Hindustan Unilever’s (HUL) mainstay soaps and detergents business continued to struggle during the three months to December 2009, but the homecare and personal products maker said signs of improvement are visible as it reported a slight increase in sales and profits for the third quarter of the 2009-10 fiscal.
Sales of soaps and detergents fell by 2.42% to Rs 2,072 crore, but HUL insisted that the glass was half full, pointing out in a statement that “actions to restore competitiveness in soaps and mass laundry yielded positive results, with the segment returning to volume growth during the quarter”. HUL makes Lifebuoy, Lux, Breeze and Liril soaps and Surf, Rin and Wheel laundry detergents.
Net profit rose by 5% to Rs 649.1 crore, aided by exceptional gains from the sale of property during the quarter. Net sales grew 4.56% from a year ago to Rs 4,504.2 crore.
HUL has been losing market share and shedding volumes in key segments such as soaps, tea and toothpaste in the past few quarters to aggressive smaller rivals. The company has responded with price cuts, relaunched brands and stepped up spending on advertising and promotions.
“Volume growth accelerated in the quarter backed by quality innovations, increased brand support and continued focus on market execution,” chairman Harish Manwani said.
Domestic consumer and fast-moving consumer goods (FMCG) sales grew by 5%, helped by growth in personal products, foods and water. Personal care product sales grew 16%, led by strong winter sales of skincare and haircare brands.
HUL may launch more Unilever brands
Price cuts in soaps and laundry products such as Lux and Wheel helped restore volume growth during the quarter.
Underlying operating profit grew 5% and operating margin excluding mark-to-market accounting impact on forex exposure improved 10 basis points to 16.8%. Excluding mark-to-market, profit after tax was flat.
“Gross margins were at healthy levels and the cost of raw material was down 480 basis points. The underlying operating margin was up. Cost-saving programmes and buying efficiencies had also helped improve the margin,” CFO R Sridhar said. HUL may also introduce more brands from parent Unilever’s global portfolio in line with the market trends.
Source : http://economictimes.indiatimes.com/news/news-by-company/earnings/HUL-sees-not-so-stellar-rise-of-5-in-Q3-profit/articleshow/5503143.cms
Sales of soaps and detergents fell by 2.42% to Rs 2,072 crore, but HUL insisted that the glass was half full, pointing out in a statement that “actions to restore competitiveness in soaps and mass laundry yielded positive results, with the segment returning to volume growth during the quarter”. HUL makes Lifebuoy, Lux, Breeze and Liril soaps and Surf, Rin and Wheel laundry detergents.
Net profit rose by 5% to Rs 649.1 crore, aided by exceptional gains from the sale of property during the quarter. Net sales grew 4.56% from a year ago to Rs 4,504.2 crore.
HUL has been losing market share and shedding volumes in key segments such as soaps, tea and toothpaste in the past few quarters to aggressive smaller rivals. The company has responded with price cuts, relaunched brands and stepped up spending on advertising and promotions.
“Volume growth accelerated in the quarter backed by quality innovations, increased brand support and continued focus on market execution,” chairman Harish Manwani said.
Domestic consumer and fast-moving consumer goods (FMCG) sales grew by 5%, helped by growth in personal products, foods and water. Personal care product sales grew 16%, led by strong winter sales of skincare and haircare brands.
HUL may launch more Unilever brands
Price cuts in soaps and laundry products such as Lux and Wheel helped restore volume growth during the quarter.
Underlying operating profit grew 5% and operating margin excluding mark-to-market accounting impact on forex exposure improved 10 basis points to 16.8%. Excluding mark-to-market, profit after tax was flat.
“Gross margins were at healthy levels and the cost of raw material was down 480 basis points. The underlying operating margin was up. Cost-saving programmes and buying efficiencies had also helped improve the margin,” CFO R Sridhar said. HUL may also introduce more brands from parent Unilever’s global portfolio in line with the market trends.
Source : http://economictimes.indiatimes.com/news/news-by-company/earnings/HUL-sees-not-so-stellar-rise-of-5-in-Q3-profit/articleshow/5503143.cms
No comments:
Post a Comment