Unilever 2013 Annual Report Download - page 30

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TURNOVER BY CATEGORY
Personal Care
Foods
Refreshment
Home Care
36%
27%
19%
18%
OPERATING PROFIT BY CATEGORY
Personal Care
Foods
Refreshment
Home Care
41%
41%
11%
7%
PERSONAL ARE
2013 2012
(Restated)
%
Change
Turnover (€ million) 18,056 18,097 (0.2)
Operating profit (€ million) 3,078 2,925 5.2
Core operating profit (€ million) 3,206 3,085 3.9
Core operating margin (%) 178 17.0 0.8
Underlying sales growth (%) 73 10.0
Underlying volume growth (%) 55 6.5
Effect of price changes (%) 17 3.3
KEY DEVELOPMENTS
• Personal Care delivered another year of strong underlying growth,
although exchange rate movements (6.8%) led to turnover being
almost unchanged on last year. Underlying sales growth of 7.3%
was broad-based across all sub-categories; hair care, skin
cleansing and skin care, deodorants and oral care growing more
than 5%. Underlying volume increased by 5.5%, while the price
growth, at 1.7%, was lower than the previous year which had
included more commodity cost driven increases. Growth was
supported by innovations like Dove Repair Expertise in more than
50 markets, Vaseline Spray & Go moisturisers and the Axe Apollo
campaign across more than 70 countries.
• Core operating profit at €3.2 billion improved by €121 million over
the prior year despite an €291 million reduction from exchange
rate movements. Underlying sales growth contributed €224
million and higher core operating margin, driven by improved mix
and savings, added €188 million.
REFRESHMENT
2013 2012
(Restated)
%
Change
Turnover (€ million) 9,369 9,726 (3.7)
Operating profit (€ million) 851 908 (6.3)
Core operating profit (€ million) 856 908 (5.7)
Core operating margin (%) 91 9.3 (0.2)
Underlying sales growth (%) 11 6.3
Underlying volume growth (%) (18) 2.4
Effect of price changes (%) 29 3.9
KEY DEVELOPMENTS
• Refreshment turnover declined by 3.7%, due to exchange rate
movements (4.7%). Underlying sales grew 1.1%, with price
contributing strongly at 2.9%. Underlying volumes were down by
1.8% due to declines in our US ice cream business where we
withdrew from some low margin products and in Italy where the
weak economy affected ice cream sales. Tea grew well, driven by
improved tasting Lipton Yellow Label tea-bags with tea essence.
Sales of AdeS soy drinks were lower following a product recall in
the first half of the year.
• Core operating profit at €0.9 billion was €52 million lower than the
prior year, as a result of a €45 million adverse impact of exchange
rates. Underlying sales growth added €10 million. Core operating
margin was lower by 0.2 percentage points as a result of higher
advertising and promotions (up by 0.3 percentage points) and the
impact of the AdeS recall.
FOODS
2013 2012
(Restated)
%
Change
Turnover (€ million) 13,426 14,444 (7.0)
Operating profit (€ million) 3,064 2,601 17.8
Core operating profit (€ million) 2,377 2,528 (6.0)
Core operating margin (%) 177 17.5 0.2
Underlying sales growth (%) 03 1.8
Underlying volume growth (%) (06) (0.9)
Effect of price changes (%) 09 2.7
KEY DEVELOPMENTS
• Foods turnover declined, by 7.0%, entirely due to exchange rate
movements (3.8%) and business disposals of (3.7%). Underlying
sales grew 0.3%, including a positive contribution from price of
0.9%. Underlying volumes were 0.6% lower because of market
weakness in spreads. Spreads performance improved in the
second half with positive responses to the relaunch of Flora in the
UK and new variants in Europe and the US. Our biggest Foods
brands, Knorr and Hellmann’s, both grew well, particularly in
emerging markets. Knorr jelly bouillons and baking bags continue
to grow rapidly with the addition of new variants. Sales of soups
and sauces in the developed markets declined.
• Core operating profit at €2.4 billion was €151 million lower than
the prior year after an €107 million adverse impact from exchange
rates and a reduction of €83 million from disposals. Core
operating margin was up by 0.2 percentage points, adding €31
million to core operating profit. The increase from improved mix
and savings was offset by higher advertising and promotions.
Operating profit increased due to business disposals.
HOME ARE
2013 2012
(Restated)
%
Change
Turnover (€ million) 8,946 9,057 (1.2)
Operating profit (€ million) 524 543 (3.5)
Core operating profit (€ million) 577 529 9.1
Core operating margin (%) 64 5.8 0.6
Underlying sales growth (%) 80 10.3
Underlying volume growth (%) 57 6.2
Effect of price changes (%) 21 3.9
KEY DEVELOPMENTS
• Home Care again showed strong underlying growth, but this was
offset by exchange rate movements (8.6%) to leave turnover down
1.2%. Underlying sales grew 8.0%, with volumes up 5.7%. Price
growth of 2.1% was lower than last year which had included more
commodity cost driven increases. Laundry growth has been driven
by innovations such as a new formulation for Omo with wash
boosters, and a new Small & Mighty concentrated liquid detergent
in Europe. Comfort fabric conditioners grew rapidly, supported by
the success of an Aromatherapy range in South East Asia.
Household Care also grew well, helped by the launch of Cif and
Domestos in Brazil.
• Core operating profit at €0.6 billion was broadly unchanged on last
year after an adverse €59 million from exchange rates. Underlying
sales growth added €42 million. Core operating margin increased
by 0.6 percentage points, adding €65 million, with higher gross
margins, including the benefit of the low cost business model
programme partly offset by increased advertising and promotions.
27Unlever Annual Report and Accounts 2013 Strategc report