Hindustan Unilever reports higher Q1 profit on core segments revival

HUL Q1 earnings: Hindustan Unilever posted a higher first-quarter profit on Tuesday, driven by a recovery in rural demand that boosted demand for the Dove shampoo-maker's core business.

The company, a unit of the UK's Unilever, reported a 2.7 per cent rise in profit to Rs 2,538 crore for the quarter ended June 30. This slightly exceeded analysts' expectations of Rs 2,531 crore, according to data from LSEG.

Sales of consumer goods began to rise in the three months ended March, with rural growth outpacing urban areas for the first time in five quarters. Easing commodity prices also aided volume growth for branded consumer goods giants.

For Hindustan Unilever, urban sales contribute 60 per cent while rural sales contribute the rest, as of the March quarter ended.

The company's sales rose to Rs 15,166 crore in the first quarter, supported by a 4.6 per cent growth in its key home care segment, which includes products such as Vim, and Surf Excel.

Hindustan Unilever's shares closed 1.1 per cent higher on Tuesday, having gained 9 per cent in the June quarter compared to a 5 per cent gain in the Nifty fast-moving consumer goods index.

(With Reuters inputs)