Unilever 2003 Annual Report Download - page 46

Unilever Annual Report & Accounts and Form 20-F 2003 43
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 12 773 (1 630) 11 143 12 236 (9)% 4%
Group operating profit 2 157 (299) 1 858 2 045 (9)% 5%
Turnover 12 784 (1 631) 11 153 12 245 (9)% 4%
Operating profit BEIA 2 283 (319) 1 964 2 210 (11)% 3%
Exceptional items (111) 17 (94) (149)
Amortisation – goodwill and intangible assets (14) 2 (12) (13)
Operating profit 2 158 (300) 1 858 2 048 (9)% 5%
Operating margin 16.9% 16.7% 16.7%
Operating margin BEIA 17.9% 17.6% 18.1%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) 5.4
Effect of acquisitions (%) 0.1
Effect of disposals (%) (1.0)
Turnover growth (%) 4.4
Turnover
€ million
2003 11 153
At current exchange rates At current exchange rates
2002 12 245
2001
2003
2002
2001
12 310
1 964
2 210
2 194
Operating profit BEIA
€ million
At current exchange rates
2003
2002
2001
1 858
2 048
2 137
Operating profit
€ million
Turnover fell by 9% at current rates of exchange, with currency
movements contributing a 13% decline. Operating profit fell
by 9% and operating profit BEIA fell by 11%, with currency
movements contributing 14% in both cases. The underlying
performance of the business after eliminating these exchange
translation effects is discussed below at constant exchange rates.
Our leading personal care brands, which include Axe, Dove,
Lux, Pond’s, Rexona and Sunsilk, grew underlying sales by 6%.
Turnover increased by 4.4% and operating margin increased
by 0.2%.
Dove, our largest personal care brand, grew underlying sales
more than 20% in 2003. Growth of the core range was driven by
the launch of the Dove exfoliating bar in more than 30 countries
around the world. We also continued to extend Dove into new
categories in North America with the launch of Dove face care
and Dove shampoo and conditioner.
Our global hair business grew underlying sales by 8%. This
growth was driven both by the continued success of Dove
shampoo and conditioner and by our largest hair care brand,
Sunsilk. The lively approach to women and how they really feel
about their hair by Sunsilk has helped re-introduce the brand
successfully into Europe. Sunsilk also continued to grow strongly
in Latin America with the introduction of new variants and full
roll-out of colorants in Brazil. A relaunch of the brand in China
(under the name Hazeline) has nearly doubled the rate of sale.
Unilever remains the world leader in deodorants and
antiperspirants and our deodorant category grew underlying sales
by over 12% behind the strength of Axe and Rexona. Axe has
developed innovative approaches to talking to young men
throughout the world. The brand is carving out a strong position
in the North American male deodorant market on the basis of this
deep consumer understanding. The launch of new fragrances and
antiperspirants, along with improved product efficacy, has
translated into outstanding growth.
Rexona for Men continued to grow with the relaunch of the
range in Europe and launch of the 24 Hour Deo Fresh range in
Latin America. New formulations also supported the core range
with improved efficacy to offer longer freshness and the launch
of the low residue Crystal range in Europe.
Our prestige fragrance business declined amid weak category
performance and weak economic conditions in key markets. The
sale of the Valentino licence also contributed to the decline in
turnover. Innovation in 2003 included the launch of Purple Orchid
(Eternity), Truth for Men in Europe and Nautica Competition in
the Americas.
Operating review by category – Home & Personal Care
Personal care