Unilever PLC
("Unilever")
2024 Annual Financial Report
Announcement
Unilever announces that the following documents are available
on its website www.unilever.com/ara:
Unilever Annual Report and Accounts 2024
Unilever Annual Report on Form 20-F 2024
In
compliance with UK Listing Rule 6.4.1 and DTR 6.3.5, a copy of the
Unilever Annual Report and Accounts 2024 in unedited full text and
a copy of the Unilever Annual Report on Form 20-F has been
submitted to the National Storage Mechanism and will shortly be
available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
In
compliance with section 5:25m(5) Financial Markets Supervision Act
the Annual Report and Accounts 2024 was submitted to the Dutch
Authority for the Financial Markets (AFM). The AFM publishes the
report in its public register.
Unilever will also file its Form 20-F for the year ended 31
December 2024, with the US Securities and Exchange Commission
today. The Form 20-F will be available for download
from www.unilever.com/ara or www.sec.gov.
Attached to this announcement is the additional information
for the purposes of compliance with the Disclosure and Transparency
Rules including principal risk factors, details of related party
transactions and the directors' responsibility
statement.
The
unaudited 2024 Full Year and Fourth Quarter Results for the year
ended 31 December 2024, which were announced on 13 February 2025,
were prepared in accordance with IAS 34.
ADDITIONAL INFORMATION
Principal Risks
Our
business is subject to risks and uncertainties. On the following
pages we have identified the risks and opportunities that we regard
as the most material to Unilever's business and performance at this
time.
Our
principal risks include risks that could impact our business in the
short term (i.e. the next two years), medium term (i.e. the next
three to ten years) or over the longer term (i.e. beyond ten
years). As part of our process to review our principal risks, we
also consider any additional risks that could emerge in the
future.
Our
principal risks have been reviewed and updated as appropriate to
reflect the current and relevant risks and opportunities. We have
extended the scope of our existing Climate principal risk to
consider those risks relating to nature, of which biodiversity is a
subset. We also reflect on whether we think the level of risk
associated with each of our principal risks is increasing or
decreasing. There are three principal risks where we believe there
is an increased level of risk compared with last year:
· Business Transformation: we announced the separation of the
Ice Cream business and a multi-year productivity programme to
strengthen and simplify our business. The scale and impact of the
ongoing transformation requires close monitoring.
· Legal
and Regulatory: the increasing regulatory landscape, such as with
product formulations, plastic packaging, environmental compliance
and data protection, require us to continually assess the impact on
our business and take necessary action.
· Systems and Information: technology is disrupting the way we
do business, and we need to accelerate innovation to keep pace with
the developments. The cyber threat landscape has increased in the
recent past and continues to remain volatile.
The
rapid advancements in generative AI capabilities heightens the risk
of misuse, leading to loss of trust and credibility as well as the
risk of legal liability. We have a task force set up to identify
and take responsible action as we continue to monitor this as an
emerging risk. We recognise the opportunities brought by AI as part
of our principal risks.
We set
out below certain mitigating actions that we believe could help us
to manage our principal risks. However, we may not be successful in
deploying some or all of these mitigating actions. If the
circumstances in these risks occur or are not successfully
mitigated, our cash flow, operating results, financial position,
business and reputation could be materially adversely affected. In
addition, risks and uncertainties could cause actual results to
vary from those described, which may include forward-looking
statements, or could impact on our ability to meet our targets or
be detrimental to our profitability or reputation.
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RISK
DESCRIPTION
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MANAGEMENT OF
RISK
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CONSUMER
PREFERENCE
Our
success depends on the value and
relevance of our brands and products to consumers around the
world and on our ability to innovate and remain
competitive.
Consumer tastes, preferences and behaviours are changing more
rapidly than ever before. We see a growing trend for consumers
preferring brands that both meet their functional needs and have an
explicit social or environmental purpose.
Technological change is disrupting our
traditional brand communication models. Our ability to develop
and deploy the right communication, both in terms of messaging
content and medium is critical to the continued strength of our
brands.
