Hindustan Unilever (HUL), India’s largest fast-moving consumer goods (FMCG) company, on July 19 reported a 13.85 percent year-on-year (YoY) rise in consolidated net profit at Rs 2,391 crore for the quarter ended June, which was above analysts’ estimate of Rs 2,191.3 crore. Standalone net profit was at Rs 2,289 crore, up 11 percent YoY.
The company’s revenue from operations rose 19.46 percent on-year to Rs 14,331 crore for the reported quarter, which was also above analysts’ expectations of Rs 13,438.5 crore. The company said the underlying volume growth of 6 percent.
The company said earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin was at 23.2 percent during the quarter, declining 110 basis points YoY. The entire FMCG segment felt intense cost pressure this quarter due to inflation, which has also hit their margins.
“In an environment which remains challenging, marked by unprecedented inflation and consequential impact on consumption, we have delivered yet another quarter of robust topline and bottom-line performance,” said Sanjiv Mehta, CEO and Managing Director at HUL.
“We have grown competitively whilst protecting our business model by maintaining margins in a healthy range. While there are near-term concerns around inflation, the recent softening of commodities, forecast of a normal monsoon, and monetary/ fiscal measures taken by the government augur well for the industry.”
The company’s Home Care segment delivered 30 percent growth driven by strong performance in fabric wash and household care. Both categories grew in high double-digits with all parts of the portfolio performing well, the company said.
HUL said the Beauty & Personal Care segment growth of 17 percent was broad-based. Hair Care grew in high double-digits led by strong performance in the premium portfolio. Soaps delivered price-led double-digit growth driven by strong performance in Lux, Dove, and Pears.
The foods & Refreshment segment grew 9 percent driven by solid performance in ice cream, coffee, and food solutions, the company said.
“We are confident of the medium to long term prospects of the Indian FMCG sector and remain focused on delivering a consistent, competitive, profitable, and responsible growth,” said Mehta.
The company added that it continues to manage its business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of net revenue management.