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Trading conditions in the Asian pest control and hygiene markets were good throughout 2011 and the business exited the year with double digit portfolio growth. The Pacific began the year more hesitantly with a subdued Q1, impacted by the Christchurch earthquake and flooding in Queensland, but strengthened as the year progressed.
At 2010 constant exchange rates:
|Adjusted operating profit (before amortisation and impairment of intangible assets,1 reorganisation costs and one-off items)||10.0||7.9||26.6%||31.7||29.6||7.1%|
|At actual exchange rates:|
|Adjusted operating profit (before amortisation and impairment of intangible assets,1 reorganisation costs and one-off items)||10.7||8.2||30.5%||33.9||29.6||14.5%|
Asia Pacific revenue increased by 4.1% in 2011 (2010: up 0.6%). Both Asia and Pacific achieved growth with Pacific up 3.0% and Asia up 5.9%. Excluding the acquisition of Australian pest control business Ant-Eater earlier in the year, Pacific grew by 2.3%. In Asia the momentum in key markets of Indonesia (up 15.1%) and Malaysia (up 7.3%) reflects traction in sales and marketing and other growth initiatives. The emerging businesses of India and Vietnam continued to progress, benefiting from investment in capability. Thailand had a weak close to the year due to the severe flooding throughout the country. In Pacific the Australia pest business grew 6.8% with significant gains in share. The Australia hygiene business, Pink, grew by 1.6%, an improvement on the negative growth trend of recent years.
Profit for the division rose by 7.1% for the year. Gross margins remain stable with price increases and cost savings offsetting inflationary pressures. Investment in sales and marketing is now delivering to the bottom line.
Conditions for 2012 remain positive although there may be some slowdown in growth if Asian economies are impacted by the debt crisis in Europe. The Pacific region is solid, reflecting a robust Australian economy supported by the mining industry.