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21
Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
Operating review by category
Operations in North America have now been consolidated
under a common management w hose priority is to facilitate
the integration of recent acquisitions.
1999 results compared with 1998
Home care Overall volumes climbed by 3% across our home
care businesses. We enjoyed particular grow th in Africa and
Middle East and Asia and Pacific, with good progress in
Western Europe and North America. Although we achieved
improved results and margins in Western Europe and Asia
and Pacific, operating profits declined globally by 4% . This
reflected major investments behind our market leading
positions in Latin America.
In Europe, laundry volumes grew by almost 4% and supply
chain savings boosted margins. A second generation,
double-layer tablet formulation built on last year’s pioneering
launch helped maintain our sector market leadership. The
introduction of Surf pow der in the Philippines met w ith
great success w hile in Brazil Brilhiante powder became the
number two brand by combining the superior cleaning
properties of bleach with kindness to clothes. The popularity
of liquid all helped us to a 4% rise in laundry volumes in
North America.
Some innovations, like our new Easy Iron fabric conditioner,
created whole new segments in the market. Easy Iron,
which w ill be rolled out throughout Western Europe under
the Comfort and Snuggle brands, captured a 10% share of
the United Kingdom market w ithin six months.
In Europe, in household care, w e teamed up w ith a paper
supplier to launch Domestos hygienic wipes. Using patented
technology we created new products under the Cif brand
name: Cif Oxy-Gel, a general purpose cleaner w hich uses
bubbles to shift grime, and the Cif floor cleaning range.
Sunlight dishwash bar, another recent launch, flourished
in M alaysia.
Professional cleaning DiverseyLever had another challenging
year. Volumes were 1% ahead, with operating profits
broadly in line with 1998.
Europe, w here the business is strongest, performed better
than the previous year. In North America, sales grew but
profits were adversely impacted by a reshaping of part of
the sales organisation. Latin America and Asia and Pacific
achieved higher sales and profits, the latter region benefiting
from improved economic conditions.
In Europe, w e began simplifying the product portfolio and
focusing on key customer segments.
Personal care
Group turnover million Group operating profit BEIA(a)
million
Group operating profit million
2000
1999
1998
12 567
10 675
9 970
2000
1999
1998
958
1 542
1 254
2000
1999
1998
2 034
1 582
1 277
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 12 567 11 321 10 675 9 970 6% 7%
Group operating profit BEIA (a) 2 034 1 846 1 582 1 277 17% 24%
Exceptional items (1 069) (926) (37) (22)
Amortisation of goodwill and intangibles (7) (7) (3) (1)
Group operating profit 958 913 1 542 1 254 (41)% 23%
Group operating margin 7.6% 8.1% 14.4% 12.6%
Group operating margin BEIA (a) 16.2% 16.3% 14.8% 12.8%
(a) Before exceptional items and amortisation of goodw ill and intangibles. (b) See page 7.
2000 results compared with 1999
We are the world leader in products for skin cleansing,
deodorants and antiperspirants. We also have important
positions in toothpastes, skin care and hair care products
in many countries. Our personal care brands include
Dove,Sunsilk, Lux, Rexona/Sure, Pond’s, Suave, Axe/Lynx
and Vaseline.
Our personal care business enjoyed another very good
year. Increases in both turnover and operating profit w ere
recorded in all regions as the economic recovery in Asia
Pacific and, more recently, Latin America, gathered
momentum.
Once again, the most significant contributor to growth w as
Dove. As w ell as recording a strong performance in its core
category of skin care, w here it remains the world’s leading
cleansing product, the brand is proving to be equally robust
when extended into other markets. The launch of Dove
deodorant in Europe, Latin America and, more recently,
North America has been a major success. In Japan, the Dove
portfolio now embraces facial foam, a bar and a body wash