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HUL profit up 32% to Rs. 547 crore

MUMBAI: While input cost inflation, especially crude-based, peaked during the quarter, Hindustan Unilever’s (HUL) aggressive cost savings programme and pricing actions helped offset the impact. The company announced a net profit of Rs. 546.61 crore for the quarter ended September 2008, a 32 per cent growth over the year-ago period when it was Rs. 408.06 crore. Net sales at Rs. 4,027.87 crore (Rs. 3,364.63 crore) were up 20 per cent.

Fast moving consumer goods (FMCG) sales were up 22 per cent at Rs. 3,644 crore (Rs. 2,997.63 crore) with underlying volume growth of 7 per cent. Within the FMCG, home and personal care (HPC) business grew by 22.5 per cent at Rs. 2,993.66 crore (Rs. 2,444 crore), driven by strong volume and price growth. Its foods business grew by 17.5 per cent to Rs. 650.35 crore (Rs. 553.65 crore) with a strong performance across beverages, processed foods and ice cream. Its packaged water brand, PureIt, is national and has further expanded its footprint, with current coverage of over 600 towns.

Investment behind brands and new categories were sustained during the quarter, growing 14 per cent. Harish Manwani, Chairman, said “Consumer spending remains robust in FMCG and we continue to improve our turnover ahead of aggregated market growth. We have sustained volume growth in a high inflationary environment and offset the cost impact through aggressive cost management and judicious pricing. Softening of commodity prices, if sustained, will augur well both for consumers and the business. With strong leadership positions, market development will continue to be a major source of growth. We remain focussed on sustaining competitive growth in our core categories and selectively building new categories.”

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