Hindustan Levers has reported net profit 35 per cent to Rs 380.59 crore on net sales of Rs 3,083.23 crore which grew 8.7 per cent during the second quarter (April-June) of 2006. HLL has declared an interim dividend of Rs 3 per equity share of Re 1 each.
There was a 140 basis points increase in margins because of cost saving initiatives coupled with increased buying efficiency which partially neutralised the impact of escalating costs. Consequently, advertisement and promotion spend for the quarter was higher by 20.5 per cent. There has been a broad-based increase in all categories except tea business which was due to sluggish market growth.
FMCG sales grew 12.1 per cent driven by 13.9 per cent growth in HPC (home & personal care) business and 3.9 per cent growth in foods. The growth in continuing businesses i.e., after eliminating impact of disposals, was higher at 10 per cent. After adjusting for the disposal of Nihar brand, personal products segment revenue growth in the quarter was 15.1 per cent. The exports grew 1.9 per cent though speciality business like castor and rice saw a negative growth.