We are
dependent on creating innovative
products that continue to meet the needs of our consumers in
times of economic instability and volatility. We also need to be
competitive, bringing innovation to market with speed in areas such
as personalised and premium beauty offerings, health and
hygiene.
Level
of risk: No change
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We
monitor external market trends and
collate
consumer, customer and shopper
insights in order to develop brand strategies
and
build competitive advantage. We are
focused
on elevating brand experience with
a
particular focus on our Power Brands.
The
Unmissable Brand Superiority (UBS)
framework provides a holistic and systematic
way of
measuring consumer perception of
our
brands.
Our
Research and Development function
actively searches for ways in which to
translate the trends in consumer preference
and
taste into new technologies for
incorporation into future products. Our
innovation management process converts
strategies into projects to launch new
products in the market, scale technology
across
categories, and build up the multi-year
innovation pipeline. This enables us to
respond
to rapidly changing consumer trends
with
speed.
Our
brand communication strategies are
designed to engage with consumers to build
our
brand equity. We aim to connect with
consumers with relevant brand messaging
content
on a continuous basis. We adapt
both
the message and media to be relevant
for
specific touchpoints with increasing
emphasis on digital and social platforms.
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PORTFOLIO
MANAGEMENT
Unilever's strategic investment choices will affect the
long-term growth and profits of our business.
Unilever's growth and profitability are determined by our
portfolio of Business Groups, geographies and channels and how
these evolve over time. If Unilever does not make optimal strategic
investment decisions, then opportunities for growth and improved
margin could be missed.
Level
of risk: No change
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Our
Business Group strategies and our business plans are designed to
ensure that resources are prioritised towards those categories and
markets having the greatest long-term potential for
Unilever.
Our
acquisition and disposal activity is driven by our portfolio
strategy with a clear, defined evaluation process.
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CLIMATE AND
NATURE
Tackling climate change-related physical
and
transitional risks and loss of nature is
important to increase our resilience and
future-proof our business.
Climate
change is already impacting our business in various ways, although
there has not been a material impact during the year. As it
worsens, it is likely to increase the frequency and severity of
extreme weather events such as heat waves, hurricanes, floods or
droughts.
Government action to mitigate climate change, such as the
introduction of carbon taxes, land use regulations or product
composition regulations that restrict or ban certain GHG-intensive
ingredients, could also impact our business in the short term
through higher costs or reduced flexibility of
operations.
Our
business depends on nature, making its loss a significant risk.
Intensive agricultural practices, land conversion and rising
temperatures could lead to loss of biodiversity and ecosystems.
This could in turn lead to reduction in crop yield and therefore
increase in prices for scarce resources.
Deforestation poses a particular risk to our business, both
reputational and to our supply chain. Land use regulations to
conserve and expand forest land could reduce land available in the
short term for agricultural produce, which could result in increase
in raw material prices.
Water
is a critical resource to grow agricultural produce, and for both
the manufacturing and consumer use of our products. Water scarcity
can therefore impact our agricultural sourcing and our operations
as well as reducing consumer demand for products that require water
in their use phase.
Level
of risk: No change
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In
2024, we published our updated Climate
Transition Action Plan, which sets out new
more
ambitious decarbonisation targets for
our
Scope 3 emissions, and the key actions we
will
take to achieve them (update on progress
included on page 240).
We are
decarbonising our operations through
eco-efficiency measures, transitioning to renewable energy for
heating and cooling, and replacing climate harmful
refrigerants.
We
monitor trends in raw material availability
and
pricing due to short-term weather impacts to ensure continued
availability of input materials and integrate weather
system
modelling into our forecasting process.
We
monitor government policy and actions to combat climate change and
take proactive action to minimise the impact on our
business.
We also
advocate for changes to public policy frameworks consistent with
the 1.5°C pathway of the Paris Agreement.
