Unilever 2003 Annual Report Download - page 25

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22 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by region
Europe (continued)
2002 results compared with 2001 € million € million € million € million % %
Exchange Change at Change at
2002 at rate 2002 at 2001 at actual constant
2001 rates effects 2002 rates 2001 rates current rates 2001 rates
Group turnover 19 617 (44) 19 573 20 119 (3)% (2)%
Group operating profit 1 580 18 1 598 2 412 (34)% (34)%
Turnover 19 700 (43) 19 657 20 220 (3)% (3)%
Operating profit BEIA 2 746 – 2 746 2 690 2% 2%
Exceptional items (633) 18 (615) 254
Amortisation – goodwill and intangible assets (511) – (511) (511)
Operating profit 1 602 18 1 620 2 433 (33)% (34)%
Operating margin 8.1% 8.2% 12.0%
Operating margin BEIA 13.9% 14.0% 13.3%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 3.1
Effect of acquisitions (%) 0.5
Effect of disposals (%) (6.0)
Turnover growth (%) (2.6)
Turnover fell by 3% with no impact from currency movements.
Operating profit fell by 33% and operating profit BEIA grew
by 2%, with currency movements having only a minor effect.
The underlying performance of the business after eliminating
exchange translation effects is discussed below at constant
exchange rates.
Underlying sales grew 3% with a continuing significant
contribution from Central and Eastern Europe. Turnover
was 3% lower than last year because of the impact of disposals.
Operating margin decreased 3.9% to 8.1%, but operating margin
BEIA increased by 0.6% to 13.9%. This reflected the benefits
from our savings programmes, including the integration of
Bestfoods and strong growth in ice cream profitability driven by
mix improvements and cost reductions. These gains were partly
reinvested in additional support for the leading brands.
Western Europe
In Foods, underlying sales grew by 3%, including an increasing
contribution from UBF Foodsolutions, our food service business.
There was sustained progress in branded spreads and cooking
products, which grew 5% due to the continuing impact of
innovations, especially in Becel/Flora, which grew by over 10%.
Savoury and dressings grew 4% with marketplace activity behind
Amora, Hellmann’s, Bertolli, Knorr and Pot Noodle and the
launches of soup makers, chilled soups and Bertolli pasta sauces
towards the end of the year. Slim•Fast also grew well as we
continued its roll-out. Ice cream showed great resilience with
innovations such as Cornetto Soft and snack-size ice creams
helping to offset the impact of poorer weather than the prior
year to give underlying sales growth of 1%.
In Home & Personal Care in Western Europe, good growth
in skin, deodorants and hair included particularly strong
performances through innovation and range extension in
Dove, Rexona and Axe. Laundry volumes grew by 4%, which
was partly offset by pricing in a competitive environment
to give an underlying sales growth of 1%, with market
share being maintained.
Central and Eastern Europe
Underlying sales grew by 9% with particular strength in dressings,
tea, household care and personal care. We made further good
progress in Russia.