HUL Net Profit Up 4% Y-o-Y

FMCG giant, Hindustan Unilever reported 4% growth in net profit for the quarter ended June 2014 to stand at Rs 1057 crore. The net profit included higher exceptional income arising from the sale of properties and tax credits in the base quarter, the company said in a statement. Profit after tax before exceptional items was up 15% at Rs 1020 crore on YoY basis. The topline grew by 11% to come in at Rs 7570 crore in the current quarter as compared to Rs 6687 crore in the year ago period. 

The operating environment remained challenging with market growth further slowing down. Overall competitive activity remained high despite the lower media intensity in the quarter. Advertising spends for the quarter increased by Rs 55 crore. However, the volume growth of the company came in at 6%. All segments registered double digit growth.

Segment-wise break up

Soaps and Detergents also posted a double digit growth. Brands such as in Dove, Pears, Lux, Lifebuoy, Liril and Hamam grew well. There was a step-up in the price growth as judicious pricing actions were taken to manage input cost inflation. Lux was re-launched during the quarter with improved product sensorials and aesthetics, the company added. In Laundry, growth was led by the premium segment with Surf sustaining its strong growth momentum and Rin accelerating across both powders and bars. Wheel continued to show improved growth post its re-launch at the end of last year. Comfort Fabric Conditioner continued to lead market development and deliver robust growth. Vim led the performance in Household Care.

Personal Products also had a good growth despite a challenging environment. In Skin Care, growth stepped up with Fair and Lovely, Ponds and Lakme delivering double digit growth. Fair and Lovely continued to build momentum post its re-launch in SQ 2013. Ponds growth was led by premium skin lightening and talc and a new Ponds Men range was launched during the quarter. Both Lakme and the overall facial cleansing portfolio sustained robust growth. Hair Care delivered another quarter of volume led double digit growth driven by Dove, with Clinic Plus doing well and TRESemmé continuing to make good progress.

In Oral Care, investments continued to sustain the competitiveness in the category. CloseUp delivered double digit growth with the re-launch of the core and the introduction of the new ‘Diamond Attraction’ variant. The recovery of Pepsodent is making progress. Colour Cosmetics maintained its high growth momentum across both Lakme and Elle 18. Lakme continues to strengthen its position in premium make up driven by exciting and contemporary innovations. Beverages and packaged foods grew in double digits led by premiumisation.