Unilever 2003 Annual Report Download - page 27

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24 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by region
North America (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 13 077 (631) 12 446 13 767 (10)% (5)%
Group operating profit 1 614 (73) 1 541 1 127 37% 43%
Turnover 13 205 (637) 12 568 13 880 (9)% (5)%
Operating profit BEIA 2 173 (103) 2 070 1 999 4% 9%
Exceptional items (7) 4 (3) (276)
Amortisation – goodwill and intangible assets (519) 25 (494) (564)
Operating profit 1 647 (74) 1 573 1 159 36% 42%
Operating margin 12.5% 12.5% 8.4%
Operating margin BEIA 16.5% 16.5% 14.4%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 1.1
Effect of acquisitions (%) 0.2
Effect of disposals (%) (6.1)
Turnover growth (%) (4.9)
Turnover fell by 9% with currency movements contributing a 4%
reduction. Operating profit rose by 36% and operating profit
BEIA grew by 4%, with currency movements contributing
reductions of 6% and 5% respectively. The underlying
performance of the business after eliminating exchange
translation effects is discussed below at constant exchange rates.
Underlying sales grew 1% with a stronger performance in the
second half as marketplace activity built through the year.
Turnover declined 5% through the impact of disposals, notably
DiverseyLever and Mazola.
In Foods, underlying sales grew 2% and our market shares
remained firm. Slim•Fast continued to expand, passing the
€1 billion turnover mark globally. Ice cream grew at over 5% and
Wishbone, Becel and Knorr also moved ahead well. In addition to
an active programme behind these brands, innovations including
Lipton Brisk lemonade and Ragú Rich and Meaty sauces led
growth in the second half of the year. Overall, underlying sales
growth in 2002 was held back by promotional price competition
in mayonnaise, the exit from Hellmann’s pourable dressings and
the impact of lower butter prices on the margarine market.
In Home & Personal Care, underlying sales growth was flat for
2002, with an improved performance in the latter part offsetting
a slow start to the year. This reflected both the timing of the
overall innovation plan and the steps taken to improve
profitability in laundry to give the base for a more active
programme from the fourth quarter. The successful launches of
Axe deodorant and all fabric conditioner and the relaunch of
Dove body wash contributed to a strong finish to the year.
Operating margin increased 4.1% to 12.5% and operating
margin BEIA increased by 2.1% to 16.5% in 2002. This was
driven particularly by improvements in laundry profitability but
also widespread benefits from savings programmes partly
reinvested in additional advertising and promotion.