HUL Q1 net drops 1.8 pc

FMCG major Hindustan Unilever has recorded a 1.8 per cent drop in its profit to Rs 533.21 for the June quarter from Rs 543 crore in the year-ago period due to price wars with rivals and aggressive ad spends.

HUL had increased its advertising and promotional budget by 31 per cent to Rs 751 crore during the quarter,from Rs 561 crore during the q-o-q period as it tried to win back market share form rivals,including P&G,Dabur and Marico. HUL had also cut prices. The increase in the cost of raw materials by 7.81 per cent to Rs 1,683.26 crore from Rs 1,561.31 crore in the year-ago period also put pressure on the margins.

However,the overall sales during the quarter rose by 7.1 per cent to Rs 4,793 crore,as against Rs 4,475 crore in the year-ago period. Detergents and personal care categories saw double-digit volume growth. HUL chief financial officer R Sridhar said.