Unilever 2009 Annual Report Download - page 52

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Unilever Annual Report and Accounts 2009 49
The UK and the Netherlands performed well during 2008. In
France, Spain and Germany markets were difficult, with branded
products losing ground to private label. Across the region there
was strong innovation-led growth in deodorants and oral care
and price-driven growth in spreads and dressings.
The operating margin benefited from profits on disposals. On
an underlying basis there was an improvement of 0.7 percentage
points. Gross margins were lower as a result of the unprecedented
increases in commodity costs, but this was more than offset by
lower overhead costs and the benefits of spending efficiency
programmes.
Acquisitions and disposals
Details of acquisitions and disposals during 2008 are given on
page 42.
During 2007 we reached agreement with our partners in South
Africa and Israel to exchange respective shareholdings with the
result that Unilever now owns 74.25% of a newly combined
South African entity and 100% of Unilever Israel. The share swaps
were effected as at 1 October 2007 and as a result we recognised
a gain on disposal of €214 million.
On 1 January 2007 Unilever completed the restructuring of its
Portuguese businesses. The result of the reorganisation is that
Unilever now has a 55% share of the combined Portuguese entity,
called Unilever Jerónimo Martins. The combined business includes
the foods and home and personal care businesses. The remaining
45% is held by Jerónimo Martins Group. The structure of the
agreement is such that there is joint control of the newly formed
entity and therefore it is accounted for by Unilever as a joint
venture.
Other business disposals in 2007 involved the sale of local Brazilian
margarine brands. To further develop our heart health brand
margarine Becel in Brazil we established a joint venture with
Perdigão.
Also in the year we purchased minority interests in several
countries, including Greece and India.