Hindustan Unilever Net Beats Estimates on Soaps, Shampoos By Malavika Sharma - May 1, 2012

Hindustan Unilever Ltd. (HUVR), the Indian unit of the world’s second-largest consumer goods company, reported profit rose 21 percent and exceeded analysts’ estimates on higher sales of soaps and personal-care products. Net income rose to 6.87 billion rupees ($130.3 million) in the quarter ended March 31, from 5.69 billion rupees a year earlier, the Mumbai-based maker of Sunsilk shampoo and Knorr soups said in a statement yesterday. That beat the 6.44 billion- rupee median of 30 analysts’ estimates compiled by Bloomberg. The introduction of high-end products and higher sales of laundry detergents boosted revenue by 16 percent to 56.6 billion rupees. The company wants to boost sales of products such as fabric conditioner and face wash, Chief Executive Officer Nitin Paranjpe said in an interview in February. “Personal products continue to do well, largely driven by volume growth,” said Sameer Narang, an analyst at HDFC Securities Ltd. “In the soaps and detergent business also they have been able to get some volume traction.” Revenue from selling soaps and detergents rose 29 percent to 28.3 billion rupees in the fourth quarter. Sales of personal- care products gained 17 percent to 17.1 billion rupees. Volumes, Prices Higher sales of shampoos such as Sunsilk and skin products such as Ponds boosted the personal-care products’ business, Chief Financial Officer Sridhar Ramamurthy said on a call with reporters. Higher volumes and price increases drove up soaps and detergents revenue, he said. “They’re trying to premiumize their product portfolio,” said Shivani Mehra, an analyst with Techno Shares & Stocks Ltd. “The premiumization would lead to growth, with different product launches.” Parent Unilever on April 26 reported first-quarter revenue growth that beat estimates and outstripped competitors Danone (BN) and Nestle SA (NESN), led by Dove skincare and Tresemme hair products. Underlying sales, which exclude acquisitions, disposals and currency fluctuations, grew 8.4 percent from a year earlier. Hindustan Unilever’s shares were unchanged at 417.60 rupees at the close of trading in Mumbai on April 30. Markets were closed yesterday for a public holiday. The company’s shares have gained 2.5 percent this year. To contact the reporter on this story: Malavika Sharma in New Delhi at msharma52@bloomberg.net To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net ®2012 BLOOMBERG L.P. ALL RIGHTS RESERVED.