Unilever 2003 Annual Report Download - page 40

Unilever Annual Report & Accounts and Form 20-F 2003 37
Operating review by category – Foods
Health & wellness and beverages (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 4 308 (244) 4 064 4 150 (2)% 4%
Group operating profit 372 (25) 347 255 36% 46%
Turnover 4 467 (252) 4 215 4 299 (2)% 4%
Operating profit BEIA 641 (39) 602 559 8% 15%
Exceptional items (105) 6 (99) (127)
Amortisation – goodwill and intangible assets (127) 7 (120) (136)
Operating profit 409 (26) 383 296 29% 38%
Operating margin 9.2% 9.0% 6.9%
Operating margin BEIA 14.3% 14.3% 13.0%
Turnover and underlying sales growth 2002
(at constant 2001 rates) vs 2001
Underlying sales growth (%) 3.9
Effect of acquisitions (%) 0.6
Effect of disposals (%) (0.5)
Turnover growth (%) 3.9
Turnover fell by 2% at current rates of exchange, with currency
movements contributing a 6% reduction. Operating profit grew
by 29% and operating profit BEIA grew by 8%, with currency
movements contributing reductions of 9% and 7% respectively.
The underlying performance of the business after eliminating
these exchange translation effects is discussed below at constant
exchange rates.
Turnover increased by 4% and operating margin BEIA improved
from 13.0% to 14.3%, through the benefits of our savings
programmes and the exit from less profitable tea businesses
in India.
Health & wellness
In 2002, we continued to meet the growing consumer demand
for healthy food products, in both industrialised and developing
markets.
New additions to the Slim•Fast range helped consumers to
manage their weight healthily with food that fits into their daily
lives. Slim•Fast turnover grew 10.8%, with a range extending
from meal replacement drinks and bars to soups. It continued
to expand beyond its US heartland, in the UK, Germany and
the Netherlands. Slim•Fast continues to focus on the health &
wellness consumer hotspot and is well positioned in relation
to emerging concerns about obesity.
AdeS, our nutritious, healthy drink continued to grow strongly in
Brazil, while we expanded Telma, a cereal brand from Israel, into
snacking with the launch of children’s cereal bars.
Beverages
Lipton grew by 3.8% with turnover in more than 100 countries.
The Lipton product range is inspired by the healthy, refreshing
qualities of tea and includes ready-to-drink Lipton Ice Tea, new
concepts such as Lipton Brisk lemonade and a wide range of leaf
tea offerings.
Ready-to-drink beverages continue to perform strongly. In leaf
tea, an area which is critical for the overall health of our beverage
business, we continued to focus on improving profitability and
innovation. We continued to drive growth around the world
through our Lipton ‘Paint the World Yellow’ campaign. This
enabled us to position Lipton as a contemporary brand and to
perform strongly in the growing out-of-home sector. As around
a third of beverages are consumed outside the home, this sector
is important for continued growth.
We maintained leadership positions in key traditional tea markets
such as the UK and India.