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Unilever Annual 2003
Making Time Marketing Ltd, June 2004, Pages: 189
The Corporate Focus Foods Annual 2003 provides a detailed strategic overview of Unilever’s development, particularly in the Foods category, until the end of 2003. The analysis covers strategic developments alongside events and developments in operating countries and within product categories.
Unilever is the third largest food producer and the second largest detergent company in the world. Unilever also plays a leading role in the more fragmented, but fast-growing, personal products area. Unilever holds a global number one or two position in its markets in core product categories. Foods make up the majority of Unilever’s portfolio, accounting for 56% of total sales and 58% of operating profits in 2003. Home Care & Professional Cleaning represent 17% of turnover and Personal Care 26%. The remainder is accounted for by other operations.
Unilever’s thirteen core business sectors are: ice cream, tea-based beverages, culinary products, hair care, skin care and deodorants (all with superior growth potential); spreads, oral care, laundry care and household care (steady growth); and frozen foods, fragrances and professional cleaning (selective growth).
In 2003, total turnover amounted to €42,942 million. Worldwide food sales accounted for €24,200 million, 3% down on 2002. Operating profit fell slightly in 2003 to €6,772 million. Turnover has fallen in recent years although this can be largely attributed to an aggressive programme of disposals. However, the principal effect of Path to Growth is that the business has become far more efficient with profitability and profits rising.
- 2003 was an important year for Unilever as it showed how the recent changes made by the company are beginning to have an impact on the top-line results.
- Despite the fall in overall turnover, Unilever has become increasingly profitable.
- Following the three major acquisitions made in 2000, the businesses have been integrated and Unilever is starting to develop brands like Knorr and Hellmann’s into major global brands that provide platforms for new product development.
- The programme of disposals has been highly active as Unilever has disposed of business that are seen as non-core, unprofitable or having little global scope for development.
- As well as providing “power” brands, all three major 2000 acquisitions importantly strengthened Unilever’s presence in the USA, where the group has now achieved critical mass. The importance of the US to Unilever’s turnover has increased.
- With the restructuring almost complete, Unilever is now moving into a more consumer-focused phase with the launch of its new strategy based on “vitality.”
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