HUL delivers a decent performance in Q2 amid economic slowdown; sales up 6%

Amidst slowdown, net sales grew 6 per cent led by volumes, EBITDA margin expanded by 293 basis point and net profit by 21 per cent

The September 2019 quarter (Q2) results of fast-moving consumer good (FMCG) major Hindustan Unilever (HUL) was a tad better than the Street’s expectations. While net sales grew by 6.2 per cent year-on-year to Rs 9,708 crore, net profit jumped 21.2 per cent to Rs 1,848 crore, compared to expectations of Rs 9,784 crore and Rs 1,795 crore, respectively, according to Bloomberg consensus. Benign raw material prices fuelled operating margins despite the moderation in volume growth, which, too, was ahead of analyst expectations.

HUL reported a 5 per cent growth in volumes in Q2, versus analyst estimates of around 4 per