HLL sales fall, net up 6.9%

The board has recommended a final dividend of Rs 3 per share (face value of Re 1 each) along with an interim dividend of Rs 2.50 per share taking the total to Rs 5.50 per share in FY-02 against Rs 5 in the last year.

Addressing a news conference here today, HLL chairman M.S. Banga said: “In 2002, we vigorously pursued our strategy of strengthening our brands to deliver sustainable quality growth in the face of intense competition, a sluggish economy and declining market. HPC power brands beat the market by growing at 3.7 per cent. We have also continued to improve the profitability of our foods portfolio and have increased gross margins by about 5 per cent, making these businesses increasingly ‘fit for growth’.”

Reacting to the news, HLL’s scrip crashed by Rs 3.75 to close at Rs 172.80.

The drought also had an impact on rural areas sales but the FMCG giant intends continue its focus on power brands and new products, including bottled water during 2003, an HLL official said.

The Mumbai High Court has approved the scheme for issuing bonus debentures of Rs 6 each for every equity share and payment of special dividend of Rs 2.76 per share and is expected to be completed in quarter ending June, pending approval from the Reserve Bank of India.

Modern Foods, which was taken over by HLL in 2000 has shown an operating profit of Rs 4.8 crore before interest and restructuring costs, as against a loss of Rs 8.6 crore in 2001. Sales of Modern Foods during the year grew by 19 per cent.