Unilever 2001 Annual Report Download - page 20

Unilever Annual Report & Accounts and Form 20-F 2001
>17
Report of the Directors
OPERATING REVIEW BY REGION
Asia and Pacific
2001 results compared with 2000 at
current exchange rates
€million million %
2001 2000 Change
Total turnover 8 046 8 091 (1)%
Total operating profit 880 781 13%
Group turnover 7 846 8 038 (2)%
Group operating profit 862 776 11%
2001 results compared with 2000 at
constant 2000 exchange rates
€million million %
2001 2000 Change
Total turnover 8 558 8 091 6%
Total operating profit BEIA 1 154 908 27%
Exceptional items (166) (109)
Amortisation of goodwill
and intangibles (41) (19)
Total operating profit 947 780 21%
Total operating margin 11.1% 9.6%
Total operating margin BEIA 13.5% 11.2%
Total sales grew by 6% with underlying sales ahead by the
same amount.
In South East Asia and Japan, sales growth exceeded 10%.
Notable were: a strong performance in Japan with the
successful launch of Dove shampoo; Lipton ready-to-drink
tea through the alliance with Suntory; and our skin business
through Dove. In South East Asia our personal care brands
powered ahead in all countries led by new variants of
Sunsilk, and in Indonesia there was increased market
penetration for Rexona and excellent performances from
Citra and Pepsodent following its relaunch.
In India, the more focused brand portfolio delivered
improved growth and profitability. There were particularly
strong performances by Sunsilk and Clinic in hair, Rin and
Wheel in laundry, and Fair and Lovely range extensions in
skin care. In Foods, sales have been flat as we have been
aggressively improving margins and eliminating poor-
performing brands.
In China, there was substantial progress towards profitability.
Total operating margin BEIA for the year has advanced
to 13.5% reflecting the benefits of global procurement,
improved Foods profitability and a stronger mix through the
growth in 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 8 091 7 277 6 725 8%
Total operating profit BEIA 909 830 668 24%
Exceptional items (109) (94) (18)
Amortisation of goodwill
and intangibles (19) (17) (9)
Total operating profit 781 719 641 12%
Total operating margin 9.7% 9.9% 9.5%
Total operating margin BEIA 11.2% 11.4% 9.9%
Sales in the year were 8% ahead of 1999, driven by
excellent performances in South East Asia and Japan.
Profitability rose significantly across the region, while at the
same time we maintained a high level of marketing support.
Our businesses in South East Asia and Japan generated
double digit sales growth in each quarter. Progress was
broad-based, in both category and geography.
In skin care and hair care, innovation and strong marketing
support levels helped us to good results. Brand successes
included the performance of Dove, Pond’s, mod’s hair
and Lux in Japan and Vaseline shampoo in the Philippines.
In Australasia, we achieved sales growth in ice cream and
gained market share in laundry.
In China, a repositioned Omo and new variants of Zhonghua
toothpaste helped both brands achieve volume growth
above 20%. In Taiwan, Dove shampoo vied for the number
one market position.
We made further progress in sales of consumer brands in
India as our renewed focus on building mass market share
began to have an impact. At the premium end of the
laundry market, Surf continued to perform well. Overall
sales revenues were affected by our exit from the imported
fertiliser business and by the impact of lower edible
oil prices.
Total operating
profit BEIA  million
Total turnover
 million
At current exchange rates
Total operating
profit  million
6 725
8 091
8 046
668
909
1 077
641
781
880
99 00 01 99 00 01 99 00 01