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TURNOVER BY CATEGORY
Personal Care
Foods
Home Care
Refreshment
38%
24%
19%
19%
OPERATING PROFIT BY CATEGORY
Personal Care
Foods
Home Care
Refreshment
48%
31%
10%
11%
PERSONAL ARE
2015 2014 %
hange
Turnover ( mllon) 20,074 17,739 132
Operatng proft ( mllon) 3,637 3,259 116
ore operatng proft ( mllon) 3,788 3,325 139
ore operatng margn (%) 189 187 02
Underlyng sales growth (%) 41 35
Underlyng volume growth (%) 23 12
Effect of prce changes (%) 18 23
KEY DEVELOPMENTS
• Turnover growth was 132% of whch 76% was currency mpact
Underlyng sales growth, whle stll below hstorcal rates, mproved
to 41% compared wth 35% n 2014 rowth benefted from
nnovatons that boosted the core of our busness ncludng the
launch of dry spray deodorants n North Amerca, the launch of Lux
Lumnque n Japan and the roll-out of Dove Advanced Har Seres
2015 also marked our entry nto the prestge skn care busness wth
the acqustons of Dermalogca, Murad, Kate Somervlle and REN
• ore operatng proft was 463 mllon hgher than the pror year
and ths ncludes a 196 mllon favourable mpact from exchange
rate movement Acqustons and dsposal actvtes contrbuted
105 mllon whle underlyng sales growth and margn
mprovement added 137 mllon and 25 mllon respectvely
Operatng margn mprovement s prncpally drven by margn-
accretve nnovaton ross margn was up 05 percentage ponts
and brand and marketng nvestment was up 13%
HOME ARE
2015 2014 %
hange
Turnover ( mllon) 10,159 9,164 109
Operatng proft ( mllon) 740 576 285
ore operatng proft ( mllon) 775 579 339
ore operatng margn (%) 76 63 13
Underlyng sales growth (%) 59 58
Underlyng volume growth (%) 40 24
Effect of prce changes (%) 19 34
KEY DEVELOPMENTS
• Home are turnover grew by 109% ncludng a 45% favourable
currency mpact Underlyng sales growth was 59%, heavly
geared toward volume growth whch contrbuted 40% The
category delvered broad-based growth ncludng the roll-out
of new Omo wth enhanced formulaton and mproved cleanng
technology, the success of fabrc condtoners helped by the launch
of omfort Intense, and the ntroducton of f to new markets
• ore operatng proft ncreased by 196 mllon ncludng a
22 mllon ncrease from exchange rate movement Underlyng
sales growth contrbuted 41 mllon whle mproved margn
added 133 mllon ross margn was up 27 percentage ponts
as a result of mproved mx, cost savngs and smplfcaton
programmes Brand and marketng nvestment was up 19%
FOODS
2015 2014 %
hange
Turnover ( mllon) 12,919 12,361 45
Operatng proft ( mllon) 2,298 3,607 (363)
ore operatng proft ( mllon) 2,354 2,305 21
ore operatng margn (%) 182 186 (04)
Underlyng sales growth (%) 15 (06)
Underlyng volume growth (%) 08 (11)
Effect of prce changes (%) 08 06
KEY DEVELOPMENTS
• Turnover growth was 45% whch ncluded a 56% postve currency
mpact and 25% negatve mpact from acqustons and dsposal
actvtes Underlyng sales growth mproved to 15% (from negatve
06% n 2014) wth both prce and volume contrbutng 08% Savoury
showed good volume-drven growth led by cookng products n
emergng markets and by nnovatons around naturalness and
health In dressngs, Hellmann’s demonstrated good growth, wth
7% underlyng sales growth despte ncreased competton from
new market entrants Spreads ganed market share but turnover
declned 5%, reflectng market competton n developed markets
• ore operatng proft was up by 49 mllon despte a proft
reducton of 82 mllon relatng to acqustons and dsposal
actvtes Underlyng sales growth added 35 mllon and the
mpact of exchange rate was a favourable 151 mllon In addton,
hgher supply chan costs led to declne n margns and ths reduced
proft by 55 mllon Brand and marketng nvestment was up 5%
REFRESHMENT
2015 2014 %
hange
Turnover ( mllon) 10,120 9,172 103
Operatng proft ( mllon) 840 538 561
ore operatng proft ( mllon) 948 811 169
ore operatng margn (%) 94 88 06
Underlyng sales growth (%) 54 38
Underlyng volume growth (%) 15 20
Effect of prce changes (%) 39 18
KEY DEVELOPMENTS
• Refreshment turnover grew by 103% ncludng 41% favourable
currency mpact In ce cream both Magnum and Ben & Jerry’s
delvered double-dgt growth contrbutng to the 54% underlyng
sales growth We contnue to buld our presence n the premum
gelato busness wth the recently acqured Talent and rom In tea
more T2 stores have opened durng the year and Lpton and P
Tps have been extended further nto frut, herbal and specalty
teas where we are stll under-represented
• ore operatng proft was 137 mllon hgher compared wth pror
year due to exchange rate movements whch added 31 mllon,
underlyng sales growth whch contrbuted 47 mllon, operatng
margn mprovement of 53 mllon and a 6 mllon ncrease from
acqustons and dsposal actvtes ross margn was up 03
percentage ponts drven by mx and savngs n ce cream Brand
and marketng nvestment was up 8%
36 Unilever Annual Report and Accounts 2015Strategic Report
FINANIAL REVIEW 2015
ONTINUED