Unilever 2000 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2000 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

17
Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
Operating review by category
Ice cream and beverages
Group turnover million Group operating profit BEIA(a)
million
Group operating profit million
2000
1999
1998
7 601
6 637
6 622
2000
1999
1998
367
543
519
2000
1999
1998
647
601
596
2000 2000 1999 1998 Change at constant rates
at current at constant at current at current 2000 over 1999 over
million 2000 rates 1999 rates(b) 1999 rates 1998 rates 1999 1998
Group turnover 7 601 7 002 6 637 6 622 5% 0%
Group operating profit BEIA (a) 647 608 601 596 1% 0%
Exceptional items (260) (244) (50) (76)
Amortisation of goodwill and intangibles (20) (17) (8) (1)
Group operating profit 367 347 543 519 (36)% 4%
Group operating margin 4.8% 5.0% 8.2% 7.8%
Group operating margin BEIA (a) 8.5% 8.7% 9.0% 9.0%
(a) Before exceptional items and amortisation of goodw ill and intangibles. (b) See page 7.
2000 results compared with 1999
Ice cream In ice cream, our acquisition of Ben & Jerry’s
further strengthened our leadership position, giving us a
presence in the super premium sector for the first time.
We plan to make the brand an element of our worldwide
portfolio, while still retaining its unique personality and appeal.
Excluding acquisitions, overall ice cream volumes w ere in line
with 1999. We enjoyed a particularly good performance in
North America and achieved strong growth in the recovering
markets of East Asia Pacific. How ever, volumes in Europe
were down due to low impulse sales.
In response to rising out-of-home demand for scooped
and soft ice cream, w e successfully extended our Carte
d’Or dessert range. In particular, Carte d’Or Artisanal, a
range of indulgent ice cream recipes based on artisanal
parlours and traditional desserts, achieved excellent results
in Europe. In the US, sales of Breyers packaged ice cream
increased by over 10% , driven by the innovation of the
Breyers Parlor range.
The next significant development in the European
Commission's investigation into our distribution
arrangements for ice cream in Ireland is expected in late
2001. Then, the Court of First Instance will hear our appeal
against the Commission's negative ruling in the matter of
cabinet exclusivity.
Beverages Our focus on our leading brands, Lipton and
Brooke Bond, helped tea sales increase by 4% . In Europe,
volumes grew but operating margin fell due to increased
marketing investment and a rise in raw material costs.
‘Paint the World Yellow’ – the Lipton marketing campaign
which has seen us brand everything from w indsurfing
boards to Chevrolets – continued to raise brand awareness
around the globe. Both hot and cold Lipton Yellow brands
recorded good growth, particularly in Portugal, France,
Arabia, Egypt and Poland. Geographic expansion of Lipton
ready-to-drink (RTD) iced tea continued, w ith launches in
Egypt, South Africa and Eastern Europe.
In October, we reached a major distribution agreement with
Japanese drinks manufacturer Suntory. This will strengthen
the position of Lipton RTD across Japan, particularly via the
thriving vending machine channel.
In North America, Lipton Cold Brew, our patent-protected
cold infusion teabags was successfully rolled-out. We also
launched Lipton brewed iced tea vending machines. Lipton
Tchaé green tea continued its expansion in North America
and Europe.
1999 results compared with 1998
Ice cream In 1999, overall volumes w ere flat and operating
profits were slightly below 1998. In Western Europe, w here
we benefited from a warmer summer, volumes rose by 2%
and profits improved. Growth centred on demand for
multi-packs and desserts, particularly Carte d’Or. Results fell
in Central and Eastern Europe and Latin America due to
economic instability and reduced consumption levels.
and pastry-making, and frozen bakery products for bakeries.
Our operating profits in bakery improved in 1999, partly due
to a programme of cost savings.
Oil and dairy based foods and bakery continued
Bakery Our bakery products business mainly provided
speciality bakery fats, designed for professional bread, cake