HUL June Quarter 2010 Financial Results
Double digit volume growth sustained at over 11%.
Hindustan Unilever Limited (HUL) announced its results for June Quarter 2010. During the quarter, Net Sales grew 7.1%, with Domestic Consumer Business growing 8% driven bysustained double digit volume growth of 11%.
Both Detergents & Personal Products grew double digit in volume. HPC business grew 5.2% during the quarter. Decisive actions to defend the Company’s market leadership were implemented, delivering accelerated volume growth, especially in Laundry. All three brands in Laundry grew well. Rin was relaunched with an improved formulation towards the end of the quarter. Personal Wash regained volume momentum, post portfolio rejuvenation and continued brand support. Premium soaps portfolio grew strong double digits; Dove became accessible to more consumers with the launch of Rs 20 price point pack.
Personal Products grew 11%, with volumes also growing in double digits. In Shampoo, leadership was further strengthened with growth ahead of the market. Conditioners portfolio continues to be built with great success. In Oral, the germicheck credentials of Pepsodent were strengthened with a new communication, while Close up continued to perform well.
Skin Care growth was broad based and well ahead of market, driven by the relaunch of Fair & Lovely* and growing contribution from Pond’s White Beauty & Vaseline Healthy White. The male grooming portfolio continued to be strengthened with the launch of Vaseline Menz and Max Fairness under Fair & Lovely*. The expanded facial cleansing portfolio performed very well.
Foods business including Beverages grew 13%. All segments in Foods viz Tea, Coffee, Processed Foods and Ice creams grew well during the Quarter. With the successful launch and national roll out of Brooke Bond Sehatmand, Tea grew in double digits despite a weak market growth. Knorr Soupy Noodles received a very good consumer response with volume above expectations. Kissan and Annapurna brands grew in strong double digits with robust volume growth. Ice-cream grew 18%, crossing the Rs 100 cr milestone during the quarter.
Pure-it continued its strong growth momentum, boosted by a successful launch of Pure-it Compact at Rs 1000, which maintains the highest standards of germ kill efficacy. The business expanded its retail coverage and further enhanced service levels.
Cost saving programs and buying efficiencies continued to deliver strongly, reducing cost of goods sold by60 bps. A&P investments were stepped up by 310 bps to 15.7% of sales, behind brand building, defending leadership positions and simultaneously building new categories. Consequently, operating margins were lower by 190 bps. PBIT declined by 6.7%. Effective tax management restricted PAT (bei) decline to 3.1%. Net Profit at Rs 533 crs was lower by 1.8%.
Harish Manwani, Chairman commented: “Despite an intensely competitive environment, we have sustained double-digit volume growth. We continue to invest fully to defend our strong leadership positions and build competitive growth momentum through bigger and better innovations. We are simultaneously leading market development of emerging categories and strengthening organisational capabilities to win with consumers, channels and segments of the future.”
About Hindustan Unilever Limited
HUL is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians. HUL’s mission is to “add vitality to life” through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life.
Hindustan Unilever Limited
B. D. Sawant Marg,
Chakala, Andheri (E),
Mumbai - 400 099.