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Our Bureau

Mumbai, July 28

Hindustan Unilever Ltd (HUL) has reported a 2.7 per cent decline in net profit for the quarter ended June 2009. Higher exceptional income in the same year-ago quarter accounted for the profit decline, the company said.

HUL’s net profit fell to Rs 543 crore, from Rs 558 crore during the same year-ago period, even as net sales recorded a 7.8 per cent rise to Rs 4,475 crore (Rs 4,152 crore).

The company’s exceptional income for the quarter was Rs 2.8 crore against Rs 18 crore a year ago. Other income too fell to Rs 33.5 crore (Rs 50 crore).

Operating profit, however, grew 6.7 per cent to Rs 559 crore (Rs 523 crore), while operating margins stood at 15 per cent, improving by 0.6 percentage points, with tight cost management and operating leverage, said a company statement. “FMCG sales growth was at less than 15 per cent and was broad based with both the rural and urban markets recording strong growth. The company is now returning to volume growth,” said Mr R. Sridhar, Chief Financial Officer, HUL, at a news conference.

The domestic FMCG business grew 12.80 per cent during the period under review, the home and personal-care segment 11.87 per cent, and the food business 17.28 per cent.

The company’s exports fell 34.72 per cent at Rs 255 crore (Rs 391 crore). This quarter also witnessed a mark-to-market charge of Rs 32 crore from restatement of forex exposure. “We have seen down-trading in categories such as tea and laundry unlike in categories like skincare where there is a need for premium products, so we launched products like Ponds White Beauty and Vaseline health white,” said Mr Sridhar.

More Stories on : Financial Performance | Personal Products | Hindustan Unilever Ltd

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