HUL net profit up 17% in Q4

 FMCG major Hindustan Unilever (HUL) posted a 16.73 per cent increase in net profit for the fourth quarter ended March 31, 2015, at Rs 1,018.08 crore as against Rs 872.13 crore in the same quarter, previous fiscal.

Analysts had expected HUL to post a net profit of around Rs 970 crore for the fourth quarter.

The profits were boosted by an exceptional item of Rs 179.40 crore, which included profit on sale of surplus properties worth Rs 7.07 crore, profit on sale of wholly owned subsidiary Brooke Bond Real Estates for Rs 168.97 crore, reduction in provision for retirement benefits arising out of change in actuarial assumptions of Rs 5.37 crore, and restructuring expenses of Rs 2.02 crore.

Net sales for HUL during the fourth quarter grew 8.92 per cent to Rs 7,555 crore as against Rs 6,935.82 crore in the corresponding quarter last fiscal. Advertising and promotional spends during the quarter went up by Rs 188 crore (150 basis points) during the quarter.

“Domestic consumer business during the quarter grew 9 per cent while the underlying volume growth during the quarter stood at 6 per cent. For the full year, volume growth was at 5 per cent,” HUL Chief Financial Officer P B Balaji said.

The cost of goods sold were lower by 310 basis points led by lower commodity costs and savings programmes, Balaji added.

As far as the outlook for the sector for the next year is concerned, the company said that it remains positive about the mid-term outlook.

“Looking ahead, the pace of recovery is largely dependent on rural demand. The fiscal headwinds may continue for another year but the mid term outlook for FMCG business remains positive,” Balaji said.