Posts
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-inr-small.gif)
HINDUSTAN Unilever, India's largest fastmoving consumer goods company, reported a 20% year-on-year growth in underlying net profit for the quarter to March, helped by a steep fall in raw material prices.
The Indian subsidiary of Anglo-Dutch multinational, Unilever, posted a net profit of Rs 457 crore for the period, after excluding extraordinary items. The company made a one-time provision of Rs 107.1 crore for exceptional items, which include Rs 60 crore towards retirement benefits. After comparing these extraordinary items with those in the year-ago period, the company's net profit stood at Rs 395 crore, 3.7% higher than the figure for January-March 2008.
Total income grew by just 5% during the period to Rs 3,988 crore after the company registered a decline in market share in some categories. A fall in prices and de-stocking by retailers also affected the company's topline.
The company has managed to improve its operating profit margin and almost maintain its net profit margin. Its operating profit margin was 15%, 200 basis points more than in the year-ago period. The net profit margin, excluding the effect of extraordinary loss, also saw a rise of 140 bps to 11.3%. In sequential terms, however, the company has reported the worst quarter in fiscal 2009. HUL bets on foods biz to drive growth
COMPARED with the October-December 2008 quarter, the total income during the March quarter is 8% lower and net profit (excluding extraordinary items) is down 25%. The profit margins are also lower by around 200 bps compared with the quarter-ended December 2008.
HUL's total FMCG business grew by 12%, with the home and personal care business growing by 11% and soaps and detergents by 16%. In comparison, personal products, including oral care and hair care categories, grew by just 2%. All these figures represent yearon-year growth.
The closing down of nearly 700 outlets of retailer Subhiksha affected HUL's personal products business, apart from a decline in Pepsodent's growth. Modern trade accounts for 8-9% of the company's revenues.
The company has changed its accounting year from January-December to April-March and therefore presented the financial numbers for the March quarter of 2009 along with the numbers for a 15-month period ended March 31, 2009.
"We are in the midst of a challenging economic environment. While it is business as usual on growth, it is business unusual on cost," HUL chairman Harish Manwani said at a press briefing on Sunday.
Advertising and promotions, key components of HUL's total expenditure, increased by 2.6% to Rs 450.5 crore, accounting for more than 11% of total income.
Mr Manwani said the foods business would become a large part of the overall portfolio in the future. "We see the contribution of foods to the overall portfolio increasing," he said.
The company's net profit for the year ended March 31 grew by 10.6% to Rs 2,115 crore, while net sales rose by 15% to Rs 16,476 crore. The board of directors recommended a final dividend of Rs 4 per share for the 15-month period ended March 31. The total dividend, after taking interim dividend into account, works out to Rs 7.50 per share.
HUL's MD and CEO Nitin Paranjpe said the company's focus is on providing value for the consumer and correcting prices when commodity prices soften. "We have reduced the price of Lifebuoy Mini from Rs 6 to Rs 5, while we have increased the 'grammage' on Lux from 60 grams to 75 grams and from 250 grams to 275 grams in the case of Wheel," he said.
Total income grew by just 5% during the period to Rs 3,988 crore after the company registered a decline in market share in some categories. A fall in prices and de-stocking by retailers also affected the company's topline.
The company has managed to improve its operating profit margin and almost maintain its net profit margin. Its operating profit margin was 15%, 200 basis points more than in the year-ago period. The net profit margin, excluding the effect of extraordinary loss, also saw a rise of 140 bps to 11.3%. In sequential terms, however, the company has reported the worst quarter in fiscal 2009. HUL bets on foods biz to drive growth
COMPARED with the October-December 2008 quarter, the total income during the March quarter is 8% lower and net profit (excluding extraordinary items) is down 25%. The profit margins are also lower by around 200 bps compared with the quarter-ended December 2008.
HUL's total FMCG business grew by 12%, with the home and personal care business growing by 11% and soaps and detergents by 16%. In comparison, personal products, including oral care and hair care categories, grew by just 2%. All these figures represent yearon-year growth.
The closing down of nearly 700 outlets of retailer Subhiksha affected HUL's personal products business, apart from a decline in Pepsodent's growth. Modern trade accounts for 8-9% of the company's revenues.
The company has changed its accounting year from January-December to April-March and therefore presented the financial numbers for the March quarter of 2009 along with the numbers for a 15-month period ended March 31, 2009.
"We are in the midst of a challenging economic environment. While it is business as usual on growth, it is business unusual on cost," HUL chairman Harish Manwani said at a press briefing on Sunday.
Advertising and promotions, key components of HUL's total expenditure, increased by 2.6% to Rs 450.5 crore, accounting for more than 11% of total income.
Mr Manwani said the foods business would become a large part of the overall portfolio in the future. "We see the contribution of foods to the overall portfolio increasing," he said.
The company's net profit for the year ended March 31 grew by 10.6% to Rs 2,115 crore, while net sales rose by 15% to Rs 16,476 crore. The board of directors recommended a final dividend of Rs 4 per share for the 15-month period ended March 31. The total dividend, after taking interim dividend into account, works out to Rs 7.50 per share.
HUL's MD and CEO Nitin Paranjpe said the company's focus is on providing value for the consumer and correcting prices when commodity prices soften. "We have reduced the price of Lifebuoy Mini from Rs 6 to Rs 5, while we have increased the 'grammage' on Lux from 60 grams to 75 grams and from 250 grams to 275 grams in the case of Wheel," he said.
SUBSCRIBE TO Free SMS Alerts on India Stock Markets
OR SEND SMS "ON WAY2TRADE " TO 9870807070
DisasterAwareness | Health | Commodities
Chat: 
Google Talk: ways2invest 
Y! messenger: wilint
Google Talk: ways2invest Y! messenger: wilintContact Me: 
0 comments:
Post a Comment