Report & accounts 2002 in full - Unilever

34 Operating review by category – Home & Personal Care
2001 results compared with 2000 at
current exchange rates
€ million € million %
2001 2000 Change
Turnover 12 310 12 589 (2)%
Operating profit 2 159 837 158%
Group turnover 12 307 12 567 (2)%
Group operating profit 2 157 837 158%
2001 results compared with 2000 at
constant 2000 exchange rates
€ million € million %
2001 2000 Change
Turnover 12 685 12 589 1%
Operating profit BEIA 2 298 2 034 13%
Exceptional items (50) (1 190)
Amortisation of goodwill
and intangibles (11) (7)
Operating profit 2 237 837 167%
Operating margin 17.6% 6.7%
Operating margin BEIA 18.1% 16.2%
Personal care
Turnover increased by 1%, while operating margin BEIA
improved. Our leading brands achieved sales growth of 7%,
reflecting the strong performance of our global core brands,
such as Axe, Dove, Rexona, Suave and Sunsilk.
Dove again surged ahead. It recorded its third consecutive
year of over 25% growth with strong contributions from
the new Nutrium bar in the US and shower and body care
products in Europe. Another notable success was the brand’s
move into hair care in Asia, where it reached number three
in the Japanese shampoo and conditioner market within
two months and contributed towards a 12% worldwide
growth in our hair care business. The launch projected
Unilever into a clear number one position in Japan, the
second largest hair care market, with Lux, mod’s hair
and Dove.
Sunsilk, our leading hair care brand, also performed strongly,
growing in excess of 20%. It was launched in Mexico,
marketed as Sedal, and rapidly became the fourth biggest
hair care brand in the country. In the US, Suave captured an
11% value share of the shampoo market for the first time.
Our deodorant category grew by 8%, driven by the success
of Dove, Axe and Rexona. Dove consolidated its position in
deodorants with a particularly strong performance in the US
and an encouraging launch in Mexico.
We refreshed the Axe male deodorant range, marketed
as Lynx in the UK, with two new fragrances, Fusion and
Gravity. In Europe, as part of our strategy of extending
our brands beyond their core categories, we introduced
an upgraded Axe shower gel range.
Unilever Annual Report & Accounts and Form 20-F 2002
Rexona also made significant progress in the male antiperspirant
market, with Rexona for Men accounting for
agrowing proportion of the brand’s sales.
We introduced harmonised packaging for our roll-on
deodorants across all brands, achieving significant
efficiencies in our supply chain.
In face care, Pond’s Perfect was launched in Japan and
achieved a leading position in the mass sector of the antiageing
market, while the launch of Pond’s RenAscent
achieved outstanding success in Mexico.
In Central Asia, Fair and Lovely continued to perform
strongly, responding to renewed advertising focus and
range extensions.
In oral care, we again saw good growth from Signal in
Europe and Close-up in Asia and Pacific. Our position
was strengthened by innovations in toothbrushes and
confectionery, where we built on the success of our dental
chewing gum with the launch of dental sweets. However,
in China, Zhonghua toothpaste had a disappointing year.
Our Prestige fragrance business faced difficult economic
conditions, and turnover declined. Following the disposal
of Elizabeth Arden, we integrated the designer fragrance
portfolio into Unilever Cosmetics International. We
expanded the Nautica fragrance range into Europe and
launched fragrances under the BCBG banner in the US.