Hindustan Unilever Limited (HUL) reports 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) reached 13%.
Home Care
Home Care delivered a quarter of strong volume led growth with both Fabric Wash and Household Care growing two-fold. The performance of Fabric Wash was helped by market development initiatives. Surf Excel Easy Wash
Liquid was launched nationally. Household Care sustained its double-digit growth delivery driven by liquids upgradation. In Water Purifiers, HUL reported a steady progress as the strategy of reshaping the portfolio and redesigning the ‘Go-to-Market’ model.
Beauty & Personal Care
Beauty & Personal Care has also seen a stable quarter. In Personal Wash, while premium brands continued their growth momentum, popular segment delivered below expectations. Skin Care had double-digit growth as a result of steady performance across the portfolio.
Hair Care witnessed good growth across brands. Newly launched enhanced products namely Dove Nourishing Secrets with natural ingredients has increased their foothold. In Colour Cosmetics, their focus has been on emerging trends has enabled them to have 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 have seen strong growth with an exciting range of innovations launched for the summer season. Foods maintained its steady growth trajectory.
EBITDA margin has increased 90 bps. Careful 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%.
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), was up 18% to Rs. 6080 cr. and Net Profit at Rs. 6036 cr. was up by 15%. HUL’s 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 increased to Rs. 22 per share.
Sanjiv Mehta, Chairman and Managing Director said, “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.
He added, “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.”
