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HUL's net sales rise by 7% in first quarter

The local unit of the Anglo-Dutch major, long considered an accurate proxy for broader consumer sentiment in India, has been facing macro-economic challenges.

ET Bureau|
Jul 23, 2019, 04.48 PM IST
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HUL
"Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins," HUL Managing Director and Chairman Sanjiv Mehta said.
Hindustan Unilever Ltd (HUL) on Tuesday said market growth has moderated, as it posted 7% revenue growth in the first quarter.

Net sales were Rs 9,984 crore in the three months to June, with volume growth of 5%, consistent with HUL’s expansion strategy over the past couple of years. Net profit at the maker of Rin detergents and Lux soap climbed 15% to Rs 1755 crore.

The local unit of the Anglo-Dutch major, long considered an accurate proxy for broader consumer sentiment in India, has been facing macro-economic factors such as declining liquidity and slower wage increases restrained sales growth.

"Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins," HUL Managing Director and Chairman Sanjiv Mehta said. "Our focus on strengthening the core, leading market development and premiumisation, driving channel transformation and building brands with purpose, continues to serve us well."

Consumption in rural India, which accounts for about a third of the market, has been under stress over the past three quarters even though its rate of expansion has been faster than that in the cities. Rural growth rates, which were nearly double those in urban areas, moderated to 1.5 times in the December quarter and subsequently about 1.2 times in the March quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs 2647 crores was up by 18%.
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