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Unilever Annual Report & Accounts and Form 20-F 2002
16 Operating review – highlights
2001 results compared with 2000
Turnover increased by 11% to 53 400 million. This increase
was the result of an acquisition impact of 12%, a disposal
impact of (5)% and underlying growth of 4%.
Operating profit BEIA increased by 28% to 7416 million,
and operating margin BEIA rose to an historic high of
13.9% from 12.0% in 2000. The improvement in margin
primarily reflects the ongoing contribution from Path to
Growth restructuring and procurement savings and the
successful integration of Bestfoods.
Operating profit increased by 66% to 5 360 million, being
primarily the net impact of acquisitions and disposals offset
by an increase in the amortisation charge.
Exceptional items
Exceptional items for 2001 were 620 million, which
included 1 564 million of restructuring investment and
profits on disposals of 944 million. Of the latter,
828 million related to the profit on the sale of the
brands to secure regulatory approval for our acquisition
of Bestfoods and 114 million related to profit on the sale
of Unipath. Associated costs included in operating profit
were 393 million.
Amortisation of goodwill and intangibles
The amortisation charge in 2001 was 1 436 million.
This included 1 186 million for Bestfoods.
Acquisitions and disposals
In 2002, we increased our holding in the Robertson’s
business in South Africa and Israel to 59%, and took a
one-third equity share in JohnsonDiversey Holdings Inc.
(see below).
No significant acquisitions were made during 2001.
On 18 February 2003, Unilever announced an agreement
to acquire the remaining unheld shares in CPC/Aji Asia, a
joint venture with activities in six countries, from Ajinomoto
Co. Inc, Japan. The acquisition will be in two parts with
approximately one half of Ajinomoto’s holding being
transferred on 25 March 2003 and the balance scheduled
for transfer in March 2004. Unilever will pay US $381 million
(approximately 360 million) for Ajinomoto’s equity holding.
Unilever will have full management control of the entire
business from 25 March 2003. The deal is subject to
approval by regulatory authorities.
In 2002 we disposed of 35 businesses for a total
consideration of approximately 1 993 million.
Significant disposals in 2002 were as follows:
On 8 January 2002, we completed the sale of our Unimills
refinery business at Zwijndrecht, the Netherlands, to Golden
Hope Plantations Berhad of Malaysia, for approximately
60 million in cash. This business had annual sales to third
parties of approximately 130 million in 2001.
In January and February 2002, we completed the sale of the
Mafer snacks business to Sabritas and the Clemente Jacques
culinary business to La Costeña, both in Mexico. Together,
these businesses had sales in 2001 of approximately
40 million.
On 3 May 2002, we completed the sale of our DiverseyLever
institutional and industrial cleaning business to Johnson
Professional for some US $0.9 billion (1.0 billion) in cash
and a loan note of US $241 million (270 million). We also
took a one-third equity share in the combined business
(JohnsonDiversey), with an option to exit the business from
2007. A valuation of around US $300 million (330 million)
for this one-third equity share brought the total worth of
the transaction to Unilever to approximately US $1.5 billion
(1.6 billion). Turnover of DiverseyLever for the 12 months
to December 2001, excluding sales of the consumer brands
which JohnsonDiversey distribute for Unilever under a
separate sales agency agreement, was approximately US
$1.5 billion (1.7 billion).
On 11 June 2002, we completed the sale of the Nocilla
chocolate spreads business in Spain to Nutrexpa. The
business had sales in 2001 of approximately 36 million.
On 2 July 2002, the sale of 19 food brands to ACH Food
Companies, Inc., a subsidiary of Associated British Foods plc,
was completed for a total of approximately US $360 million
(383 million) in cash. These brands and related assets,
acquired by Unilever in connection with the October 2000
acquisition of Bestfoods, had combined sales of
US $310 million (350 million) in 2001.
On 16 July 2002, we completed the sale of Atkinsons,
afragrance business based in Italy, to Wella AG for
44 million. The business had sales in 2001 of
approximately 35 million.
On 30 November 2002, we completed the sale of Loders
Croklaan Group, an international speciality oils and fats
business, to IOI Corporation Berhad of Malaysia for
217 million in cash. This business had sales of
267 million in 2001.
On 31 December 2002, we completed the sale of our Iberia
Foods business to an affiliate of the Brooklyn Bottling Group
of Brooklyn, New York. In 2002 the business had sales of
approximately US $43 million (48 million).
On 2 December 2002, we announced an agreement to sell
our holdings in Unipamol Malaysia Sdn. Bhd. and Pamol
Plantations Sdn. Bhd. to Palmco of Malaysia, a subsidiary
of IOI Corporation. The sale was completed on 17 January
2003, for a cash consideration of 138 million. In 2002
these businesses had combined sales of approximately
51 million.
In 2001 we disposed of 34 businesses for a total
consideration of approximately 3 621 million. Disposals
included Unipath; the Elizabeth Arden business; the