PaperTopicsEconomyInfo-techAgri-bizBankingLogisticsMarketingGovernment & PolicyShipping NewsTaxation & HomeCompaniesMarketsIndustry & accounts Shift EconomyOpinionFeaturesToday in performanceAarati KrishnanShare product mixboosts HUL · printing ·The sales growth of 15 percent in its domestic FMCG business was more than quarter of March (14 percent) and quite well what delivered its much smaller rival.
28 July 2011: Hindustan Unilever (HUL) has managed to improve its trajectory of growth of sales and keep his growing profits in June quarter but most recently, that is not enough to excite the stock market. The sales growth of 15 percent in its domestic FMCG business was more than quarter of March (14 percent) and quite well what delivered its much smaller rival. However, the expectations of the market had already budgeted for this. And while almost all of the expansion of sales of HUL in the March quarter came from higher volumes (withdrawals read higher), volume growth moderated to 8.3% in the June quarter, with higher selling prices, lifting sales. AgainHUL success also cut spending to expand its profits, both operating at the network level, approximately 11 percent despite the high cost of entry. The recent dip in crude oil and palm oil, prices are yet to benefit HUL is evident from the escalation continues raw Bill. The company's cost of goods sold stood at 55.8 percent of June sales in the last quarter, well above the 51 percent last year, as well as 54.3 percent March quarter. In the light of rising material costs, the company has maintained its profit margins to slide too abruptly with the simple maneuver of cuts on its promotional and advertising costs. Nothing new there, as HUL had begun to save on his adspends in deference to increased costs in the same quarter the previous March. Better mixWhile numbers above indicate business as usual for the company, there were some interesting takeaways from segment results-wise. One, both soaps and detergents and personal products, groups of bread and butter of HUL have accelerated their growth rates of sales. Soaps and detergent sales grew by 12.8% in the June quarter compared to 11.4 percent in March and self-development products rose to 19.4 percent from 13.6% in the previous quarter. Since peers in these categories did not grow as strongly, this could be a sign of market share gains for HUL. Two, the jump in sales of personal products has had a beneficial effect on margins, with this segment now contributing well over half (54 percent) of HUL profits before interest and tax, while soaps and detergents are contributing less than a third. If this trend persists, it will be good news for HUL as you have done a successful change in its product mix towards higher profit margin categories which also enjoy better prices. Three, in June quarter profits also got a lift from the drop-down menu big losses by segment (Rs. 27 crore in June 2010 at Rs. 2.5 crore in June last quarter) in the segment ' other ' & water. Given that this segment has been in the red for the past four years, no turnaround can make a big difference overview of profit of HUL.Keywords: Financial Performance, results, FMCG
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ColumnistsB. S. RaghavanT. C. A. Srinivasa RaghavanRasheeda BhagatA. P. SeshanAshoak UpadhyayEkalavyaC. Chandrasekhar and Jayati GhoshP. V. IndiresanSharad JoshiRaghuvir SrinivasanK. KanagasabapathyG. ParthasarathyG. ChandrashekharMohan MurtiAshima GoyalD. MuraliGnanasekaar TC. GopinathRajiv KumarBhaskar BalakrishnanNarendar PaniLATEST NEWSA walk with the ' Sun-catcher ' in rural India
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