Unilever 2002 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2002 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Unilever Annual Report & Accounts and Form 20-F 2002Unilever Annual Report & Accounts and Form 20-F 2002
Operating review by region 19
Report of the Directors
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 savoury and dressings 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 was
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 saw strong growth, most notably leaf tea and Delmy
mayonnaise in Russia, the launch of instant soups and broad
based progress in Home & Personal Care.
North America
2002 results compared with 2001 at
current exchange rates
€million million %
2002 2001 Change
Turnover 12 568 13 880 (9)%
Operating profit 1 467 1 124 31%
Group turnover 12 446 13 767 (10)%
Group operating profit 1 435 1 092 31%
2002 results compared with 2001 at
constant 2001 exchange rates
€million million %
2002 2001 Change
Turnover 13 205 13 880 (5)%
Operating profit BEIA 2 130 1 973 8%
Exceptional items (70) (285)
Amortisation of goodwill
and intangibles (519) (564)
Operating profit 1 541 1 124 37%
Operating margin 11.7% 8.1%
Operating margin BEIA 16.1% 14.2%
Underlying sales grew 1% with a stronger performance in
the second half as marketplace activity built through the
year. Turnover declined 5% through the impact of disposals,
notably DiverseyLever and Mazola.
In Foods, underlying sales grew 2% and our market shares
remained firm. Slim•Fast continued to expand, passing the
1 billion sales mark globally. Ice cream again grew at over
5% and Wishbone, Becel and Knorr also moved ahead well.
In addition to an active programme behind these brands,
innovations including Lipton Brisk lemonade and Ragú Rich
and Meaty sauces led growth in the second half of the year.
Overall, sales growth in the year was held back by
promotional price competition in mayonnaise, the exit from
Hellmann’s pourable dressings and the impact of lower
butter prices on the margarine market.
Operating profit
BEIA million
Tur nover
million
At current exchange rates
Operating profit
million
11 708
13 880
12 568
1 500
1 973
2 027
72
1 124
1 467
00
01
02
00
01
02
00
01
02