13% domestic consumer sales growth in JFM'13: HUL India

Hindustan Unilever Limited announced its results for the quarter and financial year ending 31st March 2013.

During the quarter, the Domestic Consumer business grew at 13% with strong 6% underlying volume growth. Both Home and Personal Care (HPC) and Foods & Beverages (F&B) registered double digit growth.

Soaps & Detergents grew 13%; broad based growth
Skin Cleansing delivered a robust performance with double digit volume growth in Dove, Lux and Lifebuoy. The quarter witnessed price deflation as the benefit of the lower commodity cost was passed on to consumers. The liquids portfolio was further strengthened with the relaunch of the Dove Bodywash range.

Laundry maintained its double digit growth across formats. Surf and Rin continue to drive category upgradation, clocking in another quarter of double digit volume growth. Vim led the solid growth in Household Care.

Personal Products grew 12%; growth accelerates in Hair & Oral Care
In Skin, Ponds and Lakme did particularly well. Ponds Age Miracle sustained its strong growth momentum while Lakme growth was driven by the Perfect Radiance range. Fair & Lovely maintained its strong position albeit in a slowing mass skin lightening segment. The facewash portfolio was further strengthened with two new differentiated offerings – Lakme Nourishing Glow Clean Up and Ponds White Beauty Tan Removal Scrub.

Hair Care had a very good quarter with strong volume led double digit growth. Clinic Plus grew well driven by its relaunch, Sunsilk accelerated through impactful activation and Dove growth was led by a strong performance on bottles. TRESemmé continues to gain consumer franchise while the initial response to the Dove Elixir range of premium hair oils has been very positive.

Oral Care registered volume led double digit growth driven by a further step up in both Close Up and Pepsodent. A range of premium toothbrushes were launched under Pepsodent Expert Protection.

Beverages grew 18%; robust growth across portfolio

Tea delivered another strong performance with double digit growth across all key brands. Actions taken over time to strengthen the core, extend distribution, deploy engaging activation and market development for tea bags has helped step up growth in this category. In Coffee, Bru sustained its growth momentum.

Packaged Foods grew 7%
Kissan Ketchups maintained its double digit growth path while growth accelerated on the Knorr soups portfolio. The initial response to the Soupy Noodles relaunch in the last quarter has been encouraging. Ice Creams grew modestly impacted by a slowdown in the market.

Profit After Tax (bei) up 18%

While commodity costs were relatively benign during the quarter, competitive intensity remained at high levels. We continued to invest behind our brands - A&P was up 144 Crores (+90 bps) in the quarter. Despite this step up, Profit before interest and tax (PBIT) grew by 17% and PBIT margin improved by 60 bps. Profit after tax but before exceptional items, PAT (bei), grew by 18% to Rs. 781 Crores during the quarter. Net Profit at Rs.787 Crores grew 15%.

Financial Year 2012-13
The Domestic Consumer business grew by 16% with 7% underlying volume growth. All segments grew in double digits. Profit before interest and tax (PBIT) grew by 23% with PBIT margin improving 80 bps. Profit after tax but before exceptional items, PAT (bei), grew by 28% to Rs. 3314 Crores with Net Profit at Rs.3797 Crores growing 41%.

The Board of Directors has proposed a final dividend of Rs. 6 per share for the financial year ending 31st March, 2013, subject to the approval of the shareholders at the Annual General Meeting. Together with interim dividend of Rs 4.50 per share and special dividend of Rs 8 per share, the total dividend for the financial year ending 31st March, 2013 amounts to Rs. 18.50 per share.

Harish Manwani, Chairman commented: “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.