London/ Rotterdam--(Marketwire - October 30, 2008) -
INTERIM MANAGEMENT REPORT FOR NINE MONTHS TO SEPTEMBER 2008
KEY FINANCIALS
(unaudited)
Third Quarter 2008 EUR million Nine Months 2008
Increase/ Increase/
(Decrease) (Decrease)
Current Current Constant Current Current Constant
rates rates rates rates rates rates
Continuing
operations:
10 427 2% 7% Turnover 30 372 -% 6%
2 525 80% 94% Operating 5 709 38% 48%
profit
2 502 83% 97% Pre-tax profit 5 637 37% 46%
Total
operations:
1 711 60% 72% Net profit 4 096 22% 30%
0.59 66% 78% EPS (Euros) 1.38 26% 33%
SUSTAINED COMPETITIVE GROWTH IN A CHALLENGING ENVIRONMENT
Financial Highlights for the first nine months
- Underlying sales growth of 7.4% in the first nine months with
8.3% in the third quarter.
- Operating margin of 24.2% in the quarter boosted by profits
on disposals. Underlying improvement in operating margin of 0.3
percentage points in both the first nine months and the quarter.
- Underlying growth in operating profit of 9% at constant
exchange rates in both the year to date and the quarter.
- Earnings per share up by 26%, also benefiting from higher
profits on disposals.
- Interim dividendof EUR0.26 per NV share and 20.55p per PLC share.
Operational Highlights for the first nine months
- Broad-based growth across all categories, and in line with
our markets overall.
- Volume growth of 0.7% in the first nine months and 0.6% in
the third quarter.
- Additional EUR100 million invested behind our brands. Increased
share of advertising spend relative to competitors.
- Continued strong growth in Developing and Emerging countries
with volumes up and increased prices.
- Sales up in North America and Western Europe from pricing in
more challenging markets.
- Timely pricing actions and delivery of accelerated savings
from cost efficiency programmes more than offset continued
increases in commodity costs which peaked in the third quarter.
- Strong single A balance sheet and active financial management
serving us well in current financial turmoil.
GROUP CHIEF EXECUTIVE"In the first nine months of the year we have
delivered over 7%
underlying sales growth. We have strengthened the business in a tough
environment. Despite the price rises needed in the light
of unprecedented cost increases, our volumes are holding up. Our cost
savings programmes are far reaching and on-track to deliver. We have
been reshaping the portfolio, allowing us to focus our resources where
it matters most; behind our brands and our priority categories. All
this leaves us well placed for the future. This year we now expect to
deliver underlying sales growth well in excess of our long-term target
range of 3-5%, together with an underlying improvement in operating
margin for the year."
Patrick Cescau, Group Chief Executive 30 October 2008
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