To
address the risk posed by water scarcity in our sourcing supply
chain, we are working with farmers to implement regenerative
agriculture practices that use less water to grow crops. We are
developing products that do not use water in their formulas (e.g.
laundry sheets) as well as investing in new products that can work
with less or no water.
In our
operations, we are implementing water stewardship programmes at
Unilever manufacturing sites located in water-stressed
locations.
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PLASTIC
PACKAGING
We use
a significant amount of plastic to package our products. A
reduction in the amount of virgin plastic we use and an increase in
the recyclability of our packaging are critical to delivering a
sustainable business.
Both
consumer and customer responses to the environmental impact of
plastic waste and emerging regulations by governments to tax or ban
the use of certain plastics requires us to find solutions to reduce
the amount of plastic we use and increase the amount of packaging
which is recyclable. We are also dependent on the work of our
industry partners to create and improve recycling infrastructure
throughout the world.
Besides
the overarching risk of consumer
and
customer acceptance of the new materials, there is a risk around
finding appropriate replacement materials that do not have
trade-offs on functionality, performance and safety. Due to high
demand and the green premium, the cost of recycled plastic or other
alternative
packaging materials could significantly increase in the
foreseeable future and this could impact our business performance.
In addition, we are also exposed to higher costs as a result of
taxes or fines if we are unable to comply with plastic regulations.
For instance, the Extended Producer Responsibility (EPR)
regulations in some markets adds an obligation on Unilever
to
take
responsibility for the entire lifecycle of
our
products, including end-of-life disposal and recycling, which could
again impact our profitability and reputation.
Level
of risk: No change
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During
2024, we restated our commitment to
end
plastic pollution through several near-and
medium-term goals. We are working with
partners and consumers to raise awareness
and
find solutions to improve the recycling
infrastructure for plastics. This includes
supporting infrastructure development and
optimising EPR schemes, as well as helping
consumers to understand disposal and
collection methods.
We are
working on innovative solutions that
target
a shift to new business models (reuse
and
refill), new formats (concentration) and
new
materials (paper-based packaging).
Driving
industry-wide systemic changes
through
external advocacy is also a critical pillar of our strategy.
Amongst others, we are advocating for well-designed EPR
schemes
and for
harmonised mandatory business rules
as
co-lead of the Global Plastics Treaty. We
are
continuing to work with external partners
(such
as the Ellen MacArthur Foundation) to
explore
and create ways to drive a circular
economy
and improve downstream collection
and
processing infrastructure.
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CUSTOMER AND
CHANNEL
Successful customer relationships are vital
to our
business and continued growth.
Maintaining strong relationships with our existing customers
while building relationships with new customers is critical to our
success because we believe customers are the gateway to shoppers
and consumers.
To
mitigate risks and ensure sustainable growth, we aim to strengthen
our existing customer channels while strategically expanding into
growth channels, particularly digital commerce, which remains a
critical channel for growth.
The
strength of our customer relationships
impacts
our ability to land our strategic pricing and competitive trade
terms. Failure to maintain strong relationships with customers
could negatively impact our terms of business with affected
customers and reduce the availability of our products to
consumers.
Level
of risk: No change
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We
build and maintain trading relationships
across
a broad spectrum of channels ranging
from
centrally managed international customers through to small traders
accessed via distributors in many emerging markets.
We
continually identify changing shopper
habits
and build relationships with new customers, such as those serving
the digital
commerce channel.
We
develop joint business plans with our key
customers that include detailed investment
plans
and customer service objectives, and
we
regularly monitor progress of key deliverables on both
sides.
We have
developed capabilities for our customer sales team and outlet
design, which enable us to find new ways to improve customer
performance and enhance our customer relationships. We invest in
data and technology to optimise order and stock management
processes for our distributive trade customers.
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TALENT
A
skilled workforce and agile ways of working are essential for the
continued success of our business.
With
the rapidly changing nature of work and skills, there is a risk
that our workforce is not equipped with the skills required for the
new environment.
