Unilever 2000 Annual Report Download - page 22

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Unilever Annual Report & Accounts and Form 20-F 2000
20
Report of the Directors
Operating review by category
2000 results compared with 1999
Home care We are one of the main players in the domestic
home care market which includes products for fabric and
surface cleaning and domestic hygiene. Many of our brands
hold market leading positions including Omo, Surf, Skip, all,
Comfort/Snuggle, Wisk, Cif and Domestos.
Excluding acquisitions, overall sales rose by 2% across our
home care business. We performed particularly well in Asia
and Pacific. Our home care operating margin was slightly
dow n, notably in North America and Latin America.
How ever, this decline w as partly offset by improvements
in margin in Asia and Pacific.
In South Latin America, we were particularly pleased by the
development of our laundry market share, in the face of
intense competition. The investment in defending our
market share was the main factor in the decline in operating
margin in the region.
The principal engine for growth continued to be our ability
to innovate successfully and to extend that innovation
throughout the world. In laundry, we have maintained our
clear leadership in tablets. These are now available in more
than 30 countries, having been launched most recently in
South Africa and Latin America. The close of the year saw the
beginning of the roll-out in the important North American
market under the Wisk brand. In Europe the second
generation formulation has further expanded the market.
2000 also saw the successful roll-out of our Easy Iron
fabric conditioner variant. Based on a patented silicone
formulation, this product is now available throughout Europe.
Other successes included rapid growth in India w ith Vim
dishw ash bar, which has a formulation relevant to markets
throughout Asia and Africa and the roll-out of Domestos
wipes in Europe. There was good consumer reception for
the novel Refresh/Keep Fresh range of fabric and clothing
fresheners and Cif Oxy-Gel general purpose cleaner, which
was rolled out successfully throughout Europe.
Professional cleaning DiverseyLever is a provider of cleaning
and hygiene products and services. These are sold to
institutional customers such as hotels, hospitals, laundries
and to the food and beverage industry.
During 2000 we maintained our leadership in Europe and
made progress in improving our performance in North
America. We entered into a strategic global partnership
agreement w ith ISS, the world’s foremost facility services
provider. We also concluded a series of long term supply
and service contracts with major international customers.
Implementation of a comprehensive plan for simplifying the
product line, organisation and supply chain across Europe is
under way.
Home care and
professional cleaning
Group turnover million Group operating profit BEIA(a)
million
Group operating profit million
2000
1999
1998
10 258
9 106
8 813
2000
1999
1998
578
819
839
2000
1999
1998
917
858
902
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 10 258 9 439 9 106 8 813 4% 6%
Group operating profit BEIA (a) 917 856 858 902 -% (4)%
Exceptional items (323) (297) (34) (61)
Amortisation of goodwill and intangibles (16) (15) (5) (2)
Group operating profit 578 544 819 839 (34)% (1)%
Group operating margin 5.6% 5.8% 9.0% 9.5%
Group operating margin BEIA (a) 8.9% 9.1% 9.4% 10.2%
(a) Before exceptional items and amortisation of goodw ill and intangibles. (b) See page 7.
Home & Personal Care
In Home & Personal Care, it was a year of growth across
most categories and regions, with particular advances in
personal care.
Our success was a direct result of concentrating our
resources behind fewer, stronger brands w ith international
reach and consumer appeal. We rolled out new innovations
tailored to consumer needs, with further impetus coming
from the economic recovery in South East Asia and Latin
America. The major portfolio change was the sale of much
of our Elizabeth Arden business and the reconfiguration of
our Prestige brands, scheduled for completion in early 2001.