Report & accounts 2002 in full - Unilever

Health & wellness and beverages
3 625
00
4 299
01
4 215
02
Turnover
€ million
At current exchange rates
440
00
2002 results compared with 2001 at
current exchange rates
€ million € million %
2002 2001 Change
Turnover 4 215 4 299 (2)%
Operating profit 390 308 27%
Group turnover 4 064 4 150 (2)%
Group operating profit 354 267 33%
2002 results compared with 2001 at
constant 2001 exchange rates € million € million %
2002 2001 Change
Turnover 4 467 4 299 4%
Operating profit BEIA 654 572 14%
Exceptional items (111) (128)
Amortisation of goodwill
and intangibles (127) (136)
Operating profit 416 308 35%
Operating margin 9.3% 7.2%
Operating margin BEIA 14.7% 13.3%
Turnover increased by 4% and operating margin BEIA
improved by 1.4% to 14.7%, through the benefits of our
savings programmes and the exit from less profitable tea
businesses in India.
Health & wellness
In 2002, we continued to meet the growing consumer
demand for healthy food products, in both industrialised
and developing markets.
Unilever Annual Report & Accounts and Form 20-F 2002
572
01
New additions to the Slim•Fast range helped consumers to
manage their weight healthily with food that fits into their
daily lives. Slim •Fast sales grew 10.8%, with a range
extending from meal replacement drinks and bars to soups.
It continued to expand beyond its US heartland, in the UK,
Germany and the Netherlands. Slim •Fast continues to focus
Operating review by category – Foods 27
615
02
Operating profit
BEIA € million
419
00
308
01
390
02
Operating profit
€ million
on the health & wellness consumer hotspot and is well
positioned in relation to emerging concerns about obesity.
AdeS, our nutritious, healthy drink continued to grow
strongly in Brazil, while we expanded Telma, a cereal brand
from Israel, into snacking with the launch of children’s
cereal bars.
Beverages
Lipton grew by 3.8% with sales in more than 100 countries.
The Lipton product range is inspired by the healthy,
refreshing qualities of tea and includes ready-to-drink Lipton
Ice Tea, new concepts such as Lipton Brisk lemonade and a
wide range of leaf tea offerings.
Ready-to-drink beverages continue to perform strongly.
In leaf tea, an area which is critical for the overall health of
our beverage business, we continued to focus on improving
profitability and innovation. We continued to drive growth
around the world through our Lipton ‘Paint the World
Yellow’ campaign. This enabled us to position Lipton as a
contemporary brand and to perform strongly in the growing
out-of-home sector. As around a third of beverages are
consumed outside the home, this sector is important for
continued growth.
We maintained leadership positions in key traditional tea
markets such as the UK and India.
2001 results compared with 2000 at
current exchange rates
€ million € million %
2001 2000 Change
Turnover 4 299 3 625 19%
Operating profit 308 419 (27)%
Group turnover 4 150 3 430 21%
Group operating profit 267 391 (32)%
2001 results compared with 2000 at
constant 2000 exchange rates
€ million € million %
2001 2000 Change
Turnover 4 367 3 626 20%
Operating profit BEIA 578 442 31%
Exceptional items (131) (18)
Amortisation of goodwill
and intangibles (133) (3)
Operating profit 314 421 (25)%
Operating margin 7.2% 11.6%
Operating margin BEIA 13.2% 12.2%
Health & wellness
Consumers are increasingly demanding healthy food
products. In 2001, our brands grew by meeting such
needs, in both industrialised and developing markets.
Report of the Directors