Our
ability to attract, develop and retain a diverse range of skilled
people is critical if we are to compete and grow effectively. This
is especially true in our key emerging markets where there can be a
high level of competition for a limited talent pool.
The
loss of management or other key personnel or the inability to
identify, attract and retain qualified personnel could make it
difficult to manage the business and could adversely affect
operations and financial results.
Level
of risk: No change
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We have
an integrated management development process that includes regular
performance reviews, underpinned by a common set of leadership
behaviours, skills and competencies. We have development plans to
upskill and reskill employees for future roles and will bring in
flexible talent to access new skills.
We have
targeted programmes to attract and retain top talent and we
actively monitor our performance in retaining a diverse talent pool
within Unilever.
We
regularly review our ways of working to drive speed and simplicity
through our business in order to remain agile and responsive to
marketplace trends.
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BUSINESS
OPERATIONS
Our
business depends on purchasing materials, efficient manufacturing
and the timely distribution of products to our
customers.
Our
supply chain network is exposed to potentially adverse events such
as geopolitical sanctions, physical disruptions, trade restrictions
and tariffs or disruptions at a key supplier, which could impact
our ability to deliver orders to our customers. Geopolitical
tensions have continued to challenge our supply chain in
2024.
Maintaining manufacturing operations while adhering to
changing local regulations and meeting enhanced health and safety
standards has proven possible but has required significant
management.
In
addition, ensuring the operation of a global logistics network for
both input materials and finished goods continues to present
challenges and requires continued focus and flexibility.
The
cost of our products is being affected by the cost of the
underlying commodities and materials from which they are made.
Fluctuations in these costs cannot always be passed on to the
consumer through pricing
and
will need to be carefully managed.
Level
of risk: No change
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We have
contingency plans designed to enable us to secure alternative key
material supplies at short notice, to transfer or share production
between manufacturing sites and to use substitute materials in our
product formulations and recipes.
We
monitor ongoing geopolitical events, trade policies and assess the
impact of potential areas of concerns. We work with various
functions in the business to manage and respond to such
risks.
We have
policies and procedures designed to ensure the health and safety of
our employees and the products in our facilities, and to deal with
major incidents including business continuity and disaster
recovery.
Commodity price risk is managed through forward buying of
traded commodities, other appropriate hedging mechanisms and
product pricing. Trends are monitored and modelled regularly and
integrated into our forecasting process.
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SAFE AND HIGH-QUALITY
PRODUCTS
The
quality and safety of our products are
of
paramount importance for our brands and our reputation.
The
increasing laws and regulations concerning product formulation and
use of ingredients of concern can lead to litigation and therefore
impact financial performance and reputation.
The
risk that raw materials are accidentally or maliciously
contaminated throughout the supply chain or that product defects
occur due to human error, equipment failure or other factors cannot
be excluded.
Labelling errors can have potentially serious consequences for
both consumer safety and brand reputation. Therefore, on-pack
labelling needs to provide clear and accurate ingredient
information in order that consumers can make informed decisions
regarding the products they buy.
Level
of risk: No change
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Our
Code of Business Principles and Code
Policies sets out our commitment to conduct responsible and
safe research and innovation, to produce safe and high-quality
products that meet all applicable standards and
regulation.
Our
product safety and quality processes and controls are
comprehensive, from product design to customer shelf. They are
verified annually and regularly monitored through performance
indicators that drive improvement activities. Our key raw material
suppliers are externally certified and the materials received are
monitored to ensure that they meet the rigorous quality standards
that our products require. We also have stringent requirements for
the design, manufacture and delivery of our products to ensure we
consistently supply the safe and high-quality products that our
customers and consumers expect.
In the
event of a marketplace incident relating to the safety of our
consumers or the quality of our products, incident management teams
are activated in the affected business units and markets, supported
by our product quality, safety and communications experts, to
ensure timely and effective action.
