00% | 45.00% | |
Retired members [Member] | Rest of The World [member] | |||
Disclosure of defined benefit plans [line items] | |||
Percentage of defined benefit liabilities | [1] | 63.00% | 62.00% |
[1] | Rest of world numbers shown are weighted averages by liabilities. |
Employees - Schedule of Fair Va
Employees - Schedule of Fair Value of Plans Assets, Which Are Reported Net of Fund Liabilities That Are Not Employee Benefits (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value of plan assets [line items] | ||
Total plan assets | € 24,023 | € 23,749 |
Equities total | 8,184 | 7,756 |
Fixed income total | 11,693 | 11,362 |
Private equity | 347 | 396 |
Property and real estate | 1,623 | 1,728 |
Hedge funds | 380 | 757 |
Other | 1,167 | 1,158 |
Other plans | 370 | 300 |
Derivatives | 259 | 292 |
Government Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 5,457 | 4,845 |
Investment Grade Corporate Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 2,818 | 2,934 |
Other fixed income [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 3,418 | 3,583 |
Europe [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 1,864 | 2,030 |
North America [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 4,381 | 3,844 |
Other Countries [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 1,939 | 1,882 |
United Kingdom [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Total plan assets | 12,499 | 12,122 |
Equities total | 4,653 | 4,173 |
Fixed income total | 5,819 | 5,317 |
Private equity | 274 | 325 |
Property and real estate | 835 | 916 |
Hedge funds | 318 | 688 |
Other | 470 | 454 |
Derivatives | 130 | 249 |
United Kingdom [Member] | Government Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 3,292 | 2,711 |
United Kingdom [Member] | Investment Grade Corporate Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 1,167 | 1,120 |
United Kingdom [Member] | Other fixed income [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 1,360 | 1,486 |
United Kingdom [Member] | Europe [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 921 | 930 |
United Kingdom [Member] | North America [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 2,740 | 2,312 |
United Kingdom [Member] | Other Countries [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 992 | 931 |
Netherlands [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Total plan assets | 5,587 | 5,522 |
Equities total | 1,837 | 1,831 |
Fixed income total | 2,766 | 2,795 |
Private equity | 64 | 65 |
Property and real estate | 456 | 491 |
Other | 320 | 289 |
Derivatives | 144 | 51 |
Netherlands [Member] | Government Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 798 | 765 |
Netherlands [Member] | Investment Grade Corporate Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 540 | 542 |
Netherlands [Member] | Other fixed income [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 1,428 | 1,488 |
Netherlands [Member] | Europe [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 437 | 517 |
Netherlands [Member] | North America [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 894 | 825 |
Netherlands [Member] | Other Countries [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 506 | 489 |
Rest of The World [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Total plan assets | 5,937 | 6,105 |
Equities total | 1,694 | 1,752 |
Fixed income total | 3,108 | 3,250 |
Private equity | 9 | 6 |
Property and real estate | 332 | 321 |
Hedge funds | 62 | 69 |
Other | 377 | 415 |
Other plans | 370 | 300 |
Derivatives | (15) | (8) |
Rest of The World [member] | Government Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 1,367 | 1,369 |
Rest of The World [member] | Investment Grade Corporate Bonds [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 1,111 | 1,272 |
Rest of The World [member] | Other fixed income [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Fixed income total | 630 | 609 |
Rest of The World [member] | Europe [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 506 | 583 |
Rest of The World [member] | North America [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | 747 | 707 |
Rest of The World [member] | Other Countries [Member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equities total | € 441 | € 462 |
Employees - Schedule of Sensiti
Employees - Schedule of Sensitivity of Pension Liabilities to Changes in the Weighted Key Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2020 | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | Increase by 1.0% | [1] |
Discount Rate [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | Increase by 0.5% | |
Change in liabilities | (8.00%) | |
Discount Rate [Member] | United Kingdom [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | (8.00%) | |
Discount Rate [Member] | Netherlands [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | (9.00%) | |
Inflation Rate [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | Increase by 0.5% | |
Change in liabilities | 6.00% | |
Inflation Rate [Member] | United Kingdom [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 6.00% | |
Inflation Rate [Member] | Netherlands [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 9.00% | |
Life expectancy [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in assumption | Increase by 1 year | |
Change in liabilities | 5.00% | |
Life expectancy [Member] | United Kingdom [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 5.00% | |
Life expectancy [Member] | Netherlands [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 5.00% | |
Long-Term Medical Cost Inflation [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 3.00% | [1] |
Long-Term Medical Cost Inflation [Member] | United Kingdom [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 0.00% | [1] |
Long-Term Medical Cost Inflation [Member] | Netherlands [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in liabilities | 0.00% | [1] |
[1] | Long-term medical cost inflation only relates to post-retirement medical plans and its impact on these liabilities. |
Employees - Schedule of Cash Fl
Employees - Schedule of Cash Flow in Respect of Pensions and Similar Post-employment Benefits (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Group cash flow in respect of pensions and similar benefits | € 601 | € 594 | € 561 | ||
Funded Plans [Member] | |||||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Defined benefit | [1] | 266 | 244 | 238 | |
Defined contributions | 203 | 193 | 179 | ||
Unfunded Plans [Member] | |||||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Defined benefit | € 132 | € 157 | € 144 | ||
Future estimate [member] | |||||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Group cash flow in respect of pensions and similar benefits | € 640 | ||||
Future estimate [member] | Funded Plans [Member] | |||||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Defined benefit | [1] | 285 | |||
Defined contributions | 220 | ||||
Future estimate [member] | Unfunded Plans [Member] | |||||
Disclosure of Employee Benefit Plan [Line Items] | |||||
Defined benefit | € 135 | ||||
[1] | Following the conclusion of the 2019 Funding valuation of the US Unicare Pension Plan, the Group contributed $100 million into the plan in 2020. Deficit contributions to the US Pension plan are expected to be nil for the following few years. |
Employees - Schedule of Charges
Employees - Schedule of Charges Related to Equity-Settled Plans (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Share Based Compensation Plans [Line Items] | |||
Income statement charge | € (108) | € (151) | € (196) |
Performance share plans [Member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Income statement charge | (98) | (142) | (183) |
Other plans [Member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Income statement charge | € (10) | € (9) | € (13) |
Employees - Share- based Compen
Employees - Share- based Compensation Plans - Additional Information (Detail) - EUR (€) € in Millions | 2 Months Ended | 12 Months Ended | |
Feb. 23, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Share Based Compensation Plans [Line Items] | |||
Shares and options outstanding in respect of share-based compensation plans | 12,283,872 | 11,944,106 | |
Number of ordinary shares held by NV group companies to satisfy options granted | 1,382,155 | 12,419,009 | |
Book value of shares held in respect of share-based compensation plans eliminated on consolidation | € 483 | € 640 | |
Market value of shares held in respect of share-based compensation plans eliminated on consolidation | € 357 | € 635 | |
Performance share plan : Number of shares granted between 31/12/2020 and 23/02/2021 | 0 | ||
Performance share plan : Number of shares vested between 31/12/2020 and 23/02/2021 | 2,232,282 | ||
Performance share plan : Number of shares forfeited between 31/12/2020 and 23/02/2021 | 43,435 | ||
Unilever PLC [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Number of shares held by employee share ownership trust | 5,884,511 | ||
Number of shares held as treasury shares | 1,382,155 | ||
Ordinary Shares [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Number of shares transferred To employee share ownership trust | 4,523,367 | ||
Ordinary Shares [member] | Unilever NV And PLC [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Number of shares transferred To employee share ownership trust | 4,523,367 | ||
New York Registry Share [member] | Unilever N.V. [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Number of shares transferred To employee share ownership trust | 892,155 | ||
American Depositary Shares [member] | Unilever PLC [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Number of shares transferred To employee share ownership trust | 468,989 | ||
Executive Directors [Member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Maximum percentage of annual bonus that managers are entitled to invest in shares under MCIP | 67.00% | ||
Minimum Percentage Of Annual Bonus That Managers Are Entitled To Invest In MCIP Shares | 33.00% | ||
Bottom of range [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Range of share awards percentage for performance share plans | 0.00% | ||
Top of range [member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Range of share awards percentage for performance share plans | 200.00% |
Employees - Summary of Status o
Employees - Summary of Status of Performance Share Plans and Related Changes (Detail) | 12 Months Ended | ||
Dec. 31, 2020€ / shares | Dec. 31, 2019€ / shares | Dec. 31, 2018€ / shares | |
Disclosure of Share Based Compensation Plans [Line Items] | |||
Fair value per share award during the year | € 43.91 | € 48.22 | € 42.44 |
Performance share plans [Member] | |||
Disclosure of Share Based Compensation Plans [Line Items] | |||
Outstanding at 1 January | 11,137,801 | 13,634,518 | 13,684,747 |
Awarded | 4,395,633 | 4,538,771 | 6,870,882 |
Vested | (3,240,738) | (6,041,011) | (5,854,388) |
Forfeited | (921,260) | (994,477) | (1,066,723) |
Outstanding at 31 December | 11,371,436 | 11,137,801 | 13,634,518 |
Net Finance Cost - Summary of N
Net Finance Cost - Summary of Net Finance Costs (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about finance income expense [Line Items] | |||
Finance costs | € (672) | € 821 | € 718 |
Bank loans and overdrafts | (32) | (46) | (44) |
Interest on bonds and other loans | (533) | (617) | (560) |
Interest on lease liabilities | (82) | (100) | (127) |
Net gain/(loss) on transactions for which hedge accounting is not applied | (25) | (58) | 13 |
Finance income | 232 | 224 | 135 |
Pensions and similar obligations | (9) | (30) | (25) |
Net finance costs before non-underlying items | (449) | (627) | (608) |
Interest related to the UK tax audit of intangible income and centralised services | (56) | ||
Net finance costs | (505) | (627) | (608) |
Foreign exchange derivatives [member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Net gain/(loss) on transactions for which hedge accounting is not applied | 275 | (321) | 144 |
Exchange Differences On Underlying Items [Member] | |||
Disclosure of detailed information about finance income expense [Line Items] | |||
Net gain/(loss) on transactions for which hedge accounting is not applied | € (300) | € 263 | € (131) |
Net Finance Cost - Summary of_2
Net Finance Cost - Summary of Net Finance Costs (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement [Line Items] | |||
Unwinding of discount | € (21) | € (6) | |
Finance costs | (728) | (821) | € (718) |
Brazil [Member] | |||
Statement [Line Items] | |||
Interest on tax settlement | 90 | 70 | |
India [Member] | |||
Statement [Line Items] | |||
Interest on corporate income tax refund | 27 | ||
Changes In Functional Currency | |||
Statement [Line Items] | |||
Finance costs | € 0 | € (40) |
Taxation - Summary of Tax Charg
Taxation - Summary of Tax Charge in Income Statement (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax | |||
Current year | € (2,128) | € (2,098) | € (2,647) |
Over/(under) provided in prior years | (154) | 119 | (10) |
Current tax (expense) income | (2,282) | (1,979) | (2,657) |
Deferred tax | |||
Origination and reversal of temporary differences | 344 | (255) | 5 |
Changes in tax rates | (19) | (59) | (12) |
Recognition of previously unrecognised losses brought forward | 34 | 30 | 92 |
Deferred tax (expense) income | 359 | (284) | 85 |
Total tax (expense) income | € (1,923) | € (2,263) | € (2,572) |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Reconciliation of Effective Tax Rate [Line Items] | ||||
Computed rate of tax | [1] | 23.00% | 24.00% | 25.00% |
Incentive tax credits | (2.00%) | (2.00%) | (3.00%) | |
Withholding tax on dividends | 2.00% | 3.00% | 2.00% | |
Expenses not deductible for tax purposes | 1.00% | 1.00% | 1.00% | |
Irrecoverable withholding tax | 1.00% | 1.00% | 1.00% | |
Income tax reserve adjustments - current and prior year | (1.00%) | 1.00% | ||
Transfer to/(from) unrecognised deferred tax assets | (2.00%) | |||
Others | (1.00%) | 1.00% | (1.00%) | |
Underlying effective tax rate | 23.00% | 26.00% | 26.00% | |
Non-underlying items within operating profit | [2] | (1.00%) | ||
Taxes related to the UK tax audit of intangible income and centralised services | 1.00% | |||
Impact of Spreads disposal | [2] | (4.00%) | ||
Taxes related to the reorganisation of our European business | [2] | 2.00% | ||
Effective tax rate | 25.00% | 28.00% | 21.00% | |
[1] | The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For this reason, the rate may vary from year to year according to the mix of profit and related tax rates. | |||
[2] | See note 3 for explanation of non-underlying items. |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Unused tax losses for which deferred tax asset recognised or not | € 4,808 | € 4,790 |
Unused tax credits for which deferred tax asset recognised or not | 454 | 524 |
Unused tax losses for which no deferred tax asset recognised | 4,246 | 4,272 |
Unused tax credits for which no deferred tax asset recognised | 429 | 497 |
Tax losses for which deferred tax has not been recognized and which have a date to expire | 4,195 | 4,108 |
Other deductible temporary differences for which no deferred tax asset recognised | 1,445 | 48 |
Aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised | 2,097 | 2,476 |
Uncertain tax provision | 879 | € 787 |
Uncertain tax provision for amortization of intangible asset | 186 | |
Adjustment of uncertain tax provision related to amortization of goodwill | 59 | |
Interest expense for which no Deferred tax asset has been recognised | € 1,193 |
Taxation - Summary of Movements
Taxation - Summary of Movements in Deferred Tax Asset (Liability) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | € (1,237) | € (748) | |
Income statement | 359 | (284) | |
Other | (814) | (205) | |
Deferred tax asset (liability) ending balance | (1,692) | (1,237) | |
Pensions and similar obligations [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 272 | 404 | |
Income statement | (97) | (81) | |
Other | (95) | (51) | |
Deferred tax asset (liability) ending balance | 80 | 272 | |
Provisions and accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 756 | 821 | |
Income statement | 38 | (73) | |
Other | (96) | 8 | |
Deferred tax asset (liability) ending balance | 698 | 756 | |
Goodwill and intangible assets [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | (2,096) | (1,911) | |
Income statement | 23 | (31) | |
Other | (661) | (154) | |
Deferred tax asset (liability) ending balance | (2,734) | (2,096) | |
Accelerated tax depreciation [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | (685) | (679) | |
Income statement | 9 | 12 | |
Other | 35 | (18) | |
Deferred tax asset (liability) ending balance | (641) | (685) | |
Tax losses [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 184 | 130 | |
Income statement | 32 | 63 | |
Other | (26) | (9) | |
Deferred tax asset (liability) ending balance | 190 | 184 | |
Fair value gains [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | (50) | 155 | |
Income statement | 12 | (200) | |
Other | (14) | (5) | |
Deferred tax asset (liability) ending balance | (52) | (50) | |
Fair value losses [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 15 | 22 | |
Income statement | (6) | (2) | |
Other | 36 | (5) | |
Deferred tax asset (liability) ending balance | 45 | 15 | |
Share-based payments [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 156 | 175 | |
Income statement | (30) | (39) | |
Other | 20 | 20 | |
Deferred tax asset (liability) ending balance | 146 | 156 | |
Lease liability [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | 319 | 428 | |
Income statement | 9 | (113) | |
Other | (34) | 4 | |
Deferred tax asset (liability) ending balance | 294 | 319 | |
Right of use asset [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | (269) | (370) | |
Income statement | (4) | 107 | |
Other | 29 | (6) | |
Deferred tax asset (liability) ending balance | (244) | (269) | |
Other [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) beginning balance | [1] | 161 | 77 |
Income statement | [1] | 373 | 73 |
Other | [1] | (8) | 11 |
Deferred tax asset (liability) ending balance | [1] | € 526 | € 161 |
[1] | The deferred tax - other includes the recognition of an asset of €345 million relating to the impact of the expected outcome of the Mutual Agreement Procedure which Unilever applied for following the conclusion of the UK tax audit for the tax years 2011-2018. |
Taxation - Summary of Movemen_2
Taxation - Summary of Movements in Deferred Tax Asset (Liability) (Parenthetical) (Detail) € in Millions | Dec. 31, 2020EUR (€) |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |
Recognition of deferred tax assets | € 345 |
Taxation - Summary of Deferred
Taxation - Summary of Deferred Tax Assets and Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | € 1,474 | € 1,336 | ||
Liabilities | (3,166) | (2,573) | ||
Total | (1,692) | (1,237) | € (748) | |
More than 1 year [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 1,230 | 1,030 | ||
Liabilities | (3,311) | (2,681) | ||
