Business Daily from THE HINDU group of publications
Monday, May 11, 2009
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Business Daily from THE HINDU group of publications Monday, May 11, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Performance Corporate Results - Personal Products
Business unusual on cost front: Mr Harish Manwani (right), Chairman, HindustanUnilever Ltd, and Mr D. Sundaram, Director (Finance), announcing the company's resultsin Mumbai on Sunday. - Shashi Ashiwal Our Bureau Mumbai, May 10 Hindustan Unilever Ltd has reported a rise of 4 per cent in net profit at Rs 395 crore (Rs 381 crore) in the fourth quarter of the financial year ended March 31, 2009. However, profit before interest and exceptional item was up 22 per cent at Rs 575 crore (Rs 472 crore). The exceptional items in the quarter under review include incremental provision for retirement benefits of Rs 60 crore (nil) arising out of change in actuarial assumption largely due to lower interest rates, restructuring costs of Rs 26 crore (Rs 4 crore), provision for remediation of a site of Rs 25 crore (nil) and profit of Rs 7 crore (Rs 6 crore) from sale of properties in Mumbai. Apart from the fall in market share in few segments, de-stocking by wholesalers in anticipation of further cut in prices and consolidation of retail outlets has hit HUL bottomline. 
Mr Harish Manwani, Chairman, HUL, said half a week de-stocking will have an impact of 4 per cent on sales. “Going forward the strategy would be business as usual on growth, while it will be business unusual on cost front.” Price-sensitive products such as sachets and small size items have seen 10-20 per cent drop in prices, he said. Mr D. Sundaram, Director, Finance, said the company would realise the benefit of cut in product prices in the next quarter as there is always a time lag, especially in a company of its size. “We also face the challenge of large retailers consolidating their outlets. According to our estimates about 1,200 outlets across country have been consolidated,” he added. Although the sales realisation has gone up by 12 per cent in the March quarter, sales volume was down 4.2 per cent indicating that the customers had to spend more money for buying less of their favourite product. HUL brews a bigger business Unilever steps up drive to cut costs at global level Hind Unilever numbers signal tougher times for FMCG Hind Unilever net falls marginally in Q4 More Stories on : Financial Performance | Personal Products | Hindustan Unilever Ltd
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