HUL Q1FY20 result: These three segments drive earnings

Hindustan Unilever recorded a positive June 2019 (Q1FY20) quarter result. The company saw 14.10% rise in net profit to Rs 1,755 crore in Q1FY20 versus Rs Rs 1,529 crore a year ago same period. Also, Q1FY20 PAT was up by 10.13% compared to Rs 1,538 crore in Q4FY19. Meanwhile, HUL's revenue from operation soared by 6.71% to Rs 9.984 crore in Q1, compared to Rs 9,356 crore in Q1FY19. In preceding quarter, revenue was at Rs 9,809 crore. Sanjiv Mehta , Chairman and Managing Director commented that against the backdrop of moderate market growth, HUL has delivered a resilient performance. On revenue-wise breakup, all segment like home care, beauty & personal care and food & refreshment registered positive growth.

Home Care: 

In its audit report, HUL stated that, home Care sustained its journey of double-digit growth. Fabric Wash performance was driven by our relentless focus on core and market development initiatives. Rin brand was relaunched nationally this quarter. Household Care delivered another quarter of strong performance with innovations and relaunches continuing to build momentum. In Water Purifiers, we continue to focus on the premium range; the redesigned ‘Go-to-Market’ model is now in place. Among major revenue booster was definitely from this segment, as it grew by 10.13% to Rs 3,465 crore in Q1 from Rs 3,146 crore in Q1FY19.

Beauty & Personal Care:

Within Beauty and Personal Care, Personal Products performance was steady while Personal Wash witnessed a muted delivery particularly in the popular segment. During the quarter, the segment posted a growth of 4.12% to Rs 4,589 crore as against Rs 4,407 crore in the corresponding period of previous year. 

According to HUL, Skin Care registered broad based growth across brands. Pond’s Men range was relaunched and FAL Ayurveda facewash & facial kits were launched during the quarter. Hair Care had a good performance across the portfolio. Two new Sunsilk variants with natural ingredients were launched nationally to enhance our presence in naturals. Colour Cosmetics sustained its double-digit growth with a slew of shade expansions increasing online and offline traffic. Elle 18 Lasting Glow Compact was launched nationally. In Oral Care, we continued to see good momentum on Close Up & Lever Ayush. In Deodorants, our focus is on driving market development and strengthening our brand purpose. Personal wash saw national launches of Lux Botanicals and Pears Naturale range in the premium segment and launch of Fair & Lovely Soap in select geographies.

Foods & Refreshment:

Foods & Refreshment delivered a steady performance. This segment grew by 9.24% to Rs 1,950 crore in Q1FY20 versus Rs 1,785 crore in Q1FY19.  "Beverages witnessed a reasonable quarter driven by consistent strategy across brands and markets. Ice Cream and Frozen Desserts had a good season and delivered strong double-digit growth led by innovations. In Foods, our core segments performed well. We continue to leverage new trends in consumer taste preferences through innovations," said HUL in the audit.