Unilever 2002 Annual Report Download - page 34

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Unilever Annual Report & Accounts and Form 20-F 2002
Operating review by category – Home & Personal Care 31
Report of the Directors
Financial overview
€billion €billion €billion %
2002 at 2002 at 2001 at Change at
2002 2001 2001 2001
rates rates rates rates*
Turnover 20.8 22.7 22.8 0%
Operating profit 2.8 3.1 2.8 8%
Operating profit BEIA 3.2 3.5 3.1 11%
Operating margin* 13.5% 13.5% 12.4%
Operating margin BEIA* 15.3% 15.2% 13.6%
*Calculated using unrounded numbers
Home & Personal Care
In 2002, we continued to focus resources behind the
leading brands that are driving growth in our Home &
Personal Care (HPC) division. They grew rapidly by meeting
the differing everyday needs of people around the world.
In line with our Path to Growth strategy, these leading
brands surged ahead with sales growth of 6.7%, while
underlying sales increased by 5.2%. Turnover was flat,
including the disposal of DiverseyLever. Operating profit BEIA
rose by 11% and operating margin BEIA reached 15.2%.
Our global brand teams, who are responsible for major
innovations, ensured focus and delivery in every region,
with support from our new network of Global Technology
Centres. Critical to this success was our continued research
and development focus on fewer, global projects. For
example, new innovations helped Dove achieve over 25%
growth for the fourth successive year, led by the roll-out of
the Dove hair range.
We continued to dispose of our non-core businesses,
including the completion of the sale of DiverseyLever, our
institutional and industrial cleaning business, and Atkinson’s,
our Italian fragrance and personal care business.
Home care and professional cleaning
2002 results compared with 2001 at
current exchange rates
€million €million %
2002 2001 Change
Turnover 8 579 10 467 (18)%
Operating profit 754 667 13%
Group turnover 8 565 10 432 (18)%
Group operating profit 755 666 13%
2002 results compared with 2001 at
constant 2001 exchange rates
€million €million %
2002 2001 Change
Turnover 9 436 10 467 (10)%
Operating profit BEIA 1 027 886 16%
Exceptional items (200) (201)
Amortisation of goodwill
and intangibles (17) (18)
Operating profit 810 667 21%
Operating margin 8.6% 6.4%
Operating margin BEIA 10.9% 8.5%
Unilever is among the world leaders in domestic home care,
which includes hygiene and cleaning products. In 2002,
underlying sales grew by 1% and operating margin BEIA
improved by 2.4%, through the benefit of our savings
programmes. Growth was driven by Looks Great, Snuggle
and Comfort.
Although people wash their fabrics in many different ways
they all want to achieve cleaner, stain-free, fresh feeling
clothes and linen, with less effort.
Around the world, we repositioned Omo, our top
performance washing detergent, as a brand for mothers and
their families. This strategy was driven by the message that
getting dirty is all part of the experience children need to
learn and develop. It helped to consolidate Omo’s leading
Operating profit
BEIA € million
Tur nover
€ million
At current exchange rates
Operating profit
€ million
10 284
10 467
8 579
917
886
954
578
667
754
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