Unilever 2001 Annual Report Download - page 15

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Unilever Annual Report & Accounts and Form 20-F 2001
>12
OPERATING REVIEW – HIGHLIGHTS
Details of movements in all restructuring provisions are given
in note 18 on page 73.
Under US GAAP, certain of the restructuring charges in each
year would not have been recognised until certain additional
criteria had been met, and would then have been included
as a charge in subsequent years. Details of the US GAAP
adjustments relating to the restructuring charges are given
on pages 94 and 95.
Amortisation of goodwill and intangibles
The amortisation charge was 1 436 million compared with
435 million in 2000. This includes 1 186 million for
Bestfoods. The increase arises because 2001 includes a full
year charge for acquisitions made part way through 2000.
2000 results compared with 1999
Total turnover increased by 7% to 44 224 million at
constant 1999 exchange rates. Of the increase, 5% related
to the net impact of acquisitions and disposals in the year,
and there was underlying volume growth of 2%, double the
rate of growth achieved in 1999.
Total operating profit BEIA increased by 16% for the year.
Of this increase, 7% related to the impact of acquisitions
and the remainder reflects benefits arising from restructuring.
Total operating margin BEIA was at an historic high of 12.1%.
Total operating profit decreased by 27% as a result of
significant exceptional items and an increase in the
amortisation charge of 371 million as a result of
acquisitions in the year.
Exceptional items
Included in operating profit in 2000 was a 1.8 billion
exceptional charge and 100 million of associated costs
in relation to the Path to Growth programme, 1.1 billion
relating to restructuring and 0.7 billion for other items,
principally business disposals. The key disposals were the
European bakery business, which gave rise to a profit of
149 million and the sale of Elizabeth Arden, completed
in January 2001, which gave rise to the recognition of a
loss of 742 million after writing back goodwill which was
charged direct to shareholders’ funds on the acquisition of
the business in 1989. Exceptional items also include
approximately 100 million in relation to restructuring
arising from the integration of Bestfoods.
Amortisation of goodwill and intangibles
The amortisation charge increased by 371 million to
394 million as a result of the significant acquisitions made
during the year. Of the charge for the year, 274 million
related to Bestfoods.
Acquisitions and disposals
No significant acquisitions were made during 2001.
In 2000 we made 20 acquisitions, of which the most
important were:
> Bestfoods – Foods international
> Amora Maille – Culinary products in France
> Ben & Jerry’s – Ice cream primarily in the United States
> Cressida – Foods and home and personal care in
Central America
> Slim•Fast – Nutritional bars and beverage products in
the United States
In 2001 we disposed of 33 businesses for a total
consideration of approximately 1 653 million. In addition,
the Bestfoods Baking Company and other Bestfoods
businesses were disposed of for a consideration of
1 968 million. The most significant disposals are
detailed below.
For further information on the impact of acquisitions and
disposals please refer also to the Cash Flow section of the
Financial Review on page 30.
On 24 January 2001 we announced the completion of our
sale of the Elizabeth Arden business for a consideration of
approximately 244 million. Sales turnover of this business
was approximately 600 million in 2000.
Following the approval of the European Commission,
the sale of several of our European dry soups and sauces
businesses to the Campbell Soup Company was completed
on 4 May 2001, for a debt free price of 1 billion.
These businesses were sold as a result of undertakings
given to the European Commission in connection with
Unilever’s acquisition of Bestfoods in 2000. Annual sales
of these businesses totalled approximately 435 million,
and sales for the period from 1 January 2001 to the date
of disposal were approximately 190 million.
On 2 October 2001 we announced the completion of the
sale of our North American seafood business to Nippon
Suisan (USA), Inc., a subsidiary of Nippon Suisan Kaisha
Limited for $175 million. This business included the Gorton’s
business in the United States and the BlueWater Seafoods
business in Canada. Together the businesses had net sales
of 272 million in 2000, and sales for the period from
1 January 2001 to the date of disposal were approximately
190 million.