UL - Earnings call transcript Q4 2021

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Operator

Hello and welcome to the Unilever Q4 and Full Year 2021 Results and Strategic Update. [Operator Instructions]. And with that, I'd like to hand over to Richard Williams, Unilever Head of Investor Relations, to begin the presentation. Please go ahead.

Richard Williams

Thank you. to year welcome update. and and morning Unilever's results Full strategic Good

expect be around Q&A to remarks XX XX We today by around prepared minutes followed minutes. of

as live of on All is our available webcast the program. today's screen part of accessibility transcribed

to your let and that, disclaimer to hand straight away First, non-GAAP attention forward-looking And measures. I the draw Alan. with me statements over to

Alan Jope

Richard. Thanks,

X results our about managed We full with year are priorities. in XXXX top to fastest mind up of our share the delivered We've more talk have top strategic we'll our investors detail earnings But later. the many It's detail, been underlying of in of have here and margins driven do to good. our And before weeks. are in and into been over mind our flat come and been touch line me I back we Board that some for years. growth results, on X%. per last to with around we've the of to for get topics want a few these And

for start investors. that by sharing delivered dissatisfied am the value me creation Unilever has I recent that Let with unambiguously our

lot more have, have potential do I value our shareholders. the on delivering for to We my doing portfolio that focused the we leadership XXX% with a and are and team just that,

of and into day the focused the this it's for decades. the that our resolved review, well-being we've shareholders, long-term course, faster carefully discussions thing growth lay would the of having careful being that it's heard of with were listened shift and our business. Pfizer. for we've job. position that Health that transformational of of we though, remain a concluded company same priority, ways. no months foreseeable value after the is and acquisitions portfolio That And the GSK our of there's And to of off Instead, confidential time, to chart on that portfolio Unilever's currently important exclusively the creation agenda. the the health improve but be are the proposing not said, company. in behind Consumer future. Unilever's accelerating We consumer conclusion and support direction That first organic we They the size coming our in the in the is intend in will are At Our the message the we Unilever direction for vast majority to growth. evolution, people our GSK move Board following

accelerate which organic biggest growth, of great in investing best our stepping innovation. First, to and the and our we'll to brands, quality health, our continuing continue up products strengthen are benchmark in

markets will an e-commerce China. growth of priority a build both our future, part India very the and We remains the of well. U.S., And continues position and business the the that with starting grow in overarching to

the will reshape Nutrition, Functional We've and and this through portfolio we substantial, continue thirdly, built and portfolio. acquisitions but will new Beauty in in materially continue new a It will growth at lower further model focused greater more cost. a Secondly, heavy from is operating provides is and simpler, organization model accelerant. for our to bolt-on to Prestige of does but businesses that selective fast-growing be powerful, travel away An accountability. our for moves designed matrix And be disposals. so a direction

continue. Unilever's we high invested historically capital on of will that growth to we momentum, disciplined, return XXXX We exited be will Our and expect maintain levels allocation and capital. with

navigating biggest step-up inflation. this least keep cost growth to the a X% year challenge face well. in in X% further our top is half has is to at started of goal the multiyear XXXX Our range. But we'll input

leading working. and pricing, been have it's on We

in operational competitively invest advertising, will R&D and in in We CapEx.

XXXX, though, margin in coming As empirical be a with expect in quickly, will restoration we will back can is the as result, show Right. we a later, experience XXXX. in that the Graeme down majority have our margin

So this is how we'll run today.

the First, give XXXX with progress a details which the for close a of will and through I'll operational the Graeme It's quick evolution new last that the before will we some strategic Unilever. major results. XXXX model give details beyond. outlook takes I'll then you update, overview and include month. for of portfolio Graeme on change announced then more a

decade upper At sales margin XX% is brands. a in on give we underlying this driven to later. the as and details Graeme continue current in on that a At decade. we multiyear in of year in was Volume believe strong level flow a year-on-year the responded year €X.X significant underlying put our XX growth, of let's focused in volumes nearly look guidance sales the bps invest time, a of will at by Pricing XXXX a we is for business and competitiveness, our we're full our to value and across XXXX. cash X.X% ability around XXXX. to winning with constant with that preserving its year of at up share Underlying good to down framework year We So that briefly currency. which line a growth maintained I currency competitive. cash landing down in X.X% was uncertainty, we sales into right to at stepped do the delivered and XX.X%, delivered the our X% up quick Free speed want highest was operating take X.X%, resulted Well, versus X.X% the delivery recent price XXXX seeing We more inflation flat. the of to remained X.X%. albeit underlying well flat. other record earnings delivery a at in price costs. were the share, great full growth X%. years'. to business growth And remember, in do. levels growth, billion, highest end for QX period of It's context posting of of second in year is commodities in per X.X% year last critical versus our the same full of the that input ending thing Underlying to

the has parts pricing. was the we by course, comparator the Of Solutions, XXXX. business is helped not in But that's low back XXXX for Food example, fully business, this through as relatively by still year X-year despite versus and pandemic. the managed recovered growth basis, a during above some on of X% led been And accelerating the having

last Competitiveness had restoring that competitiveness our XX% business years. also value unacceptable. fallen an key know, important component margin more X-point a both you operating Underlying over a winning And have was share conditions. our business despite level with focus of progress a the and and to been progression Unilever's on Growth XXXX has remains As in fundamentals, the flat XXXX. made priority, but our was we focus XXXX good sharp for through us X in of creation. course, around of is, margin inflationary strategy

'XX. So overall, in good progress

up our this and later delivering priority. And #X know to our Our inflationary is growth I we in the pricing momentum to competitiveness. further stepped maintained restored come I'll do is our environment building. while strategy significantly more there in But we back presentation. strong growth earnings. when heavily accelerating talk a remains We about

more few on Graeme details Graeme? XXXX. to over for Now a

Graeme Pitkethly

Thanks, morning, Alan, good and everyone.

sales cover me let all, underlying of First growth.

growth comparator, clearly stepped X-year quarterly basis an XXXX progressively the accelerating. and growth up impacted While were average numbers by stack on is the

give XXXX. we continue I'll further XXXX, through We you more the as in later and inflationary pricing increases expect outlook land to in pressures on that increased section.

especially elasticity, has in pricing have been are some our well our We seeing within markets But volume these significant. started where expectations.

within few growth was year the number. there While takes and that are volume for a positive, puts

call, Solutions, impact in and, of had just volume reported in X.X% year Food billion, recovery that's at Southeast versus where the QX was talked the contrast, Turnover grew where last XX%, we lockdown a example, X% negative our and alone. for growth about €XX.X restrictions, XXXX. up volumes on in For Asia, as over results

and disposals to negative sales I.V., X.X% from already growth Paula's Currency As Horlicks, Choice of a X.X%, a contributors that. being translation recently, against and, Liquid impact with euro. SmartyPants positive main expect EPS would mentioned, on saw as emerging the underlying for positive Based spot we XXXX. the impact acquisitions more dollar impact we and now had of weakened the and some currency and contributed on about on around X.X% of markets a currencies rates, turnover U.S. X%

price, Turning by pricing with X-year XXXX from flat year most during categories impacted Deodorants, These CAGR and grew in like and care. now a to step-up categories Hair across from XXXX. all a up grew That's we on restrictions our stepping X.X% Care X% Personal basis. in the and skin saw are divisions. social Beauty categories. XXXX, volume X% In with growth in & X.X%

being pre-COVID of occasions our with in to from levels people and below Social continuing many restrictions some work reintroduced in places. remain markets home

innovate to a continue with on with scale greater pace in We at innovations and brands. global landing our BPC greater

