| HLL Q2: Net up 35% at Rs 381 cr |
| Our Web Bureau / Mumbai July 30, 2006 |
| FMCG major Hindustan Lever (HLL) has posted a 35.1% growth in net profit for the quarter ended June 30, 2006 at Rs 381 crore, according to an official release issued by the company today. The company's total sales have grown 8.7% to Rs 3083cr. Growth in continuing businesses i.e. after eliminating impact of disposals was higher at 10%. FMCG business grew by 12.1%. HPC business continued its strong performance leading to a 13.9% sales growth, with all categories growing at double digit level. Consumer relevant innovations, effective market activation and appropriate brand support continued to be the key drivers for this all round growth, the release said. The board of the company, at it meeting held today, has declared an interim dividend of Rs 3 per share for the year ending December 31, 2006, the release said. Foods business grew by 3.9%. In Beverages, sluggish market growth impacted the Tea business, while Coffee continued to grow. Processed Foods business is beginning to gain momentum underpinned by strong performance in Kissan and Knorr, the release said. Cost saving initiatives as well as buying efficiencies mitigated the impact of escalating costs. These savings, together with selective price increases improved gross margin. A significant part of this margin increase was redeployed in supporting the brands for driving sales growth. Consequently, advertisement and promotion spend for the quarter was 20.5% higher. Profit before interest and tax (PBIT) increased 22% and PBIT margin for the quarter at 13.6% of sales, improved 140 bps over JQ |
