India's largest FMCG company Hindustan Unilever's ( HUL
) fourth quarter net profit rose better-than-expected 21% year-on-year to
Rs 687 crore, helped by strong growth across segments. Analysts on average had
expected HUL to report a net profit of Rs 649 crore, according to a CNBC-TV18
poll, HUL,the unit of Anglo-Dutch Unilever Plc, reported net sales
of Rs5,660.5 crore in the Jan-March quarter, up 16% from a year ago.
In the fourth quarter, HUL had exceptional items, which
included gain of Rs 34.73 crore from sale of properties and Rs 5.78 crore provision
for retirement benefits among other things. In the year ago quarter it had
exceptional gain of Rs 47.8 crore from sale of properties and a few other
provisions. Its net profit before exceptional items was up 29%, HUL said.
During the three-month period, the company's domestic
consumer business grew 20% with a volume growth of 10%.
Among key segments, soaps & detergents revenue rose 28%
year-on-year to Rs 2,834.38 crore in Jan-March.
"Momentum was sustained in both bars and powders with
Rin benefiting from the bars relaunch in December quarter. The focus on driving
upgradation led to stepped up growth rates in Surf," HUL said.
Personal products revenue was up 17% year-on-year to Rs
1,710.94 crore. The company said, skin care brands like Ponds, Fair &
Lovely and Vaseline and hair care brands continued double-digit growth.
However, growth in oral care continued to be modest amid high competition.
While, beverages sales rose 8% to Rs 683.2 crore, coffee
grew in double digits. HUL's packaged foods revenue was up 10% from a year ago
to Rs 348 crore.
Revenue from other segments, which includes exports,
chemicals and the Pure-it water purifier business, however, fell 47% from a
year ago to Rs 182.30 crore.
The company has never given exact sales and profit figures
for its water business, but insists the business "delivered a strong
quarter with the go-to-market transformation now completed."
HUL's total expenses in the quarter were up 14% to Rs
4,989.6 crore. Its advertising and promotional spends went up 9% from a year
ago and employee benefits expenses were up 17%.
"Cost pressures were managed dynamically through
judicious pricing coupled with relentless focus on buying efficiencies and cost
savings. As a result, the increase in cost of goods sold was limited to 80 bps,
"the company said.
HUL shares closed at Rs 417.60 on Monday, unchanged from
Friday's closed.
Source: www.moneycontrol.com
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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
