December Quarter 2012 Financial Results
15% Domestic Consumer Sales Growth; PAT (bei) up 15% in December Quarter 2012.
During the quarter, the Domestic Consumer business grew at 15% with underlying volume growth of 5%. Both Home and Personal Care (HPC) and Foods & Beverages (F&B) registered double digit growth.
Soaps & Detergents grew 20%; broad based growth
Laundry delivered a strong performance across formats. Surf and Rin continue to drive category upgradation, clocking in another quarter of double digit volume growth. Surf growth was buoyed by the Easy Wash launch of the previous quarter while on Rin, growth in bars stepped up. Household Care saw accelerated growth led by Vim.
Skin Cleansing sustained its momentum with all segments growing well. Dove, Lux and Lifebuoy continue to register robust growth. The liquids portfolio was extended with the introduction of the Lifebuoy Colour Changing Handwash
Personal Products grew 13%;
Skin Care growth was broad based across brands. Ponds Age Miracle continued to deliver strongly while lotions led by Vaseline and Dove have had a very good quarter. Fair & Lovely* (FAL) has strengthened its position in the skin lightening segment post its re-launch.
It has been another quarter of good growth for the Hair Care business, led by premium formats. The initial results on TRESemmé have been very positive with gains in the first 3 months of its launch across all channels. The portfolio was extended with the launch of the Dove Elixir range of premium hair oils and a new styling range for men under Brylcreem.
Oral Care registered volume led double digit growth driven by a further step up in both Close Up and Pepsodent.
Beverages grew 18%; robust growth across portfolio
Tea delivered one of its strongest quarters with double digit growth across all brands at the premium and popular end. Actions taken to strengthen the core, extend distribution, impactful activation and continued market development for tea bags delivered high growth. In Coffee, Bru sustained its growth momentum with the premium offerings continuing to perform well.
Packaged Foods grew 8%
Kissan Ketchups maintained its double digit growth trajectory while growth accelerated on the Knorr soups portfolio. Actions were taken to manage the pipeline to prepare for the relaunch of Soupy Noodles with a superior mix at the end of the quarter.
Profit After Tax (bei) up 15%
The operating context remained challenging during the quarter with input costs holding firm and high competitive intensity. A&P was stepped up and maintained at competitive levels, higher by 132 Crores (+100 bps) in the quarter. Despite that, Profit before interest and tax (PBIT) grew by 13% and PBIT margin improved by 40 bps. Profit after tax but before exceptional items, PAT (bei), grew by 15% to Rs. 873 Crores during the quarter. Net Profit at Rs.871 Crores grew 16%.
Harish Manwani, Chairman commented: “In an environment that continued to be challenging, we have delivered another quarter of broad based growth and margin expansion. The business is consistently winning in the marketplace by remaining sharply focused on the needs of our large consumer base and successfully leveraging Unilever’s strong global innovation pipeline and best practices.”
Hindustan Unilever Limited
B. D. Sawant Marg,
Chakala, Andheri (E),
Mumbai - 400 099.
*References to Fair & Lovely in this article pre-dates the brand’s name change to Glow & Lovely in 2020.
* References to the Fair & Lovely Foundation in this article pre-dates the brand’s name change to Glow & Lovely in 2020. The Foundation’s new name is ‘Glow & Lovely Careers’.