Hindustan Unilever Limited (HUL) announced its results for the quarter ending 31st December 2018.
Domestic Consumer Growth was 13% with Underlying Volume Growth at 10%. EBITDA margin was up 170 bps and Profit after tax (before exceptional items) grew by 17%.
As announced earlier, during the quarter, the Board of Directors had approved a scheme of amalgamation between HUL and GlaxoSmithKline Consumer Healthcare Limited (GSK CH India) subject to shareholder and statutory approvals. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India. This transaction values the total business being acquired at INR 317 bn.
Home Care continued its impressive performance with both Fabric Wash and Household Care delivering double-digit growth. Fabric Wash performance was driven by our focus on the core, premiumization and targeted market development initiatives. The growth momentum in Household Care continued with increased penetration of bars in rural markets. In Water Purifiers, we are realigning our portfolio strategy towards premium devices while phasing out the gravity segment.
Beauty & Personal Care
Beauty & Personal Care had a very good quarter. Personal Wash growth continued to be driven by premiumization of the portfolio. Skin Care witnessed excellent growth enabled by stellar execution of winter portfolio. Hair Care continued to perform strongly; Dove was relaunched with new formulation and communication. In Color Cosmetics, Lakmé continued to lead trends and drive growth by fulfilling the rising aspirations of women in India. Deodorants had another quarter of robust double-digit delivery and Rexona Men anti-perspirants was launched in Tamil Nadu & Bangalore.
Foods & Refreshment
Beverages delivered good growth by leveraging the opportunity in the mass segment and driving premiumization through green tea. Ice Cream and Frozen Desserts sustained its growth momentum; Magnum Hazelnut was launched in select geographies. Foods maintained its steady growth trajectory.
Margin improvement sustained: EBITDA margin up by 170 bps
Prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage has driven margin improvement. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs. 2046 Crores was up by 22%. Profit after tax (bei), at Rs. 1401 Crores was up 17%, and Profit after tax, at Rs. 1444 Crores was up by 9%.
Sanjiv Mehta, Chairman and Managing Director commented: “We have delivered another strong performance in the quarter, with double digit volume growth and improvement in margins. Our focus on strengthening the core and leading market development by tapping into emerging trends has been yielding results across categories. We are making headway in ‘Reimagining HUL’ agenda by building an organization which is purpose led and future fit.
In the near term, demand is likely to be stable. We will keep a close watch on the macro-economic environment and respond with agility. We remain focused on our strategic agenda of delivering Consistent, Competitive, Profitable and Responsible growth.”
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.