 "HUL gains across the board, Q1 grows 9.79% to Rs 1,174 cr")
The company, which today announced investment of about Rs 1,000 crore to set up a new manufacturing unit at Doom Dooma in Assam, had posted a net profit of Rs 1,069.16 crore in April-June quarter of the previous fiscal.
Hindustan Unilever's net sales were up 3.56% at Rs 7,987.74 crore during the quarter under review as against Rs 7,712.71 crore a year before, the company said in a statement.
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"Net profit at Rs 1,173.90 crore was up 10%, aided by a one-time writeback of provision for pension benefits arising from plan amendments," the company said.
Its lower input costs led to 100 bps reduction in cost of goods sold, and brand investments were maintained at competitive levels across segments.
"During the quarter, against the backdrop of a challenging environment where market growth further slowed in both volume and value terms, the business continued to track ahead of market with sustained margin improvement," said HUL in a statement.
"Domestic consumer business growth was at 4%, with 4% underlying volume growth and operating margin expansion by 70 bps. The growth was broad-based across segments."
Expenses in the period went up 2.78% to Rs 6,585.58 crore as against Rs 6,407.39 crore a year ago.
HUL Chairman Harish Manwani said: "In slowing market conditions, the business is tracking ahead of the market with sustained margin improvement. We continue to make progress on our priorities of strengthening the core of our business while driving operational efficiencies."
He further said: "While the near-term market growth is likely to remain muted, we are optimistic for the medium term and remain focused on driving competitive and profitable growth."
HUL's revenue from the home care segment was up 6.77% at Rs 2,559.64 crore during the quarter as against Rs 2,397.24 crore in the previous period, led by healthy volumes.
"In fabric wash, growth was driven by the premium segment with Surf, the largest brand sustaining its strong growth momentum. In household care, Vim liquids continued to do well while in the water (segment), the strategic interventions taken to play in the wider market are starting to deliver," said HUL.
In personal care space, HUL's revenue was up 2.13% at Rs 3,898.60 crore as against Rs 3,817.10 crore. It was affected by "offset by deflation".
"In personal wash, Lifebuoy, Pears and Dove led category volume growth while in skin care, growth was led by the premium segment with BB and CC creams delivering strong growth. Hair care registered another quarter of volume-led growth, with all key brands continuing to perform well," it said.
per cent at Rs 1,191.16 crore compared with Rs 1,129.65 crore of April-June of 2015-16, driven by distribution expansion and sharper in-market execution.
"In tea, Lipton Green Tea and the Natural Care portfolio led growth through market development. Coffee maintained its strong competitive position in a deflationary cost environment. Ice cream and frozen desserts delivered another quarter of robust growth, driven by distribution expansion and sharper in-market execution," it said.
Revenue from its foods segment came in at Rs 266.99 crore, up 4.68% yoy.
In this segment, it had "healthy underlying growth driven by market development Kissan that sustained its strong growth on ketchups while Knorr delivered robust growth on instant soups and noodles".
Top line from its 'other' segment, which includes exports, infant and feminine care, slipped 16.15% to Rs 197.51 crore as against Rs 235.57 crore a year ago.
Meanwhile, in a separate filing, HUL informed BSE about a change in its management committee after resignation of its Executive Director and V-P Sales & Customer Development, Punit Misra.
Subsequently, Srinandan Sundaram, currently Vice-President, Skin Care, will take over from Misra as the Executive Director, Sales & Customer Development, and will join the HUL Management Committee. The change will be effective September 1, 2016.
The stock of HUL today settled at Rs 920.45 on BSE, down 2.04%.