Hindustan Unilever Q4 net climbs 15% to Rs787 crore

Hindustan Unilever Ltd (HUL), the Indian arm of Anglo-Dutch consumer goods multinational Unilever, has posted a 15 per cent growth in net profit for the January-March 2013 quarter at Rs787 crore.

The company reported overall sales growth of 13 per cent year-on-year during the January-March 2013 quarter, with an underlying volume growth of 6 per cent.

For the financial year ended 31 March 2013, HUL saw a 41 per cent increase in net profit at Rs3,797 crore, while profit after tax but before exceptional items (PAT-bei) grew 28 per cent to Rs3,314 crore.

During the quarter ended 31 March 2013, HUL said both home and personal care as also foods and beverages businesses recorded double digit growth. Sales of soaps and detergents recorded broad based growth of 13 per cent.

Skin cleansing products delivered a robust performance with double-digit volume growth.

Laundry products also maintained double-digit growth across formats while personal products grew 12 per vent with accelerated growth in hair and oral care products.

Among foods and beverages, tea delivered another strong performance with double digit growth across all key brands gaining from an extended distribution and deployment and market development for tea bags. Coffee also sustained its growth momentum.

Packaged food sales grew 7 per cent during the quarter while ice cream sales grew modestly, impacted by a slowdown in the market.

HUL said profit margins during the quarter were boosted by relatively benign commodity prices, although competitive pressures remained high. The company also invested heavily in brands. The quarter saw a 90 basis point increase in brands at Rs144 crore.

Despite this step up, profit before interest and tax (PBIT) grew 17 per cent and PBIT margin improved by 60 bps. Profit after tax but before exceptional items (PAT) grew 18 per cent to Rs781 crore during the quarter. Net profit stood at Rs787 crore, a growth of 15 per cent year-on-year.

For the financial year ended 31 March 2013, HUL's domestic consumer business grew 16 per cent with 7 per cent underlying volume growth. All segments grew in double digits. Profit before interest and tax (PBIT) grew 23 per cent with PBIT margin improving 80 bps.

Net profit for the financial year grew 41 per cent to Rs3,797 crore while profit after tax but before exceptional items (PAT-bei) grew 28 per cent to Rs3,314 crore.

The board of directors of the company has proposed a final dividend of Rs6 per share of face value Re1 each for the financial year ended 31 March 2013, subject to the approval of the shareholders at the annual general meeting.

Together with interim dividend of Rs4.50 per share and special dividend of Rs8 per share, the total dividend for the financial year ended 31 March 2013 works out to Rs18.50 per share a payout of 1,850 per cent).

 ''In a challenging environment, we have delivered broad based competitive growth and margin improvement. We have continued to invest in strengthening our brands, stepped up innovation and driven in-market execution and operational efficiencies even harder.

At the same time, we are making good progress on our sustainable living plan agenda. While there are near term concerns around slowing market growth and inflationary pressures on consumers, we are confident of the medium to long-term growth prospects,'' said Harish Manwani, chairman of HUL.

In its filing with the Bombay Stock Exchange (BSE), Hindustan Unilever said the register of members and share transfer books of the company will remain closed from 12 July 2013 to 26 July 2013 (both days inclusive) for payment of final dividend for the financial year at the 80th annual general meeting (AGM) of the company to be held on 26 July 2013.

The final dividend, subject to the approval of shareholders, will be paid to the shareholders on or after 30 July 2013, it added.