HULs net sales were up 3.56 percent to Rs 7,987.74 crore during the quarter under review, the company said in a BSE filing. Rural sales account for around 40% of the company’s total revenue.
Advertisement
FMCG major Hindustan Unilever (HUL) today reported an increase of 9.79 per cent in standalone net profit to Rs 1,173.90 crore for the first quarter ended June 30.
“We continue to make progress on our priorities of strengthening the core of our business whilst driving operational efficiencies”, he said.
The second quarter is expected to be better as price growth will return due to revival of rural demand following good monsoon and rural initiatives, he said.
The quarterly result was announced minutes before the stock market closed, sending the stock to fall sharply before ending 2.04% down to its previous close. It is expected to be commissioned in early 2017 and will augment the production capacity of personal care products for HUL, the company said in a statement.
“In slowing market conditions, the business is tracking ahead of the market with sustained margin improvement”.
At present, the company has a manufacturing facility in Doom Dooma Industrial Estate of Upper Assam set up in 2001 and houses three units that produce personal care products – shampoo, skin creams and toothpaste. “Domestic consumer business growth was at 4%, with 4% underlying volume growth, and operating margin expanded by 70 basis points”, said the company.
Advertisement
Subsequently, Srinandan Sundaram, now Vice President, Skin Care, will take over from Misra as the Executive Director, Sales & Customer Development, and will join the HUL Management Committee.
