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Unilever Annual Report & Accounts and Form 20-F 2002
Report of the Directors
Operating review by category – Foods 25
The enduring popularity of mayonnaise drove good growth
in Hellmann’s in Europe and Latin America, but competitive
pressure in North America and our withdrawal from liquid
salad dressings affected the brand’s overall performance,
leaving sales flat year on year. Australia was welcomed
to the world of Hellmann’s with the launch of dressings
and mayonnaise.
Calvé and Wishbone also delivered strong results. Growth
was fuelled by innovations that took our key dressings
brands beyond mayonnaise into new tastes and flavours,
dips and sauces, many inspired by Amora and Maille.
Underlying sales growth was 4% and, allowing for
disposals, turnover increased 1% in 2002. Operating margin
BEIA was slightly below 2001 at 16.4%, after an increase in
advertising and promotions.
2001 results compared with 2000 at
current exchange rates
€million €million %
2001 2000 Change
Turnover 9 999 6 074 65%
Operating profit 814 309 163%
Group turnover 9 597 5 950 61%
Group operating profit 793 296 168%
2001 results compared with 2000 at
constant 2000 exchange rates
€million €million %
2001 2000 Change
Turnover 10 154 6 034 68%
Operating profit BEIA 1 693 803 111%
Exceptional items 344 (169)
Amortisation of goodwill
and intangibles
(1 233) (326)
Operating profit 804 308 161%
Operating margin 7.9% 5.1%
Operating margin BEIA 16.7% 13.3%
Following the acquisition of Bestfoods, Knorr became our
biggest brand and, during its first full year under Unilever
stewardship, grew by over 4% worldwide. We drove its
strong performance with innovations such as Knorr Exotic
Meal Kits, which we continued to extend in Europe; Knorr
Cup Pasta, which we launched in Taiwan; Knorr Quick Soups
in Switzerland and Knorr Sazonisimo, which we introduced
in Mexico.
The Hellmann’s brand also did well considering difficult
market conditions in Latin America and fierce competition
in the US. It enjoyed sales growth of over 10% in some
national markets, including Greece, Ireland, the Philippines
and Thailand. As part of the integration, we withdrew
Hellmann’s pourable sauces in the US to concentrate
on the larger Wishbone brand.
Our Amora brand also had a successful year with increased
sales and profits. Innovations, such as Amora Clip-Sauce
in France and extensions into the chilled cabinet, helped
drive growth.
Turnover 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 disposed of several European dry soups and sauces
businesses, following undertakings given to the European
Commission in connection with the Bestfoods acquisition.
These disposals included Batchelors and Oxo in the UK,
Royco and the Lesieur range in France, Heisse Tasse in
Germany and Blå Band in Denmark, Sweden and Finland.