HLL posts flat profit, sales too stagnant

Fast-moving consumer goods giant Hindustan Lever Ltd has posted a marginal 2.94 per cent rise in net profit at Rs 494.72 crore for the fourth quarter ended December 2003 (Rs 480.57 crore in Q4 of 2002) while total income decreased to Rs 2,684.53 crore (Rs 2,735.22 crore).

It also recorded flat net profit at Rs 1,771.79 crore for the year ended December 2003 as compared to Rs 1,769.74 crore recorded in previous year. The board of directors has recommended a dividend of Rs 3 per share by way of final dividend, making a total of Rs 5.50 per share for the reporting period. Total income in 2003 rose to Rs 10,598.18 crore from Rs 10,339.39 crore, it said. HLL group’s net profit and net sales for 2003 stood at Rs 1,687.34 crore (Rs 1701.46 crore) and Rs 10,836.95 crore (Rs 10,628.61 crore) respectively. Says HLL chairman M S Banga: “Our strategy of focussing on power brands has put us firmly on the path of sustainable growth. In HPC, power brand growth has doubled from 3.2 per cent to 6.5 per cent in 2003”. “In foods, power brands have grown by nine per cent after declining in 2002. The prospects of higher disposable income, aided by good economic growth augur well and we are determined to relentlessly pursue growth in the face of competitive challenges,” he added.