Rising FMCG demand lifts HLL profit

Hindustan Lever (HLL), the Rs 11,000-crore consumer products giant, capitalised on rising consumer demand to post a 17.7% increase in profit after tax (before exceptional items) to Rs 383 crore in the quarter ended September '06.

e4m by exchange4media Staff
Published: Nov 1, 2006 8:02 AM  | 3 min read
Rising FMCG demand lifts HLL profit

Hindustan Lever (HLL), the Rs 11,000-crore consumer products giant, capitalised on rising consumer demand to post a 17.7% increase in profit after tax (before exceptional items) to Rs 383 crore in the quarter ended September '06.

Sales during the period were up 12.2% to Rs 3,066 crore, while domestic FMCG sales were up 14.2% to Rs 473.8 crore. HLL shares closed up 2.1% at Rs 233.6 on Tuesday.

Its largest segment by sales, soaps and detergents, which contribute to 45% of turnover, grew by 12% during the quarter. The company cited good performances from Lux, Pears, Dove and Hamam, while Lifebuoy reported modest growth.

In detergents, Surf and Rin led the growth. HLL's ace is its personal products category, which contributes to 28% of sales but 48% of segment profits. This segment is benefiting from the growing demand for premium products, as an increasingly upscale consumer spends on personal care.

Sales grew by 17.1% in the quarter over the same period last year. Variants of Fair & lovely like Menz Active, Skin Clarity were launched and it also launched a face wash under the Ponds brand.

While the home and personal care segments did well, the foods segment had a mixed quarter. Beverages' sales were up by 6.6% to Rs 345.5 crore, reversing the decline in the June '06 quarter. Processed foods sales were up by 19% to Rs 97.3 crore, while ice-cream sales were up by 47% to Rs 34 crore.

HLL's sales growth in the quarter was largely due to higher volumes and a favourable product mix, with price playing a smaller role. Of the 14.2% domestic FMCG sales growth, volume and price mix contributed 10.8% to it.

In HPC, while value growth was 15%, volume growth was 11.9%. Aiding this volume growth is the FMCG sector growth, which is estimated to be about 10% in the September quarter. Another is HLL sustaining the tempo on the advertising and promotion (A&P) front.

It spent about Rs 345 crore in the June '06 quarter on this account, and maintained it at Rs 340 crore in the current quarter. That's a 41.5% increase and now contributes to about 12.3% of FMCG sales, up from 10% in the same period last year.

“The direction in which advertising and promotion spends are heading will remain upwards,” said finance director, HLL, signalling this as a level of ad spend to sales that HLL was comfortable with.

HLL's profitability during the quarter improved, with operating profit margins improving to 13.1% from 12.6%. This was despite higher advertising expenses. The company was able to contain the impact of higher input costs through cost savings measures. Price hikes and a better product mix played a role too.

“With input inflation as an on-going challenge, the business remains focused on driving cost saving initiatives and effecting selective price increases,” said Harish Manwani, chairman, HLL in a company release.

This quarter's performance includes the impact of the merger of some of HLL's subsidiaries like Lipton India Exports, Lever India Exports and also a group company Vashisti Detergents. That has had some impact on performance. Net sales, after adjusting for these mergers, were up by 12.3% to Rs 3,044 crore, while profit after tax was up by 14.1% to Rs 329 crore.

Exceptional items during the quarter were significant, with a net exceptional income of Rs 137.7 crore compared with Rs 61 lakh in the previous corresponding quarter. As a result, net profit (including exceptional income) increased by 59.8% to Rs 520.7 crore.

Key items were sale of a portion of its holding in Tata Chemicals, which netted Rs 120.8 crore and Rs 66.8 crore due to reversal of provisions for employee-related costs.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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