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Hindustan Unilever Q2 profit jumps 9% to Rs 2,187 crore, revenue grows at 11.2%

The board has declared an interim dividend of Rs 15 a share for the year ending March 2022

October 19, 2021 / 03:13 PM IST

HUL climbed Rs 14,215.01 crore to Rs 6,29,231.64 crore

HUL climbed Rs 14,215.01 crore to Rs 6,29,231.64 crore

 
 
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FMCG major Hindustan Unilever (HUL) on October 19 reported an 8.9 percent year-on-year growth in standalone profit at Rs 2,187 crore for the quarter ended September 2021 driven by broad-based growth.

Price hikes supported the operating profit margin but rising input prices limited growth for the quarter. Revenue from operations grew 11.2 percent to Rs 12,724 crore in Q2FY22 from the year-ago period, with domestic consumer growth of 11 percent.

"The performance was broad-based with all three divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration," the company said in its BSE filing.

The company's board has declared an interim dividend of Rs 15 a share for the year ending March 2022.

The numbers were a tad higher than estimates. A CNBC-TV18 analyst poll had pegged profit at Rs 2,175 crore on  revenue of Rs 12,570 crore with the volume growth at 5-7 percent.

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On quarter-on-quarter basis, the topline growth was 6.8 percent and bottomline at 6.1 percent.

The September quarter saw a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiment, Chairman and Managing Director Sanjiv Mehta said.

"In this backdrop, we have delivered a strong performance, growing topline in double digits and stepping up profitability sequentially," Mehta said.

HUL remained cautiously optimistic about demand recovery, he said. "In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus in delivering consistent, competitive, profitable and responsible growth," he said.

The homecare segment, which contributed 30 percent to the total revenue, delivered a 15.7 percent year-on-year growth in the quarter at Rs 3,838 crore, driven by high double-digit growth in fabric wash.

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"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," HUL said.

The beauty and personal care segment’s contribution to the revenue was at 39 percent. The company clocked 10.3 percent YoY growth in the segment at Rs 5,000 crore led by skin-care, colour cosmetics and hair-care divisions.

"Contextual communications in hair care continue to yield good results as it delivered another quarter of strong performance,” the company said.

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 a strong performance in the previous year, it said

Foods and refreshment business clocked 7.2 percent increase at Rs 3,622 crore compared to year-ago period.

"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 continued to gain penetration sequentially,” the company said.

Ice creams recovered strongly, driven by effective communications and innovations, it said.

The operating performance in the September quarter was also slightly ahead of estimates. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 12.3 percent year-on-year to Rs 3,132 crore and the margin expanded 25 bps to 24.61 percent compared to year-ago period hit by higher input cost though the company hiked prices.

A CNBC-TV18 poll had estimated EBITDA at Rs 3,085 crore and the margin at 24.5 percent.
Moneycontrol News
first published: Oct 19, 2021 02:23 pm

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