Hind Unilever net falls marginally in Q4
Sales increase by 17%; board approves change in accounting year.
Shashi Ashiwal Mr D. Sundaram, Vice-Chairman and Chief Financial Officer, Hindustan Unilever Ltd, announcing the company’s quarterly results in Mumbai on Sunday. —
Our Bureau
Mumbai, Jan. 25 Consumer goods major Hindustan Unilever Ltd (HUL) reported a 2.5 per cent decline in net profit for the fourth quarter ended December 31, 2008 at Rs 615.74 crore, compared with Rs 631.44 crore in the corresponding quarter of the previous year.
The fall, the company said, was mostly on account of certain exceptional and extraordinary items. Under the exceptional items, the company had a gain of Rs 112.87 crore in the quarter ended December 2007 on the sale of one of its properties, while during the quarter under review, the company posted a loss of Rs 30 crore on account of advance paid in connection with a case pending in court.
The net profit before exceptional items grew by 12.7 per cent at Rs 612.26 crore in the quarter (Rs 543.05 crore), the company said in a statement.
Net sales at Rs 4,307.71 crore grew by 16.8 per cent during the quarter (Rs 3,687.40 crore). Exports, however, dropped to Rs 264.97 crore from Rs 343.65 crore. The company’s raw material costs increased to Rs. 1,689.85 crore from Rs 1,359.57 crore in the year-ago period.
The board has approved a change in accounting year to commence from April 1 and end on March 31 of the following year. As a result, as a transitory arrangement, the next period of annual accounts will be for a period of 15 months from January 1, 2008 to March 31, 2009.
For the 12-month period ending December 2008, the company’s net sales were up at Rs 16,345.2 crore (Rs 13,717.75 crore) and net profit was up at Rs 2,101.47 crore (Rs 1,925.47 crore)
Mr. D. Sundaram, Vice-Chairman and Chief Financial Officer, said that overall FMCG business grew by 21 per cent.
The year saw volume price equation loaded in favour of price due to high cost, but this will change in the current year, he said.
The company spent Rs 371.02 crore towards advertising and promotions during the quarter. “On an annual basis, I do not think there will be any reduction in our advertising and promotion costs,” Mr. Sundaram said.
He said input cost inflation has started receding and, if sustained, will reflect in lower consuming costs. He, however was not willing to comment on whether there will be further price cuts in the coming quarters.
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