Hindustan Unilever Limited announced its results for the quarter ending 30th June 2018.
During the quarter, our Comparable* Domestic Consumer Growth was 16%^ with Underlying Volume growth at 12%. Comparable* EBITDA margin was up 100 bps^ and Net Profit at Rs.1529 crores grew by 19%.
The financial results for the quarter have been prepared in compliance with the Indian Accounting Standards (Ind AS). The company has integrated Foods and Refreshment divisions in this quarter. Accordingly, the Company will report its results in the following three operating segments viz. Home Care, Beauty & Personal Care and Foods & Refreshment, along with a residual segment for ‘Others’.
Home Care: Robust growth sustained
Growth momentum in Home Care continues with key brands delivering double digit growth. During the quarter, Domex liquids was relaunched in South India and Domex powders extended to new geographies.
Beauty & Personal Care: Broad-based growth
Skin Care, registered strong double digit growth on the back of Fair & Lovely* and Pond’s performance. Hair Care witnessed another double digit growth quarter, led by the premium portfolio and continued robust performance of Indulekha. Colour cosmetics delivered yet another quarter of strong double digit growth with continued rollout of successful innovations; Lakmé 9 to 5 Naturale range of makeup and skincare products infused with aloe vera were launched during the quarter. Deodorants delivered impressive growth with Axe Ticket gaining traction. In Personal Wash, Dove and Pears sustained their high growth trajectory.
Foods & Refreshment: Strong growth led by Tea and Ice Cream & Frozen Desserts
Tea delivered broad based double-digit growth across key brands. In Coffee, Bru Kannadigara was introduced in select geographies to cater to local taste preferences. Ice Cream and Frozen Desserts grew in double-digits during the season, on the back of innovations and geography expansion. Foods registered double digit growth led by Kissan and Knorr. We also launched the Lever Ayush breakfast range in Tamil Nadu.
Margin improvement sustained: Comparable* EBITDA margin up by 100 bps^
Cost of Goods Sold were lower on account of mix, judicious pricing and a strong savings program. Advertising and Promotions were stepped up to support innovations, activations and respond to competitive actions in the market place. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs. 2251 Crores was up by 21%. Profit after tax before exceptional items, PAT (bei), at Rs. 1567 Crores was up by 21%.
Sanjiv Mehta, Chairman and Managing Director commented: “We have delivered another strong performance in the quarter, with double digit volume growth across all three divisions and further improvement in margins. This quarter also 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.
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 one of delivering Consistent, Competitive, Profitable and Responsible growth.”
*Comparable: Reflecting accounting impact of GST (Excise duty and net input taxes adjusted from sales of base quarter and GST refunds to the reported sales of current quarter) For details refer to Quarter Results filed with the Stock Exchanges.
^Reported Domestic Consumer Growth for the quarter was 3%; Reported improvement in EBITDA margin was 350 bps.
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.
Prasad Pradhan: +91 22 39832429
Aravind Nair: +91 22 39832413
*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’.