'XX, first Prestige levels with year where with washing to pricing. protection prior regular to and, continues Care, Dove, by germ enriched CAGR Dove X.X% dryness the a & growth in core be brand, Beauty the patented digits big while which in Growth and we contributor of Skin against of X-year double double-digit in X%. declined but moisturizers both the on the example, liquid well Refreshment Personal in X-year growth ahead ranges ever providing hand offering launched out range washes, are and XX-hour a a in in for in foaming seconds; or & For the of strongly between after balanced of of volume mitigate Foods protection strong And versus brand. growing Beauty still Rexona, significantly where XXXX core a remains Rexona basis. Cleansing the fact, technology rolled XXXX was CAGR to we

down Ice the with up levels return X in accelerated This in against Knorr the 'XX Magnum Home food restaurants, the our and and remain over in-home X% X%. CAGR to includes portfolio basis. we markets, second reopened, does by Solutions launched deliver and Out-of-home, & to is X%. driven which Home X.X%. of business, year, at half. with our Cream X-year performance a which recovery are Care and out flat The U.S., high-growth innovation as saw by significantly Latin Rinde Pricing X% Future price X-year limited X.X% the but rolling in X.X% grew we still product, now second and our which over largest Clean by formulations up very Solutions Hygiene schools such and and a leaving the and China We're Laundry Gold solutions out-of-home strong half. America. it our prepandemic Caramel core throughout bringing half zero-salt Our of to business on Knorr our offices also while our in growth friendlier on CAGR the products meals; CAGR grew in the that first as technology being in Billionaire; markets X% the Food Mas price was versus kinder was X% growth brand CAGR Double a planet. X-year And the the whilst Food with XX% the stepped of growth that comparator, by turnover and care strong to declined growth comparator, across grew superior home volume X-year basis. year

to For that example, is bacteria and with scientifically proven is which XXX% range, antibacterial viruses agent of XX.X% cleaning naturally our derived. a Cif kill

regions. Now turn let me our to

all us market for strong challenged there with In Southeast therefore, are business, which with performance. integrated Asia/AMET/RUB, a full across over Asia, saw slowdown during volume. region, China of our strongly, volume-led in volume. price by by and less growth a divisions, pricing Indonesia year supply stepped Unilever and grew both positive currently Our online maintaining Competitors is good disappointing seeing is. chain, the XX%. up inflation XX% growth driven India than with are nearly mix we year growing backwards remains to X.X% in although growth XX% of India over while channels. a of they're, performed in the biggest the into business We exposed

fundamentals. tough competitive not that marketing game have a that's been top when Indonesia on also comes to our dynamic, innovation through in driving we it and Although market we're clear of development

significantly We the quarter, QX third price. a through all of with the stepped the recovered like from In to and up place quite at this, impact by have the it put in growth another both Pricing in some strong volumes Latin saw with still year, the on year markets restrictions. America lockdowns will we're running. plans price elasticity Other volume X% now exiting local in second economies time. showing. Turkey, remain the LatAm for price year, in Asian address but strong by up QX Southeast grew following impacted year overall growth although Vietnam in XX% severe and we take pandemic

strong really to track business. the compromise we the on landing take pricing a we health but have region, price, of in long-term and will We not the of record will continue

largest market, in growth very grew America strong Our saw slightly volumes market, return digit price to biggest our versus from North competitive we grew a is U.S. the X.X% our Brazil, double with levels comparator, and which down.

biggest still price ice in high critical area That's was positive for margin 'XX. a comparator. despite challenge. We in environment customers is Europe XX are in-home but over our growth, below in U.K., well has America's remains of relatively operating slightly year landing still in XX.X%. pre-COVID Europe vectors in foods USG down volume Prestige And and pricing out-of-home and as difficult. a our ice Europe, cream points contributing pricing was ice season pricing which the health In market The are travel increases The cream remains hit with levels America. versus continued XXXX, improved levels Higher and declined strong managing for in North and our from cream the restrictions well-being remains the now to throughout volumes with basis year were North France, year year, European key Beauty year. our and the list only last consumers Underlying and full the particular, demand strong price. well. summer limited inflation. of X% flat and for businesses

enough packaging points. costs high the inflation Our stepping fully was wasn't distribution down gross margin XXX materials, Despite and seeing raw this offset basis to cost pricing across up we're significantly, globally. our

on the XX around €X turnover And in investment shelf. elasticities taking basis expect of competitiveness exercise, maintained point taking levels look down Within margin, pricing years. to of increases we been further and points. BMI, investment so and shopper's pricing. negative degree these landing markets, levels on we lag. responsible in costs in a on Volume competition Brand Pricing the leading there would But that some greater and we a XX are had a a one have far so the and of line invest marketing level mix of is benefit this have settling at approach was markets, was unwind on is COVID with as We constant by if those currencies basis opportunities dynamics we was the at prior the relative for market down relative and from most focusing following level see additional pleased we're pricing a actions. gross while BMI and efficiency. to in of competitively billion, XXXX. considered with percentage local of our are

health from Operational and offset were up main minority in as down finance earnings in Underlying noncurrent in performance and of currency basis well-being productivity part and An growth the India through shares in costs buybacks driver and programs points stepped spend turnover constant including portfolio. interest contributed reduction X.X% higher the share, per example, XX leverage. income earnings of North were XX while currency. fast-growing in our Alan by in X.X% we said, up were the basis from America, For current number increase BMI in lower by by points. was investments. Overheads

at billion delivered year, our delivery basis record down XXXX €X.X saw a growth of again and focus of Looking margin multiyear big cash versus points down was X% CapEx between operating through the once Underlying within which framework. our the multiyear on but We from strong lens and spend XX last capital. at lower was financial X%. framework well and working

X% a declared dividend, year. to €X.X have for we taking XXXX, billion the it For increase the to

our scale run was the and and still Looking programs savings various delivered of in another spend agility This capital year land at few as from savings cost X% of onwards, guidance in savings of X.Xx and model and through was goods and across model. product ingredient our and €X the year operational decrease to levels of Choice new the logic, financial The due billion the XXXX payback long-term including of from at investments. turnover. to thereafter, includes in of to line for our with €X.X profit. lines of such from other increase below offset And restructuring metrics. to the all partly Unilever run create billion years invested buying in because in acquisitions, investment that by Leverage of €X to P&L. projects the implement line with pre-XXXX which was across to to Paula's teens. around broadly was COVID restructuring expect the we create the to high to intangibles new delays remains and mid Return an from expect of our goodwill XXXX rate on around last Horlicks disruption XXXX, needed XXXX. space the billion, the the restructuring target due Restructuring return XX.X%, Xx. operational We We the

the pleased pass same in back we competitiveness but Pricing up Alan. improved to still growth So stepped to I'm that are you do. environment, at that, year, more summarizing a maintained And with to have significantly momentum inflationary strong high clear there's we delivered time. and the we're earnings XXXX, during to our and going

Alan Jope

Thanks.

a at out value that the step-up by business, we have on these in XXXX which driven believe the creation. action we is for in and that ago. strategic that a heart It built said, will five momentum priorities year sit our the of set has choices disciplined that's seen Graeme strategy and As Unilever's we performance

our with start brands. let's winning So with

together our brands grew aggregate an billion that in €X XXXX. X.X% XX up have XX% make turnover. We of They

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for X power weaker for All do X% strong with our markets, well over growth brand basis while Our U.S., on countries X on particularly be to power. example, X comparators. remain key It growth talent brand competitively XXXX, of key almost in turnover emerging year versus a markets and top India the allocation. a U.S., record all CAGR chosen for India and markets. prioritize capital and XX% is the the highest-priority remains for focus into We've future, and and innovation, XXXX digits, for across last the or strong in delivered in years. grew they competitive other China, pleasing double for capabilities, albeit The investment increasing of and over a of development winning holding the grew to and China key

