According to the securities laws of some jurisdictions, such as the United States Private Securities Litigation Reform Act of 1995, this release may contain “forward-looking statements.”
Forward-Looking Statements Overview
Every statement that is not based on historical facts is either forward-looking or might be considered such. Words and phrases like “will,” “aim,” “expects,” “anticipates,” “intends,” “looks,” “believes,” “vision,” “ambition,” “target,” “goal,” “plan,” “potential,” “work towards,” “may,” “milestone,” “objectives,” “outlook,” “probably,” “project,” “risk,” “continue,” “should,” “would be,” “seeks,” and other similar expressions of future performance, results, actions, or events, as well as their negative.
Nature of Forward-Looking Language
Statements and information about Unilever’s emissions reduction and other sustainability-related targets, as well as other climate and sustainability matters (including actions, potential impacts, risks, and opportunities associated therewith), are examples of forward-looking statements. In conjunction with this announcement, directors, officials, and employees of the Unilever Group (the “Group”) may make forward-looking comments both orally and in writing, including during management presentations.
These projections are predicated on present expectations and presumptions about future developments and other elements impacting the Group. They are neither historical facts nor assurances of performance or results in the future. The cautionary comments in this section specifically qualify all forward-looking statements in this notice. It is not advisable for readers to rely too much on assertions that look ahead.
Uncertainty and Risk Factors
There are significant factors that could cause actual results to differ materially from those stated or implied by these forward-looking statements because they involve known and unknown risks and uncertainties, many of which may be outside the Group’s control.
📊 Key Business Risks for Unilever
- Brand Performance: Global brands may fail to meet changing consumer preferences
- Innovation: Pressure to continuously innovate and stay competitive
- Portfolio Decisions: Risks linked to investment and portfolio management choices
- Climate Impact: Operational disruption due to climate change
- Sustainability: Challenges in developing sustainable plastic packaging solutions
The following are some of the risks and uncertainties that could cause actual results to differ significantly from the forward-looking statements made in this announcement: Unilever’s global brands not satisfying consumer preferences; Unilever’s capacity to innovate and maintain competitiveness;
Unilever’s portfolio management investment decisions; the impact of climate change on Unilever’s operations; the company’s capacity to find sustainable solutions for its plastic packaging; notable alterations or declines in customer relations; the hiring and retention of skilled personnel; disruptions in Unilever’s supply chain and distribution; increases or volatility in the cost of commodities and raw materials;
Operational, Financial, and Regulatory Challenges
the creation of high-quality and safe products; safe and dependable IT infrastructure; the implementation of acquisitions, divestitures, and business transformation projects, such as the proposed separation of our ice cream business; risks related to the economy, society, politics, and natural disasters; financial risks; failure to meet high and ethical standards; and the management of legal, tax, and regulatory issues and practices with regard to their interpretation and application; as well as the emergence and development of ESG reporting standards, including variations in the regions in which the Group operates.
🌍 ESG, Compliance & Global Exposure Risks
- ESG Reporting: Differences in sustainability rules across regions
- Ethical Standards: Risk of failing to meet high governance expectations
- Regulation: Complex legal and tax compliance across global markets
- Geopolitical: Exposure to economic, political, and social instability
- Natural Events: Business disruption from natural disasters
Our opinions, presumptions, and expectations for our future performance are the foundation of the forward-looking statements, which take into consideration all of the information that is now at our disposal. Statements that gaze forward do not forecast what will happen in the future. Many potential events or factors—not all of which are known to us—can cause these beliefs, presumptions, and expectations to shift. Our business, financial situation, liquidity, and operational outcomes may differ significantly from those stated in our forward-looking statements if a change takes place.
Limitations of Forward-Looking Statements
The forward-looking statements are only valid as of the announcement date. The Group expressly disclaims any intention, obligation, or undertaking to publicly release 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, unless required by any applicable law or regulation.
Over time, new risks and uncertainties emerge, and we are unable to foresee them or how they might impact us. Furthermore, we are unable to evaluate each factor’s effect on our company or the degree to which any factor—or combination of factors—may result in actual events that substantially deviate from any forward-looking statements.
Regulatory Filings and Disclosures
The Group’s filings with the London Stock Exchange, Euronext Amsterdam, and the US Securities and Exchange Commission, such as the Annual Report on Form 20-F 2024 and the Unilever Annual Report and Accounts 2024, provide additional information about potential risks and uncertainties impacting the Group.
Frequently asked questions
1. Is Unilever regarded as a secure long-term investment?
A reputable consumer goods corporation with a diverse portfolio is Unilever. Investors nevertheless face risks from competition, regulatory changes, and fluctuations in the world economy, even if it is widely seen as stable.
2. What impact does climate change have on Unilever?
Climate change has the potential to disrupt supply chains, raise raw material costs, and impact consumer demand. To reduce these risks, Unilever must be able to implement sustainable practices.
3. Will changes in regulations affect Unilever’s earnings?
Indeed. If not correctly managed, global legislation pertaining to labor, taxation, product safety, and sustainability may result in fines or costs associated with compliance.
4. How do acquisitions and divestitures affect risk?
Profitability and stock performance can be impacted by strategic business decisions like purchasing businesses or selling portions of a company’s portfolio (such as an ice cream company).
5. Can Unilever’s brands withstand economic downturns?
During recessions, consumer staples are typically still in demand, but Unilever’s profitability is still impacted by changes in consumer spending, competition, and product innovation.
Conclusion
Typical risks associated with investing in an international consumer goods company include supply chain problems, competition, regulatory compliance, innovation demands, and climate-related obstacles.
Investors should carefully weigh these risks against potential long-term profits, even if Unilever’s global brand power and diversification offer stability. Monitoring business performance and diversifying investments are crucial tactics to reduce vulnerability.
Disclaimer
Disclaimer:
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Investors should conduct their own research or consult a qualified advisor before making any investment decisions.