Total | (2,081) | (1,651) | ||
Pensions and similar obligations [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 404 | 402 | ||
Liabilities | (324) | (130) | ||
Total | 80 | 272 | 404 | |
Provisions and accruals [member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 408 | 495 | ||
Liabilities | 290 | 261 | ||
Total | 698 | 756 | 821 | |
Goodwill and intangible assets [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 330 | 248 | ||
Liabilities | (3,064) | (2,344) | ||
Total | (2,734) | (2,096) | (1,911) | |
Accelerated tax depreciation [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | (37) | (67) | ||
Liabilities | (604) | (618) | ||
Total | (641) | (685) | (679) | |
Tax losses [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 161 | 153 | ||
Liabilities | 29 | 31 | ||
Total | 190 | 184 | 130 | |
Fair value gains [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | (1) | (14) | ||
Liabilities | (51) | (36) | ||
Total | (52) | (50) | 155 | |
Fair value losses [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 27 | |||
Liabilities | 18 | 15 | ||
Total | 45 | 15 | 22 | |
Share-based payments [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 26 | 31 | ||
Liabilities | 120 | 125 | ||
Total | 146 | 156 | 175 | |
Lease liability [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 157 | 170 | ||
Liabilities | 137 | 149 | ||
Total | 294 | 319 | 428 | |
Right of use asset [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | (128) | (142) | ||
Liabilities | (116) | (127) | ||
Total | (244) | (269) | (370) | |
Other [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 127 | 60 | ||
Liabilities | 399 | 101 | ||
Total | [1] | € 526 | € 161 | € 77 |
[1] | The deferred tax - other includes the recognition of an asset of €345 million relating to the impact of the expected outcome of the Mutual Agreement Procedure which Unilever applied for following the conclusion of the UK tax audit for the tax years 2011-2018. |
Taxation - Tax Effects of Compo
Taxation - Tax Effects of Components of Other Comprehensive Income (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Before tax | |||
Gains/(losses) on equity instruments at fair value through other comprehensive income, Before tax | € 77 | € 35 | |
Gains/(losses) on cash flow hedges, Before tax | 87 | 198 | |
Remeasurements of defined benefit pension plans, Before tax | 250 | 381 | |
Currency retranslation gains/(losses), Before tax | (2,646) | 6 | |
Other comprehensive income, Before tax | (2,232) | 620 | |
Tax (charge)/credit | |||
Gains/(losses) on equity instruments at fair value through other comprehensive income, Tax (charge)/credit | 1 | (6) | |
Gains/(losses) on cash flow hedges, Tax (charge)/credit | (27) | (22) | |
Remeasurements of defined benefit pension plans, Tax (charge)/credit | (35) | (28) | |
Currency retranslation gains/(losses),Tax (charge)/credit | 56 | (21) | |
Other comprehensive income, Tax (charge)/credit | (5) | (77) | |
After tax | |||
Gains/(losses) on equity instruments at fair value through other comprehensive income, After tax | 78 | 29 | € 51 |
Gains/(losses) on cash flow hedges, After tax | 60 | 176 | (55) |
Remeasurements of defined benefit pension plans, After tax | 215 | 353 | (328) |
Currency retranslation gains/(losses), After tax | (2,590) | (15) | € (839) |
Other comprehensive income, After tax | € (2,237) | € 543 |
Combined Earnings Per Share - A
Combined Earnings Per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Description on diluted earnings per share and underlying earnings per share calculation | In calculating diluted earnings per share and underlying earnings per share, a number of adjustments are made to the number of shares, principally, the exercise of share plans by employees. |
Description of common stock unification conversion ratio | NV were issued PLC ordinary shares on a 1:1 ratio |
Combined Earnings Per Share - S
Combined Earnings Per Share - Summary of Computation of Earnings Per Share (Detail) - EUR (€) € / shares in Units, € in Millions, shares in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings per share [line items] | ||||
Basic earnings per share | € 2.13 | € 2.15 | € 3.49 | |
Diluted earnings per share | 2.12 | 2.14 | 3.48 | |
Underlying earnings per share | € 2.48 | € 2.55 | € 2.35 | |
Less treasury shares held by employee share trusts and companies | [1] | (8.9) | (157) | (295.4) |
Average number of shares - used for basic earnings per share | [1] | 2,620.3 | 2,616.5 | 2,683.3 |
Add dilutive effect of share-based compensation plans | [1] | 9.5 | 10.2 | 11.5 |
Diluted average number of shares - used for diluted and underlying earnings per share | [1] | 2,629.8 | 2,626.7 | 2,694.8 |
Net profit | € 6,073 | € 6,026 | € 9,788 | |
Non-controlling interests | (492) | (401) | (419) | |
Net profit attributable to shareholders' equity - used for basic and diluted earnings per share | 5,581 | 5,625 | 9,369 | |
Post tax impact of non-underlying items | 951 | 1,063 | (3,024) | |
Underlying profit attributable to shareholders' equity - used for underlying earnings per share | € 6,532 | € 6,688 | € 6,345 | |
Unilever N.V. [member] | ||||
Earnings per share [line items] | ||||
Average number of shares - used for basic earnings per share | [1] | 1,278.1 | 1,598 | 1,714.7 |
Unilever PLC [member] | ||||
Earnings per share [line items] | ||||
Average number of shares - used for basic earnings per share | [1] | 1,351.1 | 1,175.5 | 1,264 |
[1] | In the calculation of the weighted average number of share units, NV shares are included only for the period they were issued (until 29 November 2020). Following Unification, all NV shares were cancelled and the shareholders of NV were issued PLC ordinary shares on a 1:1 ratio. Accordingly, there is no significant impact on the average number of share units as a result of Unification. |
Dividends on Ordinary Capital -
Dividends on Ordinary Capital - Summary of Dividends on Ordinary Capital (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of Dividends [Line Items] | ||||
Dividend on ordinary capital during the year | € (4,300) | € (4,223) | € (4,081) | |
Unilever PLC [member] | ||||
Disclosure of Dividends [Line Items] | ||||
Dividend on ordinary capital during the year | (1,911) | (1,871) | (1,819) | |
Unilever N.V. [member] | ||||
Disclosure of Dividends [Line Items] | ||||
Dividend on ordinary capital during the year | [1] | € (2,389) | € (2,352) | € (2,262) |
[1] | Amount relates to NV dividends paid prior to Unification. |
Dividends on Ordinary Capital_2
Dividends on Ordinary Capital - Additional Information (Detail) € / shares in Units, € in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020EUR (€) | Dec. 31, 2020£ / shares | Dec. 31, 2019EUR (€) | Dec. 31, 2019£ / shares | Dec. 31, 2020€ / shares | Dec. 31, 2020£ / shares | Dec. 31, 2019€ / shares | Dec. 31, 2019£ / shares | |
Disclosure of Dividends [Line Items] | ||||||||
Dividend declared | € | € 1,125 | |||||||
Unilever N.V. [member] | ||||||||
Disclosure of Dividends [Line Items] | ||||||||
Dividend declared and paid during the year | € / shares | € 1.64 | € 1.62 | ||||||
Unilever PLC [member] | ||||||||
Disclosure of Dividends [Line Items] | ||||||||
Dividend declared | € | € 1,125 | € 1,073 | ||||||
Dividend declared and paid during the year | £ / shares | £ 1.45 | £ 1.42 | ||||||
Dividends declared per ordinary share | £ / shares | £ 0.38 | £ 0.35 | £ 1.48 | £ 1.43 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) € in Millions | 12 Months Ended | |
Dec. 31, 2020DivisionsGeographicalAreas | Dec. 31, 2019EUR (€) | |
Disclosure of detailed information about intangible assets [line items] | ||
Number of divisions included in cash generating units | Divisions | 3 | |
Number of geographical areas included in cash generating units | GeographicalAreas | 3 | |
Number of cash generating units | 10 | |
Impairment of goodwill | € | € 18 | |
Pre-tax discount rate | 7.40% | |
Projection period | 5 years | |
Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Pre-tax discount rate | 6.00% | |
Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Amortisation period of finite-life intangible assets | ten years | |
Pre-tax discount rate | 7.40% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Net Book Value Goodwill and Intangible Assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | [1] | € 31,029 | ||
Ending balance | [1] | 34,941 | € 31,029 | |
Cost [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | 35,519 | 33,541 | ||
Additions through business combinations | 6,620 | [2] | 1,220 | |
Disposal of businesses | (1) | (8) | ||
Reclassification to held for sale | (2) | |||
Additions | 158 | 208 | ||
Disposals and other movements | (144) | (13) | ||
Currency retranslation | (2,678) | 583 | ||
Hyperinflationary adjustment | (43) | (10) | ||
Ending balance | 39,431 | 35,519 | ||
Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | (4,490) | (4,048) | ||
Amortisation/impairment for the year | (333) | (370) | ||
Disposal of businesses | 5 | |||
Disposals | 139 | 6 | ||
Currency retranslation | 194 | (83) | ||
Ending balance | (4,490) | (4,490) | ||
Goodwill [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | [1] | 18,067 | ||
Ending balance | [1] | 18,942 | 18,067 | |
Goodwill [member] | Cost [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | 19,246 | 18,502 | ||
Additions through business combinations | 2,407 | [2] | 444 | |
Disposal of businesses | (1) | (2) | ||
Reclassification to held for sale | (2) | |||
Currency retranslation | (1,496) | 313 | ||
Hyperinflationary adjustment | (38) | (9) | ||
Ending balance | 20,118 | 19,246 | ||
Goodwill [member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | (1,179) | (1,161) | ||
Amortisation/impairment for the year | (18) | |||
Currency retranslation | 3 | |||
Ending balance | (1,176) | (1,179) | ||
Indefinite-life intangible assets [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | [1] | 11,909 | ||
Ending balance | [1] | 15,209 | 11,909 | |
Indefinite-life intangible assets [Member] | Cost [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | 12,121 | 11,247 | ||
Additions through business combinations | 4,244 | [2] | 726 | |
Disposal of businesses | (1) | |||
Currency retranslation | (940) | 150 | ||
Hyperinflationary adjustment | (5) | (1) | ||
Ending balance | 15,420 | 12,121 | ||
Indefinite-life intangible assets [Member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | (212) | (212) | ||
Currency retranslation | 1 | |||
Ending balance | (211) | (212) | ||
Software [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | [1] | 699 | ||
Ending balance | [1] | 537 | 699 | |
Software [Member] | Cost [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | 2,991 | 2,689 | ||
Additions | 156 | 205 | ||
Disposals and other movements | (144) | (11) | ||
Currency retranslation | (184) | 108 | ||
Ending balance | 2,819 | 2,991 | ||
Software [Member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | (2,292) | (1,927) | ||
Amortisation/impairment for the year | (279) | (296) | ||
Disposals | 139 | 5 | ||
Currency retranslation | 150 | (74) | ||
Ending balance | (2,282) | (2,292) | ||
Other [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | [1] | 354 | ||
Ending balance | [1] | 253 | 354 | |
Other [Member] | Cost [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | 1,161 | 1,103 | ||
Additions through business combinations | (31) | [2] | 50 | |
Disposal of businesses | (5) | |||
Additions | 2 | 3 | ||
Disposals and other movements | (2) | |||
Currency retranslation | (58) | 12 | ||
Ending balance | 1,074 | 1,161 | ||
Other [Member] | Accumulated depreciation, amortisation and impairment [member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Beginning balance | (807) | (748) | ||
Amortisation/impairment for the year | (54) | (56) | ||
Disposal of businesses | 5 | |||
Disposals | 1 | |||
Currency retranslation | 40 | (9) | ||
Ending balance | € (821) | € (807) | ||
[1] | Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 milion (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional. | |||
[2] | Includes the provisional fair value of goodwill and intangibles for acquisitions made in 2020 as well as subsequent changes to the fair value of goodwill and intangibles for acquisitions made in 2019 where the initial acquisition accounting was provisional at the end of 2019. See note 21 for further details. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Net Book Value Goodwill and Intangible Assets (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Indefinite-life intangible assets that have significant carrying value | [1] | € 34,941 | € 31,029 |
Horlicks [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Indefinite-life intangible assets that have significant carrying value | 2,718 | 0 | |
Knorr [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Indefinite-life intangible assets that have significant carrying value | 1,744 | 1,816 | |
Carver Korea [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Indefinite-life intangible assets that have significant carrying value | 1,468 | 1,509 | |
Hellmann's [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Indefinite-life intangible assets that have significant carrying value | € 1,112 | € 1,220 | |
[1] | Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 milion (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Goodwill and Indefinite-life Intangible Assets Held in Significant CGUs for Multiple Cash Generating Units (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | € 18,942 | € 18,067 | |
Food and Refreshment [Member] | Europe [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 4,000 | 4,100 | |
Indefinite-life intangible assets | 1,700 | 1,700 | |
Food and Refreshment [Member] | The Americas [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 3,400 | 4,000 | |
Indefinite-life intangible assets | 1,900 | 2,100 | |
Food and Refreshment [Member] | Asia/AMET/RUB [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | [1] | 3,700 | 1,900 |
Indefinite-life intangible assets | [1] | 3,700 | 500 |
Beauty & Personal Care [member] | The Americas [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 3,800 | 4,300 | |
Indefinite-life intangible assets | 3,100 | 3,100 | |
Beauty & Personal Care [member] | Asia/AMET/RUB [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 1,600 | 1,700 | |
Indefinite-life intangible assets | 1,900 | 2,000 | |
Total significant CGUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 16,500 | 16,000 | |
Indefinite-life intangible assets | 12,300 | 9,400 | |
Others | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | [2] | 2,400 | 2,100 |
Indefinite-life intangible assets | [2] | 2,900 | 2,500 |
Total CGUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Goodwill | 18,900 | 18,100 | |
Indefinite-life intangible assets | € 15,200 | € 11,900 | |
[1] | The Main Horlicks Acquisition increased goodwill by €2.0 billion and indefinite-life intangible assets by €3.3 billion in 2020. These values are provisional. | ||
[2] | Included within Others are individually insignificant amounts of goodwill and intangible assets that have been allocated between multiple cash generating units. |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Summary of Goodwill and Indefinite-life Intangible Assets Held in Significant CGUs for Multiple Cash Generating Units (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | € 18,942 | € 18,067 |
Foods & Refreshment [member] | Asia/AMET/RUB [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Goodwill | 2,000 | |
Indefinite-life intangible assets | € 3,300 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Summary of Key Assumptions Used in Discounted Cash Flow (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Food and Refreshment [Member] | Europe [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Longer-term sustainable growth rates | 1.10% | 1.10% |
Average near-term nominal growth rates | (1.00%) | 1.20% |
Average operating margins | 13.00% | 16.00% |
Food and Refreshment [Member] | The Americas [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Longer-term sustainable growth rates | 1.70% | 1.70% |
Average near-term nominal growth rates | 0.10% | (1.20%) |
Average operating margins | 15.00% | 15.00% |
Food and Refreshment [Member] | Asia/AMET/RUB [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Longer-term sustainable growth rates | 3.90% | 3.90% |
Average near-term nominal growth rates | 4.90% | 6.50% |
Average operating margins | 16.00% | 18.00% |
Beauty & Personal Care [member] | The Americas [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Longer-term sustainable growth rates | 1.70% | 1.70% |
Average near-term nominal growth rates | 2.50% | 1.60% |
Average operating margins | 22.00% | 21.00% |
Beauty & Personal Care [member] | Asia/AMET/RUB [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Longer-term sustainable growth rates | 3.90% | 3.90% |
Average near-term nominal growth rates | 3.40% | 5.30% |
Average operating margins | 22.00% | 22.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Total cash outflows for leases | € 525 | € 534 |
Commitments to purchase property, plant and equipment | 251 | 264 |
Short term lease expense | 96 | 97 |
Low value lease expense | 77 | 79 |
Income from sublet | € 19 | € 25 |
Freehold buildings [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 40 years | |
Leasehold land and buildings [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 40 years (or life of lease if less) | |
Plant and equipment [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2–20 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Detailed Information About Lease And Own Assets (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, plant and equipment [abstract] | ||
Property, plant and equipment | € 10,558 | € 12,062 |
Owned assets [Member] | ||
Property, plant and equipment [abstract] | ||
Property, plant and equipment | 8,909 | 10,249 |
Lease assets [Member] | ||
Property, plant and equipment [abstract] | ||
Property, plant and equipment | € 1,649 | € 1,813 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Movements in Property, Plant and Equipment (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | € 12,062 | |
Ending balance | 10,558 | € 12,062 |
Owned assets [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 10,249 | |
Ending balance | 8,909 | 10,249 |
Owned assets [Member] | Plant and equipment [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 7,230 | |
Ending balance | 6,146 | 7,230 |
Owned assets [Member] | Land and buildings [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 3,019 | |
Ending balance | 2,763 | 3,019 |
Owned assets [Member] | Cost [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 20,342 | 19,602 |
Additions through business combinations | 166 | 35 |
Disposals and other movements | (991) | (721) |
Additions | 863 | 1,316 |
Hyperinflationary adjustment | (45) | (31) |
Reclassification as held for sale | (100) | (179) |
Currency retranslation | (1,727) | 320 |
Ending balance | 18,508 | 20,342 |
