Report & accounts 2002 in full - Unilever
Report & accounts 2002 in full - Unilever
Report & accounts 2002 in full - Unilever
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20 Operat<strong>in</strong>g review by region<br />
In Home & Personal Care, underly<strong>in</strong>g sales were flat for the<br />
<strong>full</strong> year with an improved performance <strong>in</strong> the latter part<br />
offsett<strong>in</strong>g a slow start to the year. This reflects both the<br />
tim<strong>in</strong>g of the overall <strong>in</strong>novation plan and the steps taken to<br />
improve profitability <strong>in</strong> laundry to give the base for a more<br />
active programme from the fourth quarter. The successful<br />
launches of Axe deodorant and all fabric conditioner and<br />
the re-launch of Dove body wash contributed to a strong<br />
f<strong>in</strong>ish to the year.<br />
Operat<strong>in</strong>g marg<strong>in</strong> BEIA <strong>in</strong>creased by 1.9% to 16.1%.<br />
This was driven particularly by improvements <strong>in</strong> laundry<br />
profitability but also widespread benefits from sav<strong>in</strong>gs<br />
programmes partly re<strong>in</strong>vested <strong>in</strong> additional advertis<strong>in</strong>g<br />
and promotion.<br />
2001 results compared with 2000 at<br />
current exchange rates<br />
€ million € million %<br />
2001 2000 Change<br />
Turnover 13 880 11 708 19%<br />
Operat<strong>in</strong>g profit 1 124 72<br />
Group turnover 13 767 11 631 18%<br />
Group operat<strong>in</strong>g profit 1 092 48<br />
2001 results compared with 2000 at<br />
constant 2000 exchange rates<br />
€ million € million %<br />
2001 2000 Change<br />
Turnover 13 543 11 679 16%<br />
Operat<strong>in</strong>g profit BEIA 1 923 1 494 29%<br />
Exceptional items (281) (1 249)<br />
Amortisation of goodwill<br />
and <strong>in</strong>tangibles (549) (179)<br />
Operat<strong>in</strong>g profit 1 093 66<br />
Operat<strong>in</strong>g marg<strong>in</strong> 8.1% 0.6%<br />
Operat<strong>in</strong>g marg<strong>in</strong> BEIA 14.2% 12.8%<br />
Turnover was ahead by 16% with an underly<strong>in</strong>g growth<br />
of 2%. In our Home & Personal Care mass bus<strong>in</strong>ess<br />
underly<strong>in</strong>g sales growth was 2.5%, skewed towards the<br />
first half of the year, due to the phas<strong>in</strong>g of <strong>in</strong>novation.<br />
There were good performances by our brands across the<br />
sk<strong>in</strong>, hair and deodorant categories, notably Dove and Suave.<br />
In Prestige fragrance our sales decl<strong>in</strong>ed, reflect<strong>in</strong>g both the<br />
sale of Elizabeth Arden and weaknesses <strong>in</strong> department<br />
stores and travel retail follow<strong>in</strong>g the tragic events of<br />
11 September. The decl<strong>in</strong>e <strong>in</strong> underly<strong>in</strong>g sales reduced<br />
the overall North American growth rate by nearly 1%.<br />
Our Foods bus<strong>in</strong>ess recorded an underly<strong>in</strong>g sales growth of<br />
just over 3% for the year.<br />
<strong>Unilever</strong> Annual <strong>Report</strong> & Accounts and Form 20-F <strong>2002</strong><br />
The <strong>in</strong>tegration of Ben & Jerry’s proceeded well and sales<br />
grew 8% <strong>in</strong> the year. This, together with strong sales of<br />
Breyers, Popsicle, Klondike and Good Humor, further<br />
strengthened our market leadership. Slim •Fast cont<strong>in</strong>ued to<br />
expand and approached €1 billion sales globally. Spreads<br />
grew with the <strong>in</strong>troduction of calcium variants of the<br />
Shedd’s and I Can’t Believe It’s Not Butter! ranges. In<br />
cul<strong>in</strong>ary products, sales were flat due to competitive activity<br />
and our focus on <strong>in</strong>tegration. In tea, sales decl<strong>in</strong>ed as we<br />
focused on brand convergence and transition to our<br />
common global position<strong>in</strong>g.<br />
Operat<strong>in</strong>g marg<strong>in</strong> BEIA of 14.2% <strong>in</strong> North America reflected<br />
the benefits of portfolio change, restructur<strong>in</strong>g, global<br />
procurement and market<strong>in</strong>g-support efficiencies.<br />
Africa, Middle East and Turkey<br />
3 512<br />
00<br />
3 455<br />
01<br />
3 225<br />
02<br />
Turnover<br />
€ million<br />
At current exchange rates<br />
351<br />
00<br />
Operat<strong>in</strong>g profit<br />
BEIA € million<br />
<strong>2002</strong> results compared with 2001 at<br />
current exchange rates<br />
€ million € million %<br />
<strong>2002</strong> 2001 Change<br />
Turnover 3 225 3 455 (7)%<br />
Operat<strong>in</strong>g profit 295 215 37%<br />
Group turnover 3 139 3 191 (2)%<br />
Group operat<strong>in</strong>g profit 286 203 41%<br />
<strong>2002</strong> results compared with 2001 at<br />
constant 2001 exchange rates € million € million %<br />
<strong>2002</strong> 2001 Change<br />
Turnover 3 754 3 455 9%<br />
Operat<strong>in</strong>g profit BEIA 426 380 12%<br />
Exceptional items (45) (139)<br />
Amortisation of goodwill<br />
and <strong>in</strong>tangibles (23) (26)<br />
Operat<strong>in</strong>g profit 358 215 67%<br />
Operat<strong>in</strong>g marg<strong>in</strong> 9.5% 6.2%<br />
Operat<strong>in</strong>g marg<strong>in</strong> BEIA 11.3% 11.0%<br />
380<br />
01<br />
Operat<strong>in</strong>g profit<br />
€ million<br />
Underly<strong>in</strong>g sales grew by 7% with turnover ahead by 9% as<br />
we now consolidate all of the Bestfoods Robertsons bus<strong>in</strong>ess<br />
follow<strong>in</strong>g the <strong>in</strong>crease <strong>in</strong> our hold<strong>in</strong>g.<br />
353<br />
02<br />
329<br />
00<br />
215<br />
01<br />
295<br />
02