Notes to the consolidated accounts
27 Assets held for sale and discontinued operations
Included under this heading are the results of the majority of Unilever's European frozen foods businesses following the sale to Permira Funds in November 2006 and Unilever Cosmetics International (UCI) following the sale of this business to Coty Inc. in July 2005.
An analysis of the result of discontinued operations, and the result recognised on disposal of discontinued operations is as follows:
| € million | € million | € million | |
|---|---|---|---|
| Income statement of discontinued operations | 2007 | 2006 | 2005 |
| Turnover | – | 1 033 | 1 501 |
| Expenses | – | (863) | (1 253) |
| Operating profit | – | 170 | 248 |
| Net finance costs | – | (3) | (6) |
| Profit before tax | – | 167 | 242 |
| Taxation | – | (25) | (72) |
| Profit after taxation | – | 142 | 170 |
| Gain/(loss) on disposal of discontinued operations(a) | 89 | 1 349 | 513 |
| Recycling of currency retranslation upon disposal | – | – | 5 |
| Taxation arising on disposal | (9) | (161) | (48) |
| Gain/(loss) after taxation on disposal | 80 | 1 188 | 470 |
| Net profit from discontinued operations | 80 | 1 330 | 640 |
(a) In 2007, a one-off gain of €50 million was recognised for future performance based consideration from the sale of UCI.
| € million | € million | € million | |
|---|---|---|---|
| Segment analysis of discontinued operations | 2007 | 2006 | 2005 |
| Turnover | |||
| Europe | – | 1 033 | 1 397 |
| The Americas | – | – | 102 |
| Asia Africa | – | – | 2 |
| – | 1 033 | 1 501 | |
| Foods | – | 1 033 | 1 271 |
| Personal care | – | – | 230 |
| – | 1 033 | 1 501 | |
| Operating profit | |||
| Europe | – | 170 | 227 |
| The Americas | – | – | 20 |
| Asia Africa | – | – | 1 |
| – | 170 | 248 | |
| Foods | – | 164 | 226 |
| Personal care | – | 6 | 22 |
| – | 170 | 248 |
| € million | € million | € million | |
|---|---|---|---|
| Summary cash flow statement of discontinued operations | 2007 | 2006 | 2005 |
| Net cash flow from/(used in) operating activities | (4) | 79 | 62 |
| Net cash flow from/(used in) investing activities | 80 | 1 618 | 621 |
| Net cash flow from/(used in) financing activities | – | (1) | (4) |
| Net increase/(decrease) in cash and cash equivalents | 76 | 1 696 | 679 |
The most significant items included as assets held for sale at 31 December 2007 are:
- North American laundry business - disposal process announced 2 August 2007 for completion in 2008.
- Boursin business - sale to Le Groupe Bel for €400 million announced on 5 November 2007, completed 3 January 2008.
- Lawry's and Adolph's branded seasoning blends and marinades business in the US and Canada - sale to McCormick & Company for US $605 million announced on 14 November 2007, for completion in 2008.
In 2006, various non-current assets were classified as held for sale.
| € million | € million | |
|---|---|---|
| Assets classified as held for sale | 2007 | 2006 |
| Disposal groups held for sale | ||
| Property, plant and equipment | 66 | – |
| Inventories | 83 | – |
| Trade and other receivables | 4 | – |
| 153 | – | |
| Non-current assets held for sale | ||
| Property, plant and equipment | 6 | 14 |
| 6 | 14 |
| € million | € million | |
|---|---|---|
| Liabilities classified as held for sale (part of disposal groups) | 2007 | 2006 |
| Trade payables and other liabilities | (10) | – |
| Deferred taxation | (3) | – |
| (13) | – |
Total assets at 31 December 2007 are included in the geographical segments as follows: Europe €31 million; The Americas €127 million; and Asia Africa €1 million.