We have
processes in place to ensure that the
data
used to generate on-pack labelling and
the
final labels themselves are compliant with applicable regulations
and with relevant Unilever labelling policies in order to provide
the clarity and transparency needed for consumers.
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SYSTEMS AND
INFORMATION
Unilever's operations are increasingly dependent on IT systems
and safeguarding the confidentiality, integrity of data and the
management of information.
The
cyber-attack threat of unauthorised access and misuse of sensitive
information or disruption to operations continues to increase.
Unilever has in the past been, and expects to be the subject of
cyber security attacks. Such an attack inhibits our business
operations in a number of ways, including disruption to sales,
production
and
cash flows, ultimately impacting our results.
However, none of these attacks have had a material impact
during the year.
In
addition, increasing digital interactions with customers, suppliers
and consumers place ever greater emphasis on the need for secure
and reliable IT systems and infrastructure and careful management
of the information that is in our possession to ensure data
privacy.
Level
of risk: Increase
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To
reduce the impact of cyber-attacks on our
business, we are following a defence in-depth strategy, guided
by industry standards frameworks. We have many Identify, Protect,
Detect, Respond, Recover and Govern capabilities in place which are
continuously being monitored and improved.
We have
policies covering the protection of both business and personal
information, as well as the use of IT systems and applications by
our employees. Our employees are trained to understand these
requirements.
We also
have a set of cyber security standards
and
closely monitor their operation to protect our systems and
information. Hardware that runs and manages core operating
functions and data is fully backed up with separate contingency
systems to provide real-time backup operations should they ever be
required.
We have
standardised ways of hosting information on our public websites and
have systems in place to monitor compliance with appropriate
privacy laws and regulations, and with our own policies.
We also
maintain a global system for the control and reporting of access to
our critical IT systems. This is supported by an annual
programme of testing of access controls.
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BUSINESS
TRANSFORMATION
Successful execution of business transformation projects is
key to delivering their intended business benefits and avoiding
disruption to
other
business activities.
In
2024, we announced the separation of our Ice Cream business and the
launch of a major productivity programme to accelerate our Growth
Action Plan (GAP).
As a
result of the separation of Ice Cream, we recognise the heightened
risk of operational disruption that could result in higher costs
and impact our performance.
We also
recognise the risks in managing business continuity associated with
the productivity programme due to the pace of change and operating
model, which could disrupt our growth momentum and our ability to
unlock and realise planned benefits.
We are
also continually engaged in acquisitions and disposals that could
strengthen our portfolio and capabilities. Any potential challenges
during integration could lead to financial exposure.
Continued digitalisation of our business models and processes,
together with enhancing data management capabilities, is a critical
part of our transformation. Advancements in artificial intelligence
(AI) capabilities, with the evolution of
generative AI, provides opportunities to become efficient and
effective in consumer insights, demand creation, customer and
channel management, and operations. We see these as opportunities
to step up our growth, unlock productivity and accelerate cultural
transformation.
Level
of risk: Increase
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The Ice
Cream separation is managed by a dedicated project team that
identifies, manages and reviews risks on an ongoing basis. They are
supported by external and internal experts from different functions
such as legal, tax, finance to ensure timely and seamless set up of
the new organisation.
The
productivity programme is a multi-year programme overseen and
governed by a dedicated senior management team. They ensure that
the remaining organisation design is aligned to delivering the GAP
with a simpler structure and relevant technological
intervention.
Acquisitions and disposals are governed by dedicated teams
including functional specialists and the Business Groups. Specific
focus areas identified during the acquisition process are managed
and mitigated during the integration period.
The
digitalisation of our business and use of AI is led by a team of
specialists together with the business, piloting projects in a
phased manner. This involves leveraging technology to drive
best-in-class capabilities across operations, and to help deliver
on the innovation, projects, data management, automation of
business processes and delivery of operational excellence with
speed. We are piloting AI transformation projects across all areas
of our business, supported by an AI framework that guides how we
can support the Business Groups, units and functions. These are
overseen by a governing board of experts, ensuring risks and
rewards are assessed before implementation.
