FMCG major Hindustan Unilever has reported 21.6 per cent decline in its net profit at Rs 428.53 crore in the second quarter ended September 30 as against Rs Rs 546.61 crore in the the same period last fiscal.

“The net profit declined due to exceptional gains from property disposal in the prior year and exceptional charge largely due to a provision related to the settlement signed with erstwhile workers of a closed unit in the current period,” the company said. However, the company’s net sales witnessed a 5 per cent increase to Rs 4,228.11 crore in the quarter ended September 30, as compared with Rs 4,027.87 crore in the quarter ended September 30, 2008.

“Domestic consumer sales including water grew 8%. FMCG sales grew by 7%, driven by strong growth in personal products and foods. Soaps & detergents grew modestly due to significant down trading in detergents,” it said. “In soaps and detergents, we are actively strengthening our full portfolio and improving our competitiveness in the mass segment. We remain determined to profitably grow volumes and further strengthen our market leadership across categories,” HUL chairman Harish Manwani said.