Unilever 2011 Annual Report Download - page 26

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23
Personal Care
€ million
2011
€ million
2010
%
Change
Turnover 15,471 13,767 12.4
Operating profit 2,536 2,296 10.5
Underlying operating margin (%) 18.0 18.0 –
Underlying sales growth (%) 8.2 6.4
Underlying volume growth (%) 4.2 7.9
Effect of price changes (%) 3.8 (1.4)
Key developments
• Personal Care grew strongly in 2011 to become Unilever’s
largest category, with underlying sales growth of 8.2%. The
acquisitions of Alberto Culver and the Sara Lee brands started
to contribute positively.
• Growth was well balanced between volume and price, and
reflected strong performance across the portfolio, particularly
in deodorants, hair care and skin cleansing.
• Value market shares were up overall, with strong gains in
North America where hair care and deodorants performed
well, and in China where skin cleansing and hair care saw
strong gains.
• Underlying operating margin was stable at 18.0%.
Home Care
€ million
2011
€ million
2010
%
Change
Turnover 8,206 7,726 6.2
Operating profit 481 473 1.7
Underlying operating margin (%) 6.9 8.6 (1.7)
Underlying sales growth (%) 8.1 3.0
Underlying volume growth (%) 2.2 8.2
Effect of price changes (%) 5.8 (4.8)
Key developments
• Home Care delivered underlying sales growth of 8.1% in the
year, despite the pressure of high commodity cost inflation and
intense competition.
• Underlying price growth of 5.8% reflected increases taken in
most major markets as input costs were higher. Volume
growth slowed as a result, but was ahead of the relevant
market at 2.2%.
• Value market shares were higher, particularly in the laundry
business where strong performance was seen in China, India,
South Africa and Western Europe.
• Underlying operating margin was down by 1.7%, as higher
input costs were not fully mitigated by pricing and savings.
Refreshment
€ million
2011
€ million
2010
%
Change
Turnover 8,804 8,605 2.3
Operating profit 723 724 (0.1)
Underlying operating margin (%) 10.0 10.0 –
Underlying sales growth (%) 4.9 6.1
Underlying volume growth (%) 1.4 5.9
Effect of price changes (%) 3.4 0.1
Key developments
• Refreshment saw mixed performance resulting in underlying
sales growth of 4.9%. Ice cream progressed well driven by
innovation and new market launches, particularly with the
Magnum brand.
• Price growth was strong at 3.4%. Volume growth of 1.4% was
driven by ice cream.
• Value market shares were stable overall. Ice cream saw
strong gains, especially in Latin America and South East Asia,
but tea shares were down overall and particularly in the US
and Russia.
• Underlying operating margin was stable at 10.0%, with lower
gross margin offset by overhead savings.
Foods
€ million
2011
€ million
2010
%
Change
Turnover 13,986 14,164 (1.3)
Operating profit 2,693 2,846 (5.4)
Underlying operating margin (%) 19.1 18.5 0.6
Underlying sales growth (%) 4.9 1.4
Underlying volume growth (%) (1.2) 2.5
Effect of price changes (%) 6.2 (1.0)
Key developments
• Underlying sales growth in Foods was 4.9%. Turnover fell
slightly as a result of the disposal of the Brazilian tomato
business.
• With commodity cost inflation at high levels, particularly in
edible oils, underlying price growth was very strong at 6.2%.
Volumes were down 1.2%, mainly in spreads where pricing was
highest.
• Value market share performance was mixed, with gains in
bouillons, meals and side dishes but decline in soups and
spreads.
• Underlying operating margin improved by 0.6% to reach 19.1%,
helped by strong overhead savings.
Unilever Annual Report and Accounts 2011
Report of the Directors About Unilever