UNILEVER PLC

Operating profit of €9.4 billion decreased 3.7% versus the prior year.

This reduction was driven by higher non-underlying charges, most

notably a net loss on disposals of €0.4 billion and higher restructuring

costs of €0.9 billion as a result of accelerating the productivity

programme.

Underlying operating profit was €11.2 billion, up 12.6% versus the prior

year. Underlying operating margin increased 170bps to 18.4%.

We expanded gross margin to 45.0%, the highest it has been in a

decade. Our gross margin improvement in 2024 reflects positive

contributions from volume leverage, mix and net productivity gains in

material, production and logistics costs. It was also helped by input

cost deflation in the first half, which turned into slight inflation in the

second half. Continuing to improve gross margin remains a key focus

for the business.

Improved gross margin fuelled further increases in brand and marketing

investment behind a strong and focused innovation programme.

Investment was up to 15.5% of turnover, an increase of €0.9 billion.

Overheads reduced by 0.1% as a percentage of turnover, as a result of

tighter cost control and savings in the second half from the productivity

programme, offset by inflation.