Hind Lever Q4 net up marginally

FMCG major Hindustan Lever (HLL) posted a 2.94 per cent growth in net profit in Q4.

The company reported a net profit of Rs 494.72 crore for the quarter ended December 31, 2003 as against Rs 480.57 crore in the corresponding quarter of the previous year.

However, profit after tax but before exceptional items grew 0.97 per cent to Rs 562.33 crore against Rs 556.90 crore in the corresponding period of the previous year.

The HLL board has declared a final dividend of Rs 3 per equity share of Re 1 (paid up), taking the total dividend paid out for 2003 to Rs 5.50 per share (550 per cent).

Net sales for the quarter fell 1.93 per cent to Rs 2,583. 48 crore for the quarter against Rs 2,634.50 crore in the quarter ended December 2002.

However, after excluding sales from businesses that have been subsequently disposed of, sales grew 2.2 per cent year on year with the FMCG business posting 4 per cent growth.

The net profit of Rs 494.7 crore in the quarter is after providing for a net exceptional charge of Rs 67.6 crore, relating to business restructuring and charges for higher retirement benefits due to an increase in annuity rates effective November 1, 2003.

"Our strategy of focusing on power brands has put us firmly on the path of sustainable growth. In the home and personal care business, power brand growth has doubled from 3.2 per cent in 2002 to 6.5 per cent in 2003. In the foods business, power brands have grown by 9 per cent after declining in 2002.The prospect of higher disposable income, aided by good economic growth augurs well and we are determined to relentlessly pursue growth in the face of competitive challenges," HLL Chairman M S Banga said at a media conference yesterday.

For the full accounting year, ended December 31, 2003, sales grew 1.84 per cent to Rs 10,138.35 crore against Rs 9,954.85 crore last year.

However, net sales (excluding disposed business) for the year ended December 31, 2003, grew 4.3 per cent over the previous year's sales. Net profit, after exceptional items, grew 0.12 per cent to Rs 1,771.79 crore against Rs 1769.74 crore last year.

Profit after tax but before exceptional items grew by 4.22 per cent to Rs 1,804.33 crore for the year ended December 31, 2003 against Rs 1,731.32 crore for the for the corresponding period of the previous year.