Hindustan Unilevers Q4 profit dips marginally

FMCG giant Hindustan Unilever has largely met forecasts with net profit dipping marginally by 2.2 per cent to Rs 616 crore...

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FMCG giant Hindustan Unilever has largely met forecasts with net profit dipping marginally by 2.2 per cent to Rs 616 crore in the fourth quarter ended December 2008 from Rs 631 crore a year ago,while net sales rose 16.8 per cent to Rs 4307 crore.

However,the profit after tax from ordinary activities (excluding exceptional items net of tax) for the quarter at Rs 612.26 crore (as against Rs 543.05 crore last year) rose by 12.7 per cent and for twelve months ended December 2008 at Rs 1987.74 crore (December 2007: Rs 1741.44 crore) grew by 14.1 per cent.

According to the company,strong volume growth in personal products and foods business was partly offset by the impact of slowdown in soaps and detergents,due to high input cost led price growth and market volume contraction in detergents.

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Harish Manwani,Chairman,said: “We continue to deliver strong top line and operating profit growth. Softening commodity prices augur well for the business as we sustain our focus on delivering superior consumer value. In the current economic scenario,market development and consumer spending are being monitored closely to manage the business dynamically. We remain determined to leverage our strong portfolio and scale to deliver competitive and profitable growth.”

It said HPC business grew 21% driven by price growth in soaps and detergents and all round volume growth in personal products. “Laundry business grew strongly across all brands and growth in personal wash was led by Lux,Lifebuoy,Dove and Pears. Shampoo category continued growth momentum with robust volume growth,led by Sunsilk. Growth in skin category was driven by Fair & Lovely and Close Up in the oral category. Dove range of deodorants was launched in this quarter and Surf Excel Quickwash was re-launched,” it said.

According to industry analysts,FMCG majors HUL,ITC and Marico have performed well in the December quarter as per expectations. Compared to other sectors,the Indian FMCG has done reasonably well in this quarter. In fact,Maricos results are better than the rest. But HULs volume growth is a little disappointing, said a Mumbai-based analyst.

The companys home & personal care (HPC) division registered total sales revenue of Rs 3,268.82 crore during the quarter in the domestic market while the foods division contributed Rs 706.04 crore compared to Rs 2,706.64 crore and Rs 571.8 crore,respectively,in the same quarter of the previous year.

(With FE)