FMCG major Hindustan Unilever Ltd has announced its results for the quarter October-December for the financial year 2009-2010. Its net sales have come in Rs 4,504.2 crore versus Rs 4,307.7 crore. Net profit has come in at Rs 649.1 crore versus Rs 615.7 crore.
The numbers have come in below street estimates. According to CNBC-TV18 estimates, its net profit was expected to go up 8.7% to Rs 669 crore. Sales were seen going up 7.5% to Rs 4,630 crore.
Margins
In a press conference after the result announcement, the company said that gross margins were at healthy levels and the cost of goods was down 480 bps. The underlying operating margin was up 10 bps. A fall in commodity costs helped maintain costs. Cost saving programmes and buying efficiency had also contributed to growth, the company said. The company said it would drive cost efficiencies even harder in 2010.
Power laundry
Tthe company said that 75% of its portfolio had seen robust growth and the laundry business especially had seen significant volume growth. The price reduction had however, kept the laundry business value growth flat. The company that the laundry value growth will improve.
Brand value
The company also said that investment in brand and innovation had helped fuel growth. The company has also invested in improving market efficiency, and stepped up media spends to support brands the management said.
Extraordinary income
Extraordinary income includes income from sale of property which in turn has helped revenue growth. The company will look to sell some residential and commercial properties across India.
Management Quote
Hindustan Unilever management said that FMCG market continues to grow slower than previous quarters. "The company is starting to see positive results across verticals. Company's 75% of the portfolio has seen robust growth. Price reduction has kept laundry business value growth flat. The company has seen significant volume growth in laundry business." The management believes that laundry business value growth will improve.
It further said that brand investment, innovation has helped fuel growth. "Overall, gross margins have seen significant growth and are at healthy levels. Underlying operating margins stood up 10 bps. The company has invested in improving competitiveness in the market. It has also stepped up the media spends to support brands."
It said that revenue growth includes extraordinary income from property sale. "Cost of goods sold has come down by 480 bps. It will drive cost efficiencies even harder in 2010. The company will look to sell residential and commercial properties across India." Fall in commodity costs have helped to maintain costs, the management added.
Source: Moneycontrol.comCourtesy moneycontrol.com
Also check
Posts
No comments:
Post a Comment