HUL net profit rises 14.4 pc to Rs 1,795 crore in June quarter

FMCG major Hindustan Unilever Ltd (HUL) on Tuesday reported an increase of 14.40 per cent in its consolidated net profit to Rs 1,795 crore for the first quarter ended June 30, helped by volume growth and improvement in margins.

The company had posted a net profit of Rs 1,569 crore in the corresponding quarter of the previous financial year, HUL said in a regulatory filing.

Net sales during the June 2019 quarter stood at Rs 10,197 crore, a rise of 6.04 per cent as against Rs 9,616 crore in the year-ago period.

"Domestic consumer growth was 7 per cent with underlying volume growth at 5 per cent" during the quarter, said HUL in a statement.

The company further added, "Margin expansion was driven by improved mix, leverage in operating and advertising spends and our savings agenda."
HUL Chairman and Managing Director Sanjiv Mehta said, "Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins."
On the outlook, Mehta said, "We believe our business is well-positioned to unlock the structural FMCG India opportunity as well as in terms of navigating the short-term challenges arising from softening of growth."