Unilever 2009 Annual Report Download - page 19

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Financial overview
Report of the Directors Performance 2009
Consolidated income statement
(highlights) for the year ended 31 December
€ million 2009 2008
Turnover 39,823 40,523
Operating profit 5,020 7,167
Operating profit before RDIs† 5,888 5,898
Profit before taxation 4,916 7,129
Taxation (1,257) (1,844)
Net profit 3,659 5,285
Combined earnings per share €1.21 €1.79
Combined earnings per share before RDIs† €1.33 €1.43
Consolidated balance sheet
as at 31 December
€ million 2009 2008
Non-current assets 26,205 24,967
Current assets 10,811 11,175
Current liabilities (11,599) (13,800)
Total assets less current liabilities 25,417 22,342
Non-current liabilities 12,881 11,970
Shareholders’ equity 12,065 9,948
Minority interests 471 424
Total capital employed 25,417 22,342
Consolidated cash flow statement
for the year ended 31 December
€ million 2009 2008
Net cash flow from operating activities 5,774 3,871
Net cash flow from/(used in) investing activities (1,263) 1,415
Net cash flow from/(used in) financing activities (4,301) (3,130)
Net increase/(decrease) in cash and cash equivalents 210 2,156
Cash and cash equivalents at 1 January 2,360 901
Effect of foreign exchange rate changes (173) (697)
Cash and cash equivalents at 31 December 2,397 2,360
In 2009 our growth momentum was strong despite a challenging environment. Our market share
is improving and our brands are stronger. Our leading positions in developing and emerging markets
were strengthened and we made encouraging progress in re-establishing volume growth in Western
Europe. We are faster and more agile and focused on serving over 2 billion consumers every day.
Underlying sales growth for the year was 3.5%. Underlying
volume growth at 2.3% accelerated through the year, reaching
5.0% in the fourth quarter. The increase in volume growth
was widespread across most of our key categories and countries
and translated into improving market share performance in all
regions as the year progressed.
Operating margin before restructuring, disposals and other one-off
items rose to 14.8%. Advertising and promotional expenditure
increased by around €250 million. The margin development was
underpinned by volume efficiencies and savings of €1.4 billion from
lower supply chain costs and a leaner organisational structure.
Cash flow from operating activities increased by €1.4 billion
in comparison with 2008, driven by a significant improvement
in working capital, and after a €0.5 billion increase in cash
contributions to pension funds.
Despite some of the most difficult trading conditions in recent
memory, all regions delivered an improving trend in volumes and
market share, driven by stronger innovation and advertising and
promotional support. Discipline in execution is also improving.
We have improved customer service levels and are starting to see
progress in on-shelf availability. We have taken decisive action
to ensure that our prices stay competitive and, where appropriate,
we have adjusted prices to reflect easing commodity costs, just
as we took necessary increases in 2008. Cost saving programmes
continued to deliver significant benefits across the business.
at current rates of exchange
Turnover (€m)
Operating profit (€m)
Operating profit before RDIs† (€m)
Operating margin
Operating margin before RDIs†
at constant rates of exchange
Turnover
Underlying sales growth
Operating profit
Operating profit before RDIs†
Western Europe
2009 2008 change
12,076 12,853 (6.0)%
1,250 2,521 (50.4)%
1,740 2,165 (19.6)%
10.4% 19.6%
14.4% 16.8%
(3.6)%
(1.9)%
(49.9)%
(18.8)%
The Americas
2009 2008 change
12,850 13,199 (2.6)%
1,843 2,9 45 (37.4)%
2,074 2,038 1.8%
14.3% 22.3%
16.1% 15.4%
(1.0)%
4.2%
(36.6)%
2.8%
AAC
2009 2008 change
14,897 14,471 2.9%
1,927 1,701 13.3%
2,074 1,695 22.4%
12.9% 11. 8%
13.9% 11.7%
7. 3%
7.7%
16.1%
25.6%
† RDIs: restructuring, business disposals and other one-off items. Operating profit before RDIs and operating margin before RDIs may also be referred to elsewhere in this
document as ‘underlying operating profit’ or ‘underlying operating margin’. For further information, see also page 46.
16 Unilever Annual Report and Accounts 2009