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48 Unilever Annual Report and Accounts 2004
Operating review by region
Latin America
2004 results compared with 2003 € million € million € million € million % %
Exchange Change at Change at
2004 at rate 2004 at 2003 at actual constant
2003 rates effects 2004 rates 2003 rates current rates 2003 rates
Group turnover 4 549 (337) 4 212 4 372 (4)% 4%
Group operating profit 403 (45) 358 358 –% 12%
Turnover 4 554 (337) 4 217 4 380 (4)% 4%
Operating profit BEIA 745 (54) 691 618 12% 20%
Exceptional items (182) (3) (185) (104)
Amortisation – goodwill and intangible assets (158) 12 (146) (156)
Operating profit 405 (45) 360 358 1% 13%
Operating margin 8.9% 8.5% 8.2%
Operating margin BEIA 16.4% 16.4% 14.1%
Turnover and underlying sales growth 2004
(at constant 2003 rates) vs 2003
Underlying sales growth (%) 7.2
Effect of acquisitions (%) –
Effect of disposals (%) (3.1)
Turnover growth (%) 4.0
Turnover
€ million
2004 4 217
At current exchange rates At current exchange rates
2003
2002
2004
2003
2002
691
Operating profit BEIA
€ million
At current exchange rates
2004
2003
2002
360
4 380
5 445
618
770
358
505
Operating profit
€ million
Turnover fell by 4% at current rates of exchange, with currency
movements contributing a 8% decline. Operating profit improved
by 1%, and operating profit BEIA improved by 12% with currency
movements contributing a 12% and 8% decline respectively. The
underlying performance of the business after eliminating these
exchange translation effects is discussed below at constant rates
of exchange.
Underlying sales grew by 7.2%.
Growth was strong across both Foods and Home and Personal
Care categories, and comes mainly from volume. Argentina and
Mexico both had excellent performances.
In Foods, growth has been driven by innovation to address both
Vitality and low-income needs, including cholesterol-free
Hellmann’s mayonnaise; the extension of the soy benefits of
AdeS; and the launch of low unit price Knorr seasoning cubes.
All of the global personal care brands contributed to another
strong year. In laundry, growth of Omo was boosted by the
global ‘Pockets’ and ‘Dirt is Good’ campaigns and the launch
of the Aloe Vera variant.
Operating margin increased from 8.2% to 8.9%. Exceptional
items included restructuring costs for the One Unilever
simplification project and a provision for potential repayment
of certain sales tax credits in Brazil.
Operating margin BEIA increased from 14.1% in 2003 to
16.4% in 2004 with the region benefiting from strong top-line
growth and cost savings as we extended our regional shared
service centres.