Unilever 2000 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2000 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

9
Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
Operating review by region
Europe
2000 results compared with 1999
Western Europe In Western Europe, our Home & Personal
Care business achieved sales growth of 3% .
Progress was led by our Dove brand w hich grew by 18% ,
boosted by new range extensions. Further impetus to growth
came from a range of innovative launches, including colour
laundry tablets, Domestos/Cif easy-to-use wipes, Easy Iron
fabric conditioner and new variants of Axe/Lynx deodorant.
Foods in Western Europe had a mixed year as sales of ice
cream and beverages suffered from a poor summer season.
It was a more encouraging story in the other categories,
leading to overall growth of 3% . In spreads and cooking
products, volumes developed favourably w ith the
introduction of Flora/Becel pro•activ cholesterol-lowering
spread. Bertolli blended olive oil spreads added momentum
in the second half of the year. The culinary products
business performed well, led by the continuing growth of
Sizzle & Stir cooking sauces and the sales of Amora M aille
which w ere 7% ahead of last year. In frozen foods, our
4 Salti in Padella range of high quality ready meals brought
innovation and growth to the sector. Our planned exit from
low margin commodity businesses reduced sales but
improved margins. Our tea business grew w ith the
roll-out of pyramid tea bags and Lipton Tchaé.
The overall sales level in Western Europe also reflected our
disposal of under-performing businesses, including the sale
of our European bakery operation.
Central and Eastern Europe There was a modest
improvement in overall market conditions, however the
impact of the financial crisis in Turkey held back sales in
the fourth quarter.
Personal care achieved high single digit volume growth,
driven by deodorants and hair products. Overall, low er
prices held back sales growth, as we passed on lower edible
oil input costs, repositioned our spread and tea brands in
Russia and responded to competitive pressures in spreads
and laundry in Poland and Turkey.
1999 results compared with 1998
Western Europe Our results again improved. Strong
improvements in operating profits and margins reflected
the benefits of restructuring and supply chain efficiencies.
Volumes increased but disposals and other portfolio
rationalisation led to a slight fall in overall sales.
We continued the move from a national to a European
structure, in order to improve management of our leading
brands, reduce costs and improve efficiency.
Home & Personal Care continued to drive our success,
with volume growth of more than 3% and market
share advances in most categories. In personal care, our
deodorants, personal wash and oral categories did especially
well, with deodorants enjoying another year of double
digit grow th. The continuing extension of Dove, the brand
contributing most to the growth of our personal care
portfolio, made a particular impact. Sales w ere lower in
Calvin Klein and Elizabeth Arden Prestige fragrance brands.
In home care, w e increased market share in laundry.
Tablets maintained their sector leadership and we launched
a double-layer variant. Fabric conditioners increased
sales markedly on the back of a new Easy Iron variant under
the Comfort and Snuggle brands. Innovative brand
extensions in household cleaning, including Domestos
3-in-1, Domestos hygienic wipes and Cif Oxy-Gel,
contributed to overall growth.
In Foods, overall profits improved, but volumes were
marginally down. Volumes rose in culinary, ice cream and
tea, with Lipton ready-to-drink tea growing by more than
2000 2000 1999 1998 Change at constant rates
at current at constant at current at current 2000 over 1999 over
million 2000 rates 1999 rates(b) 1999 rates 1998 rates 1999 1998
Group turnover 19 816 19 219 18 790 18 971 2% (1)%
Group operating profit BEIA (a) 2 459 2 415 2 270 2 123 6% 7%
Exceptional items (542) (534) (96) 180
Amortisation of goodwill and intangibles (143) (140) (7) (4)
Group operating profit 1 774 1 741 2 167 2 299 (20)% (6)%
Group operating margin 9.0% 9.1% 11.5% 12.1%
Group operating margin BEIA (a) 12.4% 12.6% 12.1% 11.2%
(a) Before exceptional items and amortisation of goodw ill and intangibles. (b) See page 7.
Group turnover million Group operating profit BEIA(a)
million
Group operating profit million
2000
1999
1998
19 816
18 790
18 971
2000
1999
1998
1 774
2 167
2 299
2000
1999
1998
2 459
2 270
2 123