Owned assets [Member] | Cost [Member] | Plant and equipment [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 15,844 | 15,216 |
Additions through business combinations | 44 | 28 |
Disposals and other movements | (901) | (649) |
Additions | 756 | 1,141 |
Hyperinflationary adjustment | (27) | (28) |
Reclassification as held for sale | (81) | (116) |
Currency retranslation | (1,330) | 252 |
Ending balance | 14,305 | 15,844 |
Owned assets [Member] | Cost [Member] | Land and buildings [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | 4,498 | 4,386 |
Additions through business combinations | 122 | 7 |
Disposals and other movements | (90) | (72) |
Additions | 107 | 175 |
Hyperinflationary adjustment | (18) | (3) |
Reclassification as held for sale | (19) | (63) |
Currency retranslation | (397) | 68 |
Ending balance | 4,203 | 4,498 |
Owned assets [Member] | Accumulated depreciation [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | (10,093) | (9,388) |
Disposals and other movements | 868 | 484 |
Depreciation charge for the year | (1,228) | (1,156) |
Hyperinflationary adjustment | 26 | 35 |
Reclassification as held for sale | 71 | 119 |
Currency retranslation | 757 | (187) |
Ending balance | (9,599) | (10,093) |
Includes capital expenditures for assets under construction | 735 | 950 |
Owned assets [Member] | Accumulated depreciation [Member] | Plant and equipment [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | (8,614) | (7,998) |
Disposals and other movements | 814 | 456 |
Depreciation charge for the year | (1,093) | (1,022) |
Hyperinflationary adjustment | 20 | 30 |
Reclassification as held for sale | 60 | 81 |
Currency retranslation | 654 | (161) |
Ending balance | (8,159) | (8,614) |
Includes capital expenditures for assets under construction | 660 | 872 |
Owned assets [Member] | Accumulated depreciation [Member] | Land and buildings [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Beginning balance | (1,479) | (1,390) |
Disposals and other movements | 54 | 28 |
Depreciation charge for the year | (135) | (134) |
Hyperinflationary adjustment | 6 | 5 |
Reclassification as held for sale | 11 | 38 |
Currency retranslation | 103 | (26) |
Ending balance | (1,440) | (1,479) |
Includes capital expenditures for assets under construction | € 75 | € 78 |
Property, Plant and Equipment_4
Property, Plant and Equipment - Summary of Movements in Property, Plant and Equipment (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | € 10,558 | € 12,062 |
Freehold land [Member] | ||
Disclosure of Detailed Information about Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | € 347 | € 319 |
Property, Plant and Equipment_5
Property, Plant and Equipment - Summary of Movements in Leased Assets (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | € 12,062 | |
Ending balance | 10,558 | € 12,062 |
Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,813 | |
Ending balance | 1,649 | 1,813 |
Cost [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 3,701 | 3,586 |
Acquisitions of group companies | 33 | |
Additions | 579 | 452 |
Disposals and other movements | (624) | (420) |
Hyperinflationary adjustment | (3) | 23 |
Currency retranslation | (279) | 60 |
Ending balance | 3,407 | 3,701 |
Accumulated depreciation [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,888) | (1,712) |
Depreciation charge for the year | (457) | (456) |
Disposals and other movements | 450 | 304 |
Hyperinflationary adjustment | 9 | |
Currency retranslation | 137 | (33) |
Ending balance | (1,758) | (1,888) |
Land and buildings [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,477 | |
Ending balance | 1,328 | 1,477 |
Land and buildings [Member] | Cost [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 2,874 | 2,770 |
Acquisitions of group companies | 30 | |
Additions | 390 | 278 |
Disposals and other movements | (436) | (240) |
Hyperinflationary adjustment | (3) | 23 |
Currency retranslation | (216) | 43 |
Ending balance | 2,639 | 2,874 |
Land and buildings [Member] | Accumulated depreciation [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,397) | (1,241) |
Depreciation charge for the year | (315) | (297) |
Disposals and other movements | 300 | 154 |
Hyperinflationary adjustment | 9 | |
Currency retranslation | 101 | (22) |
Ending balance | (1,311) | (1,397) |
Plant and equipment [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 336 | |
Ending balance | 321 | 336 |
Plant and equipment [Member] | Cost [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 827 | 816 |
Acquisitions of group companies | 3 | |
Additions | 189 | 174 |
Disposals and other movements | (188) | (180) |
Currency retranslation | (63) | 17 |
Ending balance | 768 | 827 |
Plant and equipment [Member] | Accumulated depreciation [Member] | Assets Under Lease [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (491) | (471) |
Depreciation charge for the year | (142) | (159) |
Disposals and other movements | 150 | 150 |
Currency retranslation | 36 | (11) |
Ending balance | € (447) | € (491) |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of Other Non-current Assets (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Miscellaneous non-current assets [abstract] | |||
Interest in net assets of joint ventures | € 29 | € 35 | |
Interest in net assets of associates | 34 | 37 | |
Long-term trade and other receivables | [1] | 465 | 380 |
Fair value of biological assets | 12 | 17 | |
Other non-current assets | [2] | 391 | 184 |
Total other non-current assets | € 931 | € 653 | |
[1] | Mainly relates to indirect tax receivables where we do not have the contractual right to receive payment within 12 months. | ||
[2] | Includes direct tax assets, withholding tax assets, interest on tax assets and contingent assets. During 2020 contingent assets of €73 million were recognised as part of the Horlicks acquisition, see note 21 for further details. |
Other Non-Current Assets - Move
Other Non-Current Assets - Movements in Interest in Joint Ventures and Associates (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Disclosure of Other non current assets, Beginning balance | € 653 | ||
Disclosure of Other non current assets, Ending balance | 931 | € 653 | |
Associates [member] | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Disclosure of Other non current assets, Beginning balance | [1] | 37 | 40 |
Additions | [1] | 1 | 1 |
Share of net profit/(loss) | [1] | (2) | (3) |
Currency retranslation | [1] | (2) | (1) |
Disclosure of Other non current assets, Ending balance | [1] | 34 | 37 |
Joint ventures [member] | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Disclosure of Other non current assets, Beginning balance | [2] | 35 | 14 |
Additions | [2] | 1 | |
Dividend received/reductions | [2] | (182) | (158) |
Share of net profit/(loss) | [2] | 177 | 179 |
Currency retranslation | [2] | (2) | |
Disclosure of Other non current assets, Ending balance | [2] | € 29 | € 35 |
[1] | Associates as at 31 December 2020 primarily comprise our investments in Langholm Capital Partners. | ||
[2] | Our principal joint ventures are Unilever FIMA Lda for Portugal, Binzagr Unilever Distribution and Al Gurg Unilever for Middle East, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International Ltd for the rest of the world. |
Other Non-current Assets - Addi
Other Non-current Assets - Additional Information (Detail) | Dec. 31, 2020EUR (€) |
Miscellaneous non-current assets [abstract] | |
Contingent liabilities incurred in relation to interests in joint ventures | € 0 |
Contingent liabilities incurred in relation to interests in associates | 0 |
Capital commitments to joint ventures | € 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||
Raw materials and consumables | € 1,523 | € 1,399 |
Finished goods and goods for resale | 3,223 | 3,053 |
Total inventories | 4,746 | 4,452 |
Provision for inventories | (284) | (288) |
Total | € 4,462 | € 4,164 |
Inventories - Summary Reconcili
Inventories - Summary Reconciliation Of Provision For Inventories (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure Of Reconciliation Of Provision For Inventories [Line Items] | |||
Provisions for inventories beginning balance | € 288 | € 205 | |
Charge to income statement | 116 | 153 | |
Reduction/releases | (97) | (71) | |
Currency translations | (26) | ||
Others | [1] | 3 | 1 |
Provisions for inventories ending balance | € 284 | € 288 | |
[1] | Others include the amount relating to the acquisition/disposal of businesses. |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Classes of current inventories [abstract] | ||
Inventories carried at net realisable value | € 204 | € 159 |
Total expense towards inventory write downs and losses | € 381 | € 363 |
Trade and Other Current Recei_3
Trade and Other Current Receivables - Summary of Trade and Other Current Receivables (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and other current receivables [abstract] | |||
Trade receivables | [1] | € 3,433 | € 4,916 |
Prepayments and accrued income | 423 | 579 | |
Other receivables | 1,083 | 1,200 | |
Total trade and other current receivables | € 4,939 | € 6,695 | |
[1] | 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. |
Trade and Other Current Recei_4
Trade and Other Current Receivables - Summary of Trade and Other Current Receivables (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and Other Current Receivables [Line Items] | |||
Trade receivables | [1] | € 3,433 | € 4,916 |
KKR [member] | |||
Trade and Other Current Receivables [Line Items] | |||
Trade receivables | € 61 | € 698 | |
[1] | 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. |
Trade and Other Current Recei_5
Trade and Other Current Receivables - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and Other Current Receivables [Line Items] | ||||
Other receivables | € 1,083 | € 1,200 | ||
Current trade receivables | [1] | 3,433 | 4,916 | |
Impairment provision | 276 | 321 | € 214 | |
Reclaimable sales tax | 561 | 584 | ||
Current trade receivables [member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Impairment provision | 193 | 211 | ||
Other Current Receivables [member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Impairment provision | 20 | 26 | ||
Non Current Trade And Other Receivables [Member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Impairment provision | 63 | 84 | ||
Financial asset [Member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Other receivables | 214 | 208 | ||
Non Financial Asset [Member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Other receivables | 869 | 992 | ||
Discounts due to customers [Member] | ||||
Trade and Other Current Receivables [Line Items] | ||||
Current trade receivables | € 2,082 | € 2,423 | ||
[1] | 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. |
Trade and Other Current Recei_6
Trade and Other Current Receivables - Summary of Aging of Trade Receivables (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Aging Of Current Trade Receivables [line items] | |||
Total trade receivables | € 3,626 | € 5,127 | |
Less impairment provision for trade receivables | (193) | (211) | |
Trade receivables | [1] | 3,433 | 4,916 |
Not overdue [Member] | |||
Aging Of Current Trade Receivables [line items] | |||
Trade receivables | 2,849 | 3,856 | |
Past due less than three months [Member] | |||
Aging Of Current Trade Receivables [line items] | |||
Trade receivables | 481 | 827 | |
Past due more than three months but less than six months [Member] | |||
Aging Of Current Trade Receivables [line items] | |||
Trade receivables | 99 | 186 | |
Past due more than six months but less than one year [Member] | |||
Aging Of Current Trade Receivables [line items] | |||
Trade receivables | 73 | 94 | |
Past due more than one year [Member] | |||
Aging Of Current Trade Receivables [line items] | |||
Trade receivables | € 124 | € 164 | |
[1] | 2020 includes €61 million (2019: €698 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa) where Unilever provided services to KKR for two years from completion of the disposal. See also trade payables on page 142. |
Trade and Other Current Recei_7
Trade and Other Current Receivables - Summary of Impairment Provision for Trade and Other Receivables - Current and Non-Current Impairments (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Trade and other receivables [abstract] | |||
Beginning balance | € 321 | € 214 | |
Charge to income statement | 66 | 79 | |
Reduction/releases | (68) | (54) | |
Reclassifications | [1] | 1 | 86 |
Currency translations | (44) | (4) | |
Ending balance | € 276 | € 321 | |
[1] | 2019 includes an amount transferred from provisions relating to Brazil indirect taxes. |
Trade Payables - Summary of Tra
Trade Payables - Summary of Trade Payables and Other Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: due within one year | |||
Trade payables | [1] | € 8,375 | € 9,190 |
Accruals | 4,266 | 4,153 | |
Social security and sundry taxes | 401 | 507 | |
Deferred consideration | 43 | 39 | |
Others | 1,047 | 879 | |
Trade and other current payables | 14,132 | 14,768 | |
Non-current: due after more than one year | |||
Accruals | 81 | 117 | |
Deferred consideration | 121 | 169 | |
Others | 33 | 53 | |
Non current payables | 235 | 339 | |
Total trade payables and other liabilities | € 14,367 | € 15,107 | |
[1] | 2020 includes €5 million (2019: €359 million) due to KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever provided services to KKR for two years from completion of the disposal and paid KKR for amounts collected on its behalf. See also trade receivables on page 141. |
Trade Payables - Summary of T_2
Trade Payables - Summary of Trade Payables and Other Liabilities (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of trade and other payables [Line Items] | |||
Trade payables | [1] | € 8,375 | € 9,190 |
KKR [member] | |||
Disclosure of trade and other payables [Line Items] | |||
Trade payables | € 5 | € 359 | |
[1] | 2020 includes €5 million (2019: €359 million) due to KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever provided services to KKR for two years from completion of the disposal and paid KKR for amounts collected on its behalf. See also trade receivables on page 141. |
Trade Payables - Additional Inf
Trade Payables - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of trade and other liabilities [line items] | ||
Deferred consideration | € 164 | € 208 |
Balance for deferred contingent consideration | 140 | 154 |
Total Trade payables and other liabilities | 14,367 | 15,107 |
Maximum possible total payment | 718 | |
Discounts due to customers [Member] | ||
Disclosure of trade and other liabilities [line items] | ||
Total Trade payables and other liabilities | € 1,770 | € 1,053 |
Capital and Funding - Summary o
Capital and Funding - Summary of Share Capital (Detail) € in Millions, £ in Millions | Dec. 31, 2020EUR (€) | Dec. 31, 2020GBP (£) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | |||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | € 92 | € 420 | |||||
Unilever PLC [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | € 92 | [1] | £ 81.8 | 187 | [1] | £ 36.4 | |
Unilever PLC [member] | Ordinary Shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | £ | 36.4 | 37 | |||||
Unilever PLC [member] | Deferred Stock [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | £ | 0.1 | ||||||
Unilever PLC [member] | Internal Holdings Eliminated on Consolidation [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | £ | (0.1) | ||||||
Unilever PLC [member] | Shares Issued to NV Shareholders [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | £ | [2] | £ 45.4 | |||||
Unilever PLC [member] | Cancellation of Treasury shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | £ | [3] | £ (0.6) | |||||
Unilever N.V. [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | [2] | 233 | |||||
Authorised | 481 | ||||||
Unilever N.V. [member] | Ordinary Shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | 274 | ||||||
Authorised | 480 | ||||||
Unilever N.V. [member] | Ordinary Special Shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | 1 | ||||||
Authorised | 1 | ||||||
Unilever N.V. [member] | Internal Holdings Eliminated on Consolidation [Member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | (1) | ||||||
Unilever N.V. [member] | Cancellation of Treasury shares [member] | |||||||
Disclosure of classes of share capital [line items] | |||||||
Issued, called up and fully paid | [3] | € (41) | |||||
[1] | Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. | ||||||
[2] | As a result of Unification, the shareholders of NV were issued 1,460,713,122 PLC ordinary shares, and all NV shares in issue were cancelled. | ||||||
[3] | At 31 December 2019, 254,012,896 of NV ordinary shares and 18,660,634 of PLC ordinary shares that were repurchased as part of the share buyback programme in 2018 and prior years were cancelled. |
Capital and Funding - Summary_2
Capital and Funding - Summary of Share Capital (Parenthetical) (Detail) - € / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unilever PLC [member] | ||
Disclosure of classes of share capital [line items] | ||
Conversion rate for ordinary shares nominal value | € 1.121 | € 5.143 |
Description of conversion of currency | The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. | |
Unilever N.V. [member] | ||
Disclosure of classes of share capital [line items] | ||
Par value per share | € 0.16 | |
Ordinary Shares [member] | Unilever PLC [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 2,629,243,772 | 1,168,530,650 |
Cancellation of shares | 18,660,634 | |
Ordinary Shares [member] | Unilever N.V. [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 1,460,714,804 | |
Cancellation of shares | 254,012,896 | |
Ordinary Special Shares [member] | Unilever N.V. [member] | ||
Disclosure of classes of share capital [line items] | ||
Par value per share | € 428.57 | |
Number of shares issued | 2,400 | |
Deferred Stock [Member] | Unilever PLC [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 100,000 | |
Deferred Stock [Member] | Unilever N.V. [member] | ||
Disclosure of classes of share capital [line items] | ||
Par value per share | € 1 | |
Special Shares [Member] | Unilever N.V. [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 2,400 | |
Shares Issued to NV Shareholders [member] | Unilever PLC [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 1,460,713,122 |
Capital and funding - Additiona
Capital and funding - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | ||
Number of ordinary shares held by other group companies in connection with share-based compensation plans | 1,382,155 | 12,419,009 |
Ordinary Shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares acquired | 3,754,000 | |
Number of shares transferred To employee share ownership trust | 4,523,367 | |
Unilever N.V. [member] | Ordinary Shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 1,460,714,804 | |
Unilever N.V. [member] | New York Registry Share [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares transferred To employee share ownership trust | 892,155 | |
