Hindustan Unilever Limited announced its results for the quarter ending 31st December 2017.
During the quarter, our Comparable* Domestic Consumer Growth was 17% and Underlying Volume growth was 11%. This was on a weak base comparator. Comparable* EBITDA margin was up 110 bps and Net Profit at Rs.1326 Crores grew by 28%.
Home Care: Double-digit volume growth across categories
Laundry saw robust double-digit growth across key brands. Growth in Household Care was led by a strong performance in Vim. The Purifiers business saw the launch of air purifiers under the Pureit brand.
Personal Care: Broad-based growth across Personal Products and Personal Wash
Personal wash witnessed robust growth across key brands led by Dove and Pears. Growth in Skin Care was driven by the strong performance of Fair & Lovely*. Hair Care witnessed broad based volume led growth. Indulekha brand has now been extended to include Indulekha Bringha shampoo, an ‘Ayurvedic Medicine for Hairfall’. Colour cosmetics delivered yet another quarter of strong growth.
Foods: Strong growth led by Kissan
Kissan delivered broad based growth across Ketchups & Jams. Knorr growth was led by a strong performance in Soups.
Refreshment: Sustained robust performance
Tea continues to deliver double-digit growth. Coffee witnessed a strong performance and the growth momentum continued in Ice Cream and Frozen Desserts.
Margin improvement sustained: Comparable* EBITDA margin up by 110 bps
Cost of Goods Sold were lower, on the back of a strong savings program. Advertising and Promotion spends were stepped up to support innovations and market development activities. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs. 1680 Crores was up by 24%. Profit after tax before exceptional items, PAT (bei), at Rs. 1198 Crores was up by 30%, Net Profit at Rs.1326 Crores, was up 28% for the quarter.
GST rate reduction in November’17
Effective 15th November, GST rates were reduced for some of our categories from 28% to 18%. While the implementation of this change was initiated immediately, it was not possible to pass on the entire benefit of this rate reduction on some of the pipeline stocks during the transition. An estimated value of Rs. 119 crores was proactively disclosed to the CBEC on this count and we have offered to pay this amount suo motu to the Government. This amount is not recognised as revenue and is accounted as a liability as on 31st December 17.
Harish Manwani, Chairman commented: “We have delivered another strong performance in the quarter, with broad based growth across categories and further improvement in margins. We remain positive about the mid-term outlook of the industry and will continue to invest strongly in our core brands and developing categories of the future. There are early signs of commodity cost inflation and we will further sharpen our focus on cost effectiveness programs and manage our business dynamically for competitiveness and sustained profitability.”
*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
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.
*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’.