Hindustan Lever Ltd. (HLL) has reported an impressive 23.4% growth in its Q1' 00 net profits to Rs 2,626 million backed by good sales growth in Home and Personal Care (8%), Beverages (32%) and Branded Staples (28%). The acquisition of 74% stake in Modern Foods has given the company a strategic entry into fresh product distribution and is in line with the company's vision of developing an integrated wheat flour business.
In the sluggish market condition HLL's sales witnessed a 6% volume growth and a 1% value growth. Also its export business has grown by 5% in difficult international trading conditions.
HLL's operating profits margin improved to 11% in Q1' 00 (9.8% in Q1'99) due to cost control initiatives taken by the company through its project millennium.
HLL is planning to invest Rs 1,200 million as business restructuring cost for the year ended 2001. The company has already incurred Rs 300 million towards the same which has resulted in improvement in its net profit margins to 10% in Q1'00 from 8.7% in the corresponding previous quarter.
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