Unilever PLC [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares held by employee share ownership trust | 5,884,511 | |
Nominal dividend paid on the deferred stock of PLC | 6.00% | |
Number of treasury shares held | 7,266,666 | |
Unilever PLC [member] | Ordinary Shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 2,629,243,772 | 1,168,530,650 |
Unilever PLC [member] | American Depository Shares [Member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares transferred To employee share ownership trust | 468,989 | |
Unilever PLC [member] | Shares Issued to NV Shareholders [member] | ||
Disclosure of classes of share capital [line items] | ||
Number of shares issued | 1,460,713,122 |
Capital and Funding - Subsidiar
Capital and Funding - Subsidiaries With Significant Non-Controlling Interests (HUL) (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of classes of share capital [line items] | ||||
Beginning balance | € 13,886 | € 12,117 | € 14,198 | |
Non-current assets | 51,502 | 48,376 | ||
Current assets | 16,157 | 16,430 | ||
Total current liabilities | (20,592) | (20,978) | ||
Total non-current liabilities | (29,412) | (29,942) | ||
Turnover | 50,724 | 51,980 | 50,982 | |
Profit after tax | 6,073 | 6,026 | 9,788 | |
Other comprehensive income | (2,237) | 543 | ||
Total comprehensive income | 3,836 | 6,569 | 8,617 | |
Net increase/(decrease) in cash and cash-equivalents | 1,773 | 1,205 | (151) | |
Net gain arising from Horlicks acquisition | [1] | 4,848 | ||
Ending balance | 17,655 | 13,886 | 12,117 | |
Non-controlling Interests [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Beginning balance | 694 | 720 | 758 | |
Profit after tax | 492 | 401 | 419 | |
Total comprehensive income | 286 | 407 | 407 | |
Net gain arising from Horlicks acquisition | [1] | 1,918 | ||
Ending balance | 2,389 | 694 | 720 | |
Subsidiaries with material non-controlling interests [member] | Hindustan Unilever Limited [Member] | ||||
Disclosure of classes of share capital [line items] | ||||
Non-current assets | 6,173 | 1,030 | ||
Current assets | 1,258 | 1,438 | ||
Total current liabilities | (1,127) | (1,117) | ||
Total non-current liabilities | (1,139) | (332) | ||
Turnover | 4,957 | 4,937 | ||
Profit after tax | 866 | 730 | ||
Total comprehensive income | 374 | 740 | ||
Net increase/(decrease) in cash and cash-equivalents | 48 | 145 | ||
Subsidiaries with material non-controlling interests [member] | Hindustan Unilever Limited [Member] | Non-controlling Interests [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Beginning balance | (328) | (299) | ||
Profit after tax | (319) | (239) | ||
Other comprehensive income | 3 | (6) | ||
Dividend paid to the non-controlling interest | 392 | 218 | ||
Currency translation | 192 | (2) | ||
Net gain arising from Horlicks acquisition | (1,918) | |||
Ending balance | € (1,978) | € (328) | € (299) | |
[1] | Consideration for the Main Horlicks Acquisition included the issuance of shares in a group subsidiary, Hindustan Unilever Limited, which resulted in a net gain being recognised within equity. See note 21 for further details. |
Capital and Funding - Summary_3
Capital and Funding - Summary of Consolidated Statement of Changes in Equity: Analysis of Other Reserves (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of reserves within equity [abstract] | ||||||
Fair value reserves | € 250 | € 110 | € (123) | |||
Currency retranslation of group companies | (7,068) | (4,712) | (4,694) | |||
Adjustment on translation of PLC's ordinary capital | [1] | (148) | (150) | |||
Capital redemption reserve | 21 | 37 | 32 | |||
Book value of treasury shares – see following table | (483) | [2] | (703) | [2] | (10,181) | |
Other | [3] | (202) | (158) | (102) | ||
Other reserves | € (7,482) | € (5,574) | € (15,218) | |||
[1] | Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. | |||||
[2] | Shortly before Unification 4,523,367 NV and PLC ordinary shares, 892,155 NV NYRSs and 468,989 PLC ADSs held by NV in connection with share-based compensation plans were transferred to an employee share ownership trust at their carrying value. See note 4C for details. | |||||
[3] | Relates to the options to purchase non-controlling interest in subsidiaries and hyperinflation adjustment arising on current year profit translated at closing exchange rate. |
Capital and Funding - Summary_4
Capital and Funding - Summary of Consolidated Statement of Changes in Equity: Analysis of Other Reserves (Parenthetical) (Detail) - € / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Unilever PLC [member] | ||
Disclosure of reserves within equity [line items] | ||
Conversion rate for ordinary shares nominal value | € 1.121 | € 5.143 |
Capital and Funding - Summary_5
Capital and Funding - Summary of Treasury Shares Movements (Detail) - EUR (€) € in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of classes of share capital [line items] | |||||
1 January | € (703) | [1] | € (10,181) | ||
Other purchases and utilisations | 220 | 64 | |||
Adjustment on translation of PLC's ordinary capital | [2] | (148) | € (150) | ||
31 December | [1] | € (483) | (703) | ||
Unilever PLC [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Adjustment on translation of PLC's ordinary capital | (2) | ||||
Unilever PLC [member] | Nv [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Cancellation of NV and PLC shares | € 9,416 | ||||
[1] | Shortly before Unification 4,523,367 NV and PLC ordinary shares, 892,155 NV NYRSs and 468,989 PLC ADSs held by NV in connection with share-based compensation plans were transferred to an employee share ownership trust at their carrying value. See note 4C for details. | ||||
[2] | Prior to Unification, a conversion rate of £1 = €5.143 was used in accordance with the Equalisation Agreement, which ceased to exist as a result of Unification. The ordinary share capital of PLC is now translated using the conversion rate at 29 November 2020 of £1 = € 1.121. The difference between the conversion rates was released through Other Reserves as presented in the “Other effects of Unification” line in the Statement of Changes in Equity. |
Capital and Funding - Summary_6
Capital and Funding - Summary of Currency Retranslation Reserve (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in foreign currency translation reserve [abstract] | ||
Currency retranslation reserve beginning balance | € (4,712) | € (4,694) |
Currency retranslation of group companies net assets and liabilities during the year | (1,490) | (341) |
Movement in net investment hedges and exchange differences in net investments in foreign operations | (866) | 326 |
Recycled to income statement | (3) | |
Currency retranslation reserve ending balance | € (7,068) | € (4,712) |
Capital and Funding - Summary_7
Capital and Funding - Summary of Comprehensive Income Reconciliation (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Analysis Of Fair Value Reserves Remeasurement Of Pensions And Currency Translation Reserve [Abstract] | |||
1 January | € 110 | € (123) | |
Gains/(losses) on equity instruments | 68 | 25 | |
Gains/(losses) on cash flow hedges | 62 | 176 | |
Hedging gains/(losses) transferred to non-financial assets | 10 | 32 | |
31 December | 250 | 110 | € (123) |
Remeasurement of defined benefit pension plans beginning balance | (1,146) | (1,499) | |
Movement during the year | 215 | 353 | (328) |
Remeasurement of defined benefit pension plans ending balance | (931) | (1,146) | (1,499) |
Currency retranslation gains/(losses) beginning balance | (5,084) | (5,069) | |
Other reserves | (2,356) | (18) | |
Retained profit | (22) | 2 | |
Non-controlling interest | (212) | 1 | |
Currency retranslation gains/(losses) ending balance | € (7,674) | € (5,084) | € (5,069) |
Capital and Funding - Summary_8
Capital and Funding - Summary of Financial Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure of financial liabilities [abstract] | ||||||
Bank loans and overdrafts, Current | [1],[2] | € 407 | € 390 | |||
Bonds and other loans, Current | [2] | 3,499 | 3,677 | |||
Lease liabilities,Current | [2] | 380 | 383 | |||
Derivatives, Current | [2] | 58 | 116 | |||
Other financial liabilities, Current | [2],[3] | 117 | 125 | |||
Current financial liabilities | [2] | 4,461 | 4,691 | |||
Bank loans and overdrafts, Non-current | [1],[2] | 4 | 463 | |||
Bonds and other loans, Non-current | [2] | 21,086 | 21,355 | |||
Lease liabilities,Non-current | [2] | 1,391 | 1,536 | |||
Derivatives, Non-current | [2] | 257 | 154 | |||
Other financial liabilities, Non-current | [2],[3] | 106 | 58 | |||
Non-current financial liabilities | [2] | 22,844 | 23,566 | |||
Bank loans and overdrafts | [1],[2] | 411 | 853 | |||
Bonds and other loans | [2] | 24,585 | 25,032 | |||
Lease liabilities | [2] | 1,771 | 1,919 | |||
Derivatives | [2] | 315 | 270 | |||
Other financial liabilities | [2],[3] | 223 | 183 | |||
Financial liabilities | € 27,305 | [2] | € 28,257 | [2] | € 26,738 | |
[1] | Bank loans and overdrafts include €2.6 million (2019: €Nil) of secured liabilities. | |||||
[2] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | |||||
[3] | Includes options and other financial liabilities to acquire non-controlling interests in EAC Myanmar, USA, Japan, Italy and Hong Kong refer to note 21. |
Capital and Funding - Summary_9
Capital and Funding - Summary of Financial Liabilities (Parenthetical) (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [abstract] | ||
Secured liabilities | € 2.6 | € 0 |
Capital and Funding - Reconcili
Capital and Funding - Reconciliation of Liabilities Arising from Financing Activities (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Disclosure of financial liabilities [line items] | ||||
Opening balance | € (28,257) | [1] | € (26,738) | |
Cash Movement | 201 | (820) | ||
Business acquisitions/ disposals | (28) | (11) | ||
Foreign exchange changes | 1,325 | (407) | ||
Fair value changes | (15) | 131 | ||
Other movements | (531) | (412) | ||
Closing balance | [1] | (27,305) | (28,257) | |
Bank Loans and Overdrafts [Member] | ||||
Disclosure of financial liabilities [line items] | ||||
Opening balance | [2] | (853) | (814) | |
Cash Movement | [2] | 386 | (29) | |
Business acquisitions/ disposals | [2] | (1) | (1) | |
Foreign exchange changes | [2] | 54 | (9) | |
Other movements | [2] | 3 | ||
Closing balance | [2] | (411) | (853) | |
Bonds and Other Loans [Member] | ||||
Disclosure of financial liabilities [line items] | ||||
Opening balance | [2] | (25,032) | (23,391) | |
Cash Movement | [2] | (658) | (1,273) | |
Business acquisitions/ disposals | [2] | (3) | ||
Foreign exchange changes | [2] | 1,131 | (365) | |
Fair value changes | [2] | 10 | (1) | |
Other movements | [2] | (36) | 1 | |
Closing balance | [2] | (24,585) | (25,032) | |
Lease liabilities [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Opening balance | [3] | (1,919) | (1,981) | |
Cash Movement | [3] | 473 | 452 | |
Business acquisitions/ disposals | [3] | (27) | (7) | |
Foreign exchange changes | [3] | 142 | (25) | |
Other movements | [3] | (440) | (358) | |
Closing balance | [3] | (1,771) | (1,919) | |
Derivatives [Member] | ||||
Disclosure of financial liabilities [line items] | ||||
Opening balance | (270) | (402) | ||
Fair value changes | (45) | 132 | ||
Closing balance | (315) | (270) | ||
Other Financials Liabilities [member] | ||||
Disclosure of financial liabilities [line items] | ||||
Opening balance | [2] | (183) | (150) | |
Cash Movement | [2] | 0 | 30 | |
Foreign exchange changes | [2] | (2) | (8) | |
Fair value changes | 20 | |||
Other movements | [2] | (58) | (55) | |
Closing balance | [2] | € (223) | € (183) | |
[1] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | |||
[2] | These cash movements are included within the following lines in the consolidated cash flow statement: net change in short-term borrowings, additional financial liabilities and repayment of financial liabilities. The difference of €10 million (2019: €64 million) represents cash movements in overdrafts that are not included in financing cash flows. | |||
[3] | Lease liabilities cash movement is included within capital element of lease payments in the consolidated cash flow statement. The difference of €30 million (2019: €17 million) represents gain or loss from termination and modification of lease contracts. |
Capital and Funding - Reconci_2
Capital and Funding - Reconciliation of Liabilities Arising from Financing Activities (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [line items] | ||
Gain loss on termination and modifications of leases | € 30 | € 17 |
Overdrafts [member] | ||
Disclosure of financial liabilities [line items] | ||
Cash movement | € 10 | € 64 |
Capital and Funding - Summar_10
Capital and Funding - Summary of Analysis of Bonds and Other Loans (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Total bonds and other loans | [1] | € 24,585 | € 25,032 |
Unilever PLC [member] | Bonds and Other Loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 2,133 | 2,216 | |
Unilever PLC [member] | Euro [Member] | 1.500% Notes 2039 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 646 | 646 | |
Unilever PLC [member] | United Kingdom, Pounds [Member] | 1.875% Notes 2029 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 274 | 290 | |
Unilever PLC [member] | United Kingdom, Pounds [Member] | 1.125% Notes 2022 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 387 | 408 | |
Unilever PLC [member] | United Kingdom, Pounds [Member] | 1.375% Notes 2024 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 276 | 292 | |
Unilever PLC [member] | United Kingdom, Pounds [Member] | 1.500% Notes 2026 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 550 | 580 | |
Other Group Companies [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 22,452 | 22,816 | |
Other Group Companies [member] | Netherlands [Member] | 1.625% Notes 2033 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 793 | 792 |
Other Group Companies [member] | Netherlands [Member] | 1.750% Bonds 2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 750 | |
Other Group Companies [member] | Netherlands [Member] | 0.500% Notes 2022 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 749 | 747 |
Other Group Companies [member] | Netherlands [Member] | 1.375% Notes 2029 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 744 | 743 |
Other Group Companies [member] | Netherlands [Member] | 1.125% Bonds 2027 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 697 | 697 |
Other Group Companies [member] | Netherlands [Member] | 1.125% Bonds 2028 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 695 | 694 |
Other Group Companies [member] | Netherlands [Member] | 0.875% Notes 2025 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 648 | 647 |
Other Group Companies [member] | Netherlands [Member] | 0.500% Bonds 2025 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 645 | 644 |
Other Group Companies [member] | Netherlands [Member] | 1.000% Notes 2027 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 598 | 598 |
Other Group Companies [member] | Netherlands [Member] | 1.000% Notes 2023 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 498 | 498 |
Other Group Companies [member] | Netherlands [Member] | 0.000% Notes 2021 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 499 | 498 |
Other Group Companies [member] | Netherlands [Member] | 0.500% Notes 2024 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 496 | 495 |
Other Group Companies [member] | Netherlands [Member] | 0.500% Notes 2023 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 498 | 498 |
Other Group Companies [member] | Netherlands [Member] | 0.000% Notes 2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 300 | |
Other Group Companies [member] | Netherlands [Member] | 1.375% Notes 2030 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 643 | 642 |
Other Group Companies [member] | Netherlands [Member] | 0.375% Notes 2023 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 599 | 599 |
Other Group Companies [member] | Netherlands [Member] | 1.250% Notes 2025 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 999 | |
Other Group Companies [member] | Netherlands [Member] | 1.750% Notes 2030 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [2] | 994 | |
Other Group Companies [member] | Switzerland [Member] | Other Loans [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 16 | 24 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | Commercial Paper [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 1,848 | 1,276 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 4.250% Notes 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 812 | 892 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 5.900% Bonds 2032 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 809 | 883 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.900% Notes 2027 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 803 | 879 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.200% Notes 2022 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 689 | 755 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 1.800% Notes 2020 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 714 | ||
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.500% Notes 2028 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 641 | 703 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.000% Notes 2026 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 563 | 616 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 1.375% Notes 2021 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | [3] | 489 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.125% Notes 2023 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 445 | 488 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.100% Notes 2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 446 | ||
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.000% Notes 2022 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 406 | 444 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.250% Notes 2024 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 404 | 443 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.100% Notes 2025 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 403 | 442 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.600% Notes 2024 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 404 | 442 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.500% Bonds 2028 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 402 | 441 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.750% Bonds 2021 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 324 | 356 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 3.375% Notes 2025 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 283 | 309 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 7.250% Bonds 2026 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 238 | 260 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 6.625% Bonds 2028 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 189 | 206 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 5.150% Notes 2020 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 135 | ||
