Unilever 2001 Annual Report Download - page 18

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Unilever Annual Report & Accounts and Form 20-F 2001
>15
Report of the Directors
>15
OPERATING REVIEW BY REGION
Central and Eastern Europe
There was a modest improvement in overall market
conditions. Personal care achieved high single digit volume
growth, driven by deodorants and hair products. Overall,
lower 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.
North America
2001 results compared with 2000 at
current exchange rates
€million million %
2001 2000 Change
Total turnover 13 880 11 708 19%
Total operating profit 1 124 189 495%
Group turnover 13 767 11 631 18%
Group operating profit 1 092 165 562%
2001 results compared with 2000 at
constant 2000 exchange rates
€million million %
2001 2000 Change
Total turnover 13 543 11 679 16%
Total operating profit BEIA 1 923 1 494 29%
Exceptional items (281) (1 132)
Amortisation of goodwill
and intangibles (549) (179)
Total operating profit 1 093 183 497%
Total operating margin 8.1% 1.6%
Total operating margin BEIA 14.2% 12.8%
Sales were ahead by 16% with an underlying growth
of 2%. In our Home and Personal Care mass business
underlying sales growth was 2.5%, skewed towards the first
half of the year, due to the phasing of innovation. There
were good performances by our brands across the skin, hair
and deodorant categories, notably Dove and Suave.
In Prestige fragrance our sales declined, reflecting both the
sale of Elizabeth Arden and weaknesses in department
stores and travel retail following the tragic events of
11 September. The decline in underlying sales reduced
the overall North American growth rate by nearly 1%.
Our Foods business recorded an underlying sales growth of
just over 3% for the year.
The integration of Ben & Jerry’s proceeded well and sales
grew 8% in the year. This, together with strong sales of
Breyers, Popsicle, Klondike and Good Humor, further
strengthened our market leadership. Slim•Fast continued to
expand and is now close to 1 billion sales globally. Spreads
grew with the introduction of calcium variants of the
Shedd’s and I Can’t Believe It’s Not Butter! ranges. In
culinary products, sales were flat due to competitive activity
and our focus on integration. In tea, sales declined as we
focused on brand convergence and transition to our
common global positioning.
Total operating margin BEIA of 14.2% reflects the benefits
of portfolio change, restructuring, global procurement and
marketing-support efficiencies.
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 11 708 10 094 8 902 13%
Total operating profit BEIA 1 500 1 290 996 30%
Exceptional items (1 132) (977) (126)
Amortisation of goodwill
and intangibles (179) (149) (1)
Total operating profit 189 164 869 (81)%
Total operating margin 1.6% 1.6% 9.8%
Total operating margin BEIA 12.8% 12.8% 11.2%
Sales rose by 13%, with a strong contribution from
Bestfoods, Slim•Fast and Ben & Jerry’s. Operating
margins showed a significant increase, as the benefits
of restructuring, portfolio improvement and procurement
savings came through.
Although Bestfoods’ sales in the fourth quarter were around
100 million short of our expectations, this was largely as
a result of action taken to reduce trade inventories in the
United States in both the retail and foodservice channels.
In Foods, our ice cream, tea and culinary products
businesses achieved good sales growth. In ice cream, the
most significant contributions came from the Breyers Parlor
take home range and from new Popsicle and Klondike
novelties. In culinary products, Lipton meal makers, driven
by Sizzle & Stir, led the advance, while Lipton Cold Brew
was a key player in tea’s success. In the US, we successfully
launched a creamy fruit variant of Brummel & Brown spreads.
Total operating
profit BEIA million
Total turnover
million
At current exchange rates
Total operating
profit million
8 902
11 708
13 880
996
1 500
1 973
869
189
1 124
99
00
01
99
00
01
99
00
01