Hindustan Unilever Limited (HUL) announced its results for the quarter ending 31st March 2019.
Domestic Consumer Growth was 9% with Underlying Volume Growth at 7%. EBITDA margin was up 90 bps and Profit after tax (bei) grew by 13%.
Home Care delivered another quarter of strong volume led growth with both Fabric Wash and Household Care growing in double-digits. The performance of Fabric Wash was driven by premiumization and market development initiatives. Surf Excel Easy Wash Liquid was launched nationally. Household Care sustained its double-digit growth delivery driven by liquids upgradation and increased penetration of bars. In Water Purifiers, we are seeing steady progress on our strategy of reshaping the portfolio and redesigning the ‘Go-to-Market’ model.
Beauty & Personal Care
In Personal Wash, while premium brands continued their growth momentum, popular segment delivered below expectations. Skin Care had double-digit growth on the back of steady performance across the portfolio. Hair Care witnessed good growth across brands. We enhanced our presence in naturals through the national launch of Dove Nourishing Secrets with natural ingredients. In Colour Cosmetics, our focus on emerging trends has enabled us to sustain a consistent performance. Oral Care performed well on the back of Close Up & Lever Ayush.
Foods & Refreshment
In Beverages, ‘Winning in Many India’s’ (WiMI) initiatives and purpose led campaigns have aided consistent strong performance. Ice Cream and Frozen Desserts registered strong growth with an exciting range of innovations launched for the summer season. Foods maintained its steady growth trajectory.
Margin improvement sustained: EBITDA margin up by 90 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. 2321 Crores was up by 13%. Profit after tax (bei), at Rs. 1590 Crores was up 13%, and Profit after tax, at Rs. 1538 Crores was up by 14%.
Financial Year 2018-19
Comparable* Domestic Consumer Growth was 12% with 10% Underlying Volume Growth and Comparable* EBITDA margin improvement was 130 bps. Profit after tax before exceptional items, PAT (bei), grew by 18% to Rs. 6080 cr. and Net Profit at Rs. 6036 cr. was up by 15%. Our strong track record of cash generation was sustained.
The Board of Directors have proposed a final dividend of Rs. 13 per share, subject to the approval of the shareholders at the AGM. Together with the interim dividend of Rs. 9 per share, the total dividend for the financial year ending 31st March 2019 amounts to Rs. 22 per share.
Sanjiv Mehta, Chairman and Managing Director commented: “We have delivered a strong performance for the quarter despite some moderation in rural market growth. Our focus on strengthening the core and leading market development has been consistently delivering good results. We have now grown top line and bottom line for the eighth consecutive year and our 2019 results are a testament to both our strategy and execution. With our ‘Re-imagining HUL’ agenda, we are well poised to build an organization which is purpose led and future fit.
Given the macro-economic indicators, near-term market growth has moderated. However, medium-term outlook stays positive. As an organization we are well positioned to respond with speed and agility to meet the needs of our consumers. We remain focused on our strategic agenda 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 year was 9%; Reported improvement in EBITDA margin for the year was 190 bps
About Hindustan Unilever Limited:
Hindustan Unilever Limited (HUL) is India's largest Fast-Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of nine out of ten Indian households. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.