Unilever 2011 Annual Report Download - page 25

22
FINANCIAL REVIEW 2011 continued
Asia Africa CEE
€ million
2011
€ million
2010
%
Change
Turnover 18,947 17,685 7.1
Operating profit 2,216 2,253 (1.6)
Underlying operating margin (%) 12.7 13.4 (0.7)
Underlying sales growth (%) 10.5 7.7
Underlying volume growth (%) 4.5 10.2
Effect of price changes (%) 5.8 (2.2)
Key developments
• Market growth remained strong throughout the region, with
high single digit increases particularly in buoyant markets
across East and South Asia. Conditions in Russia and CEE,
however, were more subdued.
• Underlying sales growth of 10.5% was ahead of our markets
and well balanced between volume and price. China and India
both contributed double digit volume growth; South Africa,
Turkey and Indonesia also performed strongly.
• Value market shares were up for the region as a whole, driven
by strong growth in Home Care, while Foods value shares
were slightly down. Share gains were seen across many key
markets, including China, Indonesia, the Philippines and South
Africa. Volume shares were flat.
• Underlying operating margin was down 0.7%, primarily
reflecting the impact of higher commodity costs.
• Other key developments included further progress on the
roll-out of the regional IT system and the acquisition of the
Concern Kalina business in Russia.
The Americas
€ million
2011
€ million
2010
%
Change
Turnover 15,251 14,562 4.7
Operating profit 2,250 2,169 3.7
Underlying operating margin (%) 15.6 16.0 (0.4)
Underlying sales growth (%) 6.3 4.0
Underlying volume growth (%) 0.4 4.8
Effect of price changes (%) 5.9 (0.7)
Key developments
• Market growth in Latin America continued at a healthy pace of
around 10%. North America was more challenging as
consumer demand remained sluggish. Overall market growth
for the region was in mid single digits.
• Underlying sales growth of 6.3% was slightly ahead of the
market. Volume growth reflected the pricing action taken to
recover commodity cost inflation, especially in the North
American Foods business.
• Value market shares were up for the year in Foods and
Personal Care, with particularly strong performance in
Mexico, Argentina and the US Personal Care business.
• Underlying operating margin was down by 0.4%, with savings
only partially offsetting the pressure from higher input prices
on gross margin.
• Other key developments included the roll-out of the regional IT
system to the US, the rapid integration of Alberto Culver, the
acquisition of the Colombian laundry business from Colgate-
Palmolive and the disposal of the Brazilian tomato business.
Western Europe
€ million
2011
€ million
2010
%
Change
Turnover 12,269 12,015 2.1
Operating profit 1,967 1,917 2.6
Underlying operating margin (%) 17.2 16.1 1.1
Underlying sales growth (%) 0.7 (0.4)
Underlying volume growth (%) (1.2) 1.4
Effect of price changes (%) 2.0 (1.8)
Key developments
• Market conditions in Western Europe were difficult, as
austerity measures and continued uncertainty in the Eurozone
continued to depress consumer demand. Market growth was
marginally positive, due to price increases as volumes fell
slightly.
• Underlying sales growth of 0.7% reflects stronger
performance in the UK and France, partially offset by negative
growth in markets such as Spain and Greece. Volumes overall
were down by 1.2%, with 2.0% growth coming from price.
• Value market shares overall were stable, with gains in the UK
and France offset by declines in other markets. Volume shares
were stable in Home Care and Personal Care, but declined
slightly in Foods, reflecting the impact of price increases.
• Underlying operating margin improved by 1.1%, boosted by
significant progress in reducing overheads.
• Other key developments included the integration of the Sara
Lee Personal Care brands and the Alberto Culver business,
and the acquisition of ice cream businesses in Greece and
Denmark.
Unilever Annual Report and Accounts 2011
Report of the Directors About Unilever