Results for the Quarter ending 31st March 2018
16% comparable* domestic consumer growth, 11% underlying volume growth
Hindustan Unilever Limited announced its results for the quarter ending 31st March 2018.
During the quarter, our Comparable* Domestic Consumer Growth was 16%^ with Underlying Volume growth at 11%. Comparable* EBITDA margin was up 160 bps^ and Net Profit at Rs.1351 Crores grew by 14%.
Home Care: Double-digit volume growth
Laundry saw robust double-digit growth across key brands. Comfort Pure - fabric conditioner for delicate baby skin, was launched. Household Care growth was led by strong performance in Vim.
Personal Care: Broad-based double-digit growth across Personal Products and Personal Wash
Growth in Skin Care was led by Fair & Lovely and Pond’s. Hair Care witnessed broad based volume led growth. Hair Care also saw the launch of Pure Derm – a new range of anti-dandruff shampoos. Colour cosmetics delivered yet another quarter of robust growth on the back of a strong innovations funnel. Growth in Oral Care and Deodorants was driven by new launches. In Personal Wash, growth was led by a sustained strong performance of the premium range.
Foods: Good growth in Kissan and Knorr
Kissan delivered strong growth led by Ketchups. Knorr franchise was expanded with new Knorr Pasta masala variants being launched in select geographies.
Refreshment: Robust growth across categories
Tea sustained double-digit growth by differentially leveraging the portfolio across the country and by driving market development. Coffee witnessed strong volume led growth. Ice Cream and Frozen Desserts grew in double-digits on the back of geographic expansion and exciting new launches including Kwality Walls Sandwich and Cloud Bite.
Margin improvement sustained: Comparable* EBITDA margin up by 160 bps^
Cost of Goods Sold were lower, supported by the strong savings program. Advertising and Promotion spends were stepped up to support innovations and marketing activations during the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs. 2048 Crores was up by 24%. Profit after tax before exceptional items, PAT (bei), at Rs. 1409 Crores was up by 26%.
Financial Year 2017-18
Comparable* Domestic Consumer Growth was 12% with 6% Underlying Volume Growth and Comparable* EBITDA margin improvement was 155 Bps. Profit after tax before exceptional items, PAT (bei), grew by 21% to Rs. 5135 cr. and Net Profit at Rs. 5237 cr. was up by 17%. Our strong track record of cash generation was sustained.
The Board of Directors have proposed a final dividend of Rs. 12 per share, subject to the approval of the shareholders at the AGM. Together with the interim dividend of Rs. 8 per share, the total dividend for the financial year ending 31st March 2018 amounts to Rs. 20 per share.
Harish Manwani, Chairman commented: “Despite a step-up in competitive intensity, we have delivered another strong performance for the quarter and the year. Growth and improvement in profitability have been sustained through a combination of winning innovations and a relentless focus on operational efficiencies. We are particularly pleased with our track record of sustained margin improvement for the seventh consecutive year.
In the near term, we are seeing a gradual improvement in demand and this augurs well for the sector. We will continue to manage our business dynamically and will remain focused on our strategy 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 390 bps.