Unilever PLC

Good morning and welcome to Unilever's full year results. Thank you for joining us. In a moment, Fernando Fernandez, our CFO, will give a breakdown of the results for 2024, after which I will look at some of the key priorities for this year and beyond. In total, we expect prepared remarks to last around 40 minutes, followed by 30 minutes of Q&A. And all of today's webcast is available live transcribed on the screen. Before I provide a few reflections of my own on the results, I want to touch on some of the broader shifts we have made in 2024 to set us up for a higher and more consistent performance. There are five in particular I want to highlight. First, having been adopted and embedded across the business following its launch in October 2023, the Growth Action Plan, or GAP, was executed last year with speed and with discipline. And we see this reflected across the company. A few examples. In the plans behind our top 30 power brands, in our unmissable brand superiority framework, in the step up in the size and scale of our innovations, or in the embedding of net productivity in the Unilever supply chain. And in all these areas and more, the gap is critical to our work across Unilever. Working on the same themes, on the same imperatives, and bundling our energy, passion, and resources together on the things that really matter. Second, the wide-ranging but necessary productivity program announced in March is being implemented at pace. Actually, we are ahead of plan in creating a leaner, more accountable organization. And by the end of 2024, the number of full-time roles had been reduced by 4,300, with an expected total reduction of 7,500 roles by the end of 2025. Third, capital and resources are being deployed behind our keenest priorities and our biggest opportunities. And whether that's our top brands, our leading markets, our key capabilities, or in meeting our biggest net productivity opportunities. On top of these investments, we returned 5.8 billion euro in capital to shareholders in 2024 in the form of dividends and buybacks. Fourth, we are on track to complete a significant portfolio shift with a separation by the end of this year of our ice cream business. I'll talk more on that later. And fifth, we are giving increasingly tangible expression to our desire to dial up Unilever's performance edge and create that winning culture. For example, the productivity program is being used to de-layer the organization, and people are finding their roles now come with a greater scope, but also more accountability. Measures are being put in place to help motivate and incentivize for performance, whether through more stretching targets or through greater differentiation in reward. And the new organization structure, with the business groups focusing on the top 24 markets and the 30 power brands, And that's bringing simplicity and much sharper category focus. These five shifts represent just some of the ways in which operationally, organizationally, and on the portfolio, we moved quickly and decisively last year to bring that much needed clarity and focus to the business. And while these changes are intended to set us up for consistent higher performance over the longer term, the benefits are already apparent in improved performance. And that brings me to our results for 2024. Now, first a reminder. When we launched the gap towards the end of 2023, we said that our priority was to improve both the quality and the consistency of Unilever's top-line performance. In fact, the gap was a direct response to that challenge. And we also made clear that central to achieving this was restoring gross margin as a first step to pre-pandemic levels, thereby enabling us to step up investment behind our brands and in the rest of the business. And the results we are announcing today reflect progress against each of these objectives. Growth was volume-led, and importantly, within that, underlying volume growth of 2.9% was broad-based across all five business groups and across all four quarters. This was supported by a significant increase in gross margin, up by 280 basis points versus the prior year to 45%, exceeding the pre-COVID level in all business groups except ice cream. The increase in gross margin allowed us to increase brand and marketing investment by €0.9 billion to 15.5% of group turnover. Gross margin expansion also contributed to profit growth. Underlying operating profit growth was 12.6% versus the prior year to €11.2 billion. These results confirm the progress that we are making against our most important and immediate priorities. They also enabled us to deliver top third total shareholder returns in 2024, and that is in line with our ambition. However, consistency is not about one good year. We know there is still a lot to do and some way yet to travel in somewhat more turbulent waters. But as I have said, we laid some important foundations for the future in 2024, as well as delivering results in line with our objectives. And Fernando will now take you through those results in more detail. Fernando.

