Volume Growth Dampener In Otherwise Solid Quarter For HUL
Home care, personal care segments drive margin expansion for HUL.
Hindustan Unilever Ltd. (HUL) saw a profit growth of 11.5 percent for the July-September quarter. Net profit rose to Rs 1,095 crore from Rs 982 crore during the corresponding quarter last year, according to the company’s filing on the stock exchanges. The profit figure was slightly higher than the Bloomberg consensus estimate of Rs 1,054 crore.
Total revenue grew 1.6 percent to Rs 8,480 crore, compared to Rs 8,349 crore year-on-year, which was again higher than the consensus of analyst estimates.
Earnings before interest, tax, depreciation and amortisation stood at Rs 1,405 crore, a 5.1 percent improvement from the previous year’s figure of Rs 1,337 crore. EBITDA margins expanded to 16.6 percent from 16 percent year-on-year.
The company saw volumes decline by 1 percent this quarter compared to a 4 percent growth in the previous quarter.
Segmental Revenues
- The home care segment grew 3.2 percent to Rs 2,777 crore year-on-year.
- The personal care segment declined 0.3 percent to Rs 4,028 crore year-on-year.
- The foods segment grew 2.6 percent to Rs 278 crore year-on-year.
Segmental EBIT
- Home care EBIT expanded 25 percent to Rs 280 crore
- Personal care EBIT grew 3.6 percent to Rs 922 crore
- Food segment EBIT contracted 16.2 percent to Rs 13.71 crore
The company has delivered another quarter of profitable growth despite challenging conditions, Harish Manwani, Chairman of HUL said in a press release.
In challenging market conditions, we delivered another quarter of profitable growth. We remain focused on market development, consumer led innovations and an even sharper drive on operating efficiencies. With a good monsoon, we expect a gradual improvement in market demand and remain positive on the mid-long term outlook for the industry.Harish Manwani, Chairman, HUL
The stock ended the day of trade higher by 1.29 percent at Rs 843.10 per share.