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 5.600% Bonds 2097 [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 74 | 82 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.125% Notes 2029 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 683 | 749 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 2.600% Notes 2024 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 415 | 457 | |
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 1.375% Notes 2030 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 395 | ||
Other Group Companies [member] | United States [member] | United States of America, Dollars [Member] | 0.375% Notes 2023 [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 405 | ||
Other Group Companies [member] | Other Countries [Member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | € 6 | € 43 | |
[1] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[2] | As part of Unification, these bonds which were previously issued by Unilever N.V. were transferred to Unilever Finance Netherlands B.V. with effect from 26 November 2020. | ||
[3] | Bond repaid (Make-Whole) on 9 October 2020. |
Capital and Funding - Summar_11
Capital and Funding - Summary of Analysis of Bonds and Other Loans (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
1.750% Bonds 2020 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.75% | 1.75% |
Borrowings maturity year | 2020 | 2020 |
0.500% Notes 2022 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.50% | 0.50% |
Borrowings maturity year | 2022 | 2022 |
1.375% Notes 2029 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.375% | 1.375% |
Borrowings maturity year | 2029 | 2029 |
1.125% Bonds 2028 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.125% | 1.125% |
Borrowings maturity year | 2028 | 2028 |
0.875% Notes 2025 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.875% | 0.875% |
Borrowings maturity year | 2025 | 2025 |
0.375% Notes 2023 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.375% | 0.375% |
Borrowings maturity year | 2023 | 2023 |
0.375% Notes 2023 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.375% | 0.375% |
Borrowings maturity year | 2023 | 2023 |
1.000% Notes 2027 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.00% | 1.00% |
Borrowings maturity year | 2027 | 2027 |
1.000% Notes 2023 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.00% | 1.00% |
Borrowings maturity year | 2023 | 2023 |
0.000% Notes 2021 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.00% | 0.00% |
Borrowings maturity year | 2021 | 2021 |
0.500% Notes 2024 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.50% | 0.50% |
Borrowings maturity year | 2024 | 2024 |
0.000% Notes 2020 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.00% | 0.00% |
Borrowings maturity year | 2020 | 2020 |
1.125% Notes 2022 [member] | Unilever PLC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.125% | 1.125% |
Borrowings maturity year | 2022 | 2022 |
1.375% Notes 2024 [member] | Unilever PLC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.375% | 1.375% |
Borrowings maturity year | 2024 | 2024 |
1.875% Notes 2029 [member] | Unilever PLC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.875% | 1.875% |
Borrowings maturity year | 2029 | 2029 |
4.250% Notes 2021 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 4.25% | 4.25% |
Borrowings maturity year | 2021 | 2021 |
5.900% Bonds 2032 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 5.90% | 5.90% |
Borrowings maturity year | 2032 | 2032 |
2.900% Notes 2027 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.90% | 2.90% |
Borrowings maturity year | 2027 | 2027 |
2.200% Notes 2022 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.20% | 2.20% |
Borrowings maturity year | 2022 | 2022 |
1.800% Notes 2020 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.80% | 1.80% |
Borrowings maturity year | 2020 | 2020 |
2.000% Notes 2026 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.00% | 2.00% |
Borrowings maturity year | 2026 | 2026 |
1.375% Notes 2021 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.375% | 1.375% |
Borrowings maturity year | 2021 | 2021 |
2.100% Notes 2020 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.10% | 2.10% |
Borrowings maturity year | 2020 | 2020 |
3.100% Notes 2025 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.10% | 3.10% |
Borrowings maturity year | 2025 | 2025 |
2.600% Notes 2024 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.60% | 2.60% |
Borrowings maturity year | 2024 | 2024 |
7.250% Bonds 2026 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 7.25% | 7.25% |
Borrowings maturity year | 2026 | 2026 |
6.625% Bonds 2028 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 6.625% | 6.625% |
Borrowings maturity year | 2028 | 2028 |
5.150% Notes 2020 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 5.15% | 5.15% |
Borrowings maturity year | 2020 | 2020 |
5.600% Bonds 2097 [Member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 5.60% | 5.60% |
Borrowings maturity year | 2097 | 2097 |
0.500% Bonds 2025 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.50% | 0.50% |
Borrowings maturity year | 2025 | 2025 |
1.375% Notes 2030 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.375% | 1.375% |
Borrowings maturity year | 2030 | 2030 |
1.375% Notes 2030 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.375% | 1.375% |
Borrowings maturity year | 2030 | 2030 |
3.500% Notes 2028 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.50% | 3.50% |
Borrowings maturity year | 2028 | 2028 |
3.125% Notes 2023 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.125% | 3.125% |
Borrowings maturity year | 2023 | 2023 |
1.625% Notes 2033 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.625% | 1.625% |
Borrowings maturity year | 2033 | 2033 |
3.000% Notes 2022 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.00% | 3.00% |
Borrowings maturity year | 2022 | 2022 |
1.125% Bonds 2027 [member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.125% | 1.125% |
Borrowings maturity year | 2027 | 2027 |
3.250% Notes 2024 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.25% | 3.25% |
Borrowings maturity year | 2024 | 2024 |
3.500% Bonds 2028 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.50% | 3.50% |
Borrowings maturity year | 2028 | 2028 |
2.750% Bonds 2021 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.75% | 2.75% |
Borrowings maturity year | 2021 | 2021 |
3.375% Notes 2025 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.375% | 3.375% |
Borrowings maturity year | 2025 | 2025 |
0.500% Notes 2023 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.50% | 0.50% |
Borrowings maturity year | 2023 | 2023 |
2.600% Notes 2024 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.60% | 2.60% |
Borrowings maturity year | 2024 | 2024 |
1.500% Notes 2026 [member] | Unilever PLC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.50% | 1.50% |
Borrowings maturity year | 2026 | 2026 |
1.500% Notes 2039 [member] | Unilever PLC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.50% | 1.50% |
Borrowings maturity year | 2039 | 2039 |
2.125% Notes 2029 [member] | United States [member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 2.125% | 2.125% |
Borrowings maturity year | 2029 | 2029 |
1.250% Notes 2025 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.25% | 1.25% |
Borrowings maturity year | 2025 | 2025 |
1.750% Notes 2030 [Member] | Netherlands [Member] | Other Group Companies [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.75% | 1.75% |
Borrowings maturity year | 2030 | 2030 |
Treasury Risk Management - Addi
Treasury Risk Management - Additional Information (Detail) € in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020EUR (€) | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Revolving credit facility | $ | $ 7,965 | $ 7,865 | ||||
Finance income/(cost) | € (505) | € (627) | € (608) | |||
Future minimum sublease payments expected to be received | € 63 | 21 | ||||
Hedge ratio | 1:1 | |||||
Derivative financial liabilitites | [1] | € 315 | 270 | |||
Impact on equity - net investment in group companies [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Credit exposure | 24,600 | 22,000 | ||||
Retranslation impact from net investment in group companies | 2,461 | 2,203 | ||||
Fair value hedges [member] | Bonds And Other Liabilities [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Hedged liabilities carrying amount bonds and other liabilities | 395 | 0 | ||||
Hedged liabilities bonds accumulated amount of fair value adjustment | € (10) | € 0 | ||||
Currency risk [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Impact of change in exchange rate | 10.00% | 10.00% | 10.00% | 10.00% | ||
Financial assets and liabilities other than functional currency amount | € 274 | € 317 | ||||
Percentage of increase in euro against other currencies | 10.00% | 10.00% | ||||
Percentage of decrease in euro against other currencies | 10.00% | |||||
Net investment in foreign operations | € 9,200 | € 7,600 | ||||
Net Investment in foreign operations in GBP | 5,500 | 3,500 | ||||
Currency risk [Member] | Ten percentage strengthening against other currencies [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Net investment hedges nominal value | 4,000 | 4,000 | ||||
Impact on equity - net investment hedges | 404 | 396 | ||||
Currency risk [Member] | Ten Percentage Increase in Commodity Price Risk [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Gain (loss) in cash flow hedge reserve | € 35 | € 56 | ||||
Currency risk [Member] | Impact on equity trade related cash flow hedges [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Percentage of increase in euro against other currencies | 10.00% | 10.00% | ||||
Percentage of decrease in euro against other currencies | 10.00% | 10.00% | ||||
Currency risk [Member] | Impact on equity net investment hedges [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Percentage of increase in euro against other currencies | 10.00% | 10.00% | ||||
Percentage of decrease in euro against other currencies | 10.00% | 10.00% | ||||
Currency risk [Member] | Impact on equity net investment [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Percentage of increase in euro against other currencies | 10.00% | 10.00% | ||||
Percentage of decrease in euro against other currencies | 10.00% | 10.00% | ||||
Currency risk [Member] | Ten Percent Strengthening Of Currencies Of Group Companies [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Foreign exchange gain | € 27 | € 32 | ||||
Currency risk [Member] | Ten Percent Weakening Of Currencies Of Group Companies [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Foreign exchange (loss) | (27) | (32) | ||||
Impact on equity - trade-related cash flow hedges | € (120) | € (89) | ||||
Interest rate risk [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Percentage of increase in floating interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||
Percentage of decrease in floating interest rate | 1.00% | 1.00% | ||||
Average interest rate on short term borrowings | 1.60% | 2.50% | ||||
Credit in equity from derivatives in cash flow hedge | € (11) | € (8) | ||||
Debit in equity from derivatives in cash flow hedge | € 12 | € 8 | ||||
Interest rate risk [Member] | 2020 [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Interest rate fixed on expected financial liability | 82.00% | |||||
Interest rate risk [Member] | 2021 [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Interest rate fixed on expected financial liability | 87.00% | 73.00% | ||||
Interest rate risk [Member] | 2022 | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Interest rate fixed on expected financial liability | 75.00% | |||||
Interest rate risk [Member] | One percentage weakening in floating interest rate [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Finance income/(cost) | € (40) | € (37) | ||||
Interest rate risk [Member] | Cash flow hedges [member] | Interest rate swap contract [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Derivative financial liabilitites | $ | $ 3,700 | $ 4,500 | ||||
Interest rate risk [Member] | Fair value hedges [member] | Interest rate swap contract [member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Derivative financial liabilitites | € 0 | $ 500 | ||||
Interest rate risk [Member] | Impact on Equity Cash Flow Hedge [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Percentage of increase in floating interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||
Percentage of decrease in floating interest rate | 1.00% | 1.00% | ||||
Commodity price risk [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Increase in commodity price percentage | 10.00% | |||||
Decrease in commodity price percentage | 10.00% | |||||
Commodity derivatives | € 276 | € 439 | ||||
Cumulative losses of future commodity purchases reclassified to income statement | 89 | (52) | ||||
Commodity price risk [Member] | Adjustment Basis To Inventory Purchased [Member] | ||||||
Disclosure Of Treasury Risk Management [Line Items] | ||||||
Adjustment basis to inventory purchased | € 66 | € 28 | ||||
[1] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Treasury Risk Management - Summ
Treasury Risk Management - Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | € (417) | € (863) | |
Bonds and other loans | (28,000) | (28,909) | |
Lease liabilities | (2,098) | (2,279) | |
Lease liabilities | [1] | (1,771) | (1,919) |
Other financial liabilities | (236) | (206) | |
Trade payables, accruals and other liabilities | (13,699) | (14,336) | |
Deferred consideration | (191) | (235) | |
Total non-derivative financial liabilities | (44,641) | (46,828) | |
Derivative financial liabilities | (321) | (89) | |
Derivative & Non-derivative financial liabilities | (44,962) | (46,917) | |
Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 2,630 | 3,217 | |
Derivative contracts - payments | (2,778) | (3,133) | |
Foreign exchange derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 6,163 | 8,783 | |
Derivative contracts - payments | (6,333) | (8,952) | |
Commodity Derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - payments | (3) | (4) | |
Net carrying amount [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (411) | (853) | |
Bonds and other loans | (24,585) | (25,032) | |
Lease liabilities | (1,771) | (1,919) | |
Other financial liabilities | (223) | (183) | |
Trade payables, accruals and other liabilities | (13,699) | (14,336) | |
Deferred consideration | (164) | (208) | |
Total non-derivative financial liabilities | (40,853) | (42,531) | |
Derivative financial liabilities | (418) | (326) | |
Derivative & Non-derivative financial liabilities | (41,271) | (42,857) | |
Net carrying amount [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative financial liabilities | (257) | (154) | |
Net carrying amount [Member] | Foreign exchange derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative financial liabilities | (158) | (168) | |
Net carrying amount [Member] | Commodity Derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative financial liabilities | (3) | (4) | |
Within 1 year [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (413) | (399) | |
Bonds and other loans | (3,926) | (4,169) | |
Lease liabilities | (442) | (432) | |
Other financial liabilities | (117) | (125) | |
Trade payables, accruals and other liabilities | (13,585) | (14,166) | |
Deferred consideration | (60) | (39) | |
Total non-derivative financial liabilities | (18,543) | (19,330) | |
Derivative financial liabilities | (133) | (153) | |
Derivative & Non-derivative financial liabilities | (18,676) | (19,483) | |
Within 1 year [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 174 | 776 | |
Derivative contracts - payments | (134) | (756) | |
Within 1 year [Member] | Foreign exchange derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 6,163 | 8,783 | |
Derivative contracts - payments | (6,333) | (8,952) | |
Within 1 year [Member] | Commodity Derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - payments | (3) | (4) | |
Due between 1 and 2 years [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (2) | (9) | |
Bonds and other loans | (2,626) | (2,661) | |
Lease liabilities | (352) | (392) | |
Other financial liabilities | (12) | ||
Trade payables, accruals and other liabilities | (46) | (93) | |
Deferred consideration | (12) | (124) | |
Total non-derivative financial liabilities | (3,050) | (3,279) | |
Derivative financial liabilities | (79) | 23 | |
Derivative & Non-derivative financial liabilities | (3,129) | (3,256) | |
Due between 1 and 2 years [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 1,069 | 164 | |
Derivative contracts - payments | (1,148) | (141) | |
Due between 2 and 3 years [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (1) | (289) | |
Bonds and other loans | (2,824) | (2,745) | |
Lease liabilities | (292) | (302) | |
Other financial liabilities | (33) | (24) | |
Trade payables, accruals and other liabilities | (15) | (13) | |
Deferred consideration | (76) | (8) | |
Total non-derivative financial liabilities | (3,241) | (3,381) | |
Derivative financial liabilities | 19 | 8 | |
Derivative & Non-derivative financial liabilities | (3,222) | (3,373) | |
Due between 2 and 3 years [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 40 | 805 | |
Derivative contracts - payments | (21) | (797) | |
Due between 3 and 4 years [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (164) | ||
Bonds and other loans | (2,326) | (2,449) | |
Lease liabilities | (234) | (242) | |
Other financial liabilities | (23) | (31) | |
Trade payables, accruals and other liabilities | (17) | (8) | |
Deferred consideration | (35) | ||
Total non-derivative financial liabilities | (2,635) | (2,894) | |
Derivative financial liabilities | (38) | 20 | |
Derivative & Non-derivative financial liabilities | (2,673) | (2,874) | |
Due between 3 and 4 years [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 441 | 37 | |
Derivative contracts - payments | (479) | (17) | |
Due between 4 and 5 years [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bonds and other loans | (3,278) | (2,454) | |
Lease liabilities | (187) | (191) | |
Other financial liabilities | (51) | (26) | |
Trade payables, accruals and other liabilities | (4) | (14) | |
Deferred consideration | (8) | (64) | |
Total non-derivative financial liabilities | (3,528) | (2,749) | |
Derivative financial liabilities | 10 | 5 | |
Derivative & Non-derivative financial liabilities | (3,518) | (2,744) | |
Due between 4 and 5 years [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 29 | 478 | |
Derivative contracts - payments | (19) | (473) | |
Due after 5 years [Member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Bank loans and overdrafts | (1) | (2) | |
Bonds and other loans | (13,020) | (14,431) | |
Lease liabilities | (591) | (720) | |
Trade payables, accruals and other liabilities | (32) | (42) | |
Total non-derivative financial liabilities | (13,644) | (15,195) | |
