Hindustan Unilever Ltd (HUL), India?s largest fast moving consumer goods company, on Sunday reported a 17% growth in net sales at Rs 4,307.71 crore for the quarter ended December 31, 2008 compared to Rs 3,687.4 crore in the same quarter of the previous financial year, largely in line with market expectations. The company has, however, posted a marginal dip in its net profit at Rs 615.74 crore for the quarter ended December 31, 2008 against Rs 631.44 crore in the corresponding quarter last financial year.
Announcing the results, D Sundaram, vice-chairman & chief financial officer, HUL, said the results are not comparable as the company?s profit after tax (PAT) from ordinary activities before exceptional items grew by 13% and after exceptional items grew by 1%, due to higher exceptional gains in DQ?07 (base).
According to industry analysts, FMCG majors HUL, ITC and Marico have performed well in the December quarter as per expectations. ?Compared to other sectors, the Indian FMCG has done reasonably well in this quarter. In fact, Marico?s results are better than the rest. But HUL?s volume growth is a little disappointing,? said a Mumbai-based analyst.
The company?s home & personal care (HPC) division registered total sales revenue of Rs 3,268.82 crore during the quarter in the domestic market while the foods division contributed Rs 706.04 crore compared to Rs 2,706.64 crore and Rs 571.8 crore, respectively, in the same quarter of the previous year.
Commenting on the company?s results, Harish Manwani, chairman of HUL, said: ?We continue to deliver strong top line and operating profit growth. Softening commodity prices augur well for the business as we sustain our focus on delivering superior consumer value. In the current economic scenario, market development and consumer spending are being monitored closely to manage the business dynamically.?