Results for the quarter ending 30th September 2019
7% domestic consumer growth, 20% pat (bei) growth
Hindustan Unilever Limited (HUL) announced its results for the quarter ending 30th September2019.
Domestic Consumer Growth was 7% with Underlying Volume Growth at 5%. Reported EBITDA improvement was 310 bps (200 bps on comparable basis after adjusting for accounting impact of Ind AS 116 on leases). Profit after tax (bei) grew by 20%.
Home Care sustained another quarter of robust performance with consistent topline delivery in Fabric Wash. Premium brand Love & Care was launched in select channels and Magic rinse powder was launched in Tamil Nadu. Household Care continued its growth momentum helped by upgradation and increase in penetration. Domex Pick up the Brush campaign was extended to Tamil Nadu in the quarter. Water Purifiers witnessed a good performance in the premium segment.
Beauty & Personal Care
Within Beauty and Personal Care, Personal Products showed a healthy performance. In Personal Wash, we landed our pricing interventions in the popular segment. Fair & Lovely* soap continues to gain traction and Pears Naturale bodywash range was launched nationally. Skin Care had double digit growth with robust performances across the brands. Pond’s Superlight gel and Pond’s micellar water range was launched across India. Hair Care grew steadily and Clinic Plus had a successful #MeriBetiStrong campaign linked to its brand proposition. Colour Cosmetics sustained its strong growth momentum and Oral Care recorded good portfolio growth driven by freshness and naturals proposition. Deodorants continued to focus on market development.
Foods & Refreshment
Foods & Refreshment saw a broad-based growth across categories. Beverages delivered a good in quarter performance. We continue to leverage purpose-led communications across brands. Ice Cream and Frozen Desserts maintained its robust growth trajectory. In Foods, our core segments performed well. Kissan brand equity strengthened further.
Margin improvement sustained
Margin expansion was driven by improved mix, benign commodity price movement in our large segments and our savings agenda. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs. 2443 Crores was up by 21% (16% on comparable basis after adjusting for accounting impact of Ind AS 116). Profit after tax (bei), at Rs. 1832 Crores was up 20%, and Profit after tax, at Rs. 1848 Crores increased by 21% after incorporating the reduction in Corporate Tax rate.
The Board of Directors has declared an interim dividend of Rs. 11 per share for the year ending 31st March 2020
Sanjiv Mehta, Chairman and Managing Director commented: Amidst a challenging market environment, HUL has delivered another quarter of resilient performance and sustained margin improvement. Our focus on consumer value, excellence in execution and market development continues to serve us well.
The near-term outlook for demand especially in rural India remains challenging. We welcome the various measures announced by the Government and the Reserve Bank of India to spur investment and improve liquidity and are confident that the government will take all necessary steps for higher income transference to rural India. HUL remains well positioned to unlock the structural FMCG India opportunity while navigating the short-term challenges. We continue to progress our ‘purpose-led and future-fit’ agenda which is underpinned by our sustainability initiatives and ‘Re-imagining HUL’ driven by leveraging data and technology in all aspects of our operations.
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’.