Derivative financial liabilities | (100) | 8 | |
Derivative & Non-derivative financial liabilities | (13,744) | (15,187) | |
Due after 5 years [Member] | Interest rate derivatives [member] | |||
Disclosure Of Maturity Analysis For Non-derivative And Derivative Financial Liabilities [Line Items] | |||
Derivative contracts - receipts | 877 | 957 | |
Derivative contracts - payments | € (977) | € (949) | |
[1] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Treasury risk management - Su_2
Treasury risk management - Summary of Currency Derivatives Outstanding (Detail) | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (1,202) | (889) | |
EUR [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | [1] | (920) | (743) |
GBP [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (414) | (325) | |
USD [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | 588 | 640 | |
SEK [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (100) | (94) | |
CAD [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (110) | (108) | |
PLN [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (70) | (67) | |
Other [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Derivative Instruments Outstanding | (176) | (192) | |
[1] | Euro exposure relates to group companies having non-euro functional currencies. |
Treasury Risk Management - Su_3
Treasury Risk Management - Summary of Derivative Cash Flow Hedges (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Foreign exchange cash inflows | € 3,136 | € 2,254 | |
Foreign exchange cash outflows | (3,205) | (2,259) | |
Interest rate swaps cash inflows | 3,277 | 4,406 | |
Interest rate swaps cash outflows | (3,380) | (4,136) | |
Commodity contracts cash inflows | 40 | 31 | |
Commodity contracts cash outflows | (3) | (4) | |
Within 1 year [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Foreign exchange cash inflows | 3,136 | 2,254 | |
Foreign exchange cash outflows | (3,205) | (2,259) | |
Interest rate swaps cash inflows | 403 | 811 | |
Interest rate swaps cash outflows | (347) | (756) | |
Commodity contracts cash inflows | 40 | 31 | |
Commodity contracts cash outflows | (3) | (4) | |
Due between 1 and 2 years [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Interest rate swaps cash inflows | 1,077 | 442 | |
Interest rate swaps cash outflows | (1,147) | (347) | |
Due between 2 and 3 years [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Interest rate swaps cash inflows | 488 | 1,182 | |
Interest rate swaps cash outflows | (464) | (1,147) | |
Due between 3 and 4 years [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Interest rate swaps cash inflows | 436 | 536 | |
Interest rate swaps cash outflows | (473) | (464) | |
Due between 4 and 5 years [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Interest rate swaps cash inflows | 24 | 478 | |
Interest rate swaps cash outflows | (13) | (473) | |
Later than 5 years [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Interest rate swaps cash inflows | 849 | 957 | |
Interest rate swaps cash outflows | (936) | (949) | |
Net carrying amount [Member] | |||
Disclosure Of Derivative Cash Flow Hedges [Line Items] | |||
Foreign exchange cash outflows | [1] | (50) | |
Interest rate swaps cash outflows | [1] | (221) | (29) |
Commodity contracts cash inflows | [1] | 40 | 31 |
Commodity contracts cash outflows | [1] | € (3) | € (4) |
[1] | See note 16C. |
Treasury Risk Management - Impa
Treasury Risk Management - Impact of Interest Rate Swaps and Cross-Currency Swaps (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disclosure Of Impact Of Interest Rate Swaps And Cross Currency Swaps [Line Items] | ||||||
Current financial liabilities | [1] | € (4,461) | € (4,691) | |||
Non-current financial liabilities | [1] | (22,844) | (23,566) | |||
Total financial liabilities | (27,305) | [1] | (28,257) | [1] | € (26,738) | |
Less: lease liabilities | [1] | (1,771) | (1,919) | |||
Financial liabilities (excluding lease liabilities) | (25,534) | (26,338) | ||||
Fixed and Floating Interest Rate [Member] | ||||||
Disclosure Of Impact Of Interest Rate Swaps And Cross Currency Swaps [Line Items] | ||||||
Current financial liabilities | (4,461) | (4,691) | ||||
Non-current financial liabilities | (22,844) | (23,566) | ||||
Fixed rate (weighted average amount of fixing for the following year) | € (21,561) | € (22,618) | ||||
[1] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Treasury Risk Management - Su_4
Treasury Risk Management - Summary of Derivatives Used to Hedge (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedges [line items] | |||
Current financial assets | [1] | € 7,232 | € 5,966 |
Non-current financial assets | [1] | 876 | 874 |
Trade payables and other liabilities | (14,367) | (15,107) | |
Current financial liabilities | [2] | (4,461) | (4,691) |
Non-current financial liabilities | [2] | (22,844) | (23,566) |
Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Trade and other receivable | 78 | 74 | |
Current financial assets | 59 | 20 | |
Total liabilities | (418) | (326) | |
Non-current financial assets | 21 | 114 | |
Total assets | 158 | 208 | |
Trade payables and other liabilities | (103) | (56) | |
Current financial liabilities | (58) | (116) | |
Non-current financial liabilities | (257) | (154) | |
Total | (260) | (118) | |
Fair value hedges [member] | Interest rate derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Non-current financial liabilities | (10) | ||
Total | (10) | ||
Cash flow hedges [member] | Foreign exchange derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Trade and other receivable | 24 | 38 | |
Trade payables and other liabilities | (74) | (38) | |
Total | (50) | ||
Cash flow hedges [member] | Interest rate derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Current financial assets | 5 | ||
Non-current financial assets | 21 | 114 | |
Non-current financial liabilities | (247) | (143) | |
Total | (221) | (29) | |
Cash flow hedges [member] | Commodity contracts [Member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Trade and other receivable | 40 | 31 | |
Trade payables and other liabilities | (3) | (4) | |
Total | 37 | 27 | |
Hedges of net investment in foreign operations [member] | Foreign exchange derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Current financial assets | [3] | 30 | |
Current financial liabilities | [3] | (149) | (14) |
Total | (149) | 16 | |
Hedge accounting not applied [member] | Foreign exchange derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Trade and other receivable | 14 | 5 | |
Current financial assets | [3] | 54 | (10) |
Trade payables and other liabilities | (26) | (14) | |
Current financial liabilities | [3] | 91 | (102) |
Total | 133 | (121) | |
Hedge accounting not applied [member] | Interest rate derivatives [member] | Derivative used to hedge [Member] | |||
Disclosure of detailed information about hedges [line items] | |||
Non-current financial assets | € 0 | ||
Non-current financial liabilities | (11) | ||
Total | € (11) | ||
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[2] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[3] | Swaps that hedge the currency risk on intra-group loans and offset ‘Hedges of net investments in foreign operations’ are included within ‘Hedge accounting not applied’. See below for further details. |
Treasury Risk Management - Su_5
Treasury Risk Management - Summary of Financial Assets are Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements (Detail) - Derivative Financial Assets [Member] - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of offsetting of financial assets [line items] | ||
Gross amounts of recognised financial assets | € 306 | € 253 |
Gross amounts of recognised financial assets set off in the balance sheet | (148) | (45) |
Net amounts of financial assets presented in the balance sheet | 158 | 208 |
Financial instruments | (91) | (130) |
Cash collateral received | (16) | (24) |
Net amount | € 51 | € 54 |
Treasury Risk Management - Su_6
Treasury Risk Management - Summary of Financial Liabilities are Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements (Detail) - Derivative financial liabilities [Member] - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of offsetting of financial liabilities [line items] | ||
Gross amounts of recognised financial liabilities | € (566) | € (371) |
Gross amounts of recognised financial liabilities set off in the balance sheet | 148 | 45 |
Net amounts of financial liabilities presented in the balance sheet | (418) | (326) |
Financial instruments | 91 | 130 |
Cash collateral pledged | ||
Net amount | € (327) | € (196) |
Investment and Return - Schedul
Investment and Return - Schedule of Cash Resources and Other Financial Assets (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and cash equivalents | |||
Cash at bank and in hand | [1] | € 2,764 | € 2,457 |
Short-term deposits | [1],[2] | 2,764 | 1,693 |
Other cash equivalents | [1] | 20 | 35 |
Cash at bank and in hand | [1] | 2,764 | 2,457 |
Short-term deposits | [1],[2] | 2,764 | 1,693 |
Other cash equivalents | [1] | 20 | 35 |
Cash and cash equivalents | [1] | 5,548 | 4,185 |
Other current financial assets | |||
Financial assets at amortised cost | [1],[3] | 468 | 578 |
Financial assets at fair value through other comprehensive income | [1],[4] | 9 | |
Current financial assets at fair value through profit or loss: | |||
Other current financial assets | [1] | 808 | 907 |
Current financial assets | [1] | 6,356 | 5,092 |
Other non-current financial assets | |||
Financial assets at amortised cost | [1],[3] | 138 | 220 |
Financial assets at fair value through other comprehensive income | [1],[4] | 361 | 266 |
Non-current financial assets at fair value through profit or loss: | |||
Other non-current financial assets | [1] | 876 | 874 |
Non-current financial assets | [1] | 876 | 874 |
Other financial assets | |||
Financial assets at amortised cost | [1],[3] | 606 | 798 |
Financial assets at fair value through other comprehensive income | [1],[4] | 370 | 266 |
Financial assets at fair value through profit or loss: | |||
Other financial assets | [1] | 1,684 | 1,781 |
Total | [1] | 7,232 | 5,966 |
Derivatives [member] | |||
Current financial assets at fair value through profit or loss: | |||
Current financial assets at fair value through profit or loss | [1] | 59 | 20 |
Non-current financial assets at fair value through profit or loss: | |||
Non-current financial assets at fair value through profit or loss | [1] | 21 | 114 |
Financial assets at fair value through profit or loss: | |||
Financial assets at fair value through profit or loss | [1] | 80 | 134 |
Other [member] | |||
Current financial assets at fair value through profit or loss: | |||
Current financial assets at fair value through profit or loss | [1],[5] | 272 | 309 |
Non-current financial assets at fair value through profit or loss: | |||
Non-current financial assets at fair value through profit or loss | [1],[5] | 356 | 274 |
Financial assets at fair value through profit or loss: | |||
Financial assets at fair value through profit or loss | [1],[5] | € 628 | € 583 |
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[2] | Short-term deposits typically have maturity of up to 3 months. | ||
[3] | Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current financial assets at amortised cost include judicial deposits of €101 million (2019 €136 million) and investments in bonds of Nil (2019: €56 million). | ||
[4] | Included within non-current financial assets at fair value through other comprehensive income are equity investments of €356 million (2019: €244 million). These investments are not held by Unilever for trading purposes and hence the Group has opted to recognise fair value movements through other comprehensive income. The fair value movement in 2020 of these equity investments was €78 million (2019: €31 million). | ||
[5] | Current Other Financial assets at fair value through profit or loss include A- or higher rated money and capital market instruments. Included within non current financial assets at fair value through profit or loss are assets in a trust to fund benefit obligations in the US (see also note 4B) of €44 million (2019: €54 million), option over non controlling interest in a subsidiary in Hong Kong of €51 million (2019: NIL) and investments in a number of companies and financial institutions in North America, North Asia, South Asia and Europe. |
Investment and Return - Sched_2
Investment and Return - Schedule of Cash Resources and Other Financial Assets (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of financial assets [line items] | |||
Equity Investments included in financial assets at fair value through other comprehensive income | € 356 | € 244 | |
Movement of Equity Investments | 78 | 31 | |
Assets in trust fund benefit obligations | 44 | 54 | |
Non-current financial assets at amortised cost | [1],[2] | 138 | 220 |
HONG KONG [Member] | |||
Disclosure of financial assets [line items] | |||
Investment option over non controlling interest in subsidiary | 51 | 0 | |
Judicial Deposit [Member] | |||
Disclosure of financial assets [line items] | |||
Non-current financial assets at amortised cost | 101 | 136 | |
Bonds [Member] | |||
Disclosure of financial assets [line items] | |||
Non-current financial assets at amortised cost | € 0 | € 56 | |
[1] | Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current financial assets at amortised cost include judicial deposits of €101 million (2019 €136 million) and investments in bonds of Nil (2019: €56 million). | ||
[2] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Investment and Return - Additio
Investment and Return - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of cash and cash equivalents [line items] | |||
Cash and cash equivalents held by central finance companies | € 3,000 | ||
Percentage of cash and cash equivalents held by central finance companies | 54.00% | ||
Cash and cash equivalents held with foreign subsidiaries | € 2,500 | ||
Percentage of cash and cash equivalents held with foreign subsidiaries | 46.00% | ||
Cash and cash equivalents held with foreign subsidiaries for general use by wider business | € 98 | € 146 | € 154 |
Description of collateral held as security | To reduce this risk, Unilever has concentrated its main activities with a limited number of counter-parties which have secure credit ratings. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Group’s treasury department. Netting agreements are also put in place with Unilever’s principal counter-parties. In the case of a default, these arrangements would allow Unilever to net assets and liabilities across transactions with that counter-party. To further reduce the Group’s credit exposures on derivative financial instruments, Unilever has collateral agreements with Unilever’s principal counter-parties in relation to derivative financial instruments. | ||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | € 18 | 24 | |
Cash [Member] | |||
Disclosure of cash and cash equivalents [line items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | 16 | 24 | |
Bond Securities [Member] | |||
Disclosure of cash and cash equivalents [line items] | |||
Collateral held permitted to be sold or repledged in absence of default by owner of collateral, at fair value | € 2 | € 0 |
Investment and Return - Sched_3
Investment and Return - Schedule of Cash and Cash Equivalents Reconciliation to Cash Flow Statement (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents if different from statement of financial position [abstract] | |||||
Cash and cash equivalents per balance sheet | [1] | € 5,548 | € 4,185 | ||
Less: bank overdrafts | (73) | (69) | |||
Cash and cash equivalents per cash flow statement | € 5,475 | € 4,116 | € 3,090 | € 3,169 | |
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Values of Financial Assets and Financial Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Financial assets | ||||||
Cash and cash equivalents | [1] | € 5,548 | € 4,185 | |||
Financial assets at amortised cost | [1],[2] | 606 | 798 | |||
Financial assets at fair value through other comprehensive income | [1],[3] | 370 | 266 | |||
Financial liabilities | ||||||
Lease liabilities | [4] | (1,771) | (1,919) | |||
Derivatives | [4] | (315) | (270) | |||
Other financial liabilities | [4],[5] | (117) | (125) | |||
Financial liabilities | 27,305 | [4] | 28,257 | [4] | € 26,738 | |
Derivatives [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | [1] | 80 | 134 | |||
Other [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | [1],[6] | 628 | 583 | |||
Fair value [member] | ||||||
Financial assets | ||||||
Cash and cash equivalents | 5,548 | 4,185 | ||||
Financial assets at amortised cost | 606 | 798 | ||||
Financial assets at fair value through other comprehensive income | 370 | 266 | ||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | 7,232 | 5,966 | ||||
Financial liabilities | ||||||
Bank loans and overdrafts | (411) | (853) | ||||
Bonds and other loans | (26,936) | (26,525) | ||||
Lease liabilities | (1,771) | (1,919) | ||||
Derivatives | (315) | (270) | ||||
Other financial liabilities | (223) | (183) | ||||
Financial liabilities | (29,656) | (29,750) | ||||
Fair value [member] | Derivatives [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets at fair value through profit or loss | 80 | 134 | ||||
Fair value [member] | Other [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | 628 | 583 | ||||
Carrying amount [member] | ||||||
Financial assets | ||||||
Cash and cash equivalents | 5,548 | 4,185 | ||||
Financial assets at amortised cost | 606 | 798 | ||||
Financial assets at fair value through other comprehensive income | 370 | 266 | ||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | 7,232 | 5,966 | ||||
Financial liabilities | ||||||
Bank loans and overdrafts | (411) | (853) | ||||
Bonds and other loans | (24,585) | (25,032) | ||||
Lease liabilities | (1,771) | (1,919) | ||||
Derivatives | (315) | (270) | ||||
Other financial liabilities | (223) | (183) | ||||
Financial liabilities | (27,305) | (28,257) | ||||
Carrying amount [member] | Derivatives [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets at fair value through profit or loss | 80 | 134 | ||||
Carrying amount [member] | Other [member] | ||||||
Financial assets at fair value through profit or loss: | ||||||
Financial assets | € 628 | € 583 | ||||
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | |||||
[2] | Current financial assets at amortised cost include short term deposits with banks with maturities longer than three months excluding deposits which are part of a recognised cash management process and loans to joint venture entities. Non-current financial assets at amortised cost include judicial deposits of €101 million (2019 €136 million) and investments in bonds of Nil (2019: €56 million). | |||||
[3] | Included within non-current financial assets at fair value through other comprehensive income are equity investments of €356 million (2019: €244 million). These investments are not held by Unilever for trading purposes and hence the Group has opted to recognise fair value movements through other comprehensive income. The fair value movement in 2020 of these equity investments was €78 million (2019: €31 million). | |||||
