Unilever 2002 Annual Report Download - page 23

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In Home & Personal Care, underlying sales were flat for the
full year with an improved performance in the latter part
offsetting a slow start to the year. This reflects both the
timing of the overall innovation plan and the steps taken to
improve profitability in laundry to give the base for a more
active programme from the fourth quarter. The successful
launches of Axe deodorant and all fabric conditioner and
the re-launch of Dove body wash contributed to a strong
finish to the year.
Operating margin BEIA increased by 1.9% to 16.1%.
This was driven particularly by improvements in laundry
profitability but also widespread benefits from savings
programmes partly reinvested in additional advertising
and promotion.
2001 results compared with 2000 at
current exchange rates
million million %
2001 2000 Change
Turnover 13 880 11 708 19%
Operating profit 1 124 72
Group turnover 13 767 11 631 18%
Group operating profit 1 092 48
2001 results compared with 2000 at
constant 2000 exchange rates
million million %
2001 2000 Change
Turnover 13 543 11 679 16%
Operating profit BEIA 1 923 1 494 29%
Exceptional items (281) (1 249)
Amortisation of goodwill
and intangibles (549) (179)
Operating profit 1 093 66
Operating margin 8.1% 0.6%
Operating margin BEIA 14.2% 12.8%
Turnover was ahead by 16% with an underlying growth
of 2%. In our Home & 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 approached 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.
Operating margin BEIA of 14.2% in North America reflected
the benefits of portfolio change, restructuring, global
procurement and marketing-support efficiencies.
Africa, Middle East and Turkey
2002 results compared with 2001 at
current exchange rates
€million million %
2002 2001 Change
Turnover 3 225 3 455 (7)%
Operating profit 295 215 37%
Group turnover 3 139 3 191 (2)%
Group operating profit 286 203 41%
2002 results compared with 2001 at
constant 2001 exchange rates
€million million %
2002 2001 Change
Turnover 3 754 3 455 9%
Operating profit BEIA 426 380 12%
Exceptional items (45) (139)
Amortisation of goodwill
and intangibles (23) (26)
Operating profit 358 215 67%
Operating margin 9.5% 6.2%
Operating margin BEIA 11.3% 11.0%
Underlying sales grew by 7% with turnover ahead by 9% as
we now consolidate all of the Bestfoods Robertsons business
following the increase in our holding.
Unilever Annual Report & Accounts and Form 20-F 2002
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