Unilever 2004 Annual Report Download - page 42

Unilever Annual Report and Accounts 2004 39
Operating review by category – Home and Personal Care
Personal care (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 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 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 a decline of 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 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) nearly doubled the rate of sale.
Our deodorant category grew underlying sales by over 12%
behind the strength of Axe and Rexona. Axe developed innovative
approaches to talking to young men throughout the world.
The brand carved 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, 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.