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30 Unilever Annual Report and Accounts 2012Report of the Directors About Unilever
FINANIAL REVIEW 2012 continued
Personal are
2012 2011
%
Change
Turnover (€ million) 18,097 15,471 17.0
Operating profit (€ million) 2,928 2,536 15.5
Core operating margin (%) 171 17.6 (0.5)
Underlying sales growth (%) 100 8.2
Underlying volume growth (%) 65 4.2
Effect of price changes (%) 33 3.8
Key developments
• Personal Care grew strongly again in 2012, with market
outperforming growth spurred by innovation and the rollout
of our brands in new markets, complemented by a strong
contribution of the recently acquired brands.
• Underlying sales growth of 10.0% was driven by both higher
volumes and a positive price contribution. Market shares
increased, benefiting from gains in all geographies and
strong performance in the haircare, deodorants and skin
cleansing categories.
• Core operating margin was down 0.5%, reflecting continued
investments in building beauty capabilities and infrastructure.
Refreshment
2012 2011
%
Change
Turnover (€ million) 9,726 8,804 10.5
Operating profit (€ million) 911 723 26.0
Core operating margin (%) 94 7.7 1.7
Underlying sales growth (%) 63 4.9
Underlying volume growth (%) 24 1.4
Effect of price changes (%) 39 3.4
Key developments
• Performance in Refreshment improved in growth momentum
as well as profitability. Underlying sales growth of 6.3%
reflects good contribution from volume growth and from price
changes. Core operating margin improved by 1.7%. This was
driven by higher gross margin, strong savings programmes
and cost discipline.
• In ice cream, growth momentum was driven by powerful
performance in Latin America, Asia, North America and
Europe and benefited from innovation behind our global
brands such as Magnum, which is now a brand with sales
in excess of €1 billion.
• In tea, innovation improved growth momentum in particular
in emerging markets, such as Russia, Arabia and India.
Foods
2012 2011
%
Change
Turnover (€ million) 14,444 13,986 3.3
Operating profit (€ million) 2,605 2,693 (3.3)
Core operating margin (%) 175 17.5 –
Underlying sales growth (%) 18 4.9
Underlying volume growth (%) (09) (1.2)
Effect of price changes (%) 27 6.2
Key developments
• Underlying sales growth in Foods was 1.8%. Volume growth
was slightly negative, continuing to reflect the impact of
a contracting spreads market and the price rises we took
in 2011 to counter significant increases in input prices.
• Growth was supported by the rollout of innovations such
as Knorr Jelly Bouillon and Knorr Baking Bags, as well as
solid results delivered by our Food Solutions business.
• Core operating margin was flat with lower gross margin,
reflecting the impact of higher commodity costs, offset
by improved cost discipline and savings delivery.
Home are
2012 2011
%
Change
Turnover (€ million) 9,057 8,206 10.4
Operating profit (€ million) 545 481 13.3
Core operating margin (%) 59 5.4 0.5
Underlying sales growth (%) 103 8.1
Underlying volume growth (%) 62 2.2
Effect of price changes (%) 39 5.8
Key developments
• Home Care delivered a strong performance with underlying
sales growth of 10.3%, ahead of market growth and balanced
between volume growth of 6.2% and price changes
contributing 3.9%.
• We improved value market shares in our laundry business
across geographies and in particular in a number of highly
competitive markets such as UK, France, China and South
Africa on the back of continued innovation and the rollout
of our brands.
• Household care growth was equally supported by the rollout
of new and improved products, driving strong growth
momentum for our global brands Domestos, Cif and Sunlight.
• Core operating margin was up by 0.5%, benefiting from
successful new business models.