Unilever 2003 Annual Report Download - page 36

Unilever Annual Report & Accounts and Form 20-F 2003 33
Operating review by category – Foods
Savoury and dressings (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 9 887 (615) 9 272 9 597 (3)% 3%
Group operating profit 413 (14) 399 744 (46)% (44)%
Turnover 10 138 (635) 9 503 9 999 (5)% 1%
Operating profit BEIA 1 602 (119) 1 483 1 634 (9)% (2)%
Exceptional items (4) 12 8 349
Amortisation – goodwill and intangible assets (1 155) 91 (1 064) (1 218)
Operating profit 443 (16) 427 765 (44)% (42)%
Operating margin 4.4% 4.5% 7.7%
Operating margin BEIA 15.8% 15.6% 16.3%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 4.1
Effect of acquisitions (%) 1.5
Effect of disposals (%) (4.1)
Turnover growth (%) 1.4
Turnover fell by 5% at current rates of exchange, with currency
movements accounting for a reduction of 6%. Operating profit
fell by 44% and operating profit BEIA fell by 9%, with currency
movements contributing reductions of 2% and 7% respectively.
The underlying performance of the business after eliminating
these exchange translation effects is discussed below at constant
exchange rates.
We are world leaders in both the savoury and dressings foods
categories. Knorr, Unilever’s biggest brand, grew across 100
markets in 2002 with products as diverse as seasonings and meal
kits, snacks and frozen food. There was a clear acceleration in the
pace of growth as the year progressed.
Innovation met the needs of consumers with a love of good food
but little time to cook: for example, we introduced Knorr soupy
snacks, Knax noodle cups, a snack launched in Latin America,
and Knorr Vie, a healthy eating range in Europe. The growing
international appeal of Bertolli delivered underlying sales growth
for the brand of 8.5%. Once solely an Italian olive oil, the Bertolli
portfolio now ranges from pasta sauces and meal solutions to
spreads and snacks.
The enduring popularity of mayonnaise drove good growth in
Hellmann’s in Europe and Latin America, but competitive pressure
in North America and our withdrawal from liquid salad dressings
affected the brand’s overall performance, leaving turnover flat
year-on-year. Australia was welcomed to the world of Hellmann’s
with the launch of dressings and mayonnaise.
Calvé and Wishbone also delivered strong results. Growth was
fuelled by innovations that took our key dressings brands beyond
mayonnaise into new tastes and flavours, dips and sauces, many
inspired by Amora and Maille.
Underlying sales growth was 4% and, allowing for disposals,
turnover increased 1% in 2002. Operating margin decreased
3.3% to 4.4% and operating margin BEIA was moderately below
2001 at 15.8%, after an increase in advertising and promotions.