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Hindustan Unilever Profit Declines To Rs 1,515 Crore In This fall As COVID-19 Hits Demand

Hindustan Unilever Profit Declines To Rs 1,515 Crore In Q4 As COVID-19 Hits Demand

Hindustan Unilever’s consolidated web revenue declined 3.5 per cent to Rs 1,515 crore in quarter ended March 2020 as the corporate’s operations had been affected by the unfold of COVID-19. The FMCG big had reported revenue of Rs 1,571 crore throughout the identical quarter final 12 months, in accordance with its inventory change submitting.

Hindustan Unilever’s income from sale of merchandise fell practically 10 per cent to Rs 9,055 crore from Rs 10,018 crore in March quarter of final 12 months.

“The spread of COVID 19 impacted the business from mid-March, which culminated into scaling down of operations post the national lockdown. Domestic consumer growth declined by 9 per cent with a decline of 7 per cent in underlying volume growth,” Hindustan Unilever mentioned in a press launch.

Its earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) or working revenue margin decreased by 40 bps, HUL mentioned.

“Demand patterns are changing, and we are likely to see an upswing in categories like health, hygiene and nutrition. In the near term, we are also likely to see some adverse impact on discretionary categories and out of home channel,” the Mumbai-based firm mentioned in a press launch.

“COVID-19 is perhaps the biggest challenge for us both from the lens of sustaining lives as well as livelihoods. The human impact of the pandemic is uncertain, and we are fully committed to working with the Government and our partners to ensure that we overcome this crisis together,” Sanjiv Mehta, chairman and managing director, HUL mentioned in a press release.

The firm’s board really useful a ultimate dividend of Rs 14 per share.

Hindustan Unilever shares closed 1.6 per cent decrease at Rs 2,195forward of earnings announcement.

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