Hindustan Unilever 's third quarter net profit rose 18% year-on-year to Rs 753.81 crore, helped by price hikes taken during the quarter and about 9% growth in volumes.
India's largest FMCG company reported net sales of Rs 5,853 crore, up 16.4% year-on-year in the three-month period.
Analysts on average were expecting HUL to report a net profit of Rs 710 crore on revenue of Rs 5,875 crore in October-December.
In the third quarter, HUL had restructuring costs of Rs 12.38 crore. IN the year-ago quarter it had restructuring costs of 85 lakh, profit on sale of properties of Rs 49.22 crore and Rs 15.92 crore profit on sale of long term trade investments.
R Sridhar, HUL's CFO told reporters that all the segments had delivered double digit growth although inflationary pressures were witnessed in the October-December quarter.
Growth in the quarter was driven by "judicious pricing" and cost management, he said.
HUL's operating margin in the third quarter was up 230 basis points year-on-year.
Raw material costs for the maker of Lux soap, Surf detergent and Bru coffee, in the quarter rose 21% to Rs 2,341.18 crore.
"We have delivered another strong quarter of competitive growth with improvement in margins. The results, delivered against a backdrop of an uncertain economic environment, are reflective of the strength of our brands, consistency in our strategy and relentless focus on execution. We will continue to manage our business dynamically to deliver competitive, profitable and sustainable growth," Chairman Harish Manwani said.
Among key segments, soaps & detergents sales rose near 21% year-on-year to Rs 2,645.97 crore. Personal products sales rose 14% from a year ago to Rs 1,886.17 crore in the third quarter.
HUL said beverage sales in the quarter rose 11.3% from a year ago to Rs 670.38 crore and packaged foods saw sales grow 13.5% to Rs 306.41 crore in Oct-Dec. Exports were also up 16% to Rs 337.50 crore.
However, sales from other division, which includes its PureIt water purifier and chemicals business fell 11.6% to Rs 98.21 crore.
Sridhar expects FMCG markets will grow going ahead but there are a mix of headwinds and tailwinds.
HUL shares rose over 1.5% post the earnings announcement. But the stock reversed its gains to close down 3.6% at Rs 387.05 on NSE on Monday.
Source: www.moneycontrol.com
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