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ECONOMIC AND POLITICAL
INSTABILITY
Adverse
economic conditions may affect one or more countries, regions or
may extend globally. Economic and political instability impacts
consumer demand for our products, disrupts sales operations and/or
impacts the profitability of our operations.
In
2024, organisations have continued to see
geopolitical and economic volatility leading to significant
disruption to supply chain and logistics, including consumer
boycotts impacting parts of the business.
Government actions such as trade and economic sanctions,
foreign exchange or price controls can impact on the growth and
profitability of our local operations.
Unilever has more than half of its turnover in emerging
markets, which can offer greater growth opportunities but also
exposes Unilever to related economic and political
volatility.
Level
of risk: No change
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The
breadth of Unilever's portfolio and our geographic reach help to
mitigate our exposure to any particular localised risk. Our
flexible business model allows us to adapt our portfolio and
respond quickly to develop new offerings that suit consumers' and
customers' changing needs during economic downturns.
We
regularly update our forecast of business
results
and cash flows and, where necessary,
rebalance investment priorities.
We
believe that many years of exposure to
emerging markets have given us experience
of
operating and developing our business
successfully during periods of economic and
political volatility.
Trade
and economic sanctions developments
are
monitored, and our policies and procedures are regularly reviewed
to ensure compliance and resilience planning.
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TREASURY AND
TAX
Unilever is exposed to a variety of external
financial risks in relation to Treasury and Tax.
The
relative value of currencies can fluctuate widely and could have a
significant impact on business results. Further, because Unilever
consolidates its financial statements in euros, it is subject to
exchange risks associated with the
translation of the underlying net assets and earnings of its
foreign subsidiaries.
We are
also subject to the imposition of exchange controls by individual
countries or economic sanctions, which could limit our ability to
import materials paid in foreign currency or to remit dividends to
the parent company.
A
material shortfall in our cash flow could undermine Unilever's
credit rating, impair investor confidence and restrict Unilever's
ability to raise funds. In times of financial crisis, there is a
further risk that we may not be able to raise funds due to market
illiquidity.
We are
exposed to counter-party risks with banks, suppliers and customers,
which could result in financial losses.
Tax is
a complex and evolving area where laws and their interpretation are
changing regularly, leading to the risk of unexpected tax
exposures. International tax reform remains a key focus of
attention.
Level
of risk: No change
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Currency exposures are managed within
prescribed limits and by the use of financial hedging
instruments. Further, operating companies borrow in local currency,
except where inhibited by local regulations, lack of local
liquidity or local market conditions.
We seek
to maintain access to global debt markets through short-term and
long-term debt programmes. In addition, we maintain significant
undrawn committed credit facilities for general corporate purposes
as disclosed in note 16A.
Group
treasury regularly monitors exposure to our banks, tightening
counter-party limits where appropriate. Unilever actively manages
its banking exposures on a daily basis. We regularly assess and
monitor counter-party risk in our suppliers and customers and take
appropriate action to manage our exposures.
Our
Global Tax Principles provide overarching
governance and we have a process in place
to
monitor compliance with the Tax Principles. We have a Tax Risk
Framework in place which sets out the controls established to
assess and monitor tax risk for direct and indirect taxes. We
monitor proposed changes in taxation legislation and ensure these
are taken into account when we consider our future business plans.
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ETHICAL
Unilever's brands and reputation are valuable assets and the
way in which we operate, contribute to society and engage with the
world around us is always under scrutiny both internally and
externally.
Acting
in an ethical manner, consistent with the expectations of
customers, consumers and other stakeholders, is essential for the
protection of the reputation of Unilever and its brands.
Our
ethical approach is grounded in our commitment to embed respect for
human rights throughout our business, in line with the United
Nations Guiding Principles on Business and Human Rights.
The
safety of our employees and the people
and
communities we work with is critical. Failure to meet these high
standards could impact our reputation and business
results.
