FMCG major Hindustan Unilever on Tuesday reported a 10.69% rise in its consolidated net profit at Rs 2,185 crore for the second quarter ended September 30, helped by good performance across sectors and price appreciation.
The company had made a net profit of ₹ 1,974 crore in the July-September quarter of the previous financial year.
Hindustan Unilever Limited (HUL) said in a regulatory filing that its revenue from sales grew by 11.31% to ₹12,812 crore during the quarter under review, from ₹11,510 crore a year ago.
HUL’s total expenditure was ₹10,129 crore in Q2 FY2021-22 as compared to ₹9,054 crore in the year-ago period.
HUL said, “September quarter witnessed a gradual improvement in business conditions, however, remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments. Against this backdrop, we have posted a strong double-digit performance, growing and profitability. has been progressively carried forward,” HUL CMD Sanjiv Mehta said.
The bulk of HUL business continues to gain market share and penetration.
“Calibrated value addition and laser-sharp focus on savings have helped protect our business model while ensuring the right value-price equation for our consumers,” said Mr. Mehta.
Quoting RBI data, Mr Mehta said while consumer confidence is good for long term, for short term, it is still low due to persistent fear of COVID-19, inflation and job prospects.
Rural demand has been resilient over the past few quarters due to various factors such as direct government fund transfers, food subsidies, MGNREGA and good harvests, taking the rural base to a very high level.
“The rural (market) base is certainly much higher when it comes to growth rate as compared to urban, as urban was affected due to lack of mobility. As mobility improves, urban demand should increase Modern business has opened up.
“Therefore, we will definitely see more and more demand picking up in the urban sector and while the rural is still growing, the growth rate has slowed down,” he said while addressing a virtual conference.
On inflation, Mr. Mehta said, “… what we have seen in certain commodities like palm oil, crude oil based derivatives, and related ones like sea freight, etc., or even tea, is unprecedented. We have seen this. Haven’t seen the kind of inflation for many years”.
Overall, HUL said its growth in the second quarter was “broad-based”, with all three divisions growing competitively and “with over three-quarters of the business gaining market share and penetration in business fundamentals”. stay strong”.
During the second quarter, home care segment revenue grew 15.67% to ₹3,838 crore from ₹3,318 crore a year ago, driven by high double-digit growth in fabric wash. It added that Home Care continued to perform well and grew on a strong footing.
In addition, calibrated price hikes were made in the fabric wash and home care departments to partially offset higher inflation in input costs, the company said.
Revenue from Beauty and Personal Care grew by 10.46% to ₹5,026 crore from ₹4,550 crore in the same quarter last year. The growth was led by skincare, color cosmetics and hair care products.
While the hand hygiene portfolio declined over the last year, intimate hygiene brand VWash, which HUL acquired from Glenmark Pharmaceuticals last year, had another strong quarter.
“A calibrated approach towards price hike has helped protect the business model as vegetable oil prices remain elevated,” the company said, adding that 30% of sales of its beauty brand Lakme are digital. came through the platform.
The food and refreshment segment revenue grew 7.19% to ₹3,622 crore from ₹3,379 crore in the year-ago period, supported by growth in sectors such as tea, health food drinks and recovery in the ice cream market.
“Tea grew on a very strong footing and further consolidated its market leadership. Focus on market growth in nutrition is driving good results. Health food beverage volume grew double digit and entered sequentially Continued to achieve ice cream recovered and innovation driven strongly by effective communication,” HUL said.
Revenue from the “Others” segment, which includes exports, infant and feminine care, grew 28.44% to ₹560 crore as compared to ₹436 crore in the year-ago quarter.
For the first half of this fiscal, HUL’s consolidated net profit grew 10.69% to ₹4,285 crore, from ₹3,871 crore in April-September of the previous fiscal.
Its H1 revenue from sales grew 12.36% to ₹24,808 crore, from ₹22,080 crore in the year-ago period.
On the outlook, Mr Mehta said, HUL remains “cautiously optimistic about a recovery in demand”.
“In this time of uncertainty and unprecedented input cost inflation, we continue to remain firmly focused on delivering consistent, competitive, profitable and responsible growth,” he said.
HUL shares closed at ₹2,546.65 on the BSE on Tuesday, down 4.06% from the previous close.
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