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46 Unilever Annual Report and Accounts 2004
Operating review by region
Asia and Pacific
2004 results compared with 2003 € million € million € million € million % %
Exchange Change at Change at
2004 at rate 2004 at 2003 at actual constant
2003 rates effects 2004 rates 2003 rates current rates 2003 rates
Group turnover 6 952 (480) 6 472 7 063 (8)% (2)%
Group operating profit 723 (58) 665 1 072 (38)% (32)%
Turnover 6 954 (480) 6 474 7 094 (9)% (2)%
Operating profit BEIA 870 (68) 802 1 024 (22)% (15)%
Exceptional items (102) 5 (97) 88
Amortisation – goodwill and intangible assets (45) 5 (40) (40)
Operating profit 723 (58) 665 1 072 (38)% (33)%
Operating margin 10.4% 10.3% 15.1%
Operating margin BEIA 12.5% 12.4% 14.4%
Turnover and underlying sales growth 2004
(at constant 2003 rates) vs 2003
Underlying sales growth (%) 1.4
Effect of acquisitions (%) 0.5
Effect of disposals (%) (3.8)
Turnover growth (%) (2.0)
Turnover
€ million
2004 6 474
At current exchange rates At current exchange rates
2003
2002
2004
2003
2002
802
Operating profit BEIA
€ million
At current exchange rates
2004
2003
2002
665
7 094
7 865
1 024
1 119
1 072
1 102
Operating profit
€ million
Turnover fell by 9% at current rates of exchange, with currency
movements contributing a 7% decline. Operating profit declined
by 38% and operating profit BEIA fell by 22% with currency
movements contributing a 5% and 7% decline respectively.
The underlying performance of the business after eliminating
these exchange translation effects is discussed below at constant
rates of exchange.
Underlying sales grew by 1.4%.
Brooke Bond tea in India and Sariwangi in Indonesia both grew
strongly. However it was a difficult year for tea in Pakistan, which
faced increased promotional activity by local competition.
There was strong growth of our ice cream businesses, particularly
in Indonesia and China.
In hair care in Japan, where we had previously made excellent
market share gains, there was a fierce response from competitors
and volumes were lower. In laundry in India, where competition
has also been intense, volumes were well ahead, but at
significantly lower prices.
Operating margin declined from 15.1% to 10.4%. Operating
margin BEIA declined to 12.5% from 14.4% impacted by
increased advertising and promotion and price competitiveness as
we responded robustly to competitive attack in a number
of key markets. In India, charges were incurred in exiting from
confectionery and from asset write-downs in tea plantations
and bakery.