Mumbai: Hindusthan Lever Ltd (HLL) has ended the third quarter with a 2.9 per cent decline in its net profit (before exceptional items) at Rs 408.15 crore (Rs 420.13 crore) mainly on account of an interest outgo of Rs 29.96 crore on bonus debentures allotted to shareholders this year.

However, the net profit, including exceptional items of Rs 35.07 crore, has shown an increase of 7.29 per cent to Rs 443.22 crore (Rs 413.29 crore). The exceptional items related to profit from the sale of edible oil and fats business (Rs 56.20 crore); provision for loss arising out of disposal of mushroom business (Rs 19.03 crore); provision for loss on fixed assets arising out of restructuring of Bangalore factory of culinary products division (Rs 8.71 crore).

Sales grew by 6.8 per cent to Rs 2,467.49 crore (Rs 2,367.46 crore). Power brands grew by 10 per cent mainly helped by HPC and foods segment. Besides, beverages segment grew by 9 per cent.

"Power brands growth this quarter is the highest ever in any quarter,'' said Mr S.P. Mustafa, Group Treasurer, HLL.
According to him, HLL's strategy of innovation, market place activity, superior advertising and judicious pricing contributed to topline growth. "We have reprofiled the type of spending in advertisements. We looked at new price points and a different marketing mix,'' he said. "Our advertisement philosophy is to get more productivity considering our scale of media buying,'' he said adding that growth in beverages and skin care is testimony of superior advertisement. A&P (Advertising and Promotion) spend during the September quarter is down at Rs 182.74 crore (Rs 217.80 crore).