HUL Q1 profit rises 15% to Rs 1,755 crore on higher margins, volume growth

Fast-moving consumer goods (FMCG) major Hindustan Unilever (HUL) on Tuesday reported 15 per cent year-on-year rise in net profit at Rs 1,755 crore for the first quarter ended June 30, 2019, driven by improved mix, leverage in operating and advertising spends.

"The company had posted a profit of Rs 1,529 crore in the corresponding quarter last year," HUL said in a filing to the Bombay Stock Exchange.

Net sales of the country's largest consumer goods maker grew by 7 per cent to Rs 9,984 crore in Q1FY20 as compared to Rs 9,356 crore in Q1FY19.

Total income for the quarter under review came in at Rs 10,261 crore as against Rs 9,622 crore, registering a YoY growth of 6.64 per cent, helped by its home-care and food and refreshment portfolios.

On the consolidated basis, the net profit grew 14.5 per cent YoY to Rs 1,792 crore, while total revenue increased 6 per cent to Rs 10,509 crore during the April-June quarter.

The operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 18 per cent to Rs 2,647 crore from Rs 2,251 crore in the same quarter last fiscal.

Commenting on Q1 results, Sanjiv Mehta, Chairman and Managing Director said: "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 and premiumisation, driving channel transformation and building brands with purpose, continues to serve us well."

Segment wise, revenue of home care vertical rose 10 per cent to Rs 3,464 crore, while beauty and personal care and food and refreshment grew 4.14 per cent and 9.37 per cent, respectively.

Ahead of Q1 results, shares of HUL closed trade at Rs 1,693.20 apiece, up 0.86 per cent, on the BSE on Tuesday.

Edited by Chitranjan Kumar

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