Hindustan Unilever on Friday reported a decline of 23.43 per cent in its standalone net profit to Rs 1,019.25 crore for the quarter ended June 30. On the other hand company’s net sales during April- June increased by 6.99 per cent to Rs 6,687.49 crore as compared to Rs 6,250.15 crore in the corresponding period last year.
HUl in a statementM, trying to explain the decline in the net profit said, in Q1 FY13 the company hand an income of Rs 607.24 crore from exceptional items, which included sale of properties while in Q1 FY14, income from exceptional items was just Rs 106.25 crore.
Commenting on the company’s performance, HUl Chairman Harish Manwani said, “In a difficult market environment, we have again delivered competitive growth and strong margin expansion through a sustained focus on innovation, in-market execution and robust cost management.”
He, however, also stressed that there are a few near term concerns infront of the company. He said, “While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence.”
Company’s revenue from soap and detergents increased by 7.33 per cent to Rs 3,407.66 crore while personal products increased by 1.96 per cent to Rs 1,883.38 crore. Revenue from beverages grew by 15.79 per cent to Rs 757.37 crore and packaged food increased by 4.78 per cent to Rs 457.88 crore.
Apart from the results, the company also made a major announcement that its current Managing Director and Chief Executive Officer, Nitin Paranjpe, will now move to the parent company Unilever and take the role of the President, Home Care, of the FMCG giant.
Subsequently, Sanjiv Mehta, currently Chairman, North Africa & Middle East (NAME), Unilever, has been appointed as the Managing Director and Chief Executive Officer of the company in place of Paranjpe with effect from October 1, 2013.