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31
Unilever Annual Report and Accounts 2012 Report of the Directors About Unilever
ABOUT UNILEVER GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
Asa/AMET/RUB
2012 2011
%
Change
Turnover (€ million) 20,357 17,723 14.9
Operating profit (€ million) 2,637 2,109 25.0
Core operating margin (%) 131 12.0 1.1
Underlying sales growth (%) 106 11.2
Underlying volume growth (%) 57 5.0
Effect of price changes (%) 46 5.9
Key developments
• Strong underlying sales growth of 10.6% continued at a similar
level as the prior year with an even stronger volume component
of 5.7%, despite a higher base and some softness in economic
growth in the region. Innovation and the rollout of our brands
into new markets supported the growth momentum, which
resulted in double-digit growth in a number of countries,
including Indonesia, China, Thailand and India.
• Gains in value market share were primarily driven by the
Personal Care and Home Care categories, on the back of
strong sustained momentum in haircare, deodorants and
household care. Foods value shares were slightly down.
• Core operating margin was up 1.1%, benefiting from improved
gross margin and cost discipline.
The Amercas
2012 2011
%
Change
Turnover (€ million) 17,088 15,251 12.0
Operating profit (€ million) 2,433 2,250 8.1
Core operating margin (%) 142 13.9 0.3
Underlying sales growth (%) 79 6.3
Underlying volume growth (%) 31 0.4
Effect of price changes (%) 48 5.9
Key developments
• Underlying sales growth of 7.9% was well balanced between
volume growth of 3.1% and price contributions of 4.8% and
benefited from continued strong growth in Latin America.
Double-digit growth in markets such as Brazil and Argentina
was driven by continued excellent performance in Personal
Care and Home Care. Value market shares in these categories
are up, as are shares in parts of Foods.
• Underlying sales growth in North America improved on the
prior year, with positive contributions from volume and price,
despite flat market volume growth. Market share gains were
driven by strong performance in Personal Care and they also
improved in Foods.
• Core operating margin increased by 0.3% to 14.2%, benefiting
from improved gross margin and better cost control, partly
offset by increased advertising and promotions expenditure.
• Other key developments include the disposal of our remaining
frozen foods business in North America.
Europe
2012 2011
%
Change
Turnover (€ million) 13,879 13,493 2.9
Operating profit (€ million) 1,919 2,074 (7.5)
Core operating margin (%) 142 15.1 (0.9)
Underlying sales growth (%) 08 0.7
Underlying volume growth (%) 09 (1.4)
Effect of price changes (%) (01) 2.1
Key developments
• Market conditions in Europe remained challenging,
particularly in Southern Europe. Economic conditions
continued to have a negative impact on consumer demand,
resulting in negative volume growth and intense competition.
• Underlying sales growth of 0.8% was entirely volume driven
and benefited from ongoing strong performance in France
and the UK while Southern European markets such as Greece
and Spain continued to suffer.
• In this context, we managed to increase market shares to
some extent driven by gains in Personal Care and Home Care.
• Core operating margin declined by 0.9%. This reflects negative
gross margin development on the impact of higher commodity
costs and a strong prior year comparator.
Unlever roup
Turnover
 mllon
2012
US
%
2012
UV
%
2012
Turnover
€ million
2011
USG
%
2011
UVG
%
2011
Turnover
€ million
2010
USG
%
2010
UVG
%
2010
Unlever Total 51,324 69 34 46,467 6.5 1.6 44,262 4.1 5.8
Developed markets 22,993 16 08 21,470 0.8 (1.6) 20,990 0.4 2.0
Emerging markets 28,331 114 57 24,997 11.5 4.4 23,272 7.9 9.7