Unilever 2003 Annual Report Download - page 43

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40 Unilever Annual Report & Accounts and Form 20-F 2003
Operating review by category – Home & Personal Care
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 20 802 (2 434) 18 368 20 801 (12)% 0%
Group operating profit 3 134 (368) 2 766 2 882 (4)% 9%
Turnover 20 818 (2 435) 18 383 20 824 (12)% 0%
Operating profit BEIA 3 279 (401) 2 878 3 127 (8)% 5%
Exceptional items (115) 29 (86) (213)
Amortisation – goodwill and intangible assets (30) 4 (26) (30)
Operating profit 3 134 (368) 2 766 2 884 (4)% 9%
Operating margin 15.1% 15.0% 13.8%
Operating margin BEIA 15.8% 15.7% 15.0%
Turnover
€ million
2003 18 383
At current exchange rates At current exchange rates
2002 20 824
2001
2003
2002
2001
22 777
2 878
3 127
3 039
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
2 766
2 884
2 764
Operating profit
€ million
Home & Personal Care
Turnover fell by 12% at current rates of exchange, due to
currency movements. Operating profit fell by 4% and operating
profit BEIA fell by 8%, with currency movements contributing
13% in both cases.
In 2003, leading brands continued to drive growth in our Home
& Personal Care (HPC) Division, in line with our Path to Growth
strategy. At constant rates of exchange, these brands grew 4%,
while underlying sales grew 3%. Operating profit rose by 9%,
operating profit BEIA rose by 5% and operating margin BEIA
reached 15.8%.
The breadth of choice that consumers enjoy today suggests that
strong brand equities are more important than they have ever
been. As part of our Path to Growth strategy, we have focused
our portfolio on powerful brands that are aligned globally but
crafted from intimate local consumer understanding. Our key
brands continue to grow behind core innovations as well as
expansion into new categories and geographies. We have further
leveraged our strength in developing markets and our portfolio is
evolving into one that is weighted towards the faster-growing,
higher-margin personal care business.
Operating margin was improved by numerous simplification
initiatives and we continued to focus our brand portfolio through
disposals of non-core businesses including our oral care business
and Brut fragrances in North America and Bio Presto in Italy. We
have also signed binding agreements to sell Sunlight dishwash in
North America.