meeting everyday needs of people everywhere Annual ... - Unilever

18 Unilever Annual Review 1998 Business Overview
Turnover £ million
1 379
94
Operating profit £ million
134
94
1 453
■ Underlying volumes grew by 7%
■ Good progress in profits and margins
■ Strong results across many categories and countries
95
158
95
1 610
1 569
96
166
159
96
■ total business including discontinued operations
■ continuing business
1 517
1 500
97
142
140
97
The results for Turkey, formerly reported under
Africa and Middle East region, are reported within
Europe from 1 January 1998. Results for 1994-97
have been restated on the same basis.
1 493
98
149
98
Africa and Middle East
£ million 1998 1998 1997 Change
at current at constant at constant
Continuing business rates rates rates
Turnover 1 493 1 658 1 500 11%
Operating profit 149 173 140 24%
Operating profit before exceptional items 150 174 143 22%
Our businesses in Africa and the Middle East made good progress in
operating profits and margins. Underlying volumes grew by 7%. These
strong results were spread across many categories and countries.
The figures reflect the continued success of our focus on branded
consumer products. Our performance was achieved in an increasingly
competitive market and against a tough economic and political
background. The Congo war, currency depreciation in Zimbabwe,
Malawi and South Africa, and low Middle Eastern oil prices diminished
the GDP growth of many nations.
The South African business, our largest in the region, did very well.
We strengthened market share in almost all corporate categories.
Our profits and margins advanced strongly, due to an improved
mix of products and good cost control. Home care results were
particularly healthy.
Our operations in Côte d’Ivoire also produced a significant
performance, benefiting from favourable economic conditions. There
were encouraging signs of recovery in our Kenyan business. In Nigeria
we made good progress in stabilising the business and embarked on a
restructuring programme.
Despite no GDP growth in the Middle East, our businesses in Saudi
Arabia and the Gulf increased underlying volumes and improved
profits and margins. In Egypt, we did particularly well in tea and
personal care: Good Morning, a new personal wash brand, became the
consumers’ favourite less than a year from launch.
Tea and oil palm estates made a useful contribution to the region’s
results, mainly reflecting world commodity prices. We bought an oil
palm estate in Ghana to support our core business.