FMCG major Hindustan Unilever (HUL) posted a mixed trend in its December 2018 (Q3FY19) quarter result, where it posted a standalone net profit of Rs 1,444 crore which was higher by 8.89% from Rs 1,326 crore recorded in corresponding period of previous year. However, the Q3FY19 profit was below 5.31% as against Rs 1,525 crore witnessed in the preceding quarter. Meanwhile, revenue came in at Rs 9,357 crore in Q3FY19, witnessing the growth of 12.42% against Rs 8,323 crore in Q3FY18 and sequentially up by 2.39% from Rs 9,138 crore in Q2FY19. However, the company missed analysts estimates in Q3FY19, as a Bloomberg poll of experts predicted revenue and net profit to come in at Rs 9,440 crore and Rs 1,450 crore respectively.
HUL’s domestic consumer growth was at 13% with underlying volume growth at 10%.
HUL said, “Prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage has driven marginal improvement.” Whereas EBITDA margin stood at 170 basis points, along with EBITDA of Rs 2,046 crore in Q3FY19.
Sanjiv Mehta, Chairman and MD of HUL said, “We have delivered another strong performance in the quarter, with double-digit volume growth and improvement in margins. Our focus on strengthening the core and leading market development by tapping into emerging trends has been yielding results across categories.”
On segment-wise performance, the home care continued its impressive performance with both fabric wash and household care delivering double-digit growth. Revenue from home care stood at Rs 3,148 crore in Q3FY19, rising by 14.84% from Rs 2,741 crore a year ago same period.
Also, beauty and personal care segment had a very good quarter. Personal wash growth continued to be driven by premiumization of the portfolio. Meanwhile, skincare witnessed excellent growth enabled by the stellar execution of winter portfolio, as per HUL. Even hair care continued to perform strongly. It needs to be noted that, Dove was relaunched with new formulation and communication. Revenue from this segment came in at Rs 4,539 crore in Q3FY19, up by 10.97% from Rs 4,090 crore in Q3FY19.
Going forward, Mehta said, “In the near term, demand is likely to be stable. We will keep a close watch on the macro-economic environment and respond with agility. We remain focused on our strategic agenda of delivering consistent, competitive, profitable and responsible growth.”
On BSE, the share price of HUL finished at Rs 1,750.10 per piece down by Rs 19.90 or 1.12%.