Hindustan Unilever (HINDUNILVR) Q4 2000 earnings summary

Executive summary

• FY00 net turnover rose 4.5% to Rs 10,603.79 lakh; net profit increased 22.4% to Rs 1,310.09 lakh.

• Strategy focused on 30 national Power Brands, consumer-relevant innovation, wider rural reach and new distribution channels.

• Proposed amalgamation of International Bestfoods Limited (IBFL) and Aviance Limited was subject to shareholder, court and regulatory approvals.

Financial highlights

• Gross turnover was Rs 11,392.14 lakh, up 4.3%; net turnover was Rs 10,603.79 lakh, up 4.5% YoY.

• PBT increased 20.0% to Rs 1,665.09 lakh; net profit rose 22.4% to Rs 1,310.09 lakh.

• Tax on profits was Rs 355.00 lakh versus Rs 318.00 lakh; prior-year tax adjustments added Rs 17.23 lakh to FY00 results.

• Consolidated unaudited sales, net of excise, were Rs 11,511.29 lakh; consolidated net profit was Rs 1,257.17 lakh versus Rs 1,105.81 lakh.

Outlook and guidance

• Plans emphasized investment behind Power Brands, bigger innovations, brand extensions and affordable offerings to support market development and share gains.

• Distribution plans targeted new markets, especially rural India, and new channels; the existing network served more than 850,000 outlets.

• Export priorities included growing key consumer-goods categories, value addition, dedicated capacity and phasing out traded and non-value-added exports.

• Modern Foods management expected further sales growth and a turnaround within two years, supported by quality, distribution, cost and margin initiatives.