Unilever 2003 Annual Report Download - page 38

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Unilever Annual Report & Accounts and Form 20-F 2003 35
Operating review by category – Foods
Spreads and cooking products (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 6 401 (256) 6 145 6 681 (8)% (4)%
Group operating profit 779 (11) 768 751 2% 4%
Turnover 6 474 (258) 6 216 6 771 (8)% (4)%
Operating profit BEIA 990 (23) 967 1 039 (7)% (5)%
Exceptional items (169) 8 (161) (259)
Amortisation – goodwill and intangible assets (22) 3 (19) (9)
Operating profit 799 (12) 787 771 2% 4%
Operating margin 12.3% 12.7% 11.4%
Operating margin BEIA 15.3% 15.5% 15.3%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 2.3
Effect of acquisitions (%) 0.5
Effect of disposals (%) (6.9)
Turnover growth (%) (4.4)
Turnover fell by 8% at current rates of exchange, with currency
movements contributing a 4% reduction. Operating profit grew
by 2% and operating profit BEIA fell by 7% with currency
movements contributing reductions of 2% in both cases. The
underlying performance of the business after eliminating these
exchange translation effects is discussed below at constant
exchange rates.
In 2002, we built on our position as the market leader in branded
margarine and spreads. In this sector, as elsewhere, the strength
of our local roots and understanding of regional tastes and
cultures helped deliver growth.
Innovation was key to our strong performance. The sustained
success of pro•activ, an innovation that is proven to reduce
cholesterol, continued to drive rapid growth in our leading
spreads brands, Becel/Flora, which grew by 11.6%. Healthier,
more convenient cooking products, including Rama and Culinesse
and family-oriented spreads, such as Blue Band, all contributed
towards our good performance.
An important driver of success has been increasing support from
key opinion formers, such as healthcare professionals. During the
year, we complemented our alliances with national heart
associations with the worldwide sponsorship of the World Heart
Federation’s World Heart Day.
Including the impact of disposing of several oil businesses,
turnover fell 4% in 2002, while underlying sales grew by over
2%. Operating margin increased 0.9% to 12.3% but operating
margin BEIA was unchanged from 2001 at 15.3%, after increased
advertising and promotions investment.