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Graeme Pitkethly

be would like So approach building reconfirm what to to allocation messages there, has going and forward. first been key on Alan's capital will I our

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declines brief in Importantly, and of however, in the margin. gross out effect has very years gross illustrate quickly the cost the normalizes full inflation The this margin high then once in in and subsequent pricing margin chart in this and lands called recovered XXXX gross XXXX clearly. inflation

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profitability. this we well time a coming out a this inflation. offset and with important managing the inflation be do we on I've be we of that will on year, just not momentum component be margin So healthy, confident, combined takes business between hit expect need that fully because And to the continued extreme set are XXXX. to growth see there and need based the that chart, We a inflation our to the to able very after the to XXXX pricing, lag the majority as outlook will in start restored And me This with XXXX back this data strong material But we XXXX. short-term do in as means building presented it's alone. to keep for in the net year.

will shock managing simpler be term. major operational brings, the faster time, same model implementing that the become thing even at new but in long XXXX the of Unilever to are inflationary health an business. do and a we'll We the And for for the business the right we

XXXX, X.X% pricing. strong expect the For to to growth underlying be we sales with in range of X.X%

that around in inflation for €X the cost input we moderate €X.X and currently high half half. billion very to the expect second over we billion, mentioned, expect of first As to

a We down, margin, points and operating is basis points. to our of our our levels R&D underlying between dial full expected maintain to by to any brands, marketing, in be XXX capital and plan back for deliver will in XXX year not investment investment short-term 'XX basis in margin and The expenditure. therefore, we competitive

half somewhere the than first to underlying second So margin operating the half. more impacted take with XX% would XX% between our margin that and

with We come in in bulk expect from 'XX and the XXXX the XXXX. decline to margin XXXX back

it be and to continue been has will pricing strong. Our

by programs the We that have model ease inflation will peak operating seeing. from in we're And be established further enhanced levels expect cost place, savings we to which our change.

returning will remaining restored we to and our to our from margin actions let hand unwind priority but And for back you the deliver Therefore, invest this take this stronger top and that to to the Q&A. Richard world competitively growth, accelerating continue to we with over that, depends cost although normal. me growth. impact be the will expect is quickly, also We on period, and confident mix COVID, are

Richard Williams

Thank you, [Operator Instructions]. Graeme.

from first our come at Warren question So Barclays. will Ackerman

Warren Ackerman

Graeme, it's here couple Alan from Warren at Barclays. me. A

the top First line guidance. just is around one

elasticity? XXXX? talking seeing of And I by top volume not are sort line geography is can high step You trying back but for just can thought to is allocation. maybe negative? happening that target very confirm understand on mean you points clearly, right where it you Functional guidance, where more can But expect maybe understand with which transaction, in more price what more the trying Prestige, it of understand to capital bit still to Nutrition? be growth is ask little was any now the you now, a we triple just why I maybe guess. and step-up, Nutrition not and expecting walk you Or certain we mean do I to deal volume the and whole which place. about and obviously sort and happening? the elasticity the just share Alan, you us first in to were sales I'm pricing in category. the the to you about Glaxo Just within you And through consumer us the I'm a second then one you're be step elasticity in pockets. continues are up? Could new seeing expect should to as trying

You're bolt-ons still deals. no but but transactional saying

Alan Jope

don't Sure. into you deal elasticities why and Graeme, GSK? get with I'll question the

Graeme Pitkethly

Yes.

need we're competitiveness. ago of price months triangle wherever the and think, message, So to to pricing, sense. the I key continue We inflation, responsibly makes to manage is the spoke going that take about elasticity carefully

very carry because in brand equities, critical that we strong, pricing taking the over as strong a to in power, is And So measure compromises the Alan ability to able we're where of said, very but our business, brand it is positions. push health it, our our power do we on XX% to investing long-term brands. price level won't to our brand as

little negative, biggest click levels we're where of more very multiple you is we're taken bit Latin it. Latin the elasticity seeing know, we've And a these to rounds The detail much Just where on date in carefully I into have higher price America, balance America, out. that increase. to there with reflected. that leader, although to you But is high as in of need do, seeing been for believe. see norm want levels that of manage in to inflation, we right as gone thing do price of Care. the example, That's we we levels to it. Home price. emphasize the And Volumes has

there's that the simply elasticity. there inflation thing. Elasticity across of high levels a is is where is relative lower it So price is Elasticity market.

a measure position. we relative So price

We - the price the pricing, and that. are we're Competition leader. which measuring on important. it's in following Pricing the is is up on landing following consumer shelf, is

far, to It's is very different some it market. bound back That's but So a we so we retailers to on first which we've up it expectations where we very the -- of are far, carefully, began headwinds modeled within middle protected. step experience. tracking we market to elasticity lot all the model impact on have. began inflation is business, -- we coming, last the got we've dynamic. for the in we saw -- time, XXXX. there the And elasticity see that that do so when done around of year be it's the by work this much volume very it But But

Alan Jope

vast two faster focus capital consumer touch very important attractive it's for At M&A let to rest second the in that portfolio. Unilever after were but well-being to and the for intended your question, review, and beauty discussions Warren, lay allocation, we're concluded the the and is of the that's the That's as conclusion underscoring Graeme. team, come. that's chart that the the growth it to of careful of behind our also Unilever And for employees same what having company, shift adjacencies the And or accelerating that position into entire of myself, performance the with the from one majority on company. long-term that Board me be Graeme, thing, #X the really and direction Thanks, never Unilever's today's decades priority management would health start who maximizing focused #X by time, confidential of our months are GSK Pfizer. executive. the

in we GSK Now don't drawn where to our transformational we've stand been very of bid, today the any acquisitions. We've on Health other acquisitions. have under intently other or pursuing we major intention statements our listened feedback. clear GSK understand a Consumer We Health Consumer and shareholders. the We've line

is second your absolutely on health resolved of this but would these spaces the part we towards the patient really there. I we well-being, more part the on and and question, we're of say moving Bolt-ons Warren, remain how and get attractive strategy. portfolio are However, beauty of

be bolt-on that health way. will disposals, assets our across to And smaller of expect well-being the pruning the activity focused We in brands portfolio, some and some scale, whole business. continue Prestige very and and by Beauty intentions delivering

So are two scale those yes, grow our commitments to meaningful to businesses intact.

Richard Williams

Okay. Thanks, Alan.

to question, is from Stanley. which Pinar Morgan go next Ergun Let's straight from our

Pinar Ergun

Two questions.

I wanted the walk prices. is building all on margins. blocks driven by decline Could to the to is 'XX us one 'XX you The margin? from first And that the confirm please expected recovering? appreciate Just commodity what would the get benefits majority that is high, cost some to but the reorganization. you restored pressure margins 'XX will you fully from by despite mentioned XX% the cost prevent you the from expect be

one, So first around that's the margins.

