Unilever 2004 Annual Report Download - page 38

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Unilever Annual Report and Accounts 2004 35
Operating review by category – Home and Personal Care
Financial overview (continued)
2003 results compared with 2002 € million € million € million € million % %
Exchange Change at Change at
2003 at rate 2003 at 2002 at actual constant
2002 rates effects 2003 rates 2002 rates current rates 2002 rates
Group turnover 20 802 (2 434) 18 368 20 801 (12)% –%
Group operating profit 3 134 (368) 2 766 2 882 (4)% 9%
Turnover 20 818 (2 435) 18 383 20 824 (12)% –%
Operating profit BEIA 3 279 (401) 2 878 3 127 (8)% 5%
Exceptional items (115) 29 (86) (213)
Amortisation – goodwill and intangible assets (30) 4 (26) (30)
Operating profit 3 134 (368) 2 766 2 884 (4)% 9%
Operating margin 15.1% 15.0% 13.8%
Operating margin BEIA 15.8% 15.7% 15.0%
Turnover fell by 12% at current rates of exchange, due to
currency movements. Operating profit fell by 4% and operating
profit BEIA declined by 8%, with currency movements
contributing a 13% decline in both cases. The underlying
performance of the business after eliminating these exchange
translation effects is discussed below at constant exchange rates.
In 2003, underlying sales grew by 3%, whilst leading brands grew
4%. The most successful categories were deodorants and hair
with underlying sales growth of 12% and 8% respectively.
Amongst the leading brands, Axe, Dove, Lux and Sunsilk all
recorded very strong double-digit growth.
Operating profit improved by 9% and operating profit BEIA rose
by 5%, whilst operating margin climbed to 15.1%. Operating
margin was helped by a combination of improved profitability in
our fabric wash business and numerous simplification initiatives.
We continued to focus our brand portfolio through the disposal
of non-core business – including our oral care and Sunlight
dishwash businesses in North America, Brut in North and Latin
America, and the Bio Presto brand in Italy.