HUL reported a 12.95% jump in consolidated net profit to Rs 1631 crore in Q3 December 2019 over Q3 December 2018, supported by improvement in margins and volume growth.
Consolidated profit before tax surged 15.49% to Rs 2259 crore in Q3 December 2019 as against Rs 1956 crore reported in Q3 December 2018. Total income rose 2.97% to Rs 10208 crore year-on-year (YoY).
The company reported that domestic consumer growth was at 4% with underlying volume growth at 5%. Margin expansion was driven by the company's saving agenda and leverage in other expenses. EBITDA stood at Rs 2445 crore in Q3 December 2019, rising 19% YoY.
The company reported that Home Care continued its trajectory of good performance with double digit topline growth. Beauty & Personal Care segment was impacted by a higher than expected slowdown to market growth along with delayed winter season. Food & refreshment segment delivered robust growth across categories. Beverages saw a broad based growth in the quarter.
Commenting on company's Q3 performance, Ranjiv Mehta, Chairman and Managing Director, said "This quarter witnessed an overall challenging market environment, mainly reflecting a sharp slowdown in rural and discretionary spends. In this tough environment, HUL has delivered a resilient performance which is reflective of the strength of our brands, consistency in strategy and execution prowess. Our continued focus on innovation and market development has helped sustain underlying volume growth at a steady 5%. We have also delivered a healthy margin improvement. In the short term, demand outlook and market growth continued to be challenging. I remain confident of the medium to long term prospects of Indian FMCG sector and am hopeful that policy measures will spur the rural economy and drive consumption."
The result was announced after market hours today, 31 January 2020. Shares of HUL fell 1.18% to Rs 2034.15 ahead of the Q3 result.
HUL is engaged in fast-moving consumer goods business comprising home, beauty and personal care, foods and refreshment.
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