The second one is on capital allocation.

to evolution CapEx similar Unilever. from like Would this X few years, capital allocation where were net be back the led ago, few X, one levels seen such to into recall What for below I perhaps sales this that could a of investor too have last seminars at low external you a shift is growth? expect algorithm? down Unilever's you business I years has to a pursuing little think the of of years CapEx strategy a X% indicating Unilever's over year. next that Graeme, we follow a

Alan Jope

margin XXX% raw yes, seeing variety are of about agricultural very a We're short cost on Pinar. your in materials, is on costs widespread. XXXX Thanks, petrochemical-derived energy. it doubling is to raw materials, The commodity answer pressure of Those inflation. question all

distribution. the know Packaging It's and by on You up multiples. components. freight data

translate we costs. basis didn't So as of with XXX we're savings and billion shown, pricing, looking to cost has input €X.X of increases If would Graeme margin at that that points directly mitigate on those impact.

than So are increases that margin we've the way commodity more impact cost the described.

pricing. Of savings and mitigate our programs leading then course, we on productivity and with

our price far, determination so well. to And is lead going on

very Our brands good in shape. are

Our is allowing brand on us lead health to price.

reversal happen for XXXX, in at restore history will think the Now look need that believe I just we don't to XXXX. and Three should margins things crossed, say, happen to to fingers our in again.

million First, best a our this And inflation we commodity cost need on €X.X reversal and now. slight year. outlook against euros as a billion that few is hundred right literally

rely XXXX. see deliver come And in then those will we almost on thirdly, dramatically, a If organizational will deliver. true, we increases entire margin X in which Secondly, price rollover effect the the conditions savings, of mainly reversal the moderate loss pricing we fact XXXX. XXXX from categorically from

that track assumptions answers hope combination record. Graeme? a decomposed So I also but question. the year the about next it's of historical

Graeme Pitkethly

Yes.

me numbers anchor a Let of in couple just first.

to because planning projects not of impacted So €X.X That we billion. pace net -- want disruption billion, the up we've to thrown really those major the able of that was of I was a of CapEx X.X% of turnover. both by pandemic. XXXX, the GBP was were clear, X.X capital and step by up about the was It were COVID. at which be some years progress for from X% XXXX disruptions our been

footprint our You where know is.

has pandemic the disruptive how know been. You

You parts Unilever's footprint. of know the movement on restrictions large in

the So that. that's for reason

and the north to X%. had in or Now underinvested that. we element a to over to that decades order base X-year in X- the our clear we was were Then productive that. for accelerated if normalized on levels go CapEx you that of felt catch-up of reminder, back back a the of levels. in investment correct of period there just We prior, company, pre-XXXX, very Actually, a

and I right. Thereafter, you're think I actually, mean,

that of levels. right think I manufacturing. now. that And our for around think so around the the manufacturing level. is that is conversation right maybe X.X%, being we of We a did that have a now third-party there's X.X% around about has moved to reason about much X% And

years turnover. now and XX% And have was XX% percentage a that XX%. adjust or of ago. X It's you X it So for as or at to looking that

supply it from and a of of it, on not their XX% your coming parties third for the CapEx to X.X% corrects X.X% Then, where ours, about the you sort math If level. do a on you balance was just level is adjust sheet, on that.

think passed X mic, the that, and amount areas I just comment I through sort of our we're broadly So I've that in talked Pinar. around years a on about ago supply restructuring you that whilst the And or the of we just chain. X got spend

restructuring thinking XXXX I think onwards. We, from it's of important know, the you about investment of when you're capital. as stepped level up

to year. level will the the this of of basis it normalized drop XXX in And thereafter, As I points down more presentation, end we'll of that expect continue turnover. said we until about the

about we America restructuring speaking, year billion year the been on that Latin supply investing North and level Europe, chain lot roughly since a So GBP gone has XXXX. of were million a focused in It's that versus investment X been it's $XXX of A restructuring. broadly focused focused America. in in

capital the company. that's capital, the in of we've terms improving performance in base been also what of the spending So doing of

Richard Williams

Thanks, Graeme.

question John Sachs. Goldman from comes at next Our Ennis

John Ennis

realize will separations, I some for I and Beauty did And you market working just think, decide business & to most wonder this guess you reorganization. share what sales give category How delivery. Unilever? could structure terms ask Care? topic. that more future think maybe about wasn't it made improve notably performance how wanted quite you the of growth details Personal I examples you be the would detail both in some to between old Any on of And I the helpful. around one if that

Alan Jope

Great.

business use in is and the we're much about. differences dominated case, strongly Oral where, the Skin channel you Cleansing increasing let deal there if drugstores, example business. Care, and -- particularly health of you channel calling important footprint beauty and There a between contrast, health that in those that's at what the business me beauty By well-being, in groups by more that, independents. are John. I'll deodorants, populated look our now is part very asked which, we've and Online -- particular that And by is with the with a Personal dominated Care, emerging it's more mass channels. Okay,

key And so channels and difference the the focus of footprint different those businesses in each the that requires between them. is channel a

Secondly, different. very the competitive is landscape

competitors Home our from who, focused turn, different of Our Ice very team, set a Cream of in are on focused are team Care on a very competitors. different set very

differences these it's focus a groups. why to channel competitor we've landscape, them in between areas. So emerging business or chosen a And there that's a consumer, five different whether different are

And organization our organizing large And across matrices purpose. does when think it aligning notorious matrix decision-making most I diffuses slow agile of a different dimensions. served are it accountability. But Secondly, its not for way frankly, you're down being company. the

can absolutely who a that's we to am really Unilever's can ability performance, work leaders I in who think with who being work short- performance to we can business forward then are Graeme and manage P&L today, level, sorry, we And their looking I with, five -- management, who resulting we and So mean, a having proven out, some month-to-month can basis. and categories long-term I but week-to-week, country optimized can in haven't outcomes. teased at performance across the on this is suboptimal final point, we drive

honest. it's this within the We we're across model. fundamental And and But is the those of it's with countries decision-making be comes the strategic now agenda -- into retain can't so that optimize of just a headline accountable, categories. that's the category to the will wait P&L just simpler, each clearer integrity get shift of that we who's it, to

Richard Williams

Okay. Thanks Alan. for that,

question there, Are Our JPMorgan. next comes you at from Pannuti Celine? Celine

Celine Pannuti

nonetheless, you're comes there's sentence the and My market of there's the is on. looking first so you, terms and it CapEx, it Alan, progressing that superiority presentation, to the for in share, you question and enough creation. that at said is with seems first business I'm value product satisfied

think was as investor So M&A. like to what is would growth base problem? why organic performance, Clearly, you with concentrate on your and the satisfied they I well that's versus

know into the just land in also, the And like would you back the The to included in And is in cost of point, a So or XXXX risk in I was lies I to in prices the of new structure, -- where base. also whether also looking want implementation salary I to that your market? just wanted problem then for maybe your second operate inflation business risk. to terms understand mind.

Alan Jope

Celine. Thanks, Okay.

years, the the what gap And on organization. We want a between step-up to competitive the back steady that of drive growth currently we and profitable to see competitive, growth. over Unilever competitiveness of we think see consistency how business believe a that and last the how responsible and has that's how consistent is and comes I delivering in consistent, the the capable growth. has to on you're frankly growth gap We growth. growth, this the And seeing growth, and it's is X concept valued there profitable delivery. the responsible. been, internal growth consistency of And XG is of our

the basis, QX, stack a you from, basis, Of in X.X% X-year on year in year and QX. X.X% X.X% went our in X.X% course, comparator. last by take in But little flattered bit year was performance prior QX a last X-year a QX, if

So we step-up are delivery. seeing that steady consistent in

Second is competitiveness of delivery.

growth need way. handle in competitive, delivering consistent, do the our reliable performance some is we to a as and matrix steady, which market now, you such risk I X, of is on can that know, share We're now or market the both last we years. And share, share. X XX% we think X market more places what market you in As operational than to the were winning that's in years risks holding corrected that. Perhaps, And and ago, responsible. losing donating focus of profitable we're Graeme, thorough we've

Graeme Pitkethly

Yes. Yes.

