Unilever 2003 Annual Report Download - page 30

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Unilever Annual Report & Accounts and Form 20-F 2003 27
Operating review by region
Asia and Pacific
2003 results compared with 2002 € million € million € million € million % %
Exchange Change at Change at
2003 at rate 2003 at 2002 at actual constant
2002 rates effects 2003 rates 2002 rates current rates 2002 rates
Group turnover 8 039 (976) 7 063 7 679 (8)% 5%
Group operating profit 1 217 (145) 1 072 1 081 (1)% 13%
Turnover 8 076 (982) 7 094 7 865 (10)% 3%
Operating profit BEIA 1 166 (142) 1 024 1 119 (8)% 4%
Exceptional items 98 (10) 88 13
Amortisation – goodwill and intangible assets (47) 7 (40) (30)
Operating profit 1 217 (145) 1 072 1 102 (3)% 10%
Operating margin 15.1% 15.1% 14.0%
Operating margin BEIA 14.4% 14.4% 14.2%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) 3.7
Effect of acquisitions (%) 1.9
Effect of disposals (%) (2.8)
Turnover growth (%) 2.7
Turnover
€ million
2003 7 094
At current exchange rates At current exchange rates
2002 7 865
2001
2003
2002
2001
8 046
1 024
1 119
1 088
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
1 072
1 102
891
Operating profit
€ million
Turnover fell by 10% at current rates of exchange, with currency
movements contributing a 13% decline. Operating profit fell by
3% and operating profit BEIA fell by 8%, with currency
movements, notably in India, contributing 13% and 12%
respectively. The underlying performance of the business after
eliminating exchange translation effects is discussed below at
constant exchange rates.
Underlying sales grew by 3.7%, almost entirely from volume.
Turnover, including the net impact of acquisitions and disposals,
increased by 2.7%.
In our Home & Personal Care consumer business, growth has
been strong and broad-based across categories. Activities behind
Lux included the launch of the Lux Spa range in Japan and Lux
Super Rich shampoo in a number of markets. Lifebuoy was
relaunched in India with new variants and the distribution of
Lifebuoy shampoo was extended in Indonesia. Pond’s growth was
led by the launch of mini-pack moisturisers in Indonesia and good
performances in China and India. The launch of the ‘no marks’
variant boosted growth of Fair & Lovely in India. Laundry
benefited from activities including the relaunch of Breeze Colour
in Thailand, improved formulations in Vietnam and launches of
variants of Surf with fabric conditioner, and a Surf bar with
bleach in the Philippines. Sales in low-margin, non-consumer
businesses were sharply lower, as planned.
In Foods the main focus in the year was improving the overall
shape of the business. This included acquiring the outstanding
part of the CPC/Ajinomoto joint venture, disposing of, or
withdrawing from, several non-leading brands and improving the
distribution system in the Philippines. This was reflected in a
progressive pick-up in the growth of the leading brands over the
year. Indonesia has made further progress with Bango, Royco and
Sariwangi as we improved distribution. In leaf tea Brooke Bond
was relaunched in India and Lipton green tea bags were launched
in China. Knorr Soupy Snax were launched in India and the Knorr
brand has grown well in China.
The regional operating margin BEIA at 14.4% was 0.2%
ahead of the previous year after a 0.4% increase in advertising
and promotions.