HUL financial results for June Quarter 2017
Hindustan Unilever Limited announced its results for the quarter ending 30th June 2017.
Domestic Consumer Growth at 6%; EBITDA up 14%
Under volatile market conditions, our Domestic Consumer business grew at 6% and Underlying Volume Growth remained flat. EBITDA margin was up 160 bps and Net Profit after Tax, (PAT) at Rs.1283 Crores grew 9%.
During the quarter, trade sentiment remained cautious, particularly in the run up to GST implementation. Despite high promotional intensity, stock pipelines remained low and varied across categories, channels and geographies. In these challenging circumstances we managed to deliver yet another quarter of resilient and profitable growth.
This quarter saw strong growth across mass & premium laundry. Surf, our largest brand maintained its robust volume-led growth momentum. However, the water business witnessed a muted quarter due to lower trade purchases and destocking before GST implementation.
Personal wash witnessed broad based growth across all brands. Colour cosmetics delivered yet another quarter of robust growth. Fair & Lovely* relaunch was well received.
This quarter, we launched ‘Citra’- an iconic naturals brand from Asia in the Face Care segment. After a successful test market, we are also rolling out Lever Ayush, nationally. Lever Ayush is an ayurvedic range of personal care products spanning across 6 categories of skin care, soaps, hair care, hand wash, body lotions and oral care.
Foods & Refreshment:
Refreshments witnessed broad based, volume led growth. In Tea, double-digit growth was sustained by continuing to leverage our differentiated portfolio across different parts of India. Coffee and Ice Cream & Frozen Desserts also delivered a robust quarter. In Foods, the focus continued to be on market development for the category with Soups & Jams driving the category growth.
Margin improvement sustained: EBITDA margin up by 160 bps
Cost of Goods sold was down by 75 bps. While competitive Advertising and Promotion (A&P) spends were maintained, Zero Based Budgeting (ZBB) helped drive A&P percentage down by 20 bps and other expenses down by 40 bps. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 14%. Profit after tax before exceptional items, PAT (bei), at Rs. 1292 Crores was up by 15%, Net Profit at Rs.1283 Crores, was up 9% for the quarter.
Harish Manwani, Chairman commented: “This quarter saw the announcement of the launch of GST, a ground-breaking tax reform for India. I am pleased with the manner in which our business worked closely with all key stakeholders including industry associations, the government and our trade partners to prepare the ground for a smooth transition. Despite the short term challenges of this transition, our company delivered yet another resilient performance.
Both growth and margin improvement were delivered through a combination of sustained innovations, a comprehensive savings program and a relentless focus on execution in the market place. We remain positive on the medium term outlook for the industry and will continue to drive consumer value, which also delivers profitable volume driven growth for the company.”
About Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with its products touching the lives of nine out of ten households in India. HUL works to create a better future every day.