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Unilever Annual Report & Accounts and Form 20-F 2000
8
Report of the Directors
Operating review - highlights
1999 results compared with 1998
Overall turnover increased by 2% to 40 977 million and
underlying volume growth of 1% was just over half that
achieved in 1998. This reflected the challenging economic
and competitive nature of some of our regional markets.
Operating profit increased 7% to 4 303 million. Operating
margins at 11% were at an historic high. There was good
margin progress in almost all regions, notably in Europe
and Asia and Pacific. Profit grow th in personal care was
particularly strong.
Net profit was up 3% . This reflected lower interest income,
due to the reduction in net funds following payment of
the special dividend in mid-1999. Earnings per share taking
account of the share consolidation, w hich reduced the
number of shares, rose 9% .
Acquisitions and disposals
During 2000 we made 20 acquisitions. The most important
were:
• Bestfoods - Foods international
• Amora Maille - Culinary products in France
• Ben & Jerry’s - Ice cream primarily in the United States
• Codepar/SPCD - Home & personal care in Tunisia
• Cressida - Foods and Home & personal care in Central
America
• Jaboneria - Foods and Home & personal care in Ecuador
• Slim•Fast - Nutritional bars and beverage products in the
United States
At current exchange rates, 30 561 million w as invested in
acquisitions.
In 2000 w e disposed of 27 businesses for a total
consideration of approximately 642 million. Disposals
included the European Bakery Supplies Business, Benedicta,
a culinary business in France, and various other smaller
businesses and brands.
On 24 January 2001 w e announced the completion of our
sale of the Elizabeth Arden business for a consideration of
approximately 244 million.
On 29 January 2001 w e announced an agreement to sell
our dry soup and sauces businesses in Europe for a debt free
price of 1 billion. The sale is conditional on approval by
the European Commission M ergers Task Force and subject
to consultative procedures before completion. Annual sales
of the businesses total approximately 435 million. The
businesses are being divested as a result of undertakings
given to the European Commission in connection with
the acquisition of Bestfoods which was completed in
October 2000.
On 19 February 2001 we announced an agreement to sell
the Bestfoods Baking Company for a debt free price of
1.9 billion. The sale is subject to the satisfaction of
customary conditions, including regulatory approvals. The
assets and liabilities of this business, after adjustment to
their proceeds of sale, have been included within the annual
accounts as acquired businesses held for resale.
Public takeover offers made by Unilever during 2000 and
1999 related to the following acquisitions:
On 13 November 1999, following an offer through its
subsidiary Mavibel B.V., Unilever acquired 60% of Varela
S.A. in Colombia for a consideration of 57 million.
During 1999, through its subsidiary Unilever Peru, Unilever
acquired 98% of the outstanding labour shares of Industrias
Pacocha S.A. in Peru for a consideration of 9 million.
On 14 M arch 2000, following a joint offer by Unilever and
its subsidiary Hindustan Lever Limited (HLL) for the 34.97%
of the shares in Rossell Industries Limited, India, not already
owned by Unilever, Lipton India Exports Limited, a w holly
owned subsidiary of HLL acquired 24.59% of the shares for
a consideration of 43 million.
On 15 M ay 2000, follow ing an all cash public tender offer,
Unilever, through its US subsidiary Conopco, Inc., acquired
Ben & Jerry’s Homemade, Inc. for an aggregate
consideration of 345 million.
On 4 October 2000, follow ing an all cash public merger
transaction, Unilever, through its subsidiary Unilever United
States, Inc., acquired Bestfoods for an aggregate
consideration of 26 083 million.
On 31 December 2000, follow ing an offer made by Unilever,
through its Tunisian subsidiary, Société de Cosmetiques
Détergent et Parfumerie, for the 9.21% of the shares in
Société de Produits Chimiques Détergents not already
owned by Unilever, 8.1% of the shares had been acquired
for a consideration of 4 million.
On 23 January 2001, following an offer, made in November
2000, through its subsidiary, Hindustan Lever Limited, for
the 24.62% of the shares in International Bestfoods Limited
India, not already ow ned by Bestfoods, Unilever acquired
7.99% of the shares for a consideration of 2 million.