Hindustan Unilever (HUL) has dipped nearly 6% to Rs 625, extending its Friday’s fall, after reporting a lower-than-expected 4% year-on-year (yoy) growth in underlying volume growth for its domestic consumer business against analyst estimates of 5-6% for the quarter ended June 30, 2013 (Q1) mainly due to the poor performance of the personal products segment.
The personal products business, which account around one-third of the company’s revenue and offers much higher margins than other segments, posted a disappointing 2% yoy growth on account of de-growth in Fair and Lovely on a high base and slowdown in the mass skin whitening segment.
The company’s net sales grew just 7% (the weakest pace since December 2009) to Rs 6,687 crore, compared with the corresponding period last financial year. The company said its adjusted net profit rose 3.6% to Rs 885 crore on yoy basis.
The stock of fast moving consumer goods (FMCG) has tanked 9% post Q1 earnings, slipped 14% from its recent high of Rs 725 touched during intra-day trade on July 24.
The personal products business, which account around one-third of the company’s revenue and offers much higher margins than other segments, posted a disappointing 2% yoy growth on account of de-growth in Fair and Lovely on a high base and slowdown in the mass skin whitening segment.
The company’s net sales grew just 7% (the weakest pace since December 2009) to Rs 6,687 crore, compared with the corresponding period last financial year. The company said its adjusted net profit rose 3.6% to Rs 885 crore on yoy basis.
The stock of fast moving consumer goods (FMCG) has tanked 9% post Q1 earnings, slipped 14% from its recent high of Rs 725 touched during intra-day trade on July 24.
