Hindustan Unilever Limited’s Net sales grow by 21%

Hindustan Unilever Limited (HUL) announced its results for June Quarter 2008. Net Sales grew by 21% driven by strong 19% growth in FMCG business.

HPC Business grew at 20% with strong growth in all categories. Laundry category continued its momentum with excellent performance across Surf, Rin and Wheel. Personal Wash growth was driven both by volume and price with Lux and Lifebuoy leading category growth. Shampoo category delivered strong volume led growth, with successful relaunch of Sunsilk and Dove continuing momentum. Skin category had robust growth across all brands and Ponds top end range was further extended during the quarter. Oral category grew well led by Close up. Some of the launches during this quarter were Lux Strawberry & Cream, Clinic plus multi sachet, Ponds Age Miracle – range extension, Axe Shock & Recover and Wheel Active Green.

Foods business grew by 14% with good underlying volume growth. In Beverages, both Tea and Coffee continued strong growth performance. Kissan and Knorr sustained high growth within Processed Foods; Knorr  soups and mixes performed well. Kissan ‘Amaze’ is being test marketed in 3 Southern states. Icecream had a good quarter driven by growth in Takehome and Impulse segment and a new range,Paddle Pop  was launched.

Water business is now national, with Pureit brand now extended to 364 towns across 20 states.

Focused action on cost management, improved portfolio mix and judicious pricing helped mitigate the impact of steep cost inflation. Investment behind brands and new categories continued during the quarter and grew by 30.5%. PBIT (bei) grew 20.7% and PBIT margin for the quarter at 14.2% of Sales, was maintained at the same level as June quarter, 2007. Profit after Tax (PAT) from ordinary activities and Net Profit grew by 13.2% (the Net Profit for June quarter 2007 included higher exceptional income from sale of property). The Board declared an interim dividend of Rs 3.50 per share for extended 15months accounting year ending March 31, 2009.

Mr. Harish Manwani, Chairman commented: “ Building on the strong start to the year, we have sustained the growth momentum in this quarter. In the context of high cost inflation, the business is being managed dynamically using all available levers – cost management, enhanced mix and judicious pricing.  We remain committed to sustaining long term competitiveness of our business and value creation for  shareholders.”

Sourced From: Hindustan Unilever Limited