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4 Unilever Annual Review 1998 Chairmen’s Statement
Morris Tabaksblat and Niall FitzGerald
meet young consumers during a visit
to Unilever’s China Business Group
Regions
We made encouraging progress in North America and Western Europe,
which remain the backbone of our global operations. In North America
we achieved underlying volume growth in our Foods business of 5%.
Volume growth in Home & Personal Care was lower at 2%. Profit
margins increased significantly in both businesses. We completed the
integration of two of our Foods businesses in the USA, Thomas J. Lipton
and Van den Bergh Foods, and remain on course to complete the US
Home & Personal Care restructuring in 1999.
In Western Europe, underlying volume growth was flat but there was
a further strong increase in operating margins. Turnover was down
slightly due to continued portfolio rationalisation and disposals. In
Central and Eastern Europe, the Russian economic crisis caused a
sharp downturn in our business from August onwards. We remain
committed to Russia as a long-term opportunity for Unilever provided
free market conditions continue.
Our businesses in Africa and the Middle East performed well. This
region is consistently successful despite a volatile environment. In 1998
we again increased volume, market share and profits in the face of
heightened international competition.
Given the slowdown in economies in Latin America in the second
half of 1998 it was to be expected that volume growth was weaker than
in 1997. Profits still advanced strongly and market shares increased.
Kibon, the Brazilian ice cream operation acquired in 1997, is meeting
targets and providing a significant boost to profits.
Performance in Asia and Pacific varied enormously. Yet again, India
produced outstanding results with Home & Personal Care being
particularly successful. In economies hit by the South East Asian crisis
we did well in shifting rapidly from a strategy of high growth to one