Hindustan Unilever reported a healthy set of numbers for Q4FY18, broadly in-line with the consensus estimates on both revenue and PAT fronts. Revenue (net of excise duty in the base quarter) grew by 10.8% yoy to Rs9,097cr led by 11% yoy volume growth. Led by lower raw material cost and other expenses, the EBITDA jumped by 24% yoy to Rs2,048cr and EBITDA margin expanded by 241bps yoy to 22.5% (estimate of 21.4%). Due to 18.5% yoy increase in depreciation and higher tax outgo, PAT grew at a lower rate at 14.2% yoy to Rs1,351cr.
Comparable domestic growth (adjusted of GST impact) for the company stood at 16%, led by underlying strong volume growth of 11%.
On segmental basis (not adjusted to excise in base quarter), home care grew by 3.3% yoy (whereas, comparable growth was at 21% yoy). Laundry segment witnessed double digit volume growth (due to various price promotions and cuts post GST revision in detergents). Vim portfolio also reported strong performance. Home care’s EBIT margin expanded by 346bps yoy.
Personal care segment reported broad based double-digit growth across, 13% comparable growth. Growth in Oral care due to launch of natural variant during the quarter is a positive.
Foods category was driven by the strong growth in Ketchup, reported sales growth of 2% (comparable growth of 10%).
Refreshment showed strong growth of 8.4% yoy (14% comparable growth) led by growth across tea, coffee and ice cream. EBIT margin for the segment improved by 132bps yoy.
Revenue growth in home care and refreshment category sequentially up by 13.2% and 12.9% respectively is very encouraging.
Company’s advertisement expense as percent of net sales has increased by 138bps yoy to 12% to support new launches and marketing activations.
Depreciation for the quarter was up by 18.5% yoy.
Other income jumped by 20.5% yoy to Rs100cr.
Tax rate for the quarter stood at 30% against 27% in Q4FY17.
Comapny recommended a final dividend of Rs12 per share for FY18.
With encouraging volume growth, we continue to maintain our positive stance on the company. Company reiterated that it would focus on volume led growth and cost saving initiatives. Strong volume growth and EBITDA margin expansion during the quarter augurs well for the future growth.
Hindustan Unilever Ltd ended at Rs. 1,504.95, down by 1.35 points or 0.09% from its previous closing of Rs. 1,506.30 on the BSE.
The scrip opened at Rs. 1,512.15 and touched a high and low of Rs. 1,521.60 and Rs. 1,495.25 respectively. A total of 15,41,760 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.
Please use the temporary password sent on your email id or mobile no.
Update Mobile no.
Why you need to update your Mobile number ?
By providing verified mobile number we provide more exclusive information in the website.
Update Mobile no.
Terms & Conditions
By clicking on submit button, you authorize IIFL & its representatives & agents to provide information about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters etc. . you confirm that laws in relation to unsolicited communication referred in National Do Not Call Registry as laid down by Telecom Regulatory Authority of India will not be applicable for such information/ communication.