Unilever 2003 Annual Report Download - page 37

Download and view the complete annual report

Please find page 37 of the 2003 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 169

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169

34 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by category – Foods
Spreads and cooking products
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 5 366 (389) 4 977 6 145 (19)% (13)%
Group operating profit 806 (24) 782 768 2% 5%
Turnover 5 419 (391) 5 028 6 216 (19)% (13)%
Operating profit BEIA 911 (46) 865 967 (10)% (6)%
Exceptional items (9) 7 (2) (161)
Amortisation – goodwill and intangible assets (89) 15 (74) (19)
Operating profit 813 (24) 789 787 0% 3%
Operating margin 15.0% 15.7% 12.7%
Operating margin BEIA 16.8% 17.2% 15.5%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) (2.9)
Effect of acquisitions (%) 0.7
Effect of disposals (%) (10.9)
Turnover growth (%) (12.8)
Turnover
€ million
2003 5 028
At current exchange rates At current exchange rates
2002 6 216
2001
2003
2002
2001
6 771
865
967
1 039
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
789
787
771
Operating profit
€ million
Turnover fell by 19% at current rates of exchange, with currency
movements contributing a 6% decline. Operating profit was flat
and operating profit BEIA fell by 10%, with currency movements
contributing 3% and 4% respectively. The underlying
performance of the business after eliminating these exchange
translation effects is discussed below at constant exchange rates.
Against the backdrop of two years of strong growth, 2003 was
a tough year for the margarine category due to relatively low
butter prices in key markets, and the adverse impact on bread
consumption driven by a strong consumer trend towards low
carbohydrate diets in the US and UK. However, we maintained
our market shares in key countries.
Becel/Flora, our Healthy Heart spreads brands, continued to grow
on the strength of pro•activ, which grew strongly during 2003.
Sustained product efficacy endorsement by key opinion formers
and healthcare professionals was key to continued momentum.
The unique partnership of Becel/Flora with the World Heart
Federation helped increase awareness on how lowering
cholesterol can contribute to a healthy lifestyle.
Rama/Blue Band had a difficult start to the year due to severe
price pressures mainly in Europe. The launch of dairy cream
alternatives in several countries in Europe and Latin America in
the fourth quarter is progressing well, with a roll-out to additional
markets in 2004.
Innovation continues to be the key driver of growth in this
category. Examples of adapting to local taste and storage
conditions are evident in the launch of ambient stable margarines
and sweet spreads in Africa and savoury spreads in Latin America.