HUL net down 2%, records new high in volume growth at 13%

HUL net down 2%, records new high in volume growth at 13%
Hindustan Unilever, country"s largest fast moving consumer goods (FMCG) company, posted a net profit of Rs. 569 crore for the quarter ending March 2011 against Rs. 581 crore during the same period last year. This is a drop of 2% Q-o-Q. The high net profit during the fourth quarter ended March 2010 was due to an extraordinary item, income from the sale of properties.

For Q4, FY"11, the net sales increased to Rs. 4899 crore, an increase of 13.5% compared to Rs. 4315 crore during Q4, FY" 10. During the same period the domestic consumer business grew from Rs. 4005 crore last year to Rs. 4565 crore this year showing 14% growth rate.

The company has shown a steady growth in the total volume in the range of 11-14% last year.

For 12 months ending 2011, HUL posted a net growth in volume sale by 13% correspond to the same period last year. Net sales for year 2011 grew by almost 11 per cent to Rs. 19,401 crore from Rs. 17,524 crore for the same period last year.

Net profit for 2010-11 is reported to be Rs. 2305 crore, an increase of 4.7 per cent compared to Rs. 2202 crore profit for 2009-10.

For the quarter ending March 2011, the increase in the raw material cost, especially in soap and detergent, had adverse effect on the net profit. Raw material cost increased 18.7% to Rs. 2105 crore compared to Rs. 1773 crore for the same period last year.

Advertising and sales promotion expenditure, 12.7 per cent for the quarter and 14.2 per cent for financial year, had also put stress on net profit.

HUL reported export figure at Rs. 278 crore for the quarter ending March 2011 and Rs. 1093 crore for the year ending March 2011. HUL is going to demerge the FMCG export division into a wholly owned subsidiary, Unilever India Exports Ltd. with effect from April 1.

The share prices of HUL increased by 3.55% to close at Rs. 284.45 on Monday 09, 2011.

Read more about: fmcg, hul, bse, nse
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