Thank you, Jaime. Underlying sales growth in the full year was 4.2%, led by volume of 2.9% and with price contributing 1.3%. We delivered four consecutive quarters of underlying volume growth above 2%, with all business groups driving positive volume growth for the year. Our 30 power brands, which represent more than 75% of our group turnover, performed well with 5.3% underlying sales growth, driven by volume growth of 3.8%. While the power brands had the first call on incremental resources and led our growth, we didn't neglect the rest of the business. This paid off as these brands also delivered improved volume growth of 0.7% in the second half, up from minus 1.6% in the first half of 2024. As expected, given the favorable commodity cycle in the first half of 2024, underlying price growth slowed down to 1.3% for the year. However, with input cost inflation in our basket of commodities returning in the second half, We expect an acceleration of price growth through 2025. Let's take a closer look now by business groups. Butane Wellbeing delivered a strong full-year performance, led by broad-based volume growth, particularly across its power brands. Underlined sales growth was 6.5%, with volume at 5.1% and price at 1.3%. In the fourth quarter, underlying sales growth was 5.2%, with 3.9% volume against a strong Q4 2023 comparator. Beauty and well-being's strong performance reflects the ongoing premiumization of our core hair care and skin care portfolio, and the continued strength of our prestige beauty and well-being portfolio, which combined now accounts for approximately 30% of beauty and well-being's turnover. Haircare grew mid-single-digit, with balanced volume and price growth. Dabhair delivered high single-digit volume growth, and our largest hair brand, Sunsil, continued its positive momentum following the 2023 relaunch. Nexus, our Mastiff proposition in the US, grew double-digit, while Clear's growth was muted due to its big exposure to a subdued Chinese market. Our core skin business continued to grow well, with Vaseline achieving double-digit growth for the second consecutive year. This success was driven by the expansion of the glutathione range into more markets and new variants. DAF also posted double-digit growth in skin care, supported by new successful launches of body serums and face treatments across Latin America. Wellbeing delivered double-digit volume growth, led by Liquid IV, Nutrafol and Oli. This performance reflects continued strengths in the brand's core products and innovations, as well as the early benefits of our selective international expansion. Liquid IV entered seven new markets during the year, while Oli made good inroads in China. Prestige Beauty grew at a mid single digit rate due to the beauty market slowing in the US and China. Growth remained lower in fourth quarter, but several brands still deliver good performances. Notably, Hourglass and Tatcha both achieved double digit growth in the year. Beauty and well-being underlying operating margin improved by 70 basis points. Positive mix was a key driver of a strong 220 basis points gross margin expansion. This allowed further investment in BMI to support the continued strengthening of our brands in this business group. Personal care also had a strong year, driven by deodorants, which delivered double-digit growth, and DAF, our largest brand, which accounted for close to 40% of personal care turnover. Underlying sales growth was 5.2% for the year, with 3.1% in volume and 2.1% in price. Volume growth accelerated in the fourth quarter to 3.6%, contributing to an underlying sales growth of 5.3%. DAB's strong growth was supported by the launch of whole body deodorants featuring our superior odor control technology. First introduced in the US in 2024, we will expand this innovation to new markets and to new brands in 2025. DAB also launches new serum shower collection, bringing active face care ingredients to body wash formats. The impressive growth in deodorants was led by DAF, but also with solid contributions from Rexona and Axe, both benefiting from disruptive technology introductions in the areas of odor control and fragrances, respectively. Skin cleansing grew low single-digit, with positive volume and price, despite declines in Indonesia, China, and India. Lax and Lifeway are two of our power brands where performance has been poor and in which we are making significant interventions in 2025. Oral Care deliver mid-single-digit growth with solid results from Pepsodent and CloseUp, our power brands in the category. underline operating margin improved by 196 points during the year significant gross margin expansion enable us to continue reinvesting in our personal care brands with a special focus on our u.s business as we elevate our portfolio to a more premium offering Home care delivered underlying sales growth of 2.9%, driven by a 4% increase in volume. Commodity inflation was more significant in the