Unilever 2001 Annual Report Download - page 23

Oil and dairy based foods and bakery
2001 results compared with 2000 at
current exchange rates
€million million %
2001 2000 Change
Total turnover 8 713 8 040 8%
Total operating profit 910 974 (7)%
Group turnover 8 585 7 930 8%
Group operating profit 890 958 (7)%
2001 results compared with 2000 at
constant 2000 exchange rates
€million million %
2001 2000 Change
Total turnover 8 851 8 020 10%
Total operating profit BEIA 1 345 1 056 27%
Exceptional items (303) (22)
Amortisation of goodwill
and intangibles (129) (64)
Total operating profit 913 970 (6)%
Total operating margin 10.3% 12.1%
Total operating margin BEIA 15.2% 13.2%
Unilever is the world’s leading supplier of branded
margarine, spreads and olive oil.
In 2001, consumer-focused innovation made our spreads
turnover grow again and our total market share improved
by about 1%. Total operating profit BEIA increased by 27%,
with particularly good performances in Germany, the
Netherlands and the UK.
Our ability to satisfy consumer demand for healthy foods
was key to our success. Pro•activ, which includes ingredients
that can help to reduce levels of ‘bad’ cholesterol, showed
very impressive growth across Europe. Culinesse, a high-
performance, easy-to-use, liquid cooking product, was
successfully launched in 11 European countries.
In the US, an enterprising, cross-functional initiative that
looked at all aspects of margarine marketing captured the
imagination of consumers and boosted sales. I Can’t Believe
It’s Not Butter! grew particularly strongly.
Our European dairy spreads, marketed under Brunch,
Boursin and Crême Bonjour, continued to grow. Spreads in
most Eastern European countries recovered well, although
the Russian market remained difficult.
Overall sales in olive oil declined mainly due to the disposal
of the unprofitable La Masia business in Spain but
profitability increased significantly. This was mainly driven by
the continued success of Bertolli, which again enjoyed good
volume growth, especially in Western Europe. Recognising
the consumer appeal of healthy Mediterranean-style food,
we introduced Bertolli dressings in the Netherlands and
brought Five Brothers pasta sauce in the UK and US, and
Olivio spreads in the UK, under the Bertolli umbrella.
We sold the Bestfoods Baking Company in July 2001.
As a result of this and the divestment of European Bakery
Supplies in 2000, Unilever has now disposed of the majority
of its bakery business.
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 8 040 7 524 7 348 2%
Total operating profit BEIA 1 060 1 003 793 26%
Exceptional items (22) (13) (75)
Amortisation of goodwill
and intangibles (64) (55) (5)
Total operating profit 974 935 713 31%
Total operating margin 12.1% 12.4% 9.7%
Total operating margin BEIA 13.2% 13.3% 10.8%
Margins improved, reflecting lower raw material costs and
the continued benefits from supply chain improvements.
In many countries, we increased our share in margarine and
related cooking products. Against the background of a
declining market, our volumes were on par with last year.
Our cholesterol-lowering spreads Flora/Becel pro•activ were
launched with great success in ten European countries,
following clearance from the European Union. By the end
of the year, the spreads were available in 16 countries
around the world.
In margarines, consumers responded positively to the
addition of micro-nutrients and calcium to some of our
main brands, including Blue Band and Country Crock.
Unilever Annual Report & Accounts and Form 20-F 2001
OPERATING REVIEW BY CATEGORY – FOODS >20
Total operating
profit BEIA  million
Total turnover
 million
At current exchange rates
Total operating
profit  million
7 348
8 040
8 713
793
1 060
1 334
713
974
910
99 00 01 99 00 01 99 00 01