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26 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by region
Africa, Middle East and Turkey (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 3 654 (515) 3 139 3 191 (2)% 15%
Group operating profit 342 (60) 282 196 44% 74%
Turnover 3 754 (529) 3 225 3 455 (7)% 9%
Operating profit BEIA 422 (73) 349 373 (6)% 13%
Exceptional items (45) 6 (39) (139)
Amortisation – goodwill and intangible assets (23) 4 (19) (26)
Operating profit 354 (63) 291 208 40% 70%
Operating margin 9.4% 9.0% 6.0%
Operating margin BEIA 11.2% 10.8% 10.8%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 6.5
Effect of acquisitions (%) 5.3
Effect of disposals (%) (3.1)
Turnover growth (%) 8.6
Turnover fell by 7%, which included a 16% reduction arising
from currency movements. Operating profit rose by 40% and
operating profit BEIA fell by 6%, with currency movements
contributing reductions of 30% and 19% respectively. The
underlying performance of the business after eliminating
exchange translation effects is discussed below at constant
exchange rates.
Underlying sales grew by 6.5% with turnover ahead by 8.6% as
we now consolidated all of the Bestfoods Robertsons business
following the increase in our shareholding.
Growth was broad-based across categories with the major
contributions from marketing activities behind Knorr, Lipton, Lux,
Dove and laundry brands. South Africa performed particularly well
with good underlying sales growth especially in Omo, Sunsilk, Axe
and Lux in Home & Personal Care and Knorr, Lipton, Rama and
Flora pro•activ in Foods. In Turkey, the weak economy led to
consumer downtrading and market contraction and our sales
declined as a result. Elsewhere in the region we strengthened our
market position, particularly in Algeria, Arabia, Egypt, Morocco
and West Africa.
Operating margin increased 3.4% to 9.4% and operating margin
BEIA increased 0.4% to 11.2% in 2002 after an increase in
investment behind the leading brands.