FMCG major Hindustan Unilever today reported a 19.17 per cent increase in standalone net profit at Rs 1,529 crore for the first quarter ended June 30, 2018, led by strong volume growth and sustained margin improvements.
The company had posted a net profit of Rs 1,283 crore in the April-June quarter a year-ago, HUL said in a BSE filing.
Its total income during the quarter under review stood at Rs 9,622 crore, up 3.07 per cent as against Rs 9,335 crore in the corresponding quarter a year ago.
"During the quarter, our comparable domestic consumer growth was 16 per cent with underlying a volume growth at 12 per cent," HUL said in a statement.
Commenting on the results, HUL Chairman and Managing Director Sanjiv Mehta said: "We have delivered another strong performance in the quarter, with double digit volume growth across all three divisions and further improvement in margins."
Its total expenses were at Rs 9,622 crore as against Rs 9,335 crore, up 3.07 per cent.
HUL has integrated its foods and refreshment divisions in this quarter and has reported results into three operating segments -- home care, beauty & personal care and foods & refreshment, along with a residual segment for others.
Revenue from home care segment was at Rs 3,146 crore during the quarter, up 3.24 per cent, as against Rs 3,047 crore.
"Growth momentum in Home Care continues with key brands delivering double digit growth," the company said adding that it has extended Domex powders to new geographies.
While, beauty & personal care reported a marginal growth of 0.89 per cent to Rs 4,407 crore in Q1/FY 2018-19 as against Rs 4,368 crore of the corresponding quarter of the previous fiscal.
"Skin Care, registered strong double digit growth on the back of Fair & Lovely and Pond's performance. Hair Care witnessed another double digit growth quarter, led by the premium portfolio and continued robust performance of Indulekha," said HUL adding that it had a broad-based growth across personal products and personal wash.
Foods & Refreshment segment was up 7.92 per cent to Rs 1,785 crore as against Rs 1,654 crore of the corresponding quarter led by strong growth by tea and ice cream and frozen desserts.
"Tea delivered broad based double-digit growth across key brands," said HUL adding " Ice cream and frozen desserts grew in double-digits during the season, on the back of innovations and geography expansion. Foods registered double digit growth led by Kissan and Knorr.
While others segment, which includes Exports, Infant & Feminine Care Products etc, was up 3.47 per cent to Rs 149 crore as against Rs 144 crore.
Over the outlook, Mehta said that the company expects "a
gradual improvement in demand", however, rising crude prices would be key risks.
"Crude volatility and currency led inflation are key risks going ahead and we will continue to manage our business dynamically while driving operational efficiencies," he said.
HUL shares today closed at Rs 1,753.85, up 0.73 per cent, on BSE.
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