Results for HUL September Quarter 2014
10% domestic consumer sales growth, operating profit (PBIT) up 14% in September Quarter 2014.
Hindustan Unilever Limited announced its results for the quarter ending 30th September 2014. During the quarter, the Domestic Consumer business grew at 10%, ahead of market, with 5% underlying volume growth.
Soaps & Detergents: Double digit broad based growth
In Skin Cleansing, growth was driven by Lifebuoy, Lux and Dove. The liquids portfolio delivered another strong quarter led by Lifebuoy Handwash.
In Laundry, the performance was led by the premium segment as Surf sustained its strong momentum and Rin growth further accelerated. Wheel growth continued to step-up since its re-launch at the end of last year.
Household Care growth was driven by Vim, with the liquids portfolio doing very well.
Personal Products: Healthy growth in a challenging context
In Skin Care, Fair and Lovely and Pond’s delivered volume led double digit growth. Fair and Lovely continued to build momentum post its re-launch in SQ’13 while Pond’s growth was led by premium skin lightening and talc. The facial cleansing portfolio sustained high growth.
Hair Care registered another quarter of volume led double digit growth, driven by the robust performance of Dove and Clinic Plus. TRESemmé added a new Spa Rejuvenation variant and continued to make very good progress.
Oral Care had a subdued quarter largely due to a strong comparator arising from the re-launch of Pepsodent in the base quarter. Close Up growth was driven by impactful activation and a good initial response on Diamond Attraction. Pepsodent saw the introduction of a new ‘Salt and Clove’ variant and the re-launch of Gum Care under the Expert Protection range.
Colour Cosmetics delivered its tenth successive quarter of innovation led double digit growth with Lakme continuing to strengthen its position in premium make up through exciting and contemporary innovations.
Beverages: Volume led growth in Tea & Coffee
Tea delivered another quarter of healthy volume growth, driven by strengthened brand equities across the portfolio and focused in-market activities. Lipton Green Tea sustained its market development thrust and growth momentum. Bru Coffee also registered double digit growth.
Packaged Foods: Fourth successive quarter of double digit growth
Market development continues to be the focus, resulting in double digit growth across all key brands. Kissan registered strong growth on both Ketchups and Jams, driven by impactful activation and Knorr growth was led by Instant Soups and Soupy Noodles. Ice Creams delivered another strong quarter, led by Magnum and through sharper in-market execution on Kwality Walls.
Water: Double digit growth
Pureit continued its growth momentum led by the premium segment. The response to Pureit Ultima (RO+UV), launched earlier in the year with superior functionality and aesthetics, has been very encouraging.
Profitable growth sustained
The operating environment remained challenging with low market growth across categories. Brand investments were sustained at competitive levels across segments, albeit lower than an exceptionally high base quarter. The impact of input cost inflation continued to be felt this quarter through higher consumption costs although commodities softened towards the end of the quarter.
Profit before interest and tax (PBIT) grew by 14% and PBIT margin improved by +50 bps, despite the higher consumption costs, additional depreciation charge and phasing out of Excise Duty benefits. Profit after tax before exceptional items, PAT (bei), grew by 8% to Rs. 957 Crores while Net Profit at Rs.988 Crores, was up 8%, impacted by the increase in the effective tax rate.
The Board of Directors have declared an interim dividend of Rs 6.0 per equity share of face value Re. 1 each, for the year ending 31st March 2015.
Harish Manwani, Chairman commented: “In a low growth environment, our emphasis on market development and innovations have helped deliver another quarter of double digit growth and a healthy improvement in operating margins. The consistency of our performance is a reflection of the discipline and rigor with which we are executing our strategy. We will continue to manage our business dynamically for sustained competitive and profitable growth.”
About Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company touching the lives of two out of three Indians. HUL works to create a better future every day. We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.
Hindustan Unilever Limited,
B. D. Sawant Marg,
Chakala, Andheri (E),
Mumbai - 400 099.
T: +91 22 39832429 (Prasad Pradhan)