FMCG major Hindustan Lever Limited (HLL) has reported a 21% growth in net profit to Rs 2.9 bn in the third quarter ended September 30, 1999. The company's turnover growth however, was a marginal 7% to Rs 25 bn during the same period.
The company's domestic and personal care business comprising soaps, detergents, household care and personal products reported strong volume growth and achieved a 13% sales growth in the third quarter. Food segment (excluding tea and oils and fats) achieved a sales growth of 15% during the same period. The growth was strong in branded staples and coffee.
There was however no growth recorded in the tea segment. The oils and fats business was adversely impacted due to continued fall in commodity oil prices.
The consolidated results for the nine months (January-September 1999) were no different. Net profit for the period jumped 26% to Rs 7.2 bn compared to the third quarter results of the previous year. Turnover was up by 7% to Rs 76.5 bn during the same period. The overall net profit margins improved to 9.5% from 8.3% reported in January-September 1998.
Profit before Tax
Profit after Tax
Net profit margin
The growth during the consolidated nine months was led by personal products (up 21%), soaps and detergents (up 11%), branded staples (75%), seeds (43%) and animal feeds (26%). Ice-creams and culinary products grew by 7% each. Domestic packet tea sales declined by 19%, but it is expected to pick up post the withdrawal of discriminatory excise levy. Oil and fats segment showed volume growth but sales realisations declined by 10% due to low commodity oil prices.
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