Unilever 2004 Annual Report Download - page 48

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Unilever Annual Report and Accounts 2004 45
Operating review by region
Africa, Middle East and Turkey (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 3 360 (84) 3 276 3 139 4% 7%
Group operating profit 428 (9) 419 282 49% 52%
Turnover 3 390 (88) 3 302 3 225 2% 5%
Operating profit BEIA 450 (12) 438 349 26% 29%
Exceptional items 7 (1) 6 (39)
Amortisation – goodwill and intangible assets (25) 3 (22) (19)
Operating profit 432 (10) 422 291 45% 48%
Operating margin 12.7% 12.8% 9.0%
Operating margin BEIA 13.3% 13.3% 10.8%
Turnover and underlying sales growth 2003
(at constant 2002 rates) vs 2002
Underlying sales growth (%) 7.4
Effect of acquisitions (%) 1.6
Effect of disposals (%) (3.7)
Turnover growth (%) 5.1
Turnover grew by 2% at current rates of exchange, with currency
movements contributing a 3% decline. Operating profit grew by
45% and operating profit BEIA grew by 26%, with currency
movements contributing 3% declines in both cases. The
underlying performance of the business after eliminating
exchange translation effects is discussed below at constant
exchange rates.
Underlying sales grew 7.4% with 5% from volume growth.
Turnover grew 5% including the net impact of acquisitions and
disposals.
Innovations behind the Omo and Surf brands were the drivers of
an excellent performance in laundry. In personal care, Dove, Lux
and Rexona all grew at over 20%, while Sunsilk achieved the
leading position in hair care in Turkey.
In Foods, growth in savoury was led by Knorr, and included the
launch into a number of countries in the Middle East. Ice cream
and Lipton tea also grew well, while volumes declined in cooking
oils, especially in French West Africa.
The regional operating margin BEIA at 13.3% was 2.5% ahead of
last year, mainly through higher gross margins from production-
cost reduction, the benefits of volume growth and the reversal of
previous devaluation-led cost increases.