powders format than in liquids, resulting in negative pricing in several emerging markets. Fourth quarter underlying sales growth was 3%, with 3.3% volume growth and price growth getting close to flat. In fabric cleaning, we introduced Persil's Wonder Wash, designed for the consumer trend towards short and cold wash cycles. Launched in eight markets, this product has shown excellent market share results, contributing to a significant turnaround in Europe during the year. We are continuing to roll it out to more markets and expect it to become a 100 million euros innovation platform. Comfort launched this new range utilizing our patented Crystal Fresh technology. This product line brings superior fragrances to the fabric booster market, helping Comfort achieve nearly 10% volume growth for the year. Domestos and SIF both grew double-digit, supported by strong formats innovation in power foam, sprays, and creams. Underlying operating margin for home care improved by 220 basis points during the year, driven by strong gross margin expansion. This resulted in a 19% improvement in underlying operating profit, despite a step up in brand and marketing investment behind our premium innovations. Foods delivered growth of 2.6% in 2024, with 2.4% price and volume at 0.2%, amidst an overall deceleration in the market. In the fourth quarter, foods grew 2.6%, with 2.1% from price and 0.5% from volume. Our two larger brands, Knorr and Hellmann's, which account for around 60% of food turnover, outperform the food's average. Knorr enhanced its global leadership in the bouillon and seasonings category. Hellmann's achieved volume-led growth through the continuous success of its flavor-major ranges and premium formats. Our Unilever Food Solutions business continues to deliver good results, outperforming markets both in China and the US. In 2024, we expanded our digital selling program and drove unique product formats and sizes specifically designed for professional kitchens. We continue to work on focusing and simplifying our foods portfolio, anchoring it more and more in our power brands. In line with that goal, the disposals of Unox, Conimex, and Swan were announced in the fourth quarter and will be completed during 2025. In 2024, food significantly improved its underlying operating margin by 270 basis points, driven by a strong gross margin expansion. This improved profitability reflects our strategic effort to streamline the business, focusing on our power brands, reducing the number of items, and executing disciplined net revenue management. Ice cream delivered 3.7% underlying sales growth, with a return to volume growth at 1.6% and 2.1% from price. The fourth quarter saw underlying sales growth of 4.3%, with balanced volume and price. Ben & Jerry and Walsh were our fastest growing brands in the category. Ice cream improved performance in 2024 reflects our operational improvement across much of our business, including enhancements to our supply chain, go-to-market strategy and promotional activities. These efforts have strengthened our business and laid a foundation for continued improvements in the years ahead as an independent company. Our results also reflect a step up in innovation, including the launch of Magnum Bonbons and Yasuo Popables, new buy-size premium formats that meet the evolving snacking habits. iScheme underlying operating margin improved by 100 basis points in 2024. Gross margin expansion, led by positive mix, enabled further investment in brand and marketing. The actions taken in 2024 have improved our results and during 2025 we will remain focused on strengthening our operational model while navigating the challenges brought by significant inflation in key materials like cocoa and dairy. We run the business entirely through the lens of our five business groups. However, we believe it is important to provide also some color on the performance we achieve across different geographies. In 2024, we deliver broad-based volume and price growth with positive contribution from all regions, from developed and from emerging markets, an imperative to deliver both volume growth and hard currency profit growth. Developed markets, which account for 42% of group turnover, grew underlying sales by 4.4%, with volumes up 3.3%. This reflected a strong, accelerating performance in North America, led by beauty and well-being, and a big improvement in Europe, driven mainly by personal care and home care. A stronger innovation pipeline and increased level of brand investment are evidence of our commitment to accelerate performance consistently in these important hard currency markets. Latin America, one of Unilever's strongholds, grew 6%, with positive volume growth across Brazil, Mexico and Argentina. Growth slowed in the second half. reflecting an increased currency volatility in the region that will require significant pricing corrections in the short term with potential impacts on volumes. In