Report & accounts 2002 in full - Unilever

nearest competitor and we have responded to changed
economic conditions with packs which specifically address
the reduced spending power of consumers.
In Foods, ice cream grew by over 10%, mostly volume,
with the main contributions from Brazil and Mexico. Good
performances were led by the launch of Knorr noodle cups
in Mexico, an energised Hellmann’s campaign in Chile and
significant growth in Arisco in Brazil. In spreads, Becel de
Capullo was launched in Mexico, introducing the Becel
brand to that country. Lipton ready-to-drink tea continued
to grow well in Brazil and the soy-based beverage AdeS
made very good progress in both Brazil and Mexico.
In Argentina consumer demand is considerably down
and volumes have been affected as a result. We continue
to hold strong market shares and our experienced local
management are managing the business in a way which
preserves its long-term health. Gross margins are being
protected and new products have been launched in both
Foods and Home & Personal Care to respond to reduced
disposable incomes.
Operating margin BEIA increased by 1% to 14.2%, after an
increase in investment behind the leading brands.
2001 results compared with 2000 at
current exchange rates
€ million € million %
2001 2000 Change
Turnover 6 605 5 680 16%
Operating profit 329 345 (5)%
Group turnover 6 591 5 650 17%
Group operating profit 328 343 (4)%
2001 results compared with 2000 at
constant 2000 exchange rates
€ million € million %
2001 2000 Change
Turnover 7 223 5 667 27%
Operating profit BEIA 939 612 53%
Exceptional items (283) (173)
Amortisation of goodwill
and intangibles (307) (96)
Operating profit 349 343 2%
Operating margin 4.8% 6.1%
Operating margin BEIA 13.0% 10.8%
Turnover moved ahead by 27% with an underlying sales
growth of 5%.
A key feature of the year was our determination to move
prices to recover devaluation-driven cost increases and so
protect our margin structure.
Mexico sustained strong growth throughout the year.
The key drivers were: Sedal, which reached an 8% share
Unilever Annual Report & Accounts and Form 20-F 2002
Operating review by region 23
in the hair care market in its first year since launch; further
progress in spreads, deodorants and skin care; and
a successful expansion of Holanda ice cream.
In Argentina, markets declined as consumer income
reduced, however, our market shares remained strong. In
Brazil, overall volumes were impacted by energy restrictions
and devaluation-related price increases but continuing
innovation in hair and deodorant delivered volume growth.
Operating margin BEIA for the year at 13.0% in Latin
America was ahead of 2000 reflecting the benefits of
portfolio change, global procurement, savings from
Bestfoods’ integration and improved ice cream profitability.
Report of the Directors