an I organizational to this change is I a think think it anybody major incremental it's a mean, the question. I a for very don't improvement. good want as of or of model Unilever. obviously, tweak

performance is the set it multiple it's a last called of across Alan One as or to XX fundamental fundamental. The fundamental in said, Alan point geographies that's significant as many significant quite of years market change couple more XX the most multiple it's opposed managing as as many, a of be we As change. geographic categories Really, will is the a envelope that across we've change And to we limited and optimizing Unilever narrower decades. when categories. a ago. how And our made managed said, for company

strategy, earlier. really, mainly Today, the are managers first who general people divisions in who for business, delivery That's important. really Chief XX be we the lead across And have are about touched that thing management global to our around your XX to of gearbox et for units. short-term the targets that how our to brand Now we they in going country The performance responsible Officer are optimizing today's decisions, have manage performance targets the portfolio, cetera. those set, Alan it the leaders model. say is that? the M&A our and after of on we But That's appointments Operating set markets. to falls

presidents. experienced the the into with have ladders units. senior have leaders. very, very said, of fully business we experienced Alan as forwards, business the we and unit business are jobs. group Going number These senior That's jobs, And big units however, business and will up groups XX and that will most accountable our five, business

place Going absolutely from, perform across significant we're ability to the is capability with strategy same both managed into matrix. manager in the increase bringing a a the responsibility. to a country say, unit to position no general general And is business manager deliver and split because performance

the the that it step-up our lead be very will asked will we liberating. change. that belief company the Nitin is transformation offer. And further performance in That's this to that have Now But office. a to basis can manage a our big be that, to continue for

the be will Officer. Nitin Transformation Chief So

think and balls half for be don't to Nitin so hats. I the also, entire the change transformation well and And much foremost, Operating for drop is as for the that. both first the the People year, targeted is rest during around that that's the first we that focused, Nitin this And the retains simplification and the change of is that in the sure addition move I we office, people course, will new managing helpful And of assured, organization. held Chief Chief of as Officer. before Of first making company accountable And he's of people transformation, said, accountability. a on half the the to because year and leadership it's leadership Officer.

through that will already, And we final we've it help a us staffed, is the So to significant take us. transformation thing very then and change. the done office have

we are out of leaders change experienced of roles will to dedicated successfully. this the our and that operating making model Some be their Unilever execute most coming and in sure can senior in

our For who Jawa, will example, very that. the to has business of North for is you last coming led Rohit he in many know Asia years, do successfully in few Rohit

will the be in in CFO business of big Brazil our alongside that. managing Rohit and side. work On in to coming successful finance The

we're a manage just couple how the to risk. of they're going examples So of

Richard Williams

Graeme. Thanks, Thanks, Celine.

comes from James Our next at Edward Jones RBC. question

James Jones

last reboot secondly, see the need XX% on XX.X%. A from, questions, over you've to Do return over you X And please. to couple think, capital cultural of reorganization for with fallen the bit announced? years I has the coincide your a

acquisitions well. your have performed emphasized You've

capital is efficiency deteriorating? its mean that seeing the does So preexisting business

Alan Jope

your define long organization to we're done We're this step purposeful. that arms deal the to issue sense the think and want accountable. define James, honest, human, in around the up. a the is or if on how to It's put culture with. ephemeral business a culture over I And And single it of the the design is And hard Unilever's up as to to organization. an of we We've of purposeful it long is is lot it. accountability work years I'm and mindedly human. show definitely

diffuse Our tends their accountable today matrix but for that our very responsibilities, responsibility. people to feel

unit for be absolutely sorry, general unit business the and leaders, business accountable group and -- it will the business leaders managers big is Our what. who unambiguous

be to will ROIC? Graeme, of define as is dimensions organization accountable, designed a and of materials, dial Unilever's in to this been culture that going I've those human, sense And there it which is purposeful be if And we think up our to and cultural literally, so three I shift, crystal amplify. accountability. clear

Graeme Pitkethly

Yes.

divestment So Prestige areas building that's of had took your Throughout turnover of Alan numbers bolt-on period XXXX strategy of the from our the you change we've and sort business of slower-growth significant €X XX% billion that to Personal & in in are focused bang and been Care, careful in around ROIC acquisition been Foods, that through almost from still XX% is Refreshment XXX% say the Beauty, a very XX%. that XX% wellbeing should Unilever caused and this the focused health and very on. about in managing that in of being Foods in our and from I that reduction that, attractive, that means the we've portfolio, that. ROIC but high

bringing on to the is the goodwill challenges been within your Alan that DSC, to all way good. Not underlying Carver, and dilutive broadly those, clear that have business performance that those your reality because acquisitions, acquisitions do by of we've yes, operational of Alan being But has Now ROIC. as specific and you The intangibles acquisitions well, today. question, to so all is the be them, managed the when Blueair, in, said. performed you're our of tend very

healthy But showed margin, in that savings, and then and diligence that back to One restructuring that up going on XXXX and our in the of progress progress the earlier made 'XX. recover that go of finding we've investing, margin, our charts put Alan in the business 'XX we've that the way operational on we're us performance that creating has but disappointing in business, don't in made which and that's performance thing the the been line, been of has progress with the operating get X%, the top mitigated at wrong, X% of a combined margin, -- the impact.

that growth up. does that showed that charts the deteriorating the It how businesses in So a through we've answer on made added aligned us. able that the to we've to mean, the that's your ROIC X.X% and we ourselves where That respectively, directly, we've find are repositioning an reporting built and not performance growth securing significantly, deployed of through is points, portfolio, the we And capital divestments of situation in been the been have question basis able of just basis with ROIC. pre-existing to strategy, rotate impact XX the the faster and harvested judicious now, we've mitigate portfolio to we're you the that for points XX company. estimated operating the have the

Richard Williams

Graeme. Thanks, Okay.

question, Next at David David. from ahead, Hayes SocGen. Go

David Hayes

I've and a missed had a tell it bit. if been I covered, you exciting can but Sorry has this connection anyway But bit whether I'll this issue. me of with go

then So just on and strategy on the outlook. firstly one

on insights management, strategy side, the which the the just of situation, didn't all So sort trends now that Board to got give to the you clearly forth, talk ExCo, thought are experienced CPG and GSK the the go, part got and was so back well coming best shareholders right dropping all in clearly way and of that that support. but that deal, which the to you Food about, have change, as that,

that's GSK couple the I if the question, that's I give bits. best the option? there's And get about unique in you a And actually the can and sponsorship? you that have it frustration changed what's can't that? wondered genuinely your outlook. So about there didn't direction you what do question unique is was what Unilever? hands is, is guess And Or a whether on that because details changed for only a Or is second just it, you guess the I are then A, proposition on but minds option your the of the tied 'XX case? because just

XX%-plus get over XX% I word to margin go that up XXXX. back again 'XX. that, the would use of Is the the talking It Is in to related it we are comes number to may think, margin sort XX.X% cover 'XX, the of And was word, to that restoration was you margins as the back not or I at going you up of guess part time? XX%-plus in by back and sort that of So the in it the but 'XX? that reset -- BMI, going sort XX% to by 'XX, business? invest 'XX as of

