FMCG major Hindustan Lever has reported annual results, which are in line with expectations though the bottom line for the last quarter was below expectations. Better pricing power as compared to the pervious year helped improve margins, but volume growth remains anaemic.

For the year ended December 2006, HLL's standalone net profit has increased 31.76 per cent to Rs1,855.37 crore, or Rs8.41 per share, from Rs1,408.1 crore, or Rs8.05 per share, for the previous year. Net sales increased 9.43 per cent to Rs12,103.39 crore from Rs11,060.55 crore. Other operating income went up to Rs191.46 crore from Rs152.49 crore

Home and personal care sales increased 12.95 per cent during the year while foods sales wet up by 9.05 per cent.

Operating profits, excluding other financial income, went up by 15.27 per cent over the previous year. Operating margins as a percentage of net operating income went up to 14.96 per cent from 14.18 per cent

Cost of inputs increased by 5.53 per cent while advertising and promotion costs were higher by 26.57 per cent. Staff costs went up by 8.71 per cent and other operating expenses increased by 9.62 per cent.

HLL disposed off its tea plantations and merged its subsidiary Vashisti Detergents with itself during the year. Hence the results are not strictly comparable. The company realised Rs36.74 crore from a stake sale in one of its subsidiaries while restructuring of its foods business cost Rs30.88 crore.

For the fourth quarter ended December 2006, HLL has reported a 1.86 per cent decline in standalone net profit to Rs511.18 crore, or Rs2.32 per share, from Rs520.86 crore, or Rs2.37 per share, for the previous year quarter. Net sales increased 6.11 per cent to Rs3,156.1 crore from Rs2,974.33 crore. Other operating income for the quarter was Rs77.29 crore as compared to Rs37.6 crore for the previous year quarter

Sales of home and personal care products went up by 6.83 per cent while the foods division saw its sales go up by 10.93 per cent over the previous year quarter

Operating profits, excluding financial other income, increased 11.15 per cent over the previous year quarter. Operating margins as a percentage of net operating income improved to 17.86 per cent from 17.24 per cent a year ago.

Input costs went up by 6.59 per cent while advertising and marketing expenses were higher by 7.03 per cent. Staff costs increased 20.97 per cent and other operating costs went up by 3.1 per cent

Name change to Hindustan Unilever
Hindustan Lever is planning to change its name to Hindustan Unilever Limited. (See: Hindustan Lever to be renamed Hindustan Unilever) The company's board has approved the name change and shareholders would vote on the proposal later.

The company has been considering a name change for quite sometime now. An earlier proposal to change the name to Unilever India Limited was dropped in favour of the now accepted Hindustan Unilever. The new name indicates the strong domestic focus of the company while emphasising the company's importance within the Unilever group.

"The company believes that the proposed name change provides the optimum balance between maintaining the heritage of the company and the future benefits and synergies of global alignment with the corporate name of Unilever. Most importantly the proposed name retains "Hindustan" as the first word in its name to reflect the Company's continued commitment to local economy, consumers and customers and employees", a statement from HLL said.