HUL Q1FY19 Results
- Company achieved volume growth of 12% on year-on-year basis.
- Net sales grew 11.4% year over year to Rs. 9356 crores.
- EBITDA grew 121% YoY to Rs. 242 crores, EBITDA margin expanded by 940 bps to 24.5%
- PAT for the company grew by 110bps YoY to 16.1%
Key Insights and likely impact
- Revenue growth was driven by double digit volume growth across all the 4 segments (Home Care, Personal Care, Refreshment and Foods). Home Care segment revenues grew by 3% YoY and food segment revenues grew by 8% YoY.
- In the Beauty & Personal Care segment skin care reported double digit growth on back of strong performance of Fair and Lovely and Ponds. Further, the segments growth was also led by double digit growth in Hair care products.
Foods & Refreshments:
Foods & Refreshments segment revenues grew by 7.9% YoY to Rs. 1,785 crores and the segment profit grew by 13.2% YoY to Rs. 334 crore.
In the Foods & Refreshments segment ice creams and frozen deserts reported double digit growth further supported by strong growth in Kissan and Knorr.
- Markets across rural and urban areas are seeing positive trend
- Indulekha continues to do well on pan-India.
- Overall Distribution Centres will come down from 40 to 20 and company is also looking to further optimize supply chain which should further yield cost savings.
How it fares among the peers?
Valuation: (CMP: Rs 1750; Market Cap: 37,74,168 crore, 50x FY20PE)