Hindustan Unilever's 2007 net up 3.8% at Rs 1,925 cr

NEW DELHI: FMCG major Hindustan Unilever has reported a 3.8 per cent rise in net profit in 2007 at Rs 1,925 crore as compared to Rs 1,855 crore in the previous year.

Total turnover of the company grew 13.3 per cent at Rs 13,717 crore in 2007 as against Rs 12,103 crore in 2006.

Home and Personal Care (HPC) and Foods businesses grew by 12.3 per cent and 20.2 per cent, according to HUL report of the Directors and Management Discussion and Analysis.

The report said the increase in turnover was a result of more volumes sold, better mix of products and selective price increases effected during the year, while gross margins of the firm improved on selective price hikes and cost-saving steps.

The board of directors also recommended final dividend of Rs three a share. "Total dividend to our stakeholders for 2007 stands at Rs 9 per share and includes the interim dividend of Rs three per share paid in August 2007 and Rs three per share paid in November 2007," the report said.

In the HPC category, soaps and detergents that include brands like Surf, Rin, Wheel, Sunlight, Vim, Lux and Hamam, Dove grew 13.9 per cent during 2007.

Commenting on the outlook for the personal wash category, the report said, "Protecting market share and margins in the face of continued increase in input costs and significant escalation in competition will be the key challenge for the business in 2008."

Personal products like hair care, skin care, toothpaste, deodorants and colour cosmetics offer high potential for the company. "The per capita consumption is currently low in these categories and is poised to grow with increasing income levels and awareness in personal hygiene and grooming," it said.

Processed foods business, with items like Knorr, Kissan, Annapurna salt, Brooke Bond tea, Bru Coffee in the beverages segment and ice creams, grew at 20.2 per cent.

Source : TET