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Unilever has decided to retain its tea businesses in India and Indonesia

Unilever

LONDON, UK – British-Dutch multinational consumer goods company Unilever has announced its results for the first half of 2020, which show that overall underlying sales declined 0.1%, with developed markets up 2.4% and emerging markets down 1.9%. Underlying sales declined 0.1% with volume declining 0.3% and price growth of 0.2%. Turnover decreased 1.6% including a positive impact of 1.1% from acquisitions net of disposals and negative impact of 2.5% from currency.

Underlying operating profit excluding currency increased 3.8%, before a negative impact of 3.2% from currency.

Underlying earnings per share up 6.4%, including a negative impact of 3.7% from currency.

Free cash flow up €1.3 billion to €2.9 billion, reflecting our objective to protect cash during the crisis.

Quarterly shareholder dividend maintained at €0.4104 per share. Completed acquisitions of Horlicks brand from GSK, enhancing presence in healthy nutrition.

Unilever announced plans to unify the Group legal structure under a single parent company

The company said it intends to retain its tea businesses in India and Indonesia, months after it announced a global strategic review of the tea business. The rest of the tea brands and estates in other regions will be carved into a separate entity.

“In January, we announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips,” says a statement.

“This review has assessed a full range of options. We will retain the tea businesses in India and Indonesia, and the partnership interests in the ready-to-drink tea joint ventures.

The balance of Unilever’s tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity. A process will now begin to implement the separation, which is expected to conclude by the end of 2021.

The tea business that will be separated generated revenues of €2 billion in 2019.”