HUL has announced its financial results for the quarter that ended on June 30, 2019. The company’s advertising and promotional expenses grew marginally by 0.69% to Rs 1,161 crore as compared to Rs 1,153 crore in the corresponding quarter of the previous year. The advertising spends in Q1 increased by 4.88% from Rs 1,107 crore in the quarter ending March 31, 2019.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 2,647 crore and was up by 18%. Profit after tax (PAT) at Rs 1,751 crore was up by 12%. Total sales and Domestic consumer business grew by 7% with underlying volume growth at 5%
Sanjiv Mehta, Chairman and Managing Director, said, “Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins. Our focus on strengthening the core, leading market development and premiumisation, driving channel transformation and building brands with purpose, continues to serve us well. We continue to make good progress on our strategic initiatives to make a sustainable living commonplace and build a business that is purpose-led and future-fit.”
He said, “We have received approval from our shareholders and creditors for the proposed merger with GSK CH and subject to NCLT approvals, are on track to complete the integration of the business before the end of 2019. We believe our business is well-positioned to unlock the structural FMCG India opportunity as well as in terms of navigating the short-term challenges arising from softening of growth.”
Home Care sustained its journey of double-digit growth. Fabric Wash performance was driven by a focus on core and market development initiatives. The Rin brand was relaunched nationally this quarter.
Beauty and personal care
Within beauty and personal care, personal products performance was steady while personal wash witnessed a muted delivery particularly in the popular segment. Skin care registered broad-based growth across brands. Pond’s Men range was relaunched and FAL Ayurveda facewash and facial kits were launched during the quarter. Hair Care had good performance across the portfolio.
Foods and refreshment
Foods and refreshment delivered a steady performance. Beverages witnessed a reasonable quarter driven by consistent strategy across brands and markets. Ice Cream and frozen desserts had a good season and delivered strong double-digit growth led by innovations. In foods, the core segments performed well.