HUL profits jump as consumer business remains buoyant

Business

oi-Sunil

By Sunil Fernandes

Updated: Monday, January 27, 2014, 15:30 [IST]

FMCG major, Hindustan Unilever saw its profits rising sharply by more than 21 per cent to Rs 1062 crores, during the quarter ended Dec 31, 2013, thanks to good performance at its consumer business.
"Domestic Consumer business grew at 10%, ahead of market, with 4% underlying volume growth," the company said in a statement.
Soaps and Detergents deliver a healthy performance

Skin Cleansing delivered another quarter of volume led growth. The category performance was driven by Dove, Pears, Lifebuoy and Breeze. Pears was relaunched during the quarter with a new proposition around younger looking skin. The liquids portfolio saw accelerated growth led by Lifebuoy Handwash.

In Laundry, growth was led by the premium segment. Surf growth was buoyed by the robust performance in Surf Excel Easy Wash and Excel Matic while Rin saw good growth on the bars portfolio. Wheel was re-launched with a superior formulation at the end of the quarter. Comfort fabric conditioners continued to lead market development with sustained high growth. Household Care delivered another strong quarter with both Vim and Domex growing in double digits.

Beverages led by double digit growth in tea

Tea delivered another quarter of broad based growth with Taj Mahal, Red Label, 3 Roses and Taaza growing in double digits, driven by a
strengthened mix and focused in-market activities. The sustained thrust on leading market development for tea bags, enabled flavoured and green tea bags more than double sales in the quarter. The Lipton Clear Green Tea portfolio was expanded with the launch of new packs. In a slowing Coffee market, Bru continued to drive category premiumization, led by Bru Gold.

Harish Manwani, Chairman commented: "Our growth has been competitive and profitable and the results are a reflection of how we dynamically managed the business despite the headwinds in the environment. Looking forward, we are conscious of the uncertain macro context but remain positive on the mid to long term opportunities in our sector. We are determined to stay the course on our strategy and will continue to invest in the business for the long term."

The stock of HUL rallied almost 3 per cent, following its results.

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