Unilever 2003 Annual Report Download - page 34

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Unilever Annual Report & Accounts and Form 20-F 2003 31
Operating review by category – Foods
Financial overview
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 26 212 (2 241) 23 971 26 937 (11)% (3)%
Group operating profit 2 794 (146) 2 648 2 083 27% 34%
Turnover 26 470 (2 270) 24 200 27 390 (12)% (3)%
Operating profit BEIA 4 226 (326) 3 900 3 885 0% 9%
Exceptional items (115) 24 (91) (489)
Amortisation – goodwill and intangible assets (1 265) 150 (1 115) (1 230)
Operating profit 2 846 (152) 2 694 2 166 24% 31%
Operating margin 10.8% 11.1% 7.9%
Operating margin BEIA 16.0% 16.1% 14.2%
Turnover
€ million
2003 24 200
At current exchange rates At current exchange rates
2002 27 390
2001
2003
2002
2001
28 796
3 900
3 885
3 968
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
2 694
2 166
2 218
Operating profit
€ million
Pages 32 to 39 present a review of performance in each major
product category, which are as follows:
• Savoury and dressings
• Spreads and cooking products
• Health & wellness and beverages
• Ice cream and frozen foods
Included in the figures for each category are the results of our
UBF Foodsolutions business.
Foods
During 2003, our leading brands grew by 1.2%, while underlying
sales grew by 0.4%. Turnover fell by 12% at current rates of
exchange, with currency movements contributing 9% of this
decline. Operating profit rose by 24% and operating profit BEIA
was flat. Operating margin increased to 11.1% (2002: 7.9%) and
operating margin BEIA increased to 16.1% (2002: 14.2%).
Unilever’s food and beverage brands and products are enjoyed by
millions of people around the world. Our portfolio focuses
increasingly on brands with the potential to grow across borders
and categories, in markets that are growing rapidly as consumers
demand more choice, great taste, healthier options and
convenience.
Since the creation of Unilever Bestfoods in 2000, we have
continued to build the basis for sustained, profitable growth. We
are shaping our leading brands for growth through innovation
that targets fast-growing segments of the food and beverage
market and by building brand equity, rationalising brand families
and migrations. We are focusing our portfolio with an ambitious
programme of disposals. We are improving profitability,
simplifying the business and making good progress on all other
key levers of value creation.
UBF Foodsolutions
UBF Foodsolutions is one of the world’s largest food service
businesses. It operates in more than 60 countries around the
world.
The business is focused on delivering innovative, relevant solutions
to the professional chef and caterer, leveraging our consumer
brands – already 85% of product sales – and technology. In
2003, UBF Foodsolutions continued to grow despite challenging
conditions in key markets.