HUL net sales grow by 19.1%; FMCG sales grow by 19.4%

Hindustan Unilever Limited (HUL) announced its results for March Quarter 2008. Net Sales grew by 19.1% on the back of a strong FMCG business growth of 19.4%.

HPC Business grew at 20.4% with strong growth across all categories. Laundry category continued its excellent performance with all brands, viz. Surf, Rin and Wheel, growing well. Personal Wash growth in the quarter was mainly driven by Lifebuoy. Shampoo category delivered very good growth; Dove continued its excellent performance gaining further market share. Skin category performed well with notable contribution by Fair and Lovely; Ponds top end range launched last year had another successful quarter. The Oral category too grew well. Sunsilk, Ponds Age Miracle, Lux Provocateur, Lifebuoy Active Fresh and Wheel Active Gold were some of the innovations in this quarter.  

Foods business grew by 15.1% with good growth in the major categories. In Beverages, both Tea and Coffee registered another quarter of strong growth. Kissan and Knorr led the growth in Processed Foods. Kissan ‘Amaze’ was launched this quarter in Karnataka and Tamil Nadu. Appropriate marketing investments have been made behind this brand.

Water business has now been extended to 170 key towns across 19 states with continuing good consumer response.

Aggressive cost effectiveness measures mitigated the impact of escalating costs. The Company continued to invest behind its brands through appropriate levels of Advertising and Promotion spends. Profit before Interest, Tax and Exceptional Items increased by 22.7%, and PBIT margin for the quarter at 11.8% of Sales was 30 bps higher than in March quarter 2007. Profit after Tax (PAT) grew by 16.5%. The Net Profit for March quarter 2007 included extraordinary gains arising from the merger/de-merger of businesses, and is hence not comparable.

Mr. Harish Manwani, Chairman commented: “We continue to sustain the growth momentum with a strong start to the year. Inflationary pressures are a cause for concern, but market growth continues to be strong and there is no evidence as yet of any significant impact on consumer spending in our FMCG categories. Our brand portfolio caters to consumers across income segments and, with our proven track record for delivering cost saving initiatives, we are confident to effectively manage the inflationary challenges in a competitive context.” 

Sourced From: Hindustan Unilever Limited