India’s largest FMCG company Hindustan Unilever Ltd (HUL) on Monday reported a net profit of Rs 380.9 crore for the quarter ended March 31, 2008 as compared to Rs 392.8 crore for the for the same quarter last fiscal – a drop of 3% in net profit. Announcing the results, D Sundaram, vice-chairman, HUL, said, ?The results for the quarter are not comparable to those of first quarter last year due to the merger of Modern Foods with the company. The net profit for March-quarter in 2007 also included extraordinary gains arising from the merger and de-merger of businesses.?
The company’s total income has increased from Rs 3,218.4 crore for the quarter ended March 31, 2007 to Rs 3,871.2 crore for same period last fiscal.
On the company’s performance in the first quarter, a leading FMCG analyst based in Mumbai said, ?The company’s net sales grew by 19.1% ? on the back of a strong FMCG business growth of 19.4%. The results are pretty strong this quarter. In fact, its one of the highest growths registered by HUL in the last eight years across the board accompanied by margin expansion in home and personal care (HPC).?
In a significant move, the company’s board has approved a change in the ?accounting year of the company? to commence from April 1 every year and to end on March 31 of the following year.
Consequently, as a transitionary arrangement, the next annual accounts and report of the company will be for a period of 15 months commencing January 1, 2008 and ending on March 31, 2009.
According to the company, this is being done in order to synchronise the reporting period of annual accounts under the Companies Act with income tax accounts, both being subject to audit. This will simplify the processes and avoid duplication in compilation of accounting information and detailed Schedule VI data under the Companies Act.
According to Sundaram, the company?s HPC business grew at 20.4% with strong growth across all categories while laundry category continued its good performance with brands such as Surf, Rin and Wheel.
?The personal- wash growth in the quarter was mainly driven by Lifebuoy. Foods business grew by 15.1% with good growth in the major categories. In beverages, both tea and coffee registered another quarter of strong growth,? he added.
As part of its growth strategy, HUL has extended its water business to 170 key towns across 19 states with continuing good consumer response.
On Hindustan Unilever Limited?s performance, Harish Manwani, chairman, Hindustan Unilever Limited, said: ?We continue to sustain the growth momentum with a strong start to the year. Inflationary pressures are a cause for concern, but market growth continues to be strong and there is no evidence as yet of any significant impact on consumer spending in our FMCG categories.?
