HUL Q3 profit rises 17%, flags near-term operating challenges – Mint

HUL, India’s largest consumer goods maker, has gained market share in both urban and rural areas as the country emerged from coronavirus-related lockdowns.

The FMCG major’s sales rose 10% to ₹12,900 crore as against ₹11,682 crore in the year-ago period.

On Tuesday, HUL’s scrip was down nearly 2% at ₹2,265 on NSE.

Hindustan Unilever has clocked 11% growth in domestic consumer growth.

Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments. Underlying volume growth at 2% was significantly ahead of the market, HUL said in a filing.

“We have delivered a strong and resilient performance in the quarter despite moderation in market growths and significant levels of commodity inflation. I am particularly pleased that the growth is extremely competitive with our market share gains being highest in more than a decade,” Sanjiv Mehta, HUL CMD said.

HUL said, in the context of unprecedented inflation, it continues to manage business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of net revenue Management. “We continue to invest competitively behind our brands,” it added.

Our performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business.

In the near-term, operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a consistent, competitive, profitable and responsible growth, Sanjiv Mehta further said.

Segment wise, Home Care business grew by 23% and was broad based with strong performance in fabric wash and household care.

Beauty & Personal Care segment clocked a growth of 7%, led by skin cleansing, skin care and colour cosmetics, while foods and refreshment business growth came in at 3% on a very high prior year comparator, driven by solid performance in tea and ice-creams.