HUL financial results for March Quarter 2017
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Hindustan Unilever Limited announced its results for the quarter ending 31st March 2017. Profitable Volume Driven Growth – 8% DOMESTIC CONSUMER GROWTH, 12% EBITDA GROWTH
March Quarter 2017:
During the quarter, our Domestic Consumer business grew at 8% with Underlying Volume Growth at 4% and EBITDA margin expanded by 90 bps. Profit after tax before exceptional items, PAT (bei), grew by 8% to Rs.1118 Crores.
Home Care: Broad based growth driven by premiumisation
In Fabric Wash, growth was driven by the premium segment as Surf sustained its robust volume-led growth momentum. In Household Care, Vim liquid continued its strong performance. Water business also witnessed strong volume led growth.
Personal Care: Growth rebounds in Personal Wash and Personal Products
Personal wash performance improved in the quarter as prices and input costs stabilized; Pears and Dove led category growth. Skin care saw strong growth driven by the Fair & Lovely* relaunch. Hair Care delivered broad based, double-digit growth. In Oral Care, the performance was subdued; Close up was relaunched in the quarter and Lever Ayush Oral Care range is performing well in the South. Lakmé Colour Cosmetics continued its strong innovation led growth and performance in deodorants was led by Axe.
Foods: Modest growth in packaged foods
The category grew modestly due to strong comparators in the previous year. The focus continued to be on market development for the category and Kissan grew well in the quarter.
Refreshment: Robust growth sustained
Tea sustained broad based double-digit growth by differentially leveraging its portfolio across the country. Lipton Green Tea and Brook Bond Natural Care registered another quarter of high growth on sustained market development. In Coffee, Bru Gold continued to drive premiumisation. Ice Cream & Frozen Desserts saw another quarter of robust innovation led growth.
Margin improvement sustained: EBITDA margin up by 90 bps
Cost of Goods Sold was lower by 20 bps with moderating inflation. Brand communication objectives were met while delivering 80 bps of Brand & Marketing Investment (BMI) savings. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 12% and Net Profit at Rs.1183 Crores, was up 6% for the quarter.
Financial Year 2016-2017:
The Domestic Consumer business grew 4% with 1% Underlying Volume Growth and EBITDA margin expanded by 38 bps. EBITDA margin saw an improvement for the sixth consecutive year. Profit after tax before exceptional items, PAT (bei), grew by 3% to Rs.4247 Crores and Net Profit at Rs. 4490 Crores was up 9%. The strong track record of cash generation was sustained.
The Board of Directors have proposed a final dividend of Rs. 10 per share, subject to the approval of the shareholders at the AGM. Together with the interim dividend of Rs. 7 per share, the total dividend for the financial year ending 31st March, 2017 amounts to Rs. 17 per share.
Harish Manwani, Chairman commented: "This has been a strong quarter with profitable volume driven growth. In a challenging year, we delivered a resilient performance by managing our business dynamically and responding with agility to the changing external environment. With gradual improvement in market conditions, we remain optimistic about the medium term outlook for our sector.
We welcome the introduction of Goods & Services Tax (GST) and believe it will be a win-win for all stakeholders. Our strategic agenda of delivering Consistent, Competitive, Profitable and Responsible growth remains unchanged."
About Hindustan Unilever Limited
Hindustan Unilever Limited 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.
*References to Fair & Lovely in this article pre-dates the brand’s name change to Glow & Lovely in 2020.
* References to the Fair & Lovely Foundation in this article pre-dates the brand’s name change to Glow & Lovely in 2020. The Foundation’s new name is ‘Glow & Lovely Careers’.