Level
of risk: No change
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Our
Code of Business Principles and our Code Policies govern the
behaviour of our employees. Our processes for identifying and
resolving breaches of our Code of Business Principles and our Code
Policies are clearly defined and regularly communicated throughout
Unilever. Data relating to such breaches is reviewed by the ULE and
by relevant Board Committees and helps to determine the allocation
of resources for future policy development, process improvement,
training and awareness initiatives.
Our
Responsible Partner Policy sets out our expectations that all our
business partners must meet in order to do business with Unilever,
with respect to Business Integrity & Ethics, Human Rights and
the Planet.
Our
Human Rights Policy Statement outlines
our
approach to embedding respect for human rights throughout our value
chain.
We have
detailed safety standards and
monitor
safety incidents at the highest level.
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LEGAL AND
REGULATORY
Compliance with laws and regulations is
an
essential part of Unilever's business operations.
Unilever is subject to national and regional laws and
regulations in diverse areas such as to environmental compliance
(e.g. greenwashing), product and ingredient safety, chemicals
management, product claims, trademarks, copyright, patents,
competition, health and safety, data privacy, corporate governance,
anti-bribery and anticorruption, listing and disclosure, human
rights due diligence, employment and taxes.
Changes
to these laws and regulations, as well as introduction of new laws
and regulations, could have a material impact on the cost of doing
business.
Failure
to comply could expose Unilever to civil and/or criminal
enforcement actions or litigation leading to damages, fines and
criminal sanctions against us and/or our employees with possible
consequences for our corporate reputation.
Level
of risk: Increase
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Unilever is committed to complying with the laws and
regulations of the countries in which we operate. In specialist
areas, the relevant teams at global, regional or local levels are
responsible for setting detailed standards and ensuring that all
employees are aware of and comply with regulations and laws
specific and relevant to their roles.
Our
legal and regulatory specialists are heavily involved in monitoring
and reviewing our practices to provide reasonable assurance that we
remain aware of and in line with all relevant laws and legal
obligations. Similarly, our litigation specialists are equipped to
protect, defend and advance Unilever's interests in civil
litigation.
Intellectual property rights underpin our scalable multi-year
innovations as well as our Power Brands. We strategically protect,
defend and enforce our intellectual property rights (including
patents and trademarks) to ensure that our differentiated
science-backed innovations and unmissably superior brands
contribute to our long-term growth and business success. We also
acknowledge others' rights and some of our operations are conducted
under licenses. We are not dependent on any one patent or group of
patents.
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RELATED
PARTY TRANSACTIONS
JOINT
VENTURES
The
following related party balances existed with joint venture
businesses at 31 December:
|
Related party
balances
|
€
million
2024
|
€
million
2023
|
|
Sales
to joint ventures
|
1,168
|
1,144
|
|
Purchases from joint ventures
|
110
|
134
|
|
Receivables from joint ventures
|
112
|
99
|
|
Payables to joint ventures
|
111
|
111
|
|
Loans
to joint ventures
|
227
|
219
|
|
Royalties and service fees
|
9
|
19
|
Significant joint ventures are Unilever FIMA LDA and Gallo
Worldwide LDA in Portugal, Binzagr Unilever Distribution in the
Middle East, the Pepsi Lipton Tea Partnership in the US and Pepsi
Lipton International Ltd for the rest of the world.
