HUL registers robust broad-based performance in a challenging environment in Q2

Q2 PAT grows 9% yoy to Rs2,187cr while revenue from operations rose 11% yoy to Rs12,516cr.

Oct 19, 2021 03:10 IST India Infoline News Service

Hindustan Unilever Limited announced its standalone results for the quarter ended September 30, 2021. HUL delivered a strong performance in this quarter with Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 9%.

The company reported a net profit of Rs2,187cr for the September quarter, an increase of 9% from Rs2,009cr reported in the same quarter last year. On a sequential basis, the profit after tax (PAT) grew 6% from Rs2,061cr in the June quarter.

The FMCG major’s revenue from operations rose 11% to Rs12,516cr as against Rs11,276cr in the year-ago period.

Hindustan Unilever Ltd ended at Rs2,546.45 down by Rs107.7 per piece or 4.06% from its previous closing of Rs2,654.15 per piece on the BSE.

“We continue to invest behind building our brands, portfolio and future-fit capabilities. Our focused actions on Net Revenue Management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance,” the company said in a filing on Tuesday.

The Board of Directors has declared an interim dividend of Rs.15/- per share for the year ending March 31, 2022.

Performance was broad-based with all 3 divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration.

Home Care:
Home Care grew 15% driven by high double-digit growth in Fabric Wash. Household care continued to perform well and grew on a strong base. Liquids and Fabric Sensations continue to outperform. Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the high inflation in input costs.

Extending its Clean Future journey, ‘Surf Excel Matic’ has transitioned to bottles made from 50% recycled plastic while using 100% biodegradable actives in its formulation.Home Care also launched ‘Smart Fill’ machines to empower consumers to reduce plastic waste.

Beauty & Personal Care:
Beauty & Personal Care grew 10% led by Skin Care, Colour Cosmetics and Hair Care. Contextual communications in Hair Care continue to yield good results as it delivered another quarter of strong performance. Skin Care and Colour Cosmetics delivered high double-digit growths as mobility improved.

Soaps grew on a high base led by strong growths in beauty and premium segment. Hand Hygiene portfolio declined against a strong prior year comparator. ‘VWash’ had another strong quarter. A calibrated approach towards price increase has helped protect the business model as vegetable oil prices remain at elevated levels. During this quarter ‘Pond’s Gold Beauty’ range, limited edition lip colours in ‘Lakme’ and ‘Vaseline Lip Therapy’ rangewere launched. Premium beauty brands ‘Lakme’, ‘Simple’ and now ‘Love Beauty and Planet’ are also available on dedicated D2C platforms. Lakme saw 30% of its sales come through digital platforms.

Foods & Refreshment:
Foods & Refreshment grew at 7% against a strong prior year comparator. Tea grew on a very strong base and further strengthened its market leadership. Focus on market development in Nutrition is yielding good results. Health Food Drinks volumes grew double-digit and it continued to gain penetration sequentially. Ice Creams recovered strongly driven by effective communications and innovations. Foods had a soft quarter on the back of high teens growth in the base period. ‘Kissan Peanut Butter’ and ‘Hellman’s Mayonnaise’ innovations are picking up momentum. In this quarter, ‘Horlicks’ expanded its high sciences range with the launch of ‘Horlicks Diabetes Plus’.

Sanjiv Mehta, Chairman and Managing Director commented: ‘September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments. In this backdrop, we have delivered a strong performance growing topline in double digits and stepping up profitability sequentially. Large parts of our business continue to gain market shares and penetration. Calibrated price increases and laser sharp focus on savings has helped us protect our business model while ensuring the right price-value equation for our consumers.

Through our ‘Re-Imagine HUL’ programme, we have further strengthened the digital capabilities across our organisation. We are making significant progress in our sustainable living journey. We are on track to collect and process more plastic waste than we sell in our packaging this year through our network of partners. Looking forward, we remain cautiously optimistic about demand recovery. In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus in delivering Consistent, Competitive, Profitable and Responsible Growth.”

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity