HUL Q1 net profit jumps 19% to ₹1,529 cr
MUMBAI: Hindustan Unilever Ltd (HUL), India’s largest listed consumer packaged goods company, said that it continues to see a gradual improvement in demand as consumers bought more of its products.
Net profit grew 19% to ₹1,529 crore in the three months ended June 30 from ₹1,283 crore a year ago.
Adjusted for the goods and services tax (implemented from July 1, 2017), revenue rose 16%, the company said in a press statement without giving details. The revenue growth was driven by an underlying volume growth of 12%, it said.
A Bloomberg poll of 15 analysts had estimated profit at ₹1,540.3 crore and revenue at ₹9,669.1 crore.
“HUL Q1FY19 performance was in-line with the expectation with 22% growth in the bottom- line. The highlight of the quarter was sustenance double digit volume growth at 12% in the domestic business,” said Kaustubh Pawaskar, an analyst at brokerage Sharekhan.
The India unit of Anglo-Dutch consumer goods maker Unilever Plc reported volume growth ahead of the market. “If we look at the last 12 weeks, then volume for overall market are in the vicinity of 5-5.5% and Nielsen reported growth is 6-6.5%. We believe it has bottomed out but the question is when will it be back to the full potential that exists in our country,” said chairman and managing director Sanjiv Mehta while addressing the press at its Mumbai headquarters.
Even as the market saw crude prices firming by 35% over the preceding quarter and experienced currency-led inflation it managed to widen margins. HUL’s operating profit margin expanded 100 basis points (bps) to 21% in the quarter from a year earlier. The improvement was on account of better management of lower cost of goods sold?, judicious pricing and savings and refunds from goods and services tax and excise duties. One basis point is one-hundredth of a percentage point. “Crude volatility and currency-led inflation are key risks going ahead and we will continue to manage our business dynamically while driving operational efficiencies,” said Mehta.