The fast moving consumer goods company reported a fall in net profit due underlying volume growh of 4% in the domestic market. According to Harish Manwani, chairman, there are near term concerns for HUL particularly around slowing market growth
Hindustan Unilever, one of India's leading fast moving consumer goods company reported 23.4% decline in its first quarter net profit to Rs1,019 crore. This was due to significant exceptional income generated in from the sale of properties during the quarter last year.
Harish Manwani, chairman of HUL, said, “While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence.”
Net sales grew 7% during the quarter ended 30 June 2013 to Rs6,687.5 crore compared with Rs6,250.15 crore during the corresponding quarter last year, driven by growth in foods and domestic consumer business.
During the quarter, HUL’s domestic consumer business grew competitively at 7% with 4% underlying volume growth ahead of market. The home and personal care division grew 5.9% while foods business grew 12.5%.
Soaps and detergents grew 8%, which saw broad based growth; personal products grew 2% in a slowing market; beverages grew 16%, helped by acceleration in tea segment; packaged foods grew 5%, driven by Kissan & Knorr Soups. Higher competition drove up advertising & promotion slightly up to Rs70 crore, up 20 basis percentage points, in the quarter.
Hindustan Unilever closed Friday 3.4% down at Rs663 on the BSE, while the benchmark Sensex ended the day marginally down at 19,748.
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This was due to significant exceptional income generated in from the sale of properties during the quarter last year.
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