Results for the quarter ending 30th June 2019
7% Domestic Consumer Growth, 12% Pat (Bei) Growth
Hindustan Unilever Limited (HUL) announced its results for the quarter ending 30th June 2019.
Domestic Consumer Growth was 7% with Underlying Volume Growth at 5%. Reported EBITDA improvement was 250 bps (150 bps on comparable basis after adjusting for accounting impact of Ind AS 116 on leases). Profit after tax (bei) grew by 12%.
Home Care sustained its journey of double-digit growth. Fabric Wash performance was driven by our relentless focus on core and market development initiatives. Rin brand was relaunched nationally this quarter. Household Care delivered another quarter of strong performance with innovations and relaunches continuing to build momentum. In Water Purifiers, we continue to focus on the premium range; the redesigned ‘Go-to-Market’ model is now in place.
Beauty & Personal Care
Within Beauty and Personal Care, Personal Products performance was steady while Personal Wash witnessed a muted delivery particularly in the popular segment. Skin Care registered broad based growth across brands. Pond’s Men range was relaunched and FAL Ayurveda facewash & facial kits were launched during the quarter. Hair Care had a good performance across the portfolio. Two new Sunsilk variants with natural ingredients were launched nationally to enhance our presence in naturals.
Colour Cosmetics sustained its double-digit growth with a slew of shade expansions increasing online and offline traffic. Elle 18 Lasting Glow Compact was launched nationally. In Oral Care, we continued to see good momentum on Close Up & Lever Ayush. In Deodorants, our focus is on driving market development and strengthening our brand purpose. Personal wash saw national launches of Lux Botanicals and Pears Naturale range in the premium segment and launch of Fair & Lovely* Soap in select geographies.
Foods & Refreshment
Foods & Refreshment delivered a steady performance. Beverages witnessed a reasonable quarter driven by consistent strategy across brands and markets. Ice Cream and Frozen Desserts had a good season and delivered strong double-digit growth led by innovations. In Foods, our core segments performed well. We continue to leverage new trends in consumer taste preferences through innovations.
Margin improvement sustained
Margin expansion was driven by improved mix, leverage in operating and advertising spends and our savings agenda. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs. 2647 Crores was up by 18% (13% on comparable basis after adjusting for accounting impact of Ind AS 116). Profit after tax (bei), at Rs. 1751 Crores was up 12%, and Profit after tax, at Rs. 1755 Crores was up by 15%.
Sanjiv Mehta, Chairman and Managing Director commented: Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins. Our focus on strengthening the core, leading market development & premiumisation, driving channel transformation and building brands with purpose, continues to serve us well.
We continue to make good progress on our strategic initiatives to make sustainable living common place and build a business which is purpose led and future fit. We have received approval from our Shareholders and Creditors for the proposed merger with GSK CH and subject to NCLT approvals, are on track to complete the integration of the business before the end of 2019. We believe our business is well positioned to unlock the structural FMCG India opportunity as well as in terms of navigating the short-term challenges arising from softening of growth.
*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’.