Stock Fundamentals

Premium products aid HUL

Parvatha Vardhini C | Updated on January 11, 2018



Hindustan Unilever (HUL) reported sales growth of 7.1 per cent year-on-year to ₹8,773 crore in the March 2017 quarter, supported by both volumes as well as realisations. The home and personal care segments, which together bring about 80 per cent of the company’s revenues, witnessed sales growth of 7-8 per cent each over the year-ago period.

Premium products such as Surf and Vim liquid (homecare), Pears and Dove (personal care) and Bru Gold (refreshments) drove growth.

Robust margin expansion of 190 basis points in the homecare segment, coupled with savings in employee and advertising and promotion costs, helped improve operating margin that rose to 19.5 per cent from 18.8 per cent in the March 2016 quarter. Adjusted net profit grew 11 per cent to ₹1,184 crore. In the months to come, raw material costs are expected to remain stable, giving the company room to push for volumes, especially in rural markets.

Published on May 21, 2017

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