Tuesday, 21 January 2014

Unilever - 2013 Full Year Results

My previous post on Unilever was last July following the half-year results.

Today they have announced results for the full year to 31st December 2013 (link via Investegate).

Although turnover was down 3% mainly due to adverse foreign exchange movement, net profits increased by 9% and core operating margin increased 40 bps to 14.1%

Overall, the figures are slightly stronger than analysts were forecasting and the share price is currently up over 2% at £25.00.

The company said emerging markets, including Brazil, India, Russia and Indonesia, were hit by the impact of economic uncertainty and currency depreciation on consumer demand.

Nevertheless underlying sales in emerging markets increased 8.4% driven by underlying volume growth of 5.3%.

In Europe, Unilever's sales overall were flat, but in the UK they grew for the 25th successive quarter.

CEO, Paul Polman said he expected "ongoing volatility" in its markets, and planned to focus on cutting costs to fund further growth.

A 4th quarterly dividend of 26.9 euros - 22.2p will be paid in March. This will make a total of 91p for the full year. I have pencilled in a total of 95p for the coming year (subject to exchange rates) which gives a forward yield of 3.8%.

I am very comfortable holding this share and regard it as one of the long term cornerstones of my income portfolio.


  1. Another one of our common stocks and like you a key holding, representing just over 8% of my income portfolio. The quarterly frequency of the dividend is also welcome.

    I shall looking at PG's 2nd qtr results on Friday, to see how their performance stacks up against ULVR especially in emerging markets.


    1. Hi Jeff,

      Likewise, ULVR accounts for just over 8% of my shares portfolio but I also hold a significant weighting via the combined holdings in my investment trusts.

      I will look out for your comparison with Proctor later this week.