HUL Q1 2014-15 net profit at Rs 1057 crores; volume growth beats expectations at 6%

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HUL Q1 2014-15 net profit at Rs 1057 crores; volume growth beats expectations
Hindustan Unilever: Quotes, News
BSE 851.10BSE Quote10.55 (1.24%)
NSE 851.20NSE Quote10.9 (1.28%)
FMCG giant, Hindustan Unilever today reported profits, margins and volume growth that was way above expectations. The company's net profits for the quarter ending June 30, 2014 was placed at Rs 1057 crores, as against consensus expectations of around Rs 950 crores.

Volumes growth was placed at a decent 6 per cent, even as analysts had expected a sub 5 per cent growth. The domestic consumer business continued to show robust growth at 13 per cent.

Beverages revenue was placed at Rs 836 crores, while the packaged food revenues was placed at Rs 544 crores.

"Tea delivered a strong volume led performance, driven by strengthened brand equities and focused in-market activities. A new premium offering, ‘Taj Mahal - A Flavour of Darjeeling' was added to the portfolio," the company said in a release to the exchanges.

The company reported an operating profit margin (OPM) of 17.1 per cent, as against an OPM of 15.9 per cent in the previous quarter.

"The operating environment remained challenging with market growth further slowing down. Overall competitive activity remained high despite the lower media intensity in the quarter. Given this context, investments were sustained at competitive levels across segments with absolute A&P spends increasing by Rs 55 crores. Cost inflation continued
to be managed through a mix of judicious pricing and cost savings," the release stated.

The stock of Hindustan Unilever was up 2 per cent in trade following the good set of results.

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