Hindustan Unilever posts upbeat results for June quarter

Rufina Vignone
Luglio 19, 2017

Ebidta for the quarter stood at Rs 1,866 crore with margins at 20.2 per cent, a 166 basis points (bps) increase YoY and 165 bps QoQ.

In a regulatory filing, the company mentioned the reason behind muted quarter was due to GST implementation as trade sentiments remained cautious.

Hindustan Unilever, India's biggest consumer goods maker, Tuesday reported a better-than-expected 9.3% increase in first-quarter profit, helped by cost controls and a surge in sales. A Bloomberg poll of 10 analysts had estimated HUL's revenue at Rs8,619 crore and net profit at Rs1,183.5 crore.

Revenues of the company grew 4.98 per cent year on year during the quarter to Rs 9,094 crore. Analysts in an ETNow poll had projected Rs 8,405 crore revenue for the quarter under review.

Commenting on the results, HUL Chairman Harish Manwani said: "Both growth and margin improvements were delivered through a combination of sustained innovations, a comprehensive savings programme and a relentless focus on execution in the market place".

On a sectional level, the company reported 6 percent rise in homecare revenue at Rs 3,047 crore against Rs 2,876 crore year on year.

Meanwhile, the personal care revenue came in at Rs 4,368 crore against Rs 4,222 crore during the same period a year ago.

Volumes, however, remained flat as Canteen Stores Department (CSD), a large retailer, did not buy stocks in the pre-GST period, causing a disruption for fast-moving consumer goods. Had CSD purchased normally, we would have seen a positive volume growth in June quarter. Volumes in the personal care segment had suffered, he said, with wholesalers in de-stocking mode. "Further price drops will happen in the coming days", P. Balaji, the chief financial officer of HUL, told reporters at a news conference in Mumbai.

In the food segment, HULs revenue was at Rs 284 crore, up 4.41 per cent, as against Rs 272 crore.

The stock price of Hindustan Unilever, which announced earnings after market hours, closed up 0.38 percent at Rs 1,157.15 on the BSE. "In these challenging circumstances, we managed to deliver yet another quarter of resilient and profitable growth", the company said in a statement to the exchanges.

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