HUL Q4 PAT slides 1% to Rs 1519 cr

On a standalone basis, Hindustan Unilever (HUL)'s net profit declined 1.24% to Rs 1519 crore on a 9.4% decline in net sales to Rs 8,885 crore in Q4 March 2020 over Q4 March 2019.

HUL said the spread of COVID-19 impacted the business from mid-March, which culminated into scaling down of operations post the national lockdown. Domestic Consumer Growth declined by 9% with a decline of 7% in underlying volume growth.

EBITDA for Q4 March 2020 stood at Rs 2065 crore, declining 11% year on year from Rs 2321 crore in Q4 March 2019. Reported EBITDA margin reduced by 40 bps (160 bps reduction on comparable basis after adjusting for accounting impact of Ind AS 116). "In this challenging economic context, HUL performance has been competitive with corporate market share gains," the company said.

HUL said it has a strong balance sheet and cash position. However, The company said it is systematically reviewing all areas of cash generation and usage and re-evaluating all costs in the prevailing circumstances, so that we can continue to invest towards the best opportunities. HUL said it continues to set a high ambition on savings opportunities across the value chain.

Sanjiv Mehta, chairman and managing director commented: COVID-19 is perhaps the biggest challenge for us both from the lens of sustaining lives as well as livelihoods. The human impact of the pandemic is uncertain, and we are fully committed to working with the Government and our partners to ensure that we overcome this crisis together. Our portfolio of trusted brands, our financial stability and quality of leadership teams positions us well to deal with the crisis and, for the changing world that will come afterwards. With the GSK CH merger effective from 1st April, iconic brands such as Horlicks and Boost will now enable us to also address the nutrition needs of consumers. Our approach will be to protect our business model, grow competitively and contribute to the nation."

On a standalone basis, net profit grew at 11.63% to Rs 6738 crore on a 1.63% rise in net sales to Rs 38,273 crore in the year ended March 2020 (FY20) compared with the year ended March 2019 (FY19). The board of directors has proposed a final dividend of Rs 14 per share, subject to the approval of the shareholders at the AGM.

Shares of Hindustan Unilever fell 1.63% to close at 2195.70 on BSE.

Hindustan Unilever is engaged in fast-moving consumer goods business comprising home, beauty and personal care, foods and refreshment.

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