Unilever 2009 Annual Report Download - page 92

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Unilever Annual Report and Accounts 2009 89
3 Gross profit and operating costs
€ million € million € million
2009 2008 2007
Turnover 39,823 40,523 40,187
Cost of sales (20,580) (21,342) (20,558)
Gross profit 19,243 19,181 19,629
Distribution and selling costs (9,468) (9,309) (9,489)
Administrative expenses (4,755) (2,705) (4,895)
Research and development (891) (927) (868)
Other(a) (3,864) (1,778) (4,027)
Operating profit 5,020 7,167 5,245
(a) Includes gain on disposals of group companies, amortisation of finite-lived intangible assets and impairment of goodwill and intangible
assets. Gains on business disposals were particularly significant in 2008 (see below and note 26 on page 124).
The following items are disclosed on the face of the income statement to provide additional information to users to help them better understand
underlying business performance.
€ million € million € million
2009 2008 2007
Restructuring (897) (868) (875)
Business disposals, impairments and other:
Gain/(loss) on disposals of group companies 42,190 297
Impairments –(53) –
(Provision for)/release of Brazilian sales tax 25 –9
Restructuring costs are incurred as Unilever continues to simplify the organisation, reorganise operations and support functions and redevelop the
portfolio. They primarily relate to redundancy and retirement costs. Business disposals generate both costs and revenues which are not reflective
of underlying performance. Impairment charges are primarily recognised for goodwill other than where included in restructuring or as part of
business disposals.
Other items within operating costs include:
€ million € million € million
2009 2008 2007
Staff costs 4(5,223) (5,274) (5,537)
Raw and packaging materials and goods purchased for resale (15,267) (16,489) (15,588)
Amortisation of finite-lived intangible assets and software (168) (168) (140)
Depreciation of property, plant and equipment (851) (788) (804)
Advertising and promotions (5,302) (5,055) (5,289)
Exchange gains/(losses): (33) 108 (15)
On underlying transactions (19) 77 (10)
On covering forward contracts (14) 31 (5)
Lease rentals: (472) (487) (477)
Minimum operating lease payments (475) (495) (488)
Contingent operating lease payments (3) – –
Less: Sub-lease income relating to operating lease agreements 6811