HUL April-June net profit rises 19.2% to Rs1,529 crore
17 July 2018
Consumer goods major Hindustan Unilever Ltd has reported a 19.2 per cent year-on-year increase in its standalone net profit at Rs1,529 crore for the April-June 2018-19 quarter.
The Indian arm of Anglo-Dutch Unilever Plc reported a 12-per cent growth in sales volume for the quarter and a 11.2 per cent growth in revenue from operations at Rs9,487 crore during the quarter.
HUL said its revenue from the home care segment, which includes brands such as Surf Excel and Vim, rose 3.2 per cent to Rs 3,146 crore.
Beauty and personal care revenue rose 1 per cent to Rs4,407 crore, while revenue from food products was up 8 per cent at Rs1,785 crore during the quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 20.6 per cent at Rs2,251 crore, while EBITDA margin stood at to 23.73 per cent compared with 21.9 per cent in the year-ago quarter.
HUL's margin improvement sustained as the cost of goods sold was lower on account of mix, judicious pricing, and strong savings program, the company said in an exchange filing.
HUL sales were boosted by GST-induced price reductions and some stability in material prices but for the risk of high crude oil prices.
There has also been gradual recovery in rural demand, after four years of underperformance hit by new rivals entering market.
"This quarter saw the integration of foods and refreshment divisions which will help us increase organisational agility and better serve local consumers while harnessing the advantages of global scale," Sanjiv Mehta, chairman and managing director of HUL, said.
The company has regrouped its foods and refreshment businesses and the foods solutions business into one 'Foods & Refreshments' segment thereby restructuring the company’s businesses into three division- `home care, beauty and personal care’, `foods and refreshment’ and `residual segment’.
All three division recorded double-digit volume growth.
"In the near term we see gradual improvement in demand and our focus will continue to be on innovations and market development," Mehta said on the outlook.
"Crude volatility and currency led inflation are key risks going ahead and we will continue to manage our business dynamically while driving operational efficiencies," he added.