Asia-Pacific Africa, our biggest region, underlying sales growth of 3.1%, was more subdued than in previous years. Our India business continued to increase market share during a period of modest market growth. We expect conditions to improve mid-term, following recent fiscal and monetary stimulus. India grew 1.8%, with 2.4% underlying volume growth. with tonnage volume growing mid single digit but partially upset by negative mix due to the strong growth in home care versus other categories. Our performance in Africa and Turkey was strong with double digit growth driven by positive volume and price in each quarter. China declined mid single digit with market weakness across all categories apart from foods. Southeast Asia declined low single digit driven by an 8.7% decline in Indonesia. Both China and Indonesia are critical markets for us with significant long-term potential. We are taking decisive actions in both. In China, we are strengthening our business during a market slowdown. We are accelerating our portfolio premiumization to drive growth in the premium and super-premium segments through innovation behind admissible superior power brands. We are serving emerging channels better through social first demand creation models and direct-to-consumer models. We are transforming our route to market to effectively address lower tier cities and smaller format stores. We have redesigned the sales organization with separate sales team at category level and have leveraged digital selling tools for Salesforce and distributors to improve our reach. The transition to a tailored customer development organization and to a digital route to market takes time and faces stock corrections in some channels and categories. However, we are encouraged by the executional progress in line with our plans. In Indonesia, we have long-standing portfolio and brand proposition issues, which will take several quarters to fix. In the short term, we are correcting misaligned investments and price structure across channels and resetting stock levels in retail. We are expanding our direct and indirect coverage with fewer and bigger distributors. We are paying particular attention to the health and beauty channel, for which we are innovating in growing demand spaces. The result is underpinned by a far-reaching cost-saving program that fuels brand investment. As we said previously, we expect to see in our results the benefits of the changes in China and Indonesia from the second half of 2025 onwards. Let me return now to performance at the group level. Turnover for the full year was 60.8 billion euros, up 1.9% versus the previous year. Excluding the effect of M&A actions to further sharpen our portfolio, turnover growth would be 3.5%, primarily driven by underlying sales growth of 4.2%, with an adverse currency impact of minus 0.7%, considerably lower than in 2023, when the euro strengthened against most currencies. As a result of our portfolio actions, the net impact from acquisitions and disposals was minus 1.5%. Acquisitions added 0.4%, driven by Yasso and K18, both performing well and in line with our acquisitions business cases. This was more than offset by a disposal impact of minus 1.8%, driven by Suave, Dollar Shave Club, as well as LEWT and Unilever Russia, which sales were completed in June and October 2024, respectively. During the year, we expanded our gross margin by 280 basis points to 45%, building upon the improvement of 200 basis points achieved in 2023. Within 18 months, we have rebuilt gross margin beyond the pre-COVID level. In all business groups, apart from Ice Cream, gross margin is the backbone of our financial plan, and our new base is 45%. Our ambition is to improve from here. In 2024, we made progress in transforming Unilever into a structurally higher gross margin business by driving volume leverage, positive mix, and net productivity gains. These were enabled by procurement interventions in key materials and by allocating a significantly higher fraction of our capital expenditure to margin expansion, which resulted in lower production and logistic costs. The very strong improvement of 420 basis points in the first half of 2024 was boosted by tailwinds, namely the strong benefits of deflation in some components of our commodity basket and the pricing carryover from 2023. This strong gross margin expansion gave us flexibility to both increase investment in our brands and expand underlying operating margin. We increased brand and marketing investment by 120 basis points to 15.5% of turnover, an increase of 900 million euros. All additional investment was concentrated in our top 30 brands behind a much more focused innovation program. Our brand and marketing investment has been the highest percentage of turnover in over a decade, with an increase of 250 basis points, or 1.6 billion euros, over the last two years. Overheads reduced by 10 basis points as a result of a tighter cost control and savings