HUL Q3 net profit rises 28%

Hindustan Unilever Limited announced its results for the quarter ending 31st December 2017.

During the quarter, our Comparable* Domestic Consumer Growth was 17% and Underlying Volume growth was 11%. This was on
a weak base comparator.  EBITDA margin was up 110 bps and Net Profit at Rs.1326 Crores grew by 28%.

Home Care: Double-digit volume growth across categories
Laundry saw robust double-digit growth across key brands. Growth in Household Care was led by a strong performance in Vim.The Purifiers business saw the launch of air purifiers under the Pureit brand.

Personal Care: Broad-based growth across Personal Products and Personal Wash

Personal wash witnessed robust growth across key brands led by Dove and Pears. Growth in Skin Care was driven by the strong
performance of Fair & Lovely. Hair Care witnessed broad based volume led growth. Indulekha brand has now been extended to
include Indulekha Bringha shampoo, an ‘Ayurvedic Medicine for Hairfall’. Colour cosmetics delivered yet another quarter of strong
growth.

Foods: Strong growth led by Kissan
Kissan delivered broad based growth across Ketchups & Jams. Knorr growth was led by a strong performance in Soups.

Refreshment: Sustained robust performance
Tea continues to deliver double-digit growth. Coffee witnessed a strong performance and the growth momentum continued in Ice
Cream and Frozen Desserts.

Margin improvement sustained: Comparable* EBITDA margin up by 110 bps
Cost of Goods Sold were lower, on the back of a strong savings program. Advertising and Promotion spends were stepped up to
support innovations and market development activities. Earnings before interest, tax, depreciation and amortisation (EBITDA) at
Rs. 1680 Crores was up by 24%. Profit after tax before exceptional items, PAT (bei), at Rs. 1198 Crores was up by 30%, Net Profit at Rs.1326 Crores, was up 28% for the quarter.

Harish Manwani, Chairman commented: “We have delivered another strong performance in the quarter, with broad based growth across categories and further improvement in margins. We remain positive about the mid-term outlook of the industry and will continue to invest strongly in our core brands and developing categories of the future. There are early signs of commodity cost inflation and we will further sharpen our focus on cost effectiveness programs and manage our business dynamically for competitiveness and sustained profitability.”

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Yash Ved
Yash Ved is a Senior Correspondent at NewsBarons and comes with a decade of experience across leading online and offline publications. A keen observer of the stock index movement, Yash also likes covering Real Estate and the BFSI sector. A financial management and Journalism student, Yash believes learning as a continuous journey and enjoys following the IT and the Pharmaceutical industry and has penned many articles on the subjects.
yash@newsbarons.com