HUL reports 7% rise in Q3 profit on Rs 159 crore exceptional gains; Ebitda margin contracts 70 bps

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NEW DELHI: Hindustan Unilever on Monday reported a 7 per cent YoY growth in net profit to Rs 1,038 crore for the quarter ended December 31, 2016, thanks to a one-time exception gain of Rs 159 crore.

The company had reported a profit of Rs 971.66 crore in the corresponding quarter last year.

Sales for the quarter came in at Rs 8,124.48 crore, compared with Rs 8,226.55 crore in the year-ago quarter. The company said that the squeeze in liquidity due to cash ban led to fall in trade pipelines and lower consumer offtake.

In a filing to BSE, the company said, “The impact was varied across segments, channels and geogra[hies. We responded to these adverse market conditions with speed by rejigging out supply chain, supported by our channel partners by extending credit and enhance out direct distribution coverage.”

The company said that its premium segment portfolio continued to perform well during the quarter despite cash ban challenges. Nonetheless, the Ebidta margin for the quarter contracted by 70 basis points, even as the cost of goods sold was up 60 basis points (largely due to rising input cost). Ebitda was down 5 per cent at Rs 1,355.44 crore.