in the second half from the productivity program. The combination of a strong gross margin expansion, lower overheads and substantial increased brand support results in underlying operating profit of 11.2 billion euros, up 12.6% versus the previous year. The underlying operating margin improved 170 basis points to 18.4%. Underlying earnings per share were 2.98 euros, up 14.7%. Our operational performance, the combination of sales growth and strong margin expansion, contributed 15.6% to underlying earnings per share growth. An increase in finance costs had an adverse effect of minus 1.4%. As expected, higher interest rates impacted the cost of debt, while interest income and interest credit from pensions were slightly lower than in the prior year. Net finance cost as a percentage of average net debt were 2.5%. For 2025, we continue to expect net finance costs to be around 3% of average net debt. Tax was a drag of 0.6% on underlying EPS, as our underlying effective tax rate slightly increased to 25.8%. This was driven primarily by increases in non-deductible interest and in withholding tax, which were largely offset by benefits from tax settlements and other one-off items. We expect our underlying tax rate to be at around 26% for full year 2025. The impact of our share-buy-back programs made a positive contribution of 1%. Net profit from joint ventures and associates, as well as other, increased versus the prior year, while minority interest decreased. Together, they contributed 0.8% to underlying earnings per share growth. Negative currency effect in underlying EPS was the same as the one experienced at the turnover level, at minus 0.7%. Our free cash flow in the full year was 6.9 billion euros versus 7.1 billion in 2023. That included a tax refund of 400 million euros in India. Our average working capital remained strong at minus 9% of turnover in 2024. Cash conversion, which indicates our ability to convert profit into cash, was strong at 106%, above our long-term ambition of around 100%. Keeping a robust balance sheet is a key feature of our value creation model. Closing net debt was 24.5 billion euros, up 900 million. At year end, net debt to underline EBITDA was 1.9 times, versus 2.1 times in the previous year, and in line with our guidance of around 2 times. The step up in underlying operating profit was the prime driver behind a 190 basis points increase in underlying return on invested capital to 18.1%. We maintain our medium-term expectation of high-teens underlying ROIC, which is a key building block of our multi-year value creation model. We have allocated capital during 2024 in line with our priorities, growth, productivity, portfolio reshaping, and capital returns to shareholders. Investing for growth and productivity are critical to ensure sustainable long-term economics of our business. It is investing in our brands, investing in R&D, and investing in capacity expansion and productivity. We step up brand support by 900 million euros in 2024, up 120 basis points as a percentage of turnover. Capital expenditure increased by 13.6% to 1.9 billion euros, resulting in 3.2% of turnover, up 30 basis points versus the previous year, as we invested more capex for margin expansion. Our three-year guidance of average 1.2% restructuring spend remains unchanged for the period 2024-2026, Due to the acceleration of the productivity programme, we increased restructuring costs to 1.4% of turnover in 2024 and we expect a similar ratio for 2025. Over time, we plan to allocate around 1.5 billion euros a year to optimise our portfolio as we rotate into more premium segments. 2024 was a year in which we did more portfolio pruning through disposals than additions through bolt-on acquisitions. We remain very disciplined and value rational in our M&A activities. The bar is high for any additions to our portfolio, and transformational acquisitions remain off the table. I will cover the complete and announced transactions in more detail in a moment. We also deliver €5.8 billion of capital returns to our shareholders in 2024, through cash dividends of €4.3 billion and a share buyback programme of €1.5 billion. Our Q2 interim dividend was increased by 3%. Reflecting the full-year performance, the Board increased the Q4 interim dividend by 6.1% versus the prior year. We continue to optimize our portfolio, allocating capital to premium segments through bolt-on acquisitions and divesting lower-growth businesses. In February 2024, we acquired K18, a premium biotech hair care brand. In January 2025, Industang Unilever Ltd. signed an agreement to acquire the premium active-sled beauty brand Minimalist. This marks another step in the transformation journey of our beauty and well-being portfolio towards fast-growing premium demand spaces in India. We completed several disposals during the year. This included Elida Beauty and the water purification businesses, King One Group and Purit. In October, we completed