Unilever 2001 Annual Report Download - page 17

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Unilever Annual Report & Accounts and Form 20-F 2001
>14
OPERATING REVIEW BY REGION
Europe
2001 results compared with 2000 at
current exchange rates
€million million %
2001 2000 Change
Total turnover 20 220 19 075 6%
Total operating profit 2 710 1 715 58%
Group turnover 20 119 18 967 6%
Group operating profit 2 689 1 697 58%
2001 results compared with 2000 at
constant 2000 exchange rates
€million million %
2001 2000 Change
Total turnover 20 233 19 071 6%
Total operating profit BEIA 2 978 2 419 23%
Exceptional items 270 (561)
Amortisation of goodwill
and intangibles (511) (143)
Total operating profit 2 737 1 715 60%
Total operating margin 13.5% 9.0%
Total operating margin BEIA 14.7% 12.7%
Sales were ahead in the year by 6% with an underlying
sales growth of 4%. Growth was broad-based and included
a strong contribution from Central and Eastern Europe.
Total operating margin BEIA increased to 14.7% in Europe
due to restructuring, buying and marketing-support
efficiencies, and portfolio improvement.
Western Europe
The success of pro•activ, Culinesse and Bertolli in spreads
and cooking products, the 4 Salti in Padella range of high-
quality frozen ready meals and the expansion of Slim•Fast,
led to a step-up in the growth rate for Foods. Cornetto and
Carte d’Or both grew strongly through innovation, whilst
in culinary there was continued momentum in Amora Maille
and we started to see the strength of the Knorr brand.
In personal care, the leading brands maintained their good
rate of growth, led by range extensions in Dove and Signal
and by Rexona. Dove shampoo was launched in eight
countries by the end of the year and the initial response has
been very positive. The success of the Vaporesse ironing aid
in fabric conditioners together with a solid response to a
more competitive environment in fabric wash helped laundry
to grow. We continued to enjoy good rates of growth in
Domestos and Cif through the success of easy-to-use
wipes and the launch of Domestos Bi-Actif and Domestos
WC Active Mousse.
Central and Eastern Europe
We have seen strong growth, most notably leaf tea and
Delmy mayonnaise in Russia, the launch of instant soups
and broad-based progress in Home and Personal Care.
2000 results compared with 1999
million million million %
2000 at
2000 at constant 1999 Change at
current 1999 at 1999 constant
rates rates rates rates
Total turnover 19 075 18 677 18 131 3%
Total operating profit BEIA 2 420 2 389 2 250 6%
Exceptional items (562) (549) (96)
Amortisation of goodwill
and intangibles (143) (140) (7)
Total operating profit 1 715 1 700 2 147 (21)%
Total operating margin 9.0% 9.1% 11.8%
Total operating margin BEIA 12.7% 12.8% 12.4%
Western Europe
In Western Europe, our Home and Personal Care business
achieved sales growth of 3%.
Progress was led by our Dove brand which 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 with 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 Maille
which were 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 with 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.
Total operating
profit BEIA million
Total turnover
million
At current exchange rates
Total operating
profit million
18 131
19 075
20 220
2 250
2 420
2 967
2 147
1 715
2 710
99
00
01
99
00
01
99
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