FMCG major Hindustan Unilever Ltd (HUL) on Wednesday reported that underlying sales growth for its personal care business recorded a 10 percent fall due to a decline in its skin cleaning portfolio, which includes brands like Lux.
The overall beauty and personal care business had an underlying sales growth decline of 2 percent with flat volume growth.
The segment contributed 35 percent of the FMCG major’s overall revenue for the March quarter with sales of Rs 5,050 crore.
While the personal care segment saw a decline in sales, the beauty segment saw a 4 percent growth, the company said.
HUL said that the skin cleansing business declined due to the impact of price cuts coupled with a drop in volumes in the mass and popular segments.
To improve its skin cleansing business, the company said that it corrected the price-value equation in the mass and popular segments and is intensifying innovations in premium demand spaces and formats. It is also “accelerating channels of the future” to drive growth.
On the beauty side, the FMCG company reported low single-digit growth in its skincare and colour cosmetics business with the mass skin portfolio declining.
In the Q4 presentation, it added that its premium skin care category continues its strong double-digit growth trajectory, led by innovations in new demand spaces and formats. The company’s bodywash business also continues to do well.
Haircare delivered volume-driven high single-digit growth led by outperformance in Dove and Tresemme brands.
Oralcare saw a double-digit broad-based growth driven by pricing.
Overall, HUL reported a 6 percent fall in standalone net profit to Rs 2,406 crore for the fiscal fourth quarter against Rs 2,552 crore in the year-ago period.
Sales rose only marginally to Rs 14,693 crore in the fourth quarter.
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