Hindustan Unilever Q1 net profit rises 19.17% to Rs 1529 crore
Advertisement spends were stepped up and remained elevated for the quarter at 12.2% of the net sales
FMCG major Hindustan Unilever has reported a 19.17% increase in standalone net profit at Rs 1,529 crore for Q1 ended June 30, 2018, backed by domestic volume growth and operational performance.
The previously recorded net profit was Rs 1283 crore for the same period last year.
The company’s standalone revenue stood at Rs 9,487cr, up 11.2% y-o-y and 4.3% q-o-q.
EBITDA (earnings before interest, tax, depreciation and amortisation) went up by 21 percent to Rs 2,251 crore during the quarter.
HUL reported a comparable (adjusted for accounting impact of GST) consumer growth of 16% y-o-y primarily led by 12% y-o-y volume growth.
The advertisement spends remained elevated for the quarter at 12.2% of the net sales. While HUL said in a BSE filing that cost of goods sold were lower on account of mix, judicious pricing and a strong saving program, advertising and promotions were stepped up to support innovations, activations and respond to competitive actions in the market place.
Sanjiv Mehta, Chairman and MD, HUL, said, “We have delivered another strong performance in the quarter with double digit volume growth across all three divisions and further improvement in margins.”
The quarter also saw integration of Foods and Refreshments business to help HUL increase organisational agility and better serve local customers while harnessing the advantages of global scale.
Mehta added, “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. Our strategic agenda remains delivering consistent, competitive, profitable and responsible growth.”
Its Homecare segment “sustained robust growth” and grew by 3.2 percent year-on-year to Rs 3,146 crore in Q1 with its EBIT (earnings before interest and tax) rising 34.4 percent at Rs 602 crore, with key brands delivering double digit growth, added the company in its filing.
Beauty & personal care segment registered 0.9 percent growth year-on-year at Rs 4,407 crore with EBIT growing 7.7 percent. The company said in the filing that growth in this segment was primarily led by Pond’s, Fair & Lovely, Indulekha and deodorants with Axe Ticket gaining traction.
Foods & Refreshment business increased 7.9 percent to Rs 1,785 crore during April-June quarter with EBIT rising 13.2 percent, driven by double-digit growth in tea, ice cream and frozen desserts and foods businesses. Knorr and Kissan particularly fuelled the growth of its food business.
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