HUL net rises 19% on lower expenses, sales volume climbs
Gradual improvement in demand expected, says CMD
Fast-moving consumer goods major Hindustan Unilever Limited on Monday reported 19% growth in its June quarter net profit to ₹1,529 riding on double-digit growth in sales volume.
The Indian subsidiary of the Anglo-Dutch Unilever Plc saw sales volume grow 12% while total income rose 3% in the quarter to ₹9,622 crore.
“Cost of goods sold was lower on account of mix, judicious pricing and a strong savings program. Advertising and promotions were stepped up to support innovations, activations and respond to competitive actions in the market place,” the company said in a statement.
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.
Integration of divisions
“This quarter also saw the integration of the Foods and Refreshment divisions which will help us increase organisational agility…”
“In the near term, we see gradual improvement in demand and our focus will continue to be on innovations and market development. Crude volatility and currency-led inflation are key risks going ahead”
HUL’s earnings before interest, tax, depreciation and amortisation rose 21% to ₹2,251 crore while operating margin expanded to 23.7% from 21.9% last year.
Source: Read Full Article