the sale of our Russian subsidiary to the Arnes Group. In addition, we announced several disposals that we expect to complete during 2025, including the sale of the food brands Unox, Conimex and Swan, as well as the disposal of our laundry business in Central America. Turning to the outlook for 2025, we expect underlying sales growth for full year 2025 to be within our multi-year range of 3-5%. Market growth slowed throughout 2024. We anticipate a slower start to 2025 with subdued market growth in the near term. We expect the market and our growth to improve during the year as prices increase, reflecting higher commodity costs. We expect for the full year a more balanced contribution between volume and price. We anticipate a modest improvement in underlying operating margin for the full year versus 18.4% in 2024. We expect this improvement to be realized in the second half, given the very strong first half comparator of 19.6%, which benefited strongly from carryover pricing and input cost deflation. As we said at our investor event last year, our goal is very simple. Deliver absolute profit growth in hard currency that is in line with companies that consistently feature in the top third of the peer group when it comes to total return. We made a step forward in 2024 by increasing underlying operating profit by 12.6% to 11.2 billion euros. And we are determined to grow profit from here in 2025 and beyond. We will deliver capital returns in line with our capital allocation framework. This includes an attractive, sustainable dividend based on paying out around 60% of underlying EPS and returning surplus cash via share buybacks. In that vein, we have announced a new share buyback of up to 1.5 billion euros, which will commence today and complete in the first half of 2025, well ahead of the separation of high scheme. With that, over to you, Hein.

Thank you, Fernando. In turning now to the priorities for this year and beyond, it is important to note that the process of transforming Unilever continues. We are thinking about this under three broad headings. Number one, implementing our new strategy, the Growth Action Plan 2030. Number two, continuing the wide-ranging productivity program that we have embarked on and, as part of that, delivering the savings that we have promised. Number three, completing the separation of the ice cream business by the end of this year. Now, let me take each of these briefly in turn, starting with the Growth Action Plan 2030. As a reminder, this is a comprehensive five-year strategic plan, encompassing a refreshed purpose, anchored firmly back with the consumer to brighten everyday life for all. An ambitious goal to be best-in-class performer, founded on the twin objectives of ensuring our brands are unmissably superior and market-making. At its core, the Growth Action Plan 2030 rests on three key strategic pillars, where we intend to focus, where we want to excel, and where we need to accelerate. And underpinning all of this are two critical and defining platforms, sustainability and culture. And even though this is a comprehensive strategic approach, its beauty in many ways is its simplicity. It draws on Unilever's inherent strengths while at the same time building on the changes and the progress that we have made over the last 18 months. Since unveiling GAP 2030 towards the end of last year, we've been focused on aligning the organization behind that new strategy. But already we see the process of strategy into action taking effect. Under the focus pillar, for example, we said we would double down in India as one of our key markets, that we would look to accelerate our beauty and well-being business, and that we would commit capital in support of these, as well as a few other priorities. Well, these came together with the announcement last month that Hindustan Unilever had signed an agreement to acquire the premium beauty brand Minimalist, which Fernando mentioned earlier. This is an acquisition that strengthens our position in a high-growth premium demand space in a key market, and it's one that we're very excited about. As we go through the year, we will share progress with you on each of the different elements of the GAP 2030. Today, I want to say something specifically about our work on sustainability. As you know, since last year, we have focused our agenda on four areas, climate, nature, plastics and livelihoods. And these are the areas that have the most direct impact on the business, but also the ones where we can use our scale and influence to have the greatest positive change. The commitments that we've made under each pillar are stretching, ambitious, time-bound and, importantly, transparent. And while the figures that we're sharing today are subject to final assurance and will appear next month in our 2024 annual report, I wanted to give you an indication today of where we are on some of the anchor metrics supporting each pillar. On climate, for