Hindustan Unilever Limited – March Quarter 2009 Results

On a comparable basis, in the period of 12 months ending March 2009, FMCG growth stands at 18.3%. PBIT (bei) grew 18.8% with PBIT margin expanding by 40 bps during the period of unprecedented costs increases.

12/05/09 Hindustan Unilever Limited (HUL) announced its results for March Quarter 2009. FMCG maintained strong value growth of 12%, in the context of a challenging environment, trade de-stocking and outlet consolidation in organised retail. Net Sales grew 6% with planned decline in non core exports.

HPC Business grew at 11% driven by carry forward impact of pricing in Soaps and Detergents which grew 16%. Personal Products grew 2%, affected by outlet consolidation in organised retail and decline in Oral Care. Laundry business grew well driven by Surf and Rin. Wheel growth was lower due to grammage impact.

Growth in Personal Wash was led by Lux and Dove. Shampoo category witnessed moderate growth with Dove continuing to gain market shares and Sunsilk holding. Skin category growth was led by Fair and Lovely and strong volume growth in Vaseline. In Oral, growth in Close Up was offset by decline in Pepsodent. New range of Dove shampoos and Vaseline Healthy White were launched in this quarter.

Foods business grew by 13% with Beverages at 13% and Ice-Creams at 22% leading growth. Robust plans drove growth in Tea with all brands growing well. Processed Foods grew 7%, led by Jams, and Ice-Cream delivered a strong volume growth. Pure-It is now Rs 200 crore brand with more than 1 million units sold in last 12 months and more than 2 million homes protected till date.

Investment behind brand, infrastructure and capability building continues. Input costs are down sequentially except in tea. Better cost management and operating leverage has led to higher operating margins in this quarter. Overall Material Cost including purchased goods were lower 210 bps. A&P investment has grown by 3% with media spends up by 27%, offset by lower promotions. PBIT (bei) grew 23.7% and PBIT margin for the quarter at 13.9% of Sales, was 200 bps higher than March Quarter 2008. PAT (bei) grew by robust 20% and Net Profit grew by 4% due to impact of exceptional expenditure.

On a comparable basis, in the period of 12 months ending March 2009, FMCG growth stands at 18.3%. PBIT (bei) grew 18.8% with PBIT margin expanding by 40 bps during the period of unprecedented costs increases. PAT (bei) grows by 15%. Mr. Harish Manwani, Chairman commented: “We have focused on sustaining growth in a challenging economic environment by significantly improving consumer value across our portfolio. This has been achieved through a series of interventions, including pricing actions. Simultaneously, continued focus on costs and improved operating leverage has helped deliver strong profit growth. We will continue to drive our business to deliver competitive and profitable growth.”