Unilever 2004 Annual Report Download - page 32
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Unilever Annual Report and Accounts 2004 29
Operating review by category – Foods
Spreads and cooking products (continued)
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 5 366 (389) 4 977 6 145 (19)% (13)%
Group operating profit 806 (24) 782 768 2% 5%
Turnover 5 419 (391) 5 028 6 216 (19)% (13)%
Operating profit BEIA 911 (46) 865 967 (10)% (6)%
Exceptional items (9) 7 (2) (161)
Amortisation – goodwill and intangible assets (89) 15 (74) (19)
Operating profit 813 (24) 789 787 –% 3%
Operating margin 15.0% 15.7% 12.7%
Operating margin BEIA 16.8% 17.2% 15.5%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) (2.9)
Effect of acquisitions (%) 0.7
Effect of disposals (%) (10.9)
Turnover growth (%) (12.8)
Turnover fell by 19% at current rates of exchange, with currency
movements contributing a 6% decline. Operating profit was flat
and operating profit BEIA fell by 10%, with currency movements
contributing declines of 3% and 4% respectively. The underlying
performance of the business after eliminating these exchange
translation effects is discussed below at constant exchange rates.
2003 was a tough year for the margarine category due to
relatively low butter prices in key markets, and the adverse impact
on bread consumption driven by a strong consumer trend
towards low-carbohydrate diets in the US and UK. However, we
maintained our market shares in key countries.
Becel/Flora, our healthy heart spreads brands, continued to grow
on the strength of pro•activ, which grew strongly during 2003.
Sustained product efficacy endorsement by key opinion formers
and healthcare professionals was key to continued momentum.
The unique partnership of Becel/Flora with the World Heart
Federation helped increase awareness on how lowering
cholesterol can contribute to a healthy lifestyle.
Rama/Blue Band had a difficult start to the year due to severe
price pressures mainly in Europe. The launch of dairy cream
alternatives in several countries in Europe and Latin America in
the fourth quarter progressed well.
Innovation continued to be the key driver of growth in this
category. Examples of adapting to local taste and storage
conditions were evident in the launch of ambient stable
margarines and sweet spreads in Africa and savoury spreads in
Latin America.