Hindustan Unilever lost 3.57% to Rs 662 at 13:49 IST on BSE after the company reported fall in net profit in Q1 June 2013 over Q1 June 2012 on a significant exceptional income generated in Q1 June 2012 from the sale of properties.
Hindustan Unilever (HUL) declared Q1 June 2013 results during market hours today, 26 July 2013.
Meanwhile, the S&P BSE Sensex was down 62.26 points, or 0.31%, to 19,742.50
On BSE, 12.51 lakh shares were traded in the counter as against an average daily volume of 3.75 lakh shares in the past one quarter.
The HUL stock saw high intraday volatility. The stock fell as much as 0.58% at the day's high of Rs 682.50. The stock lost as much as 5.65% at the day's low of Rs 647.70. The stock had hit a record high of Rs 725 on Wednesday, 24 July 2013. The stock had hit a 52-week low of Rs 432.25 on 7 March 2013.
Ahead of the results, the HUL stock fell 3.21% to Rs 686.50 on Thursday, 25 July 2013. The stock had outperformed the market over the past one month till 25 July 2013, rising 16.83% compared with the Sensex's 6.31% gain. The scrip had also outperformed the market in past one quarter, surging 43.6% as against Sensex's rise of 2.05%.
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India's largest FMCG firm by sales has an equity capital of Rs 216.25 crore. Face value per share is Re 1.
HUL's net profit fell 23.43% to Rs 1019.25 crore on 5.89% growth in total income to Rs 6985.79 crore in Q1 June 2013 over Q1 June 2012. The company said that fall in net profit was due to significant exceptional income generated in Q1 June 2012 from the sale of properties.
HUL said that during Q1 June 2013, the domestic consumer business grew competitively at 7% with 4% underlying volume growth ahead of market.
HUL said that soaps and detergents grew 8% in Q1 June 2013 over Q1 June 2012 on profitable broad based growth. HUL added that skin cleansing sustained its strong performance, registering another quarter of double digit volume growth. Lifebuoy, Breeze, Dove and Lux delivered robust volumes. The quarter witnessed price deflation as the benefit of lower commodity costs were passed on to consumers, the company said.
In laundry segment, Surf and Rin maintained double digit growth as they continue to drive category upgradation. The liquids portfolio was expanded with the launch of Surf Excel detergent liquid. Household care grew in double digit and Vim Anti Germ Dishwash and Domex acid based toilet cleaners were introduced.
Personal products grew 2% in Q1 June 2013 over Q1 June 2012 in a slowing market as double digit growth sustained in hair, oral and colour cosmetics, HUL said. In skin care, Ponds, Lakmand Dove delivered a good performance with double digit underlying volume growth. Fair & Lovely maintained its strong position in the mass skin lightening segment. However, it was impacted by a challenging market context and a strong base effect. Plans are underway to step up the growth momentum, the company said.
HUL said that hair care segment had another good quarter with volume led double digit growth. Sunsilk and Clinic Plus sustained robust growth momentum and Dove growth was led by bottles. TRESemmcontinues to make very good progress, the company said.
Oral care registered double digit growth in Q1 June 2013 driven by the exciting activation on Close Up and a step up on Pepsodent Expert Protection.
Colour Cosmetics did particularly well, delivering stepped up double digit growth across both Lakmand Elle 18. Lakmcontinues to strengthen its position in Premium Make Up driven by the growing momentum on Absolute and 9 to 5 which nearly doubled sales in Q1 June 2013.
In keeping with the thrust on building Beauty expertise, a number of differentiated innovations were launched in Q1 June 2013. In Skin, Ponds BB Cream and LakmCC Cream were introduced and the facial cleansing portfolio was further strengthened with a new LakmFresh Fairness Clean up range.
Hair Care saw the launch of Sunsilk Radiant Shine, Dove Cellular Repair with keratin actives and TRESemmKeratin Smooth. In addition, the global portfolio was leveraged to launch the TIGI range of premium hair care and styling offerings in select top end salons.
Beverages segment grew 16% in Q1 June 2013 over Q1 June 2012 as tea growth accelerated. Tea delivered one of its strongest quarters with double digit growth across all key brands, HUL said. Actions taken to strengthen the core, extend distribution and impactful activation has enabled a step up in the growth momentum in this category. Taaza in particular had one of its best performances this quarter, on the back of a reinforced marketing mix. The continued thrust on market development for tea bags has enabled flavored and green teabags to nearly double in the quarter. In a slowing Coffee market, Bru grew well led by the core.
Packaged foods segment grew 5% in Q1 June 2013 over Q1 June 2012 driven by Kissan and Knorr Soups. Kissan and Knorr soups sustained double digit growth. The Knorr portfolio was expanded with the launch of the 'Easy to Cook' range of meal makers. Kwality Walls grew modestly, impacted by a slowdown in the Ice Cream market. An exciting range of innovations have been launched this season, including the test market launch of premium Magnum bars in Chennai, which has met with a positive initial response.
HUL said that while commodity costs were relatively benign, PFAD prices started to move up and the rupee sharply depreciated towards the end of the quarter. Profit before interest and tax (PBIT) grew by 12% and PBIT margin improved by 70 basis points in Q1 June 2013 over Q1 June 2012. Profit after tax but before exceptional items, PAT, grew by 4% to Rs 885 crore in Q1 June 2013 over Q1 June 2012.
Harish Manwani, Chairman commented: In a difficult market environment, we have again delivered competitive growth and strong margin expansion through a sustained focus on innovation, in-market execution and robust cost management. While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence.
HUL today, 26 July 26, 2013 announced key changes in the board of directors and management committee of the company. Nitin Paranjpe, currently the managing director and chief executive officer of HUL will be joining the Unilever Leadership Executive (ULE), taking on the role of president, Home Care with effect from 1 October 2013.
Mr. Sanjiv Mehta, currently chairman, North Africa & Middle East (NAME), Unilever, has been appointed as the managing director and chief executive officer of the company in place of Mr. Nitin Paranjpe with effect from 1 October 2013. The appointment has been approved by the board of directors of the company at its meeting today, July 2013 alter the nominations and remuneration committee of the board had recommended the same to the board and will be subject to the approval of the shareholders. Mr. Sanjiv Mehta will also be responsible for South Asia cluster which includes India, Pakistan, Sri Lanka, Bangladesh and Nepal.
Shares of HUL were on a roll recently to scale a record high on media reports that the company has raised prices of some of its personal care products. HUL has hiked price of Dove Lotion 400 ml pack price by 15% and 250 ml Dove Lotion Pack by 11% and the price of Lakme deep pore cleanser (200 ml) is hiked by 36%, reports added.
Anglo Dutch parent Unilever this month hiked its stake in HUL through an open offer at Rs 600 per share. Unilever PLC on 11 July 2013 said that pursuant to the voluntary open offer to increase its stake in HUL, the shareholders of HUL tendered a total of 31.99 crore shares, out of which 31.95 crore shares have been accepted by Unilever PLC on completion of the verification of the shares tendered. Based on the shares tendered which represent 14.78% of HUL, the Unilever Group's stake in HUL increased to 67.26% from 52.48%.
HUL is India's largest FMCG company in terms of sales with over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.
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