BUSINESS REPORT: UNILEVER

Business Report: Unilever

Business Report: Unilever

Company Overview

Unilever is one of the world's leading fast moving consumer goods companies. It offers products across foods, home and personal care categories. Unilever sells in over 150 countries and manufactures in more than 70 countries. Its products are used by consumers 150 million times per day. The group operates in Europe, the Americas, Asia and Africa. It is headquartered in London, the UK, and employed 174,000 people as of December 2008.

The group recorded revenues of E40,523 million ($59,623.1 million) during fiscal year ended December 2008 (FY2008), an increase of 0.8% over FY2007. The operating profit of the group was E7,167 million ($10,545.1 million) during FY2008, an increase of 36.6% over FY2007. The net profit was E5,285 million ($7,776 million) in FY2008, an increase of 27.8% over FY2007.

Business Description

Unilever is one of the world's premier fast moving consumer goods (FMCG) companies with a host of well known brands in the foods, home and personal care categories. Unilever has two parent companies, Unilever N.V. and Unilever PLC. Unilever N.V. is a public limited company registered in the Netherlands, while Unilever PLC is a public limited company registered in England and Wales.

The two parent companies, Unilever N.V. and Unilever PLC, together with their group companies, operate as a single economic entity, Unilever. Accordingly, the accounts of Unilever are presented by both Unilever N.V. and Unilever PLC as their respective consolidated accounts.

Unilever markets its products under 400 brands in over 150 countries worldwide. In addition, the group operates over 270 manufacturing sites across six continents. Unilever's products are sold through group-owned sales force as well as through independent middlemen such as brokers, agents, and distributors through various agreements. Its products are distributed through distribution centers, satellite warehouses, group-operated facilities, and public storage depots. The customer purchases occur through departmental chains, wholesalers, co-operatives, independent grocery stores, and various food service providers.

The group's primary operating segment comprises of three geographic regions: Europe, The Americas and Asia Africa and Central and Eastern Europe (AACEE).The European region includes operations in Western Europe. The Americas region includes operations in North America and Latin America.

The AACEE region includes operations in the Middle East, Africa, South Asia, South East Asia, North East Asia, Australasia, and Central and Eastern Europe.

Although Unilever's operations are managed on a geographical basis, the group manages its brands under four categories: savory, dressings and spreads; ice cream and beverages; personal care; and home care. These categories act as its principal product areas, as well as the secondary reporting segments of the group. The savory, dressings and spreads segment includes products like soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines and spreads, and cooking products such as liquid margarines. Unilever's major brands in this segment includes: Knorr, Hellmann's, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora, and Ragu.

The ice cream and beverages segment includes sales of ice cream, tea, weight management products, and nutritionally enhanced staples sold in developing markets. Unilever's major brands in this segment includes Cornetto; ...