Unilever 2002 Annual Report Download - page 31

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The US-based Slim•Fast range, which we market as a
nutritionally responsible way to achieve and maintain a
healthy weight, delivered excellent growth. We successfully
extended the brand beyond its US heartland, with launches
in Australia and the Netherlands and relaunches in Canada
and the UK. We also extended the range into soups.
A profitable year for Annapurna in India and a successful
African roll-out from Ghana to Cote d’Ivoire showed
how we can meet a very different consumer need: for
nutritionally-enhanced staples at an affordable price.
Sales of AdeS soy-based beverages in Latin America were
hit, however, by the economic difficulties in the region.
Beverages
Our Lipton global core brand grew by 6%, led by double-
digit growth in ready-to-drink tea delivering a ‘system sales’
growth of 10% worldwide. This growth was again boosted
by our innovative ‘Paint the World Yellow’ programme.
In Japan, underlying sales of Lipton ready-to-drink tea
grew strongly due to our partnership with drinks
manufacturer Suntory. Our recent innovation, Lipton Cold
Brew cold infusion teabags, grew well and was rolled out
across most of the US. However, turnover and profits
declined in that country.
The traditional tea market in Central Asia declined in
value. Fierce competition from loose-leaf tea competitors
in India made our beverage sales decline, but a major cost
effectiveness drive resulted in higher profits. In Poland and
Russia, underlying sales showed double-digit growth as we
continued to drive the consumer migration from loose-leaf
to tea bags.
Turnover grew by 20%. Operating profit BEIA and operating
margin BEIA increased due to significant savings in supply
chain costs.
Ice cream and frozen foods
2002 results compared with 2001 at
current exchange rates
€million €million %
2002 2001 Change
Turnover 7 456 7 727 (4)%
Operating profit 616 446 38%
Group turnover 7 456 7 727 (4)%
Group operating profit 616 446 38%
2002 results compared with 2001 at
constant 2001 exchange rates
€million €million %
2002 2001 Change
Turnover 7 646 7 727 (1)%
Operating profit BEIA 896 797 12%
Exceptional items (244) (322)
Amortisation of goodwill
and intangibles (28) (29)
Operating profit 624 446 40%
Operating margin 8.2% 5.8%
Operating margin BEIA 11.7% 10.3%
Underlying sales growth for the year was 3%, but after
the impact of disposals, turnover fell 1%. Operating margin
BEIA improved 1.4% to 11.7% after restructuring gains and
higher brand investment.
Ice cream
Unilever is the world’s leading producer of ice cream.
In 2002, innovations under the Heart brand, including
Cornetto Soft, Magnum 7 Sins, and others under Paddle Pop
and Carte d’Or, delivered strong growth as they gave a new
twist to a traditional favourite. North American ice cream
brands Breyers and Ben & Jerry’s also delivered good results.
Unilever Annual Report & Accounts and Form 20-F 2002
28 Operating review by category – Foods