Mumbai, Oct. 31: Hindustan Unilever, the country’s largest fast moving consumer goods (FMCG) company, posted a worse-than-anticipated 22 per cent drop in net profit at Rs 428.53 crore for the quarter ended September 30. In the year-ago quarter, the company had earned a net profit of Rs 546.61 crore.

The fall in net profit was attributed to a one-time charge and higher advertising expenses. The FMCG company recorded a 5 per cent increase in net sales during the quarter at Rs 4,228 crore compared with Rs 4,028 crore in the second quarter of 2008-09.

Hindustan Unilever suffered a one-time loss of Rs 166 crore during the quarter as it paid the Hindustan Lever Employees’ Union for dues arising out of a closed unit at Sewree, Mumbai.

The company also recorded a 38 per cent increase in advertising expenses during the quarter to Rs 571 crore.

Chairman Harish Manwani said, “We sustained good growth momentum in the domestic consumer business, driven by high quality innovations and sharper in market execution. Personal products and the foods business continue to deliver strong growth. In soaps and detergents, we are strengthening our full portfolio in the mass segment.”

A statement by the company said soaps and detergents grew modestly on account of downtrading in detergents. A company official admitted that Unilever was facing pressure in this category. Revenues from soaps and detergents grew less than one per cent during the quarter. This category contributes nearly half of the company’s domestic revenues.

Godrej numbers

Godrej Industries today reported a consolidated net profit of Rs 66.67 crore for the second quarter ended September 30 compared with Rs 19.4 crore in the same period last year. Total income stood at Rs 896.17 crore during the quarter against Rs 965.27 crore in the same period last year.

Hindalco loss

Hindalco Industries today reported a net profit of Rs 344 crore for the second quarter ended September 30, down from Rs 719.95 crore in the same period of the previous fiscal.

“Due to a change in accounting standards of the company, the figures of the previous quarter are not comparable with that of the quarter ended September 30, 2009,” Hindalco Industries said in a filing to the Bombay Stock Exchange.

Total income stood at Rs 4,974.4 crore in the latest quarter, while it had a total income of Rs 5,859.95 crore in the same period previous fiscal.