Hindustan Unilever Limited announced its results for the quarter ending 30th September 2017.
During the quarter, our Comparable* Domestic Consumer Growth was 10% and Underlying Volume growth was 4%. Comparable* EBITDA margin was up 180 bps and Net Profit at Rs.1276 Crores grew 16%.
While transition to GST impacted trade purchases in early part of the quarter, consumer offtake remained stable. Trade conditions continue to improve and the wholesale channel is steadily normalizing.
Home Care: Robust volume led growth sustained
Laundry saw robust double-digit growth across the category. Growth in Household Care was led by a strong performance in Vim Bar. The water business saw the launch of the new RO 2-in-1 range.
Personal Care: Broad-based growth across Personal Products and Personal Wash
Personal wash witnessed broad based growth across key brands. Growth in Hair Care was led by Dove; Indulekha continued its strong momentum and further strengthened its brand credentials by receiving clinical validation of being an ayurvedic medicine to prevent hair fall and also help grow hair. Colour cosmetics delivered yet another quarter of double-digit growth. Lever Ayush got off to a good start after its national launch last quarter.
Foods: Growth driven by Kissan
Kissan delivered strong growth driven by Ketchups. Knorr saw the launch of multiple new variants under both Soups & Noodles.
Refreshment: Robust growth sustained
Tea delivered yet another quarter of strong broad-based growth. Ice Cream & Frozen Desserts also delivered robust volume led growth.
Margin improvement sustained: EBITDA margin up by 180 bps
Advertising and Promotion spends were stepped up to support innovations. Sequential margins were sustained due to our strong savings program. Compared to corresponding period last year, Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs. 1682 Crores was up by 20%. Profit after tax before exceptional items, PAT (bei), at Rs. 1236 Crores was up by 14%, Net Profit at Rs.1276 Crores, was up 16% for the quarter.
The Board of Directors have declared an interim dividend of Rs. 8 per equity share of face value of Re. 1 each for the year ending 31st March 2018.
Harish Manwani, Chairman commented: “In a challenging business environment, we delivered a particularly strong overall performance. This reflects the strength of our brands and our relentless focus on execution in the market place. I am pleased that we were able to swiftly implement GST and quickly pass on the net benefit through price reductions to consumers across the country.
Despite short-term challenges, we are confident of the medium-term outlook for the FMCG industry and remain focused on driving consumer value and profitable volume driven growth.”
*Comparable: Reflecting the accounting impact of GST (Excise and other tax costs under earlier regime, now subsumed under GST and netted from Turnover in base)
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.