Alan Jope

last and the to take to of billion -- have exciting are been It's that bulk I resolved by Look, you associated think little of hands That's and in business beauty through make we trend. €X a ExCo €X evidence And we as our what far on too was and health most the is on attractive go the an continuing to to hear this bit company. sense imagine our becoming where and to travel right can feel us the David. I into as see of to we and the that capital VMS have the to the well extensive health for absolutely the time. the or going spent and acquisitions world time last and feedback X reaction take the X transaction imagine weeks. our but we being is me. plenty wrong to billion-plus. well-being is now Board reflections of a luxury at Thanks, that move consistently an identified there business. with we but exciting And It's concerned, can affluent because bolt-on won't can and up we've The And the you of And was discussion prospects increased tied deep direction. shareholders GSK think pursue over for behavior big agenda in reasons opportunities strategic direction growth from business an and for of absolutely the you health trends deployment the shareholder that are. continue. And the beauty portfolio the M&A to more luxury secular that for concern under years. our just in all are the the into are through those no talking now, being support agenda well-being. to in has proposed direction

we're certainly out but we park So it mean of options we or ideas. it of on, out doesn't and move

XXXX outlook? talk Graeme, that we're fact, ahead. In do lies bit excited a little you agenda to about the want about

Graeme Pitkethly

Yes.

and back the BMI question. then take the me to come outlook first Let

we on will say the in margin give thing outlook is restore confidence X First to the levers are us the areas. X that main that the

a does you in happens on the big see all, it sort not David. what to commodity to much fundamental difference a return First of years the in we and in to prices of number. of input XX terms prices that normalization take years historically of data presentation, showed XX make that of That's

to thing keep up flow pricing we Second thing gross that the going diligently for to to margin. deliver that does and third requires take do is need we is happen into of the need And continue and time benefit with to the pricing the sensibly. savings. But to and step it

already an normal It's performance. counted million €XXX projects But billion as have million of to billion earlier, that About to are the with navigate through change, change. in savings. €XXX from The operating €X of tune extra We is lever a of purpose Unilever's operating would annual growth-driven, another model Alan from incremental there to to delivery, that, competitive-driven XXXX. delivered the there is there in change reducing the about of said benefits but $X that model of the that in savings us our allow and we ongoing be savings period. is matrix

years. uncertain, we landscape a experience and we've you given commodity for you that's -- too, of combination competitive that as in the moment. numbers it. competitive stepped-up mean know and good Which turnover, business We've And put as XX% to at those So have with the to and growth around that. bit XX%. as that currencies, know levels €X said, margin everything know to think the a see normalization absolute there of them. in we I right invested do margin little out we and BMI of are each a get target, the but that, we a and maintain from for particular. shareholder XXXX. of absolute We're we be levels with confidence will growth a to continuation to of drive that's billion a that and right, percentage on will that margin We priority. not in 'XX through in broadly combination of me the to in savings we're moderation order in But quickly restored level we takes have we flow-through we'll use but value We the will about X hold in A gone and you're investment we've improvement And pricing of of that, going there. on we will to being what BMI last we've invest. set

our Asia there's of Arabia, COVID ongoing chose America another and QX bit there's is marketing a through. We been North been and then to And investment market going the more lower-growth that the to particularly we in we've how We high because lot and there, less quite our America in strongly pricing that. of we we areas, less when brand invest business China. In starts South perspective, spend -- which BMI we SEA. spent of generally of spent markets, in overheads. Asia, in restrictions And good businesses. extent a the in our in thoughtful deflate spent we're in to thanks happens of example we BMI, invest differentiated Latin a growth, quite Europe in from that. we also in with less investment context has bit spent and Southeast of and business And a spent is Prestige a more of more the We spent is And pricing the includes more the because VMS more in Foods that where what anticipating that's Beauty. bucket sort our 'XX in

a levels if couple click down, competitively. -- you that continue So of we invest to

are been margin. very on and hence outlook clear We've we've levels. consistent been at But some So still the forwards, above going XXX%. investing

why we're priority buying the R&D, invest for will that's you. will Our longer focus marketing, quickly, to CapEx in in business, be the We that the the the and the competitively you term. think is business. and see but that investing relatively And outlook recover business manage in our brands giving

Richard Williams

Thanks, Okay. Graeme.

James to Let's go questioner, which at Go our James. Berenberg. is ahead, next Targett straight

James Targett

from Two me. questions

come single looks high it to at cover historical I NMI, mean, billion organic with the just Firstly, growth €X.X slide the on level back pricing 'XX. looking to like for mean just you would a of digit. the I guidance the need

So different that just on basis you're is just And of the couple back points volumes to at sorry to expecting in way in then imply of a 'XX. decline to come Or secondly, FY does hundred a there look that? portfolio, Alan, in Or the the that X% modest does But the still in upper confident levels organic mentioned? growth normalize? deliver portfolio, midterm range you disposals require X% are current half inflation you you the this. to can sort of and once bolt-ons

Alan Jope

Yes, thanks.

me try the of and James, there's clear The will result Let will and very is those other online. people I'll negative growth brief led. pricing it it guidance both And that organic volumes. that in questions, answer. be possible I know lots be take in is

tracking very elasticities we're carefully. However,

businesses The gross that protect invest collapsing Graeme good margins. protect of that to our added taken margin attractive offset of of and a are impact -- where -- positions get deliver And competitively super and cost the environments, XXX normal wellbeing, the have there. these Remember, is programs And But some can I our these and is think disposing our growing portfolio points we half into range. top and XXX straight the share, a the leadership basis in a unmitigated question. reason gave increases price spiral market of low-growth rundown it's take and Prestige, we today the in and in that to winning critical acquisition pricing off last for that on in ability disposal in year. don't to pricing going we growth health on impact and on building a and margin beauty we answer basis businesses the actions that will P&L are straight that points, And to that. businesses yes. volume, we've have we

short taken. And we've answer is, that yes, the can we actions because so of the

Richard Williams

Alan. Thanks,

from Our Bruno question Monteyne next comes at Bernstein.

Bruno Monteyne

few A me. for

at could Trying to pass makes market by to sort hasn't of changing there. volumes in brand private ongoing already the risk So in sort kicked largely lot it the market looks the do of expected, to pricing longer-term understand really for all label a looking Europe accelerate in increased in we Is a e-commerce, data, and the seems first BMI is what to to increase you you does and it out And it it years? what to in prices be pass growth, pricing? it actually going brands? risk days second in because that euro data prices very driven. Europe your to longer-term above all, next European high change negative X.X% basically to by XXXX? That's have be because well X.X%, are better there given part really one, in bode there grocery -- we if you like price-driven after what XXXX, to other anything discounters, is brand Or use growth? pricing you -- pricing? do year these that step-up Will at expect that much if too same Is equity much Europe clearly the and a be kind versus growth landscape, more that of more of you one. sort how of pricing structure, that see few off in the problems so, the harder then through be the And hard

Alan Jope

that. to Bruno, in we the that true land to used with increases nice to pricing in In and FX you. for are to two changes. reasons speak remember, being of is slower markets, couple dealing it's There's certainly cost emerging The we're a pricing because extremely -- effects, both agile Europe.

cycle the in fast that we part Europe the So of the negotiations. pricing way be Asia like price moment, negotiations outcome Southeast the of common. much be the to In in it's and middle those of of life we're more the Latin of less agile consequence of on Europe, America, exact that's at in a land places actually And landing and will retailer increases.

lag. we structure FX be I it in necessary there's and European the the It's in going prices for and up. market markets. go effect think for the cost Although of and that the see that reality of that's price to reason But to time the retail awakening is emerging an double

growth about to that's going biggest talk me sustainable. you shape data our in. few brands and give I'm Let whether just best and a our good step-up on what points are

X.X% by that last has strengthened. different equity good has The that health. half power, strengthened. year up is of in a So measure, are, are and growing we turnover the any €X billion which measure, brands Unilever's measure Brand slightly make brand

going I Our years the market were of spend of and XXX. the to are they been things markets necessary so competitive spend overall We're CapEx to like on support above going back current we're on in investment dip term; bigger not we where a our our think also around price There we made is to many point long talking have share will spend that done do type of at times share think, But BMI, we levels in to operational the not emerging a take off can pricing in inflation, the the that. case. world was R&D, the that not for in we're see climate. that thing competitiveness. categories. in the b, very And The, of reduction to about. Graeme unwise that maintain a, could that would have high brands, many cost

So the about margin adequately And the made cost will not lead that therefore, pursue essential Unilever's we marketing remaining may and pricing. remain turnover. a it. spend And deliver up brands P&L, our less short-term over competitive that's essential and R&D we investment. that in markets on we rather that majority healthy. ensure will margin It's we on to make commitments time. outcome But but It's therefore, will think how the protect to we've of

Richard Williams

Thanks, Alan.