ASSOCIATES
There
are no trading balances due to or from associates.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of
the Directors confirms that, to the best of his or her
knowledge:
· The
Unilever Annual Report and Accounts 2024, taken as a whole, is
fair, balanced and understandable, and provides the information
necessary for shareholders to assess the Company's position and
performance, business model and strategy;
· The
financial statements which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and UK-adopted
international accounting standards give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation taken as
a whole; and
· The
Management Report includes a fair review of the development and
performance of the business and the position of PLC and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
|
Name
|
Function
|
|
Ian
Meakins
Andrea
Jung
Fernando Fernandez
Adrian
Hennah
Susan
Kilsby
Ruby
Lu
Judith
McKenna
Nelson
Peltz
Benoît
Potier
Zoe
Yujnovich
|
Chair
and Non-Executive Director
Vice-Chair / Senior Independent Director
Chief
Executive Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
|
Cautionary
Statement
This
announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United
States Private Securities Litigation Reform Act of 1995, concerning
the financial condition, results of operations and businesses of
the Unilever Group (the 'Group'). All statements other than
statements of historical fact are, or may deemed to be,
forward-looking statements. Words such as 'will', 'aim', 'expects',
'anticipates', 'intends', 'looks', 'believes', 'vision',
'ambition', 'target', 'goal', 'plan', 'potential', 'work towards',
'may', 'milestone', 'objectives', 'outlook', 'probably', 'project',
'risk', 'seek', 'continue', 'projected', 'estimate', 'achieve' or
the negative of these terms, and other similar expressions of
future performance or results and their negatives, are intended to
identify such forward-looking statements. Forward-looking
statements also include, but are not limited to, statements and
information regarding the Group's emissions reduction and other
sustainability-related targets and other climate and sustainability
matters (including actions, potential impacts and risks and
opportunities associated therewith). Forward-looking statements can
be made in writing but also may be made verbally by directors,
officers and employees of the Group (including during management
presentations) in connection with this announcement. These
forward-looking statements are based upon current expectations
and
assumptions regarding anticipated developments and other
factors affecting the Group. They are not historical facts, nor are
they guarantees of future performance or outcomes. All
forward-looking statements contained in this announcement are
expressly qualified in their entirety by the cautionary statements
contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements.
Because
these forward-looking statements involve known and unknown risks
and uncertainties, a number of which may be beyond the Group's
control, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Among other risks and
uncertainties, the material or principal factors which could cause
actual results to differ materially from those expressed in the
forward-looking statements included in this announcement are:
Unilever's global brands not meeting consumer preferences;
Unilever's ability to innovate and remain competitive; Unilever's
investment choices in its portfolio management; the effect of
climate change on Unilever's business; Unilever's ability to find
sustainable solutions to its plastic packaging; significant changes
or deterioration in customer relationships; the recruitment and
retention of talented employees; disruptions in Unilever's supply
chain and distribution; increases or volatility in the cost of raw
materials and commodities; the production of safe and high-quality
products; secure and reliable IT infrastructure; execution of
acquisitions, divestitures and business transformation projects,
including the proposed separation of our Ice Cream business;
economic, social and political risks and natural disasters;
financial risks; failure to meet high and ethical standards; and
managing regulatory, tax and legal matters and practices with
regard to the interpretation and application thereof and emerging
and developing ESG reporting standards including differences in
implementation of climate and sustainability policies in the
regions where the Group operates. Also see 'Our Principal Risks' on
pages 51 to 61 for additional risks and further
discussion.
The
forward-looking statements are based on our beliefs, assumptions
and expectations of our future performance, taking into account all
information currently available to us. Forward-looking statements
are not predictions of future events. These beliefs, assumptions
and expectations can change as a result of many possible events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity and results of operations
may vary materially from those expressed in our forward-looking
statements.
The
forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or
regulation, the Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Group's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. New risks and uncertainties arise over time, and it is not
possible for us to predict those events or how they may affect us.
In addition, we cannot assess the impact of each factor on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. In preparing the
sustainability and climate-related information in this
announcement, Unilever has made a number of key judgements,
estimations and assumptions. Sustainability and climate data,
models and methodologies are often rapidly evolving and are not of
the same accuracy as those available in the context of other
financial information. There may also be challenges in relation to
availability of sustainability and climate-related data and
potential inconsistencies. This means that sustainability and
climate-related forward-looking statements can be subject to more
uncertainty than other types of statements and therefore our actual
results and developments could differ from those expressed or
implied in the sustainability and climate-related forward-looking
statements in this announcement.
13
March 2025
