Unilever 2002 Annual Report Download - page 27

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Financial overview
€billion €billion €billion %
2002 at 2002 at 2001 at Change at
2002 2001 2001 2001
rates rates rates rates*
Turnover 27.4 28.7 28.8 0%
Operating profit 2.3 2.3 2.4 (2)%
Operating profit BEIA 4.0 4.2 4.1 2%
Operating margin* 8.3% 8.1% 8.3%
Operating margin BEIA* 14.8% 14.8% 14.4%
*Calculated using unrounded numbers
Foods categories have changed with effect from 1 January
2002 to:
•Savoury and dressings
•Spreads and cooking products
•Health & wellness and beverages
•Ice cream and frozen foods
This reflects the evolution in the organisation of our Foods
division. Prior year results have been reclassified under the
new categories.
Pages 24 to 30 present a review of performance in each
major product category. Included in the figures for each
category are the results of our food service business, which
we profile briefly below:
Foodsolutions
UBF Foodsolutions is one of the world’s largest food service
businesses. It operates in more than 60 countries around
the world.
The business is focused on delivering innovative, relevant
solutions to the professional chef and caterer, leveraging
our consumer brands – already 85% of product sales –
and our technology. In 2002, UBF Foodsolutions delivered
5% underlying sales growth, with momentum growing
throughout the year.
Foods
Our Foods portfolio focuses increasingly on brands with the
potential to grow across borders and categories, in markets
that are growing rapidly as consumers demand more choice,
great taste, convenience, vitality, fun and indulgence.
Since the creation of Unilever Bestfoods in 2000, we have
accelerated growth and increased profits, while successfully
integrating several businesses and undertaking an ambitious
programme of disposals.
During 2002, our brands were enjoyed by millions of
people around the world, as we increased the momentum
of profitable growth. Our leading brands grew by 4.4%
and we delivered underlying sales growth of 3.4%. Due
to disposals, turnover remained in line with prior year.
Overall, operating profit BEIA rose by 2% with margins
reaching 14.8%.
Unilever Annual Report & Accounts and Form 20-F 2002
24 Operating review by category – Foods
Savoury and dressings
2002 results compared with 2001 at
current exchange rates
€million €million %
2002 2001 Change
Turnover 9 503 9 999 (5)%
Operating profit 450 814 (45)%
Group turnover 9 272 9 597 (3)%
Group operating profit 422 793 (47)%
2002 results compared with 2001 at
constant 2001 exchange rates
€million €million %
2002 2001 Change
Turnover 10 138 9 999 1%
Operating profit BEIA 1 658 1 685 (2)%
Exceptional items (37) 347
Amortisation of goodwill
and intangibles (1 155) (1 218)
Operating profit 466 814 (43)%
Operating margin 4.6% 8.1%
Operating margin BEIA 16.4% 16.9%
We are world leaders in both the savoury and dressings
foods categories. Knorr, Unilever’s biggest brand, grew
by 7.3% across 100 markets with products as diverse
as seasonings and meal kits, snacks and frozen food.
There was a clear acceleration in the pace of growth
as the year progressed.
Innovation met the needs of consumers with a love of good
food but little time to cook: for example, we introduced
Knorr soupy snacks, Knax noodle cups, a snack launched
in Latin America, and Knorr Vie, a healthy eating range in
Europe. Bertolli’s growing international appeal delivered
sales growth for the brand of 8.5%. Once solely an Italian
olive oil, the Bertolli portfolio now ranges from pasta sauces
and meal solutions to spreads and snacks.