Hindustan Unilever (HINDUNILVR) Q4 2005 earnings summary

Executive summary

• 2005 returned to robust topline growth: sales rose 11.4%; FMCG categories grew 13%, supported by marketing, innovation and stronger brand investment.

• Profit after tax before exceptional items was Rs 1,354.51 crore; reported net profit was Rs 1,408.10 crore, including net exceptional income.

Financial highlights

• Standalone net sales were Rs 11,060.55 crore, up 11.4% YoY; gross turnover was Rs 11,975.53 crore, up 10%.

• Standalone PBT before exceptional items rose 6.6% to Rs 1,604.47 crore; PAT before exceptional items increased 12.9% to Rs 1,354.51 crore.

• Consolidated sales were Rs 11,565.83 crore; consolidated net profit was Rs 1,355.93 crore, versus Rs 1,208.40 crore in 2004.

• Standalone operating expenses rose 13.3% YoY, faster than net sales; other income declined 4.4%.

Outlook and guidance

• 2006 GDP growth outlook was 7–8%, conditional on monsoon performance and other unexpected developments; plans factored in continued competitive pressure.

• Pureit was expected to expand beyond its Tamil Nadu test market; the ice cream business expected to sustain its 2005 performance.

• Project Shakti target: reach 600 million consumers in 500,000 villages through 100,000 entrepreneurs by 2010.