HUL Q1 net profit rises 19.2% YoY to Rs 1,529 crore

Moneycontrol News

Hindustan Unilever, India's biggest consumer goods company, on Monday reported a 19.2 percent YoY rise in its standalone net profit to Rs 1,529 crore for the quarter ended June.

Analysts polled by Reuters had estimated that the FMCG major will post a net profit of Rs 1,538 crore for the quarter under review.

The Indian subsidiary of the Anglo-Dutch Unilever Plc reported a volume growth of 12 percent for the quarter under review. Brokerages had expected it report a volume growth of 11-14 percent.

The company's revenue from operations during the quarter grew 11.2 percent on year to Rs 9,487 crore.

Revenue from the consumer goods major's home care segment, which includes brands such as Surf Excel and Vim, rose 3.2 percent to Rs 3,146 crore.

Beauty and personal care revenue up 1 percent to Rs 4,407 crore, while food revenue was up 8 percent to Rs 1,785 crore during the revenue period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 2,251 crore, up 20.6 percent on year, while EBITDA margin stood at to 23.73 percent compared with 21.9 percent.

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.

Commenting on the results, Sanjiv Mehta, Chairman and Managing Director, said,"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."

The company has integrated its foods and refreshment businesses into one 'Foods & Refreshments' and also regrouped its food solutions business into this segment. Consequently, the businesses have been re-organised in to three division-- Home care, beauty and personal care, foods and refreshment and residual segment under others.

All three division registered double-digit volume growth.

Skincare registered strong double-digit growth on the back of Fair & Lovely and Pond's performance. Hair care business also witnessed double-digit growth led by the premium portfolio and robust performance of Indulekha.

Commenting on the outlook, Mehta said,"In the near term we see gradual improvement in demand and our focus will continue to be on innovations and market development."

"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.

Shares of HUL today closed at Rs 1,753.85, up 12.70 or 0.73 percent from Friday's close.