[4] | For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | |||||
[5] | Includes options and other financial liabilities to acquire non-controlling interests in EAC Myanmar, USA, Japan, Italy and Hong Kong refer to note 21. | |||||
[6] | Current Other Financial assets at fair value through profit or loss include A- or higher rated money and capital market instruments. Included within non current financial assets at fair value through profit or loss are assets in a trust to fund benefit obligations in the US (see also note 4B) of €44 million (2019: €54 million), option over non controlling interest in a subsidiary in Hong Kong of €51 million (2019: NIL) and investments in a number of companies and financial institutions in North America, North Asia, South Asia and Europe. |
Financial Instruments Fair Va_3
Financial Instruments Fair Value Risk - Summary of Assets and Liabilities Carried at Fair Value, Classification of Fair Value Calculations by Category (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Detailed Information about Financial Instruments [Line Items] | |||
Financial assets at fair value through other comprehensive income | [1],[2] | € 370 | € 266 |
Financial assets at fair value through profit or loss: | |||
Other | [1] | 1,684 | 1,781 |
Derivatives | (321) | (89) | |
Fair value [member] | |||
Disclosure of Detailed Information about Financial Instruments [Line Items] | |||
Financial assets at fair value through other comprehensive income | 370 | 266 | |
Financial assets at fair value through profit or loss: | |||
Derivatives | [3] | 158 | 208 |
Other | 628 | 583 | |
Fair value [member] | Level 1 [member] | |||
Disclosure of Detailed Information about Financial Instruments [Line Items] | |||
Financial assets at fair value through other comprehensive income | 5 | 7 | |
Financial assets at fair value through profit or loss: | |||
Other | 300 | 311 | |
Fair value [member] | Level 2 [member] | |||
Disclosure of Detailed Information about Financial Instruments [Line Items] | |||
Financial assets at fair value through other comprehensive income | 3 | 4 | |
Financial assets at fair value through profit or loss: | |||
Derivatives | [3] | 158 | 208 |
Fair value [member] | Level 3 [member] | |||
Disclosure of Detailed Information about Financial Instruments [Line Items] | |||
Financial assets at fair value through other comprehensive income | 362 | 255 | |
Financial assets at fair value through profit or loss: | |||
Other | 328 | 272 | |
Fair value [member] | Financial liabilities [member] | |||
Financial assets at fair value through profit or loss: | |||
Derivatives | [4] | (418) | (326) |
Contingent consideration | (140) | (154) | |
Fair value [member] | Financial liabilities [member] | Level 2 [member] | |||
Financial assets at fair value through profit or loss: | |||
Derivatives | [4] | (418) | (326) |
Fair value [member] | Financial liabilities [member] | Level 3 [member] | |||
Financial assets at fair value through profit or loss: | |||
Contingent consideration | € (140) | € (154) | |
[1] | For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. | ||
[2] | Included within non-current financial assets at fair value through other comprehensive income are equity investments of €356 million (2019: €244 million). These investments are not held by Unilever for trading purposes and hence the Group has opted to recognise fair value movements through other comprehensive income. The fair value movement in 2020 of these equity investments was €78 million (2019: €31 million). | ||
[3] | Includes €78 million (2019: €74 million) derivatives, reported within trade receivables, that hedge trading activities. | ||
[4] | Includes €(103) million (2019: €(56) million) derivatives, reported within trade payables, that hedge trading activities. |
Financial Instruments Fair Va_4
Financial Instruments Fair Value Risk - Summary of Assets and Liabilities Carried at Fair Value, Classification of Fair Value Calculations by Category (Parenthetical) (Detail) - Fair value [member] - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of Detailed Information about Financial Instruments [Line Items] | ||
Derivatives assets, reported within trade receivables | € 78 | € 74 |
Derivatives liabilities, reported within trade receivables | € (103) | € (56) |
Financial Instruments Fair Va_5
Financial Instruments Fair Value Risk - Additional Information (Detail) - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Detailed Information about Financial Instruments [Line Items] | ||
Unlisted investments include of investment | € 29 | € 35 |
Level 3 [member] | ||
Disclosure of Detailed Information about Financial Instruments [Line Items] | ||
Impact in income statement due to Level 3 instruments | (22) | (9) |
Option over a non-controlling interest | 51 | 0 |
Long-term cash receivables insurance contracts | 106 | 114 |
Level 3 [member] | Unilever Ventures companies [Member] | ||
Disclosure of Detailed Information about Financial Instruments [Line Items] | ||
Unlisted investments include of investment | € 494 | € 403 |
Financial Instruments Fair Va_6
Financial Instruments Fair Value Risk - Summary of Reconciliation of Movements in Level 3 Valuations (Detail) - Fair value [member] - Level 3 fair value measurements of financial assets and financial liabilities [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Fair Value Measurement of Assets [Line Items] | ||
Assets and liabilities beginning balance | € 373 | € 241 |
Gains and losses recognised in income statement | (22) | (9) |
Gains and losses recognised in other comprehensive income | 75 | 43 |
Purchases and new issues | 41 | 83 |
Sales and settlements | 83 | 15 |
Assets and liabilities ending balance | € 550 | € 373 |
Provisions - Summary of Other P
Provisions - Summary of Other Provisions (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of provisions [abstract] | ||
Due within one year | € 547 | € 620 |
Due after one year | 583 | 664 |
Total Provisions | € 1,130 | € 1,284 |
Provisions - Summary of Movemen
Provisions - Summary of Movement of Other Provisions (Detail) € in Millions | 12 Months Ended |
Dec. 31, 2020EUR (€) | |
Disclosure of Provisions [Line Items] | |
Other provisions beginning balance | € 1,284 |
Additions through business combinations | 61 |
Charge to income statement | 424 |
Releases | (171) |
Utilisation | (324) |
Currency translation | (144) |
Other provisions ending balance | 1,130 |
Restructuring [Member] | |
Disclosure of Provisions [Line Items] | |
Other provisions beginning balance | 470 |
Charge to income statement | 151 |
Releases | (87) |
Utilisation | (252) |
Currency translation | (18) |
Other provisions ending balance | 264 |
Legal [Member] | |
Disclosure of Provisions [Line Items] | |
Other provisions beginning balance | 149 |
Additions through business combinations | 4 |
Charge to income statement | 129 |
Releases | (5) |
Utilisation | (27) |
Currency translation | (23) |
Other provisions ending balance | 227 |
Brazil Indirect Taxes [member] | |
Disclosure of Provisions [Line Items] | |
Other provisions beginning balance | 128 |
Charge to income statement | 4 |
Releases | (20) |
Utilisation | (1) |
Currency translation | (37) |
Other provisions ending balance | 74 |
Other [Member] | |
Disclosure of Provisions [Line Items] | |
Other provisions beginning balance | 537 |
Additions through business combinations | 57 |
Charge to income statement | 140 |
Releases | (59) |
Utilisation | (44) |
Currency translation | (66) |
Other provisions ending balance | € 565 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Summary of Potential Future Lease Commitments and Other Commitments Fall Due (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Lease And Other Commitments [Line Items] | ||
Leases | € 158 | € 223 |
Other commitments | 1,556 | 1,498 |
Within 1 year [Member] | ||
Disclosure Of Lease And Other Commitments [Line Items] | ||
Leases | 69 | 69 |
Other commitments | 844 | 791 |
Later than 1 year but not later than 5 years [Member] | ||
Disclosure Of Lease And Other Commitments [Line Items] | ||
Leases | 80 | 111 |
Other commitments | 694 | 684 |
Later than 5 years [Member] | ||
Disclosure Of Lease And Other Commitments [Line Items] | ||
Leases | 9 | 43 |
Other commitments | € 18 | € 23 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
United Kingdom [Member] | Issue Of Intangible Assets And Permanent Establishment [Member] | ||
Disclosure of contingent liabilities [line items] | ||
Tax Assessment Relating To NV Permanent Establishment in UK | € 141 | |
Brazil [member] | ||
Disclosure of contingent liabilities [line items] | ||
Corporate reorganisation tax assessment | € 2,040 | € 2,235 |
Potential tax litigation cases that will move to Judicial courts | € 863 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Summary of Contingent Liabilities (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of contingent liabilities | ||
Total contingent liabilities | € 3,510 | € 4,210 |
Brazil [member] | ||
Summary of contingent liabilities | ||
Corporate reorganisation - IPI, PIS and COFINS taxes and penalties | 2,040 | 2,235 |
Inputs for PIS and COFINS taxes | 35 | 43 |
Goodwill amortisation | 137 | 184 |
Other tax assessments - approximately 600 cases | 650 | 959 |
Total Brazil tax | 2,862 | 3,421 |
Other Countries [Member] | ||
Summary of contingent liabilities | ||
Other contingent liabilities | € 648 | € 789 |
Acquisitions and Disposals - Ad
Acquisitions and Disposals - Additional Information (Detail) € in Millions, shares in Millions | Apr. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2020EUR (€)sharesDivisions | Dec. 31, 2019EUR (€) | Dec. 31, 2018EUR (€) | Jun. 30, 2020EUR (€) |
Disclosure of Acquisitions and Disposals [Line Items] | ||||||
Value of consideration transferred | € 6,337 | € 1,167 | € 1,194 | |||
Revenue of acquiree | 476 | |||||
Operating profit of acquiree | 124 | |||||
Revenue of group if acquisition completed | 51,116 | |||||
Operating profit of group if acquisition completed | € 8,371 | |||||
Description of goodwill | Goodwill represents the future value which the Group believes it will obtain through operational synergies and the application of acquired company ideas to existing Unilever channels and businesses. | |||||
Total consideration for the disposals | € 35 | 169 | 7,590 | |||
Net fair value value of assets acquired | 3,857 | 771 | € 815 | |||
Hindustan Unilever Limited [Member] | ||||||
Disclosure of Acquisitions and Disposals [Line Items] | ||||||
Share issue related cost | 5 | |||||
Main Horlicks Acquisition [member] | ||||||
Disclosure of Acquisitions and Disposals [Line Items] | ||||||
Value of consideration transferred | 5,294 | € 5,294 | ||||
Revenue of acquiree | 415 | |||||
Operating profit of acquiree | 119 | |||||
Value of cash transferred | 449 | |||||
Value of equity transferred | € 4,845 | € 4,845 | ||||
Exchange rate | Divisions | (83.05) | |||||
Revenue of group if acquisition completed | € 50,867 | |||||
Operating profit of group if acquisition completed | 8,342 | |||||
Contingent assets recognized as of acquisition date | 73 | |||||
Business combination acquistion related costs recognized | € 42 | € 12 | ||||
Number of instruments or interests issued or issuable | shares | 184.6 | |||||
Percentage interest in subsidiary | 61.90% | 67.20% | ||||
Net fair value value of assets acquired | € 3,204 | |||||
Goodwill acquired increase decrease due to foreign exchange differences | 159 | |||||
Gross contractual amounts receivable for acquired receivables | 77 | |||||
Main Horlicks Acquisition [member] | Glaxosmithkline [Member] | ||||||
Disclosure of Acquisitions and Disposals [Line Items] | ||||||
Contingent liabilities assumed in a business combination | 123 | |||||
Main Horlicks Acquisition [member] | Ongoing Litigation [Member] | ||||||
Disclosure of Acquisitions and Disposals [Line Items] | ||||||
Goodwill expected to be deductible for tax purposes | € 1,300 |
Acquisitions and Disposals - Su
Acquisitions and Disposals - Summary of Business Acquisitions and Disposals (Detail) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Oct. 01, 2019 | Jul. 26, 2019 | |
Ice Cream [member] | Carozzi [Member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Jul. 15, 2020 | ||||
Acquired/disposed business | Sold the Ice Cream business in Chile to Carozzi. | ||||
The Laundress [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Jan. 28, 2019 | ||||
Acquired/disposed business | Acquired the Laundress, a global premium eco-friendly laundry care business in the US. The acquisition expands our portfolio into the premium home care market. | ||||
Graze [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Feb. 5, 2019 | ||||
Acquired/disposed business | Acquired Graze, the leading healthy snacking business in the UK. The acquisition accelerates our presence in the healthy snacking and out of home markets. | ||||
Alsa Baking [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Mar. 1, 2019 | ||||
Acquired/disposed business | Sold the global Alsa baking and dessert business to Dr. Oetker. | ||||
Garancia [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Apr. 5, 2019 | ||||
Acquired/disposed business | Acquired Garancia, a derma-cosmetic business in France. The acquisition strengthens our prestige portfolio in the pharmacy channel. | ||||
Olly Nurtrition [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | May 21, 2019 | ||||
Acquired/disposed business | Acquired Olly Nutrition, a US based vitamins, minerals and supplements business that accelerates our presence and competitiveness in the wellness market. | ||||
Fluocaril And Parogencyl [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Jun. 28, 2019 | ||||
Acquired/disposed business | Acquired Fluocaril and Parogencyl oral care businesses in France and Spain. The acquisition complements our existing oral care portfolio and strengthens our distribution in the European pharmacy channel. | ||||
Tatcha [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Acquisition percentage | 95.00% | ||||
Deal completion date | Jul. 26, 2019 | ||||
Acquired/disposed business | Acquired 95% of Tatcha, a leading prestige skin care business in the US. Tatcha is a modern skin care brand with a focus on natural ingredients, product experience, premium design and packaging quality. | ||||
Astrix [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Aug. 30, 2019 | ||||
Acquired/disposed business | Acquired Astrix, a personal and home care business in Bolivia that further strengthens our local market competitiveness. | ||||
Lenor [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Acquisition percentage | 70.00% | ||||
Deal completion date | Oct. 1, 2019 | ||||
Acquired/disposed business | Acquired 70% of Lenor, a premium skin care business based in Japan. The acquisition expands our portfolio into Japanese beauty, premium face and derma care in Japan and China. | ||||
Frufru [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Acquisition percentage | 75.00% | ||||
Deal completion date | Oct. 1, 2019 | ||||
Acquired/disposed business | Acquired 75% of FruFru, a healthy food business in Romania which accelerates our local presence and competitiveness in the healthy food market. | ||||
Bangladesh Horlicks Acquisition [Member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Acquisition percentage | 82.00% | ||||
Deal completion date | Jun. 30, 2020 | ||||
Acquired/disposed business | The Group acquired 82% of GlaxoSmithKline Bangladesh Limited, a health food drink business in Bangladesh. The Bangladesh Horlicks Acquisition was a separate transaction to the Main Horlicks Acquisition. | ||||
Vwash [Member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Jun. 25, 2020 | ||||
Acquired/disposed business | Acquired Vwash, a leading intimate hygiene business in India. The acquisition complements our beauty and personal care portfolio and increase our presence in fast-growing segments in India. | ||||
Main Horlicks Acquisition [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Apr. 1, 2020 | ||||
Acquired/disposed business | Acquired the health food drinks business of GlaxoSmithKline plc in India and 20 other predominantly Asian markets (“the Main Horlicks Acquisition”). The acquisition added leading brands such as Horlicks and Boost in certain markets, increasing Unilever’s presence in functional nutrition. As a significant acquisition for the Group, further details are disclosed separately below. | ||||
SmartyPants Vitamins [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Dec. 23, 2020 | ||||
Acquired/disposed business | Acquired SmartyPants Vitamins, a vitamin, mineral and supplement company based in the US. The acquisition complements Unilever’s existing portfolio in functional nutrition. | ||||
Liquid IV [member] | |||||
Disclosure of Acquisitions and Disposals [Line Items] | |||||
Deal completion date | Oct. 1, 2020 | ||||
Acquired/disposed business | Acquired Liquid IV, a US-based health-science nutrition and wellness company, known for its portfolio of electrolyte drink mixes that enhance rapid hydration. This acquisition increases our presence in functional nutrition. |
Acquisitions and Disposals - _2
Acquisitions and Disposals - Summary of Impact of the Decrease in Shareholding on the Equity Attributable to Shareholders of the Group (Detail) - Unilever PLC [member] € in Millions | 12 Months Ended |
Dec. 31, 2020EUR (€) | |
Disclosure Of Impact Of The Decrease In Shareholding On The Equity Attributable To Shareholders Of The Group [Line Items] | |
Net assets acquired before acquisition of GSKCH | € 718 |
Net assets acquired after acquisition of GSKCH | 661 |
Loss recognised in equity due to dilution | (57) |
Gain arising from proportionate share of GSKCH's net assets acquired | 3,001 |
Net gain arising from the Main Horlicks Acquisition recognised in equity | € 2,944 |
Acquisitions and Disposals - _3
Acquisitions and Disposals - Summary of Effect of Acquisitions on Consolidated Balance Sheet (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Detailed Information about Business Combination [Line Items] | |||
Net assets acquired | € 3,857 | € 771 | € 815 |
Non-controlling interest | (27) | (25) | (17) |
Goodwill | 18,942 | 18,067 | |
Total payment for acquisition | 6,337 | 1,167 | 1,294 |
Exchange rate gain/ (loss) on cash flow hedge | (100) | ||
Total consideration | 6,337 | 1,167 | 1,194 |
Subsidiaries [member] | |||
Disclosure of Detailed Information about Business Combination [Line Items] | |||
Goodwill | € 2,507 | € 421 | € 496 |
Acquisitions and Disposals - _4
Acquisitions and Disposals - Summary of Net Assets Acquired and Total Payment for Acquisition (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Detailed Information about Business Combination [Line Items] | |||||
Intangible assets | € 4,082 | ||||
Other non-current assets | 284 | ||||
Trade and other receivables | 103 | ||||
Other current assets | [1] | 655 | |||
