HLL net up 15%

BS 200 SCORECARD

Fast moving consumer goods major Hindustan Lever Ltd (HLL) has posted a net profit of Rs 281.65 crore for the quarter ended June 30, 2005, up 15.2 per cent over Rs 244.49 crore in the corresponding quarter of the previous year.

This growth (post considering a one-time charge related to the disposal of a subsidiary of Rs 18.8 crore) has come after five consecutive quarters of net profit decline seen by the company.

At Rs 2836.32 crore, HLL's net sales for the quarter grew 10.3 per cent from Rs 2571.64 crore in the corresponding period of the previous year.

Topline growth has been driven primarily by a 7 per cent increase in volumes.Commenting on the results, HLL chairman Harish Manwani said that the company's progress has been broadbased across categories and its growth is now ahead of the market.

While the 12.1 per cent sales growth in the company's home and personal care (HPC) division was driven by the laundry and shampoo categories, the 10.9 per cent growth in the foods divison was led by Brooke Bond.

Taking segment-wise sales, the company's personal products grew 17.4 per cent to Rs 747.4 crore, soaps and detergents grew 9.3 per cent to 1287.6 crore and beverages grew 15.8 per cent to Rs 312.23 crore.

The processed foods segment however declined 4.8 per cent to Rs 78.23 crore due to poor performance in atta and ketchup brands.

Ice cream segment sales grew 7 per cent to 37.61 crore. The company's earnings before interest and taxes (EBIT) grew 4.2 per cent after absorbing cost increases and investments in brands.

The company's net profit before exceptional items grew 17.2 per cent due to lower interest costs post the redemption of bonus debentures and higher financial income.

HLL's investment on advertising and promotions has increased 11.6 per cent to Rs 286.57 crore, compared to Rs 256.66 crore in the corresponding quarter of the previous year.

The company's board of directors has declared an interim dividend of Rs 2.50 per equity share of Rs 1 each.