Earnings of the nation’s biggest consumer products maker grew by 7 percent to Rs 9, 984 crore at Q1FY20 as compared with Rs 9, 356 crore at Q1FY19. Hindustan Unilever Ltd on Tuesday reported a 15% increased in its June quarter net profit, driven by higher revenues and a fall in raw materials price. Total revenue from sales of products and domestic consumer business grew 7% in the reporting quarter. Net gain for the quarter was 1, 755 crore, up 14.9percent from 1, 528 crore a year ago. A Bloomberg poll of 18 analysts estimated HUL’s net gain at 1, 715.80 crores, and income in 10, 170.90 crore.
Revenues from operations rose 6.7percent year-on-year to Rs9, 984 crore, while cost of material consumed fell 6.5percent from a year ago to 3, 161 crore. Operating margin improved of 250 basis points. In absolute terms, EBITDA was rose 18 percent to 2, 647 crore in April June. The company said gross expansion was driven by an improved mix, leverage in operating and advertising spends and savings schedule. HUL has delivered a functionality driven by expansion of the customer franchise, improvement in portfolio mix and growth in margins. Our focus on strengthening the core, leading market development & premiumisation, driving channel transformation and construction brands with purpose, carries on to serve us well, said Sanjiv Mehta, President and controlling your stresses director HUL.
From the June quarter, growth was driven by its homecare portfolio that grew ten percent on a comparable basis. The personal attention and beauty portfolio and also food and refreshment segments climbed 5.6percent on a similar basis. Throughout the June quarter, the organization’s advertising and promotion spends rose a tad, 0.7%,from a year ago. Shares of HUL today closed 0.9percent higher at 1, 693.20 on the BSE.