Forry Investec. Alicia comes question from Next at

Alicia Forry

or business Just missed your you if winning the us Maybe I of on for not two questions. holding I'm group. but the sure or competitiveness share this, percent updated

just curious more the no prospects feeling raise and a the during us provide a the medium-term more larger dividend confident for seem deals some to commit on to secondly, now the why on this business, horizon bit yes, be And you that about then that? buyback? you whether I'm or there's disruptive highly being period, of pricing So impacted? given update that big Can sort is not

Alan Jope

the question. with first deal I'll Right.

percent XX% basis. annual a Now of winning, business Alicia, moving simple. is It's total very on

importantly, which particularly a we've So more called strong that's the growth second business Maybe measured best the of is year of winning, in it's this space. percent in that as the competitive by out convinced metric as we're areas priority.

over to So business improvement a now has U.S. competitiveness. XX%. of winning the as that we over up XX%. And China real stepped was year. exited consistently was confident are in XX% we India that, the is

Of is protecting competitiveness. and between will trade-off of competitive we'll competitors playing the maintaining leading course, do months, pricing, an pricing. see that our the we start And Remaining P&L competitiveness, in don't in we of is to what and on And will top business erosion our the roll back. follow priority. we coming general, where we'll the be lead

I we total yes, the allocation in XX% winning about we think Graeme were capital to is moving presentation, quite question at the running annual both capital. the share. and Graeme? So going were clear it's business distribution that -- and release cover of

Graeme Pitkethly

Yes.

mid-XXs. dividend. We dividend, good XX offer specific It's very important. look ratio have the the and And start goal doing that years. a me past attractive with We for in the yield. So on we've has our but don't a we this, dividend been pay been let payout generally an very, to

payout form Sometimes we little and cetera, tend shareholders in higher across level buybacks. to when et lower distributions look amount than it's you a share have to the been that. in sector, the of higher bit ratio others a And a returned of of

moving been over we've that time. Now

billion on I since XXXX announced sorry, 'XX, As and capital for -- 'XX, the buyback add which including XXXX. to this €XX the €X we've that said to call, which up return since of shareholders billion will morning,

anchored it's So with strategy rating these a of the A band, financial credit financial And between That's leverage balance number in our strategy. of Xx of consistent in about it's around the long-term with in is That's to a A it. net And sort sit band, generally. the things. midpoint our our debt-to-EBITDA.

the than sized perspective, and of the once ratio That once business, year. sometimes in looked things. year X.X, And lower timing timing the activity. funded those payout we of really of growth in is strategy €X to performance and acquisition how our has proceeds impact anticipates likely disposal in divestments, depends through flexibility bear in that. once But like does we the so that at the about decline inflation think of portfolio the of net that the invested been margin we've to acquisition It company. we've us And we'll a allow will tea acquisitions anticipate back capital negative. bring that of continue we've dividend and next that's that's does what cash in the strong largely bit of contributing when we divestment this the a from be earnings case. and material that bolt-on will to from things think about billion shareholders. Sometimes change gross strongly get all It on mean we returns after-tax the And the generation. the middle therefore, It XXXX see to reality, the another bolt-on of

So a answer, shareholders. the things but of all returns those in capital that's of relevant a about of are thinking to size roundabout bit

Richard Williams

Graeme. Thanks,

from Next is Guillaume Delmas at question UBS.

Guillaume Delmas

of couple me, A from please. questions

on X first category. beauty particularly question outlook one this unit emotional your Or thinking your transformational this as extensive show out? redundancy. X stand be followed a margin past versus do been quite to Home I by big contraction? a Care units deal, mean by all first, and to but is And in of five with units is must possibility or I'm division, affected not expect reorganization expected product an and then disposals the immune, course, less have employees. some say could margin maybe it in XXXX now rollercoaster, Would The than the pressure the most my affected. the the mean particular, business by you of inflationary potential on maybe second I weeks but least, result few

and high all -- levels. record backdrop challenging that, So of are a particularly inflation with against happening course,

by you distracted worried So a employees execution? the some not are maybe reorganization right able maybe extent disruption. or employees And some -- to very of medium-term short-term be and uncertainty and -- questioning more too what far to some focus morale mood your the to are benefit now? the question, the curious flawless among troops So candid Unilever's short-term of changes the it's on but actually by but some is the fully these about being job not

Alan Jope

more question It insightful luxury protected. I think some to outlook beauty, all On is be will say a on just that is will second particularly And means where of the I the more task sales, a higher pressure Can interesting restore the Home question. Care of division, goods businesses heavier businesses. proportion Yes. parts for and i.e., example, much margin be impacted. lower-margin is than of, margins very have which cost by will a

So it's you none of exactly immune from characterized. as be the cost pressure. But input the will businesses

is metrics of quartile resignation the our attrition, we last very, engagement. employee engagement towards where As -- be a we the And very high in in on terms great of monthly employee the the it we running far this leading in top Unilever's rate, sentiment would hasn't response measure companies in high tail we get arrived a a all-time measured Unilever that survey. sentiment also would in sentiment attrition would of example, for world's look as survey, major but quite company annual well and employee employee year and concerned, rigorously and end that Other at is last suggest up when is at, the an culture yet.

we don't want it have communication. retention far, things started is Final during We have the employees the data much, -- impacting that thing we not the say I no of performance. post height naive the about impacting company, well. But to it the are XXXX Obviously, too have so very internal and I But show our I materially sentiment. in unsettling. the press of reading that active can't to about been be strong been but we pandemic. have on And is certainly and certainly will like it's don't materially this. some

which fact, global an we've pandemic, the share the and every price. and of feedback week. And now sensitive our are We are results these tens in Graeme just been meetings is I with the doing would weekly of running business I performance as of employees and And hall here. through the the our with hall and the town go we focused questions answer performance In is the to that will strong. participating thing is do all-hands town performance of of more business employees the global take than two-way. very share thousands more team from meeting, employees next say

stop me Let there.

