Hindustan Unilever?s (HUL) sales accounted for just over 7% of the total sales of Unilever plc in quarter ended June 31, 2010, compared with 7% during for the quarter ended March 31, 2010. In terms of operating profit and net profit, however, the Indian subsidiary?s share decreased from 9.4% to 8% and 9.1% to 8.1%, respectively during the same period.
Unilever?s net profit rose 39% (at current rates) for the quarter ended June 30, 2010. However, Hindustan Unilever (HUL)?s net profit during thisperiod fell 1.85%. In terms of top line too, Unilever fared better with net sales rising 12.4% compared with an increase of 7.1% at HUL.
HUL, the largest FMCG company in India by revenues, was formed by merging three subsidiaries of Unilever in 1956. At present, Unilever holds 51.6% stake in company. Its portfolio of products covers a wide spectrum including soaps, detergents, skin creams, shampoos, toothpastes, tea, coffee and branded flour.
Net sales of HUL increased from Rs 4,475.68 crore during April-June?09 to Rs 4,793.89 crore during April-June ?10, but the operating profit margin contracted 140 basis points to 15.47% while the operating profit decreased by 1.8% to Rs 741.57 crore.The net profit after extra-ordinary items also decreased by 3.4% to Rs 518.87 crore.
Harish Manwani,Chairman, HUL had observed that despite an intensely competitive environment, the company had 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,? Manwani had said after the results were announced.
Unilever?s turnover rose from 10,458 million euro during April-June 2009 to 11,752 million euro during April-June 2010, while the OPM expanded by 123 basis points to 13.85%.
Unilever CEO, Paul Polman, said, ?We have delivered another quarter of robust volume growth with improved volume market shares in all of our regions.This is an encouraging result given the challenging economic and competitive environment and reflects the continuing investment behind our brands,better in-market execution,successful innovations and the extension of our brands into new markets.?
