Hindustan Unilever (HUL) reported standalone net profit of Rs 1,881 crore in Q1 June 2020 as against net profit of Rs 1,755 crore in Q1 June 2019.
The FMCG major's revenue from operations stood at Rs 10,560 crore in Q1 June 2020 as against Rs 10,114 crore in Q1 June 2019. The result was announced after market hours today, 21 July 2020. Underlying domestic consumer business sales (excluding the impact of business combinations i.e. merger of GlaxoSmithKline Consumer Healthcare with HUL) impacted by COVID disruptions declined by 7% in the quarter.Standalone EBITDA for the quarter was flat at Rs 2,644 crore compared with Rs 2,647 crore in Q1 June 2019. EBITDA margin declined by 110 bps over the corresponding period of the previous year.
On 1 April 2020, HUL amalgamated with GlaxoSmithKline Consumer Healthcare (GSK CH India). Results for Q1 June 2020 include the impact of the above transaction with effect from 1 April 2020 and are not comparable with previous corresponding periods.
In a challenging context of Covid-19 disrupting markets and operations, HUL reported turnover growth of 4% and profit after tax and before exceptional items growing by 7%. Health, hygiene and nutrition constituting 80% of the portfolio delivered healthy mid-single digit domestic consumer growth. The negative impact of adverse mix and higher COVID-19 related costs were deftly managed by dialing up savings and unlocking synergies of GSK-CH merger enabled in sustaining healthy EBITDA margins of 25%. HUL continued to remain competitive in its brand and marketing support spends in the quarter.
Sanjiv Mehta, chairman and managing director commented: "Our performance in the quarter has been resilient and reflective of the intrinsic strength of our portfolio, agility in operations, excellence in execution, purpose-driven leadership and our strong balance sheet. While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, we remain well positioned to drive competitive, profitable, and responsible growth. The long-term structural opportunity of FMCG in India also remains intact."
The board of directors approved a special dividend of Rs 9.50 per share. The record date is fixed as 31 July 2020.
Shares of Hindustan Unilever fell 0.48% to Rs 2319.10.
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HUL manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food.
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