Hindustan Unilever Q1 net profit rises 9% to Rs1,283 cr

Consumer goods major Hindustan Unilever Ltd (HLL) reported a 9 per cent year-on-year increase in its net profit for fiscal first quarter (April-June 2017-18), helped by higher sales in the home care and beverages segments.

HUL recorded a net profit of Rs1,283 crore for the quarter ended 30 June 2107 compared with a net profit of Rs1,174 crore in the same period of the previous year.

Revenues of the company whose products range from Lakmé cosmetics to Lipton tea and Kwality ice cream, rose about 5 per cent to Rs9,094 crore.

Revenue from personal care segment, which includes brands such as Fair & Lovely, increased 3.5 per cent.

Sales revenue during the quarter stood at Rs9,094 crore against Rs8,662 crore in the same period of the previous year. Volume growth during the quarter, however, was flat.

HUL said its domestic consumer business grew 6 per cent and the underlying volume growth remained flat.

While the home care and the refreshment categories showed strong momentum, the personal care and foods segments were impacted disproportionately as supplies to government sector declined.

Within the home care segment, the quarter saw strong growth across mass and premium laundry with leading brand Surf maintaining robust volume-led growth.

The water business was muted because of lower trade purchases and de-stocking prior to the implementation of the GST.

The personal care segment also saw broad-based growth across all brands, while refreshments saw a double-digit growth.

"This quarter saw the launch of the GST. I am pleased with the manner in which our business worked closely with all key stakeholders to prepare the ground for a smooth transition," HUL chairman Harish Manwani said.

PB Balaji, chief financial officer of HUL, said the quarter was marked by challenging conditions in the rural market.