Non-current liabilities | [2] | (1,107) | |||
Current liabilities | (160) | ||||
Net assets acquired | 3,857 | € 771 | € 815 | ||
Non-controlling interest | (27) | (25) | (17) | ||
Goodwill | 18,942 | 18,067 | |||
Exchange rate gain/(loss) on cash flow hedges | (100) | ||||
Total consideration | 6,337 | 1,167 | 1,194 | ||
Consideration paid | [3] | 6,313 | |||
Deferred consideration | 24 | ||||
Main Horlicks Acquisition [member] | |||||
Disclosure of Detailed Information about Business Combination [Line Items] | |||||
Intangible assets | 3,345 | ||||
Other non-current assets | 249 | ||||
Trade and other receivables | 77 | ||||
Other current assets | [1] | 560 | |||
Non-current liabilities | [2] | (905) | |||
Current liabilities | (122) | ||||
Net assets acquired | 3,204 | ||||
Goodwill | 2,090 | ||||
Total consideration | 5,294 | € 5,294 | |||
Consideration paid | [3] | 5,294 | |||
Other Acquisitions [Member] | |||||
Disclosure of Detailed Information about Business Combination [Line Items] | |||||
Intangible assets | 737 | ||||
Other non-current assets | 35 | ||||
Trade and other receivables | 26 | ||||
Other current assets | [1] | 95 | |||
Non-current liabilities | [2] | (202) | |||
Current liabilities | (38) | ||||
Net assets acquired | 653 | ||||
Non-controlling interest | (27) | ||||
Goodwill | 417 | ||||
Total consideration | 1,043 | ||||
Consideration paid | [3] | 1,019 | |||
Deferred consideration | 24 | ||||
Subsidiaries [member] | |||||
Disclosure of Detailed Information about Business Combination [Line Items] | |||||
Goodwill | € 2,507 | € 421 | € 496 | ||
[1] | Other current assets include finacial assets of €463 million and cash of €36 million related to the Main Horlicks Acquisition. | ||||
[2] | Non-current liabilities include deferred tax of €746 million related to the Main Horlicks Acquisition. | ||||
[3] | For the Main Horlick Acquisition consideration paid was €449 million in cash and €4,845 million in equity shares. For the other acquisitions all consideration was paid in cash. |
Acquisitions and Disposals - _5
Acquisitions and Disposals - Summary of Net Assets Acquired and Total Payment for Acquisition (Parenthetical) (Detail) - Main Horlicks Acquisition [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of detailed information about business combination [line items] | ||
Business combination equity shares issued for consideration | € 4,845 | € 4,845 |
Business combination equity shares issued for consideration cash paid | 449 | |
Other current assets [Member] | ||
Disclosure of detailed information about business combination [line items] | ||
Business combination financial assets recognised | 463 | |
Business combination cash acquired | 36 | |
Business combination deferred tax liabilities acquired | € 746 |
Acquisitions and Disposals - _6
Acquisitions and Disposals - Summary of Impact of Disposals (Detail) - EUR (€) € in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disposals [Abstract] | |||
Goodwill and intangible assets | € 1 | € 82 | € 2,510 |
Other non-current assets | 21 | 19 | 666 |
Current assets | 5 | 15 | 261 |
Trade creditors and other payables | (1) | (12) | (107) |
Net assets sold | 26 | 104 | 3,330 |
(Gain)/loss on recycling of currency retranslation on disposal | (71) | ||
Profit/(loss) on sale attributable to Unilever | 9 | 65 | 4,331 |
Consideration | 35 | 169 | 7,590 |
Cash | 34 | 168 | 7,135 |
Cash balances of businesses sold | 1 | 321 | |
Non-cash items and deferred consideration | 1 | 134 | |
Total consideration for the disposals | € 35 | € 169 | € 7,590 |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale - Summary of Assets and Liabilities Classified as Held for Sale (Detail) - EUR (€) € in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-current Assets Held for Sale [Line Items] | |||
Goodwill and intangibles | [1] | € 34,941 | € 31,029 |
Property, plant and equipment | 10,558 | 12,062 | |
Current assets | |||
Inventories | 4,462 | 4,164 | |
Trade and other receivables | 4,939 | 6,695 | |
Disposal groups held for sale | [2] | 11 | 29 |
Assets held for sale | 28 | 82 | |
Liabilities held for sale | 1 | 1 | |
Non-Current Assets Held for Sale [member] | |||
Non-current Assets Held for Sale [Line Items] | |||
Property, plant and equipment | [3] | 17 | 53 |
Disposal Groups Held for Sale [member] | |||
Non-current Assets Held for Sale [Line Items] | |||
Goodwill and intangibles | [2] | 1 | 3 |
Property, plant and equipment | [2] | 4 | 13 |
Current assets | |||
Inventories | [2] | 6 | 9 |
Trade and other receivables | [2] | 1 | |
Other | [2] | 3 | |
Assets held for sale | 28 | 82 | |
Liabilities held for sale | € 1 | € 1 | |
[1] | Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 milion (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional. | ||
[2] | In 2020, disposal groups held for sale consists of assets mainly relating to manufacturing assets. | ||
[3] | 2019 includes manufacturing assets held for sale in various countries. |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Balances Existed with Associate or Joint Venture Businesses (Detail) - Joint ventures [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Transactions between Related Parties [Line Items] | ||
Sales to joint ventures | € 1,004 | € 839 |
Purchases from joint ventures | 118 | 113 |
Receivables from joint ventures | 80 | 92 |
Payables to joint ventures | 43 | 38 |
Loans to joint ventures | 255 | 289 |
Royalties and service fees | € 21 | € 23 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Langholm Capital II [Member] - Associates [member] - EUR (€) € in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Transactions between Related Parties [Line Items] | ||
Investments in associates | € 64 | |
Outstanding commitments made by entity, related party transactions | € 2 | 11 |
Amount received back from associate | € 0 | € 0 |
Remuneration of Auditors - Summ
Remuneration of Auditors - Summary of Services from Auditors and its Associates (Detail) - EUR (€) € in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||||
Total statutory audit fees | € 19 | € 17 | € 16 | |||
Fees payable to the Group's auditors for the audit of non-statutory financial statements | 6 | [1] | 0 | 4 | [1] | |
Audit-related assurance services | [2] | 0 | 0 | 0 | ||
Other taxation advisory services | 0 | 0 | 0 | |||
Services relating to corporate finance transactions | 0 | 0 | 0 | |||
Other assurance services | [3] | 1 | 0 | 1 | ||
All other non-audit services | [2] | 0 | 0 | 0 | ||
Total fees payable | 26 | 17 | 21 | |||
Unilever Group [member] | ||||||
Disclosure of Auditors Remuneration [Line Items] | ||||||
Total statutory audit fees | [4] | 6 | 5 | 6 | ||
Subsidiaries [member] | ||||||
Disclosure of Auditors Remuneration [Line Items] | ||||||
Total statutory audit fees | [5],[6] | € 13 | € 12 | € 10 | ||
[1] | 2020 includes €6 million for the audit of carve-out financial statements of the Tea business. 2018 includes €4 million for audits of carve-out financial statements of the Spreads business. | |||||
[2] | Amounts paid in relation to each type of service are less than €1 million individually and in aggregate (2019: less than €1 million and in aggregate; 2018: less than €1 million). | |||||
[3] | 2020 includes €1 million for assurance work on Unification. 2018 includes €1 million for assurance work on Simplification. | |||||
[4] | Of which €1 million was payable to KPMG Accountants N.V. (2019: €1 million; 2018: €1 million) and €5 million was payable to KPMG LLP (2019: €4 million; 2018: €5 million). | |||||
[5] | Amount payable to KPMG in respect of services supplied to associated pension schemes was less than €1 million individually and in aggregate (2019: less than €1 million individually and in aggregate; 2018: less than €1 million individually and in aggregate). | |||||
[6] | Comprises fees payable to the KPMG network of independent member firms affiliated with KPMG International Cooperative for audit work on statutory financial statements and Group reporting returns of subsidiary companies. |
Remuneration of Auditors - Su_2
Remuneration of Auditors - Summary of Services from Auditors and its Associates (Parenthetical) (Detail) - EUR (€) € in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of Auditors Remuneration [Line Items] | ||||
Total statutory audit fees | € 19 | € 17 | € 16 | |
Amount paid in relation to each type of non-statutory audit services | [1] | 0 | 0 | 0 |
Work on simplification [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Assurance work on simplification | 1 | 1 | ||
Review of tea carve out accounts [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Auditor remuneration for audits and reviews of spreads carve out financial statements | 6 | |||
Review of spreads carve-out accounts [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Auditor remuneration for audits and reviews of spreads carve out financial statements | 4 | |||
Top of range [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Services supplied to associated pension schemes | 1 | 1 | 1 | |
Amount paid in relation to each type of non-statutory audit services | 1 | 1 | 1 | |
KPMG Accountants N.V. [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Total statutory audit fees | 0 | 1 | 1 | |
KPMG LLP [member] | ||||
Disclosure of Auditors Remuneration [Line Items] | ||||
Total statutory audit fees | € 6 | € 4 | € 5 | |
[1] | Amounts paid in relation to each type of service are less than €1 million individually and in aggregate (2019: less than €1 million and in aggregate; 2018: less than €1 million). |
Events After The Balance Shee_2
Events After The Balance Sheet Date - Additional Information (Detail) € in Millions | 3 Months Ended | ||
Dec. 31, 2020EUR (€) | Dec. 31, 2020£ / shares | Dec. 31, 2019EUR (€) | |
Disclosure of Non-adjusting Events after Reporting Period [Line Items] | |||
Dividend declared | € 1,125 | ||
Unilever PLC [member] | |||
Disclosure of Non-adjusting Events after Reporting Period [Line Items] | |||
Dividend declared | € 1,125 | € 1,073 | |
Major Ordinary Share Transactions [member] | Unilever PLC [member] | |||
Disclosure of Non-adjusting Events after Reporting Period [Line Items] | |||
Dividend payables per share | £ / shares | £ 0.3760 |
Significant Subsidiaries - Sche
Significant Subsidiaries - Schedule of Significant Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Argentina [member] | Unilever de Argentina S.A [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Argentina |
Name of subsidiary | Unilever de Argentina S.A. |
Percentage interest in subsidiary | 100.00% |
Australia [member] | Unilever Australia Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Australia |
Name of subsidiary | Unilever Australia Limited |
Percentage interest in subsidiary | 100.00% |
Bangladesh | Unilever Bangladesh Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Bangladesh |
Name of subsidiary | Unilever Bangladesh Limited |
Percentage interest in subsidiary | 60.75% |
Brazil [member] | Unilever Brasil Ltda. [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Brazil |
Name of subsidiary | Unilever Brasil Ltda. |
Percentage interest in subsidiary | 100.00% |
Canada [member] | Unilever Canada Inc [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Canada |
Name of subsidiary | Unilever Canada Inc. |
Percentage interest in subsidiary | 100.00% |
China [member] | Unilever Services (Hefei) Co Ltd [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | China |
Name of subsidiary | Unilever Services (Hefei) Co. Ltd |
Percentage interest in subsidiary | 100.00% |
China [member] | Walls (China) Co. Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | China |
Name of subsidiary | Walls (China) Co. Limited |
Percentage interest in subsidiary | 100.00% |
England and Wales [member] | Unilever UK & CN Holdings Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | England and Wales |
Name of subsidiary | Unilever UK & CN Holdings Limited |
Percentage interest in subsidiary | 100.00% |
England and Wales [member] | Unilever Global IP Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | England and Wales |
Name of subsidiary | Unilever Global IP Ltd |
Percentage interest in subsidiary | 100.00% |
England and Wales [member] | Unilever UK Holdings Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | England and Wales |
Name of subsidiary | Unilever U.K. Holdings Limited |
Percentage interest in subsidiary | 100.00% |
England and Wales [member] | Unilever UK Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | England and Wales |
Name of subsidiary | Unilever UK Limited |
Percentage interest in subsidiary | 100.00% |
England and Wales [member] | Unilever UK Central Resources Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | England and Wales |
Name of subsidiary | Unilever U.K. Central Resources Limited |
Percentage interest in subsidiary | 100.00% |
France [member] | Unilever France S.A.S [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | France |
Name of subsidiary | Unilever France S.A.S |
Percentage interest in subsidiary | 99.99% |
Germany [Member] | Unilever Deutschland GmbH [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Germany |
Name of subsidiary | Unilever Deutschland GmbH |
Percentage interest in subsidiary | 100.00% |
Germany [Member] | Unilever Deutschland Holding GmbH [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Germany |
Name of subsidiary | Unilever Deutschland Holding GmbH |
Percentage interest in subsidiary | 100.00% |
India [Member] | Hindustan Unilever Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | India |
Name of subsidiary | Hindustan Unilever Limited |
Percentage interest in subsidiary | 61.90% |
Indonesia [Member] | P T Unilever Indonesia Tbk [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Indonesia |
Name of subsidiary | PT Unilever Indonesia Tbk |
Percentage interest in subsidiary | 84.99% |
Italy [Member] | Unilever Italia Mkt Operations SRL [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Italy |
Name of subsidiary | Unilever Italia Mkt Operations S.R.L. |
Percentage interest in subsidiary | 100.00% |
Korea | Carver Korea Co Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Korea |
Name of subsidiary | Carver Korea Co., Ltd |
Percentage interest in subsidiary | 100.00% |
Mexico [Member] | Unilever de Mexico S de R L de C V [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Mexico |
Name of subsidiary | Unilever de Mexico, S. de R.I. de C.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Mixhold BV [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Mixhold B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Unilever Finance International B V [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Unilever Finance International B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Unilever Finance Netherlands BV [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Unilever Finance Netherlands B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Unilever IP Holdings BV [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Unilever IP Holdings B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Unilever Nederland B V [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Unilever Nederland B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | Unilever Europe BV [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | Unilever Europe B.V. |
Percentage interest in subsidiary | 100.00% |
Netherlands [Member] | UNUS Holding BV [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Netherlands |
Name of subsidiary | UNUS Holding B.V. |
Percentage interest in subsidiary | 100.00% |
Pakistan [Member] | Unilever Pakistan Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Pakistan |
Name of subsidiary | Unilever Pakistan Limited |
Percentage interest in subsidiary | 99.28% |
Philippines [Member] | Unilever Philippines, Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Philippines |
Name of subsidiary | Unilever Philippines, Inc. |
Percentage interest in subsidiary | 100.00% |
Russia [member] | OOO Unilever Rus [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Russia |
Name of subsidiary | OOO Unilever Rus |
Percentage interest in subsidiary | 100.00% |
Singapore [Member] | Unilever Asia Private Limited [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Singapore |
Name of subsidiary | Unilever Asia Private Limited |
Percentage interest in subsidiary | 100.00% |
South Africa [Member] | Unilever South Africa (Pty) Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | South Africa |
Name of subsidiary | Unilever South Africa (Pty) Limited |
Percentage interest in subsidiary | 100.00% |
Switzerland [Member] | Unilever ASCC AG [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Switzerland |
Name of subsidiary | Unilever ASCC AG |
Percentage interest in subsidiary | 100.00% |
Switzerland [Member] | Unilever Finance International AG [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Switzerland |
Name of subsidiary | Unilever Finance International AG |
Percentage interest in subsidiary | 100.00% |
Switzerland [Member] | Unilever Supply Chain Company AG [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Switzerland |
Name of subsidiary | Unilever Supply Chain Company AG |
Percentage interest in subsidiary | 100.00% |
Thailand [Member] | Unilever Thai Trading Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Thailand |
Name of subsidiary | Unilever Thai Trading Limited |
Percentage interest in subsidiary | 100.00% |
Turkey [Member] | Unilever Sanayi ve Ticaret Turk AS [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Turkey |
Name of subsidiary | Unilever Sanayi ve Ticaret Turk A.S |
Percentage interest in subsidiary | 99.98% |
United States [member] | Conopco, Inc [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | United States of America |
Name of subsidiary | Conopco, Inc. |
Percentage interest in subsidiary | 100.00% |
United States [member] | Unilever Capital Corporation [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | United States of America |
Name of subsidiary | Unilever Capital Corporation |
Percentage interest in subsidiary | 100.00% |
United States [member] | Unilever North America Supply Chain Company LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | United States of America |
Name of subsidiary | Unilever North America Supply Chain Company LLC |
Percentage interest in subsidiary | 100.00% |
United States [member] | Unilever United States, Inc [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | United States of America |
Name of subsidiary | Unilever United States, Inc. |
Percentage interest in subsidiary | 100.00% |
United States [member] | Ben Jerrys Homemade Inc [Member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | United States of America |
Name of subsidiary | Ben & Jerry’s Homemade, Inc. |
Percentage interest in subsidiary | 100.00% |
Vietnam [member] | Unilever Vietnam International Company Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of Incorporation | Vietnam |
Name of subsidiary | Unilever Vietnam International Company Limited |
Percentage interest in subsidiary | 100.00% |