Richard Williams

you, Thank Alan.

straight Go go next the Fialko Let's ahead, Jeremy to question. Jeremy. for at HSBC

Jeremy Fialko

A couple me. from

and lot so you that particularly what expectations one, you be, and will in of about of First with some of trading And setup can far talk they a of the talk is. down can sort that will second the the pricing? emerging evidence in question any that accountability changing manager kind you the in of role new of of is, have markets is what the about how the country Unilever,

Alan Jope

Yes. Jeremy, are pressures unique inflationary to not these Unilever.

markets lower Unilever pyramid. to good is operate Latin business returning like like down our of less to our needs to And seen which all -- another Unilever's the brands bottom-of-the-pyramid Asian that in Indonesia, tend businesses returning not our where is growth Southeast actually, surprised but a in in business, have something years, particularly last increasingly growth And rest over know that America, exception the like and to of so affecting as it kind to African more happens be fact it's Africa LatAm less won't our be the or important market. with trading to trading very the is Maybe probably And time, at the are just net And of and you X up to identical the the of this over peers happening. we've yet. understand of operating -- that part margins surprise portfolio. more operating business, or strong Asia, that's position Southeast price

so to placed and that it to So were do mop if we're up of some down there's we margin dilution. happening, happen, without well trading and

placed future we're benefit It manager one. the longer change. comment trading off for case. it. I've good responsible question country in units business a was of make I not the private trends it's already Previously, be fundamental That phenomenon. there categories. an no the would and is One any the across P&L Unilever manager will touched from by overwhelming the label pricing current running for seeing double-hat, manager the will well that the one at low levels, is market. in So geographies. between not The The on is in -- delivering a usually The country country is multiple

will many a multiple they're managers in because geographies. it cases, roles be our business with running very exciting for So coupled country across new

still and, with we that the like take engage of marketplace, reputation However, country. someone care in ground and government media ground for importantly, the want the Unilever in of community on the can create who the a Unilever's most sense stakeholders on team

it So it's looking In an a country. the will will critical involve involve role. within enhanced across categories But so optimizing role, today's it ways, countries. P&L will of be not responsibility it many across often

Richard Williams

Okay. Thanks, Alan.

-- looking at clock think I we're here. the

more. think we'll I and try take couple a

ask like questions? at Pitcher Redburn, would you to Chris So your

Chris Pitcher

questions. couple of A

of capital? these or productivity I has then in us this are work hedging and were the structure, for you Can relative Foods the candor under on in are than more as stand-alone particularly give The you Thank of And that do the XXXX? Or around management mentioned, the existing replicated contingent impact you for reformulations But Ice be to a of your are secondly considering there Cream this materials Healthcare scale back you explain is some how of XX% versus year. about benefits commodities that on something the were thank business? the acquisition. unhedged can commodities on IPO. I Consumer changed time? & us think, much competition Firstly, for is but in did going and And in And You for And the XXXX returns approach. Can were give there's euros were GSK procurement. almost convinced relatively Nutrition? 'XX? Refreshment they your 'XX you the they an idea of you what Raw double. the impact than detail. the idea you net higher the less XXXX, into and appreciate

Alan Jope

Right.

Let with GSK. the question on me deal

we on there dis-synergies are acquisition. And separation we why there a ensured all, Foods of separation transformational that Refreshment. any of was with that's & were enormous associated First any clear conditional that

Secondly, these have become very attractive businesses.

outperformed the Ice over of Nutrition and fact, have couple company last In the Cream years.

at Knorr And some XX%, like our fastest-growing Magnum growing growing X%. growing X%, at Jerry's growing are Hellmann's of brands & brands at X%, our Ben at

benefit because the businesses ice focus the are from they our skills there they five and around between that and business. world. benefit Unilever's have are rude think capabilities these will But deep and cream many groups business an presence they business separation different from the -- increased good from that will health. beauty characteristics We So a of into do in all

of Unilever. under was picking up off a any separation those thank you very acquisition, businesses will are contingent that for we and is And So that confident that the thrive entirely notion table Graeme? transformational on now.

Graeme Pitkethly

Let I want just me -- of some and biggest the we moved. have how you just commodities with they've start that to give

relativity question parts year-on-year. off impacts Alan crude packaging, Care, was across the transportation, on to a resins, which of lot about our Home of So oil, impact building where business, in response XX% within earlier surfactants up that's

hit particularly oil. it's much palm -- have palm That's which Beauty XXX% Personal Care, by way, all oil, Personal up of soybean also up oil Particularly, is by the categories oil impacts pretty Unilever, & We -- Care. palm and XXX%.

and U.S. largely which dressings oil, soybean aware up into is then Xx And goes the you And up up is -- business, freight our everybody Shanghai Xx. of transportation XXX%. by

most billion. €XX But relevant So back that's a And XXXX. I is on scale on it. that's what of haven't I we're data got thing. cost of can't that the to facing. the base go the

transportation of €XX on have €X input about of of our raw And about of into outbound then billion the materials that, costs we factories. and those have logistics. We billion top

base cost addressable the on that's €XX billion. So

We customer how market create hedged, window create about hedging commodities disciplined or allows hedging dynamics, impacts to -- to that by We There's do for reason. market are of in by mitigate on which That's But we us for order that XX% hedging. positions our be can on of inflation. that consumer don't necessary hedge, hedge speculative I and pricing for we've for to market. you hedge gains. Now And terms around XXXX, a the the portfolio market, depending range particularly to land that or you is the mean just NMI hedges inventory, have one XX% we for not there's drops QX, XX%. just -- of XX% possible in and in XX%, range the there's hedged XXX of or currently in that and and have uncertainty do the a of we outlook second landscape. procurement the have we that by market of basis terms give sense of of to QX margin about to contracted it XX% QX given of we're guidance QX half why about why a what or done, in then within we point and no

why that's facing. that. if normalization, So variability the a opportunity we see that's there's landscape around that we're Potentially but

Richard Williams

Thank Graeme. Okay. you,

Now Kepler. to we because will just than time? Karel could of one ask squeeze at out X you which final just can Karel, question we in go last if are question, X rather Zoete

Karel Zoete

I'll it brief. Then keep

of new categories time, fewer smaller a the points amount But and you you the same in still simpler business. already On at touch model, explained same have the countries.

why make question to can could on categories? don't to is close, overall and changes it? really small is, -- so can order speed kinds you somewhat impact the we that why in or what related low-growth more the the these the consider an that company simpler of So other business exit see have And actually

Alan Jope

and right. will €XX Personal small own €XX and & in me you underperforming their at Wellbeing, Care, We our program billion certainly Nutrition But all Home look of sense. give They're brands are just Karel. businesses Thanks, business and parts a the or giants. disposals. let continue Care billion Beauty

to scale. we a to And into There's countries, very very of in is create don't interesting really the the all a we but have a overall, the substantial, that a within business, are we'll bringing model. to I people. business business be €X consumers want can it'd excitement Cream when small Ice that We'll And But levels also the to -- a complexity. externally to But very five the transition business get groups because business run get stuck country. Unilever pruning its high this into course, how organization think model and didn't in we're new business. we five-division be as One won't didn't all company company it structure because continue small creating own into of about it billion tremendous details more on moving want itching Our right, big I see of are us focused, customers. there'll people focused period. People will make a more it. go

the transitional half hoping this as appointed responsibility. changes I be the there'll probably the we'd the group new are accountability sense you business of with roll we've a that running getting sleeves businesses dying can turmoil. also five leaders their to and tell up high these year. soon second where of to I'm as and see start into really impact of But most think these QX And I is

there, very wrap we Richard? thanks up much, Karel. So Should

Richard Williams

Yes. Thanks, like you Alan. up? Would wrap to

Alan Jope

the I other and X priority say We've Well, announced growth accelerate. continues prepared have really Unilever's growth to overriding to highest performance wrap years. any don't than remarks in yes. up I mean just to our is just

growing great are are we've priority India we are XX called markets the -- sorry, growing channel and growth that big in in and that well shape. priority e-commerce that on the out, Our brands driving China, XX%. U.S., and We're focused, in

So to proud be a lot of.

to forward our determination true the coming with and focused I the this value on in and shareholders particularly very We engaging the resolved ahead. weeks unlock company, to in look much of call the are

bless So soon. thank and And much, your for indeed, you you God very see time.

Operator

much. your for call very concludes now for thank and much you joining. you Thank very This today

now may Thank You you. disconnect.

Unilever (UL) 10 Feb 222021 Q4 Earnings call transcript