example, at 76%, we are on target when it comes to the reduction of scope one and two emissions coming from our own operations. And that's up from 74% last year. On nature, we've exceeded our target for this year of 500,000 hectares of land benefiting from our regenerative agriculture and protect and restore practices, up from around 300,000 last year and well on our way to 2 million hectares by 2030. On plastic, we are on track in the reduction of our virgin plastic used in our packaging at 23%. And again, good progress versus last year, where we were at 18%. And on livelihoods, and a new target of the proportion of procurement spent with suppliers committing to the living wage, we are ahead of the plan at 32%. I hope you can see we are as committed to making progress in the area of sustainability as we are in any other part of the GAP 2030. And we also know we cannot achieve these commitments alone and that we can benefit from external views to make us better. And as such, we have refreshed our Sustainability Advisory Council to ensure that we have access to the very best people and to the most up-to-date and relevant sources of advice and counsel. The second key priority in 2025 is the continuing implementation of our wide-ranging productivity program. The significance of this to the ongoing transformation of Unilever cannot be overstated. When we launched the program last March, we said we expected to deliver cost savings of 800 million euro over three years, more than enough to offset the operational dis-synergies from the separation of ice cream. In doing that, we identified 7,500 roles that would be impacted. But by the end of 2024, the program had led to a reduction of 4,300 full-time roles and to in-year savings of close to 200 million euros. As I said earlier, this puts us ahead of the plan, so much so that we are now confident of completing the program of 7,500 role reductions by the end of 2025. As a result, from 2026, we expect levels of restructuring spend to be substantially lower. But the significance of the productivity program goes beyond the savings it will generate. A leaner, more accountable organization is also a key enabler in creating the kind of winning culture I spoke about earlier. And these are big but necessary changes. And we will continue to implement them in 2025 with a combination of care, speed, and discipline that characterized our approach in 2024. Now, let me turn to the third key priority for 2025, the separation of ice cream. Again, we are well on track. Today we've set out the progress that we are making towards the demerger of the business by the end of 2025. And this includes the appointment of a highly experienced chair-designate, Jean-François van Boxmeer. Currently chair of Vodafone and previously CEO of Heineken, Jean-François brings vast knowledge of the consumer goods industry, as well as considerable experience as a non-executive. We are delighted that he has agreed to take on this important role. We are also announcing today the route to separation. Ice cream will be separated by way of demerger through listing of the business in Amsterdam, London and New York. The same three exchanges on which Unilever PLC shares are currently traded. Ice cream will be incorporated in the Netherlands and will continue to be headquartered there in Amsterdam. This decision follows a full review by the board of separation options, which were focused on maximizing returns for shareholders, setting the ice cream business up for success and ensuring execution certainty by the end of 2025. We will give further updates on progress at quarter one, but are confident that with the decisions we are announcing today, we remain firmly on track to complete separation by the end of the year. Let me sum up before moving to questions. We have made clear that our aim is to deliver higher performance on a consistent basis. One is no good without the other, and we know that. And we are not there yet. There is a lot to do. But as our performance in 2024 suggests, we are on track. And as an operational intervention, the GAP, the Growth Action Plan, is working for us. The quality of our execution is getting better and our grip on the organization is getting tighter. We are moving with new levels of speed, with clarity and precision to address areas of weakness and to open up areas of opportunity. The priority now in 2025 is to give effect to the revised strategy, the GAP 2030, and we look forward to sharing progress with you as we go through the year. And this is also a vital year in delivering the leaner, more accountable, more productive organization, together with a stronger, better positioned portfolio on which our model depends. We are resolutely focused on delivering both of these in 2025. And with a highly motivated Unilever team now fully in place, we are confident that we will. On that note, thank you for listening and we look forward now to taking your questions.