Unilever 2003 Annual Report Download - page 31

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28 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by region
Asia and Pacific (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 8 045 (366) 7 679 7 846 (2)% 3%
Group operating profit 1 130 (49) 1 081 873 24% 29%
Turnover 8 242 (377) 7 865 8 046 (2)% 2%
Operating profit BEIA 1 170 (51) 1 119 1 088 3% 8%
Exceptional items 13 – 13 (157)
Amortisation – goodwill and intangible assets (32) 2 (30) (40)
Operating profit 1 151 (49) 1 102 891 24% 29%
Operating margin 14.0% 14.0% 11.1%
Operating margin BEIA 14.2% 14.2% 13.5%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 4.8
Effect of acquisitions (%) 0.3
Effect of disposals (%) (2.6)
Turnover growth (%) 2.4
Turnover fell by 2%, with currency movements giving a reduction
of 4%. Operating profit rose by 24% and operating profit BEIA
rose by 3%, with currency movements contributing reductions of
5% in both cases. The underlying performance of the business
after eliminating exchange translation effects is discussed below
at constant exchange rates.
Underlying sales grew by 4.8%. Including the impact of disposals,
turnover grew by 2.4%.
Home & Personal Care grew well across both categories and
countries. Indonesia, Philippines and Vietnam performed
particularly well and skin, hair and deodorants all grew at over
10% across the region through innovations and support behind
Dove, Lifebuoy and Pond’s. Underlying sales growth in India
accelerated through the year to reach 3% for the full year despite
the planned harvesting of non-leading brands. The stronger
second half in India was led by Fair & Lovely with the launch of a
herbal variant, Pond’s with new small packs, the launch of a
new Vaseline variant for treating damaged skin and good growth
in laundry.
In Foods, good growth in South East Asia reflected the Bestfoods
brands benefiting from the Unilever distribution system,
innovation in Knorr, and a strengthening of the Bango soy sauce
and Sariwangi tea brands in Indonesia. This performance was
partly offset by declines in tea in Central Asia as prices were
adjusted to reflect lower commodity prices and a focus on
improving profitability as we exited from low-value, low-growth
commoditised teas. In Japan the successful alliance with Suntory
in ready-to-drink tea has doubled the market share of Lipton to
over 25%.
Operating margin increased 2.9% to 14.0% and operating
margin BEIA increased to 14.2% in 2002 with gains from our
savings programmes partly reinvested in increased advertising
and promotions.