Unilever 2003 Annual Report Download - page 44

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Unilever Annual Report & Accounts and Form 20-F 2003 41
Operating review by category – Home & Personal Care
Home care
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 8 029 (804) 7 225 8 565 (16)% (6)%
Group operating profit 977 (69) 908 837 9% 17%
Turnover 8 034 (804) 7 230 8 579 (16)% (6)%
Operating profit BEIA 996 (82) 914 917 0% 9%
Exceptional items (4) 12 8 (64)
Amortisation – goodwill and intangible assets (16) 2 (14) (17)
Operating profit 976 (68) 908 836 9% 17%
Operating margin 12.1% 12.6% 9.7%
Operating margin BEIA 12.4% 12.6% 10.7%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) –
Effect of acquisitions (%) 1.0
Effect of disposals (%) (7.4)
Turnover growth (%) (6.4)
Turnover
€ million
2003 7 230
At current exchange rates At current exchange rates
2002 8 579
2001
2003
2002
2001
10 467
914
917
845
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
908
836
627
Operating profit
€ million
Turnover fell by 16% at current rates of exchange, with currency
movements contributing a 10% decline. Operating profit grew by
9% and operating profit BEIA was flat, with currency movements
contributing declines of 8% and 9% respectively. The underlying
performance of the business after eliminating these exchange
translation effects is discussed below at constant exchange rates.
Turnover from our laundry and household care business remained
relatively flat in 2003, while operating margins increased by
2.4%. Growth in developing markets was partially offset by
difficult trading conditions in North America and Europe.
Our top-performance fabric cleaning brand, Omo, is now aligned
behind a common brand proposition across the world. This has
extended to a focus on larger innovations and generated
substantial savings through standardised packaging, formulation
and advertising. The Omo brand remains a strong market leader
in Brazil, Indonesia, Morocco, South Africa and Thailand while
rebuilding a strong position in Turkey.
In order to meet the everyday needs of consumers around the
world, we offer quality products at affordable prices. In South
Africa, Sunlight is now the most recognised household consumer
goods brand. Its clear positioning of ’Gentle care I trust’ is
underpinned by the brand’s strong values of dependability,
honesty and reliability. As a mid-priced brand, the strong
consumer value proposition of Sunlight has helped generate
growth of over 3% in 2003.
In Europe, innovation helped Comfort grow its leading market
position in the UK and gain market leadership in Portugal. The
new fast-dry variant of Comfort shortens the drying time for
clothes and eases the burden of washing laundry for consumers.
While our household cleaning brands performed below
expectations, results improved in the second half as innovation
around the core business showed signs of a return to growth.
Within the portfolio, Cif and Domestos remain leading brands
with number one or number two positions in the majority of
key markets in which they operate.