HUL Q1 profit rises 7% to Rs 1,881 crore, sales up 4%

FMCG major Hindustan Unilever Limited (HUL) has reported a 7.18 per cent year-on-year (YoY) growth in standalone net profit at Rs 1,881 crore for the first quarter ended June 30, 2020. A subsidiary of British-Dutch firm Unilever PLC, the company had posted the net profit of Rs 1,755 crore in the corresponding quarter last year.

Total sales grew by 4.23 per cent to Rs 10,406 crore during the quarter under review from Rs 9,984 crore in corresponding period last year. "Underlying domestic consumer business sales (excluding the impact of business combinations i.e. merger of GSK CH India with HUL) impacted by COVID disruptions declined by 7 per cent in the quarter," the Mumbai-headquartered firm said in a regulatory filing.

During the quarter under review, total income increased to Rs 10,716 crore as against Rs 10,261 crore in the same quarter last year.

"In a challenging context of COVID-19 disrupting markets and operations, HUL delivered a resilient performance with reported turnover growth of 4 per cent and Profit after tax and before exceptional items growing by 7 per cent," said HUL.

The Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was flat at Rs 2,644 crore compared to Rs 2,647 crore in the same quarter last fiscal.

Commenting on Q1 results, HUL CMD Sanjiv Mehta said, "Our performance in the quarter has been resilient and reflective of the intrinsic strength of our portfolio, agility in operations, excellence in execution, purpose-driven leadership and our strong balance sheet."

"While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, we remain well positioned to drive competitive, profitable, and responsible growth. The long-term structural opportunity of FMCG in India also remains intact," he added.

HUL refrained from growth and demand projections amid Covid uncertainties. On near-term outlook, the company said it is difficult to estimate market growths or consumer demand in unprecedented times.

HUL's board has declared an interim (special) dividend of Rs 9.50 per equity share of face value of Rs 1 each for the financial year ending March 31, 2021. The record date for the dividend has been fixed as Friday, 31 July, 2020, and it will be paid to the shareholders on or after Monday, 17 August, 2020, the company said.

Ahead of Q1 results, shares of HUL closed trade at Rs 2,319.10 apiece, down 0.48 per cent, against previous closing price of Rs 2,330.35 on the BSE.

Also Read: Bajaj Finance Q1 result: Profit falls to Rs 962 crore on contingency provisions amid coronavirus

Also Read: HUL's Fair & Lovely rebranded as Glow & Lovely; men's range renamed as Glow & Handsome