FMCG major Hindustan Unilever on January 27 has posted a 19 percent year-on-year growth in profit at Rs 1,921 crore for the quarter ended December 2020 backed by strong revenue growth and operating income. The profit in corresponding period was at Rs 1,616 crore.
"We have significantly dialed up investments behind our portfolio and in building future-fit capabilities. Net revenue management and savings agenda has enabled us drive healthy bottomline," said the company.
Consolidated revenue from operations grew by 21 percent to Rs 11,872 crore in Q3FY21 compared to Rs 9,808 crore reported in the same period last year, with domestic volume growth of 4 percent.
"Domestic consumer growth (excluding the impact of merger of GSK CH and acquisition of ‘VWash’) grew at 7 percent. Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum," HUL said in its BSE filing.
"Business fundamentals remain strong with 86 percent of business gaining penetration. Health, hygiene and nutrition forming 80 percent of
portfolio continues to grow in double digits and we have seen significant improvement in discretionary categories," the company added.
Numbers were mixed. The profit was estimated at Rs 2,050 crore on revenue of Rs 11,725 crore for the quarter, as per the average of estimates of analysts polled by CNBC-TV18.
At the operating level, its earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 16.7 percent year-on-year to Rs 2,854 crore, but margin contracted 80 bps YoY to 24.1 percent in the quarter ended December 2020, which both missed CNBC-TV18 poll estimates which was pegged at Rs 2,900 crore and 24.7 percent respectively.
"Our consumer relevant innovations, market development and execution excellence have enabled us to drive broad based growth across our categories in the December quarter. I am particularly pleased with the performance of our Nutrition business and with the recovery in the discretionary segments of our portfolio; these are structurally attractive and offer immense growth potential," Sanjiv Mehta, Chairman and Managing Director said.
"The near-term demand outlook is improving, and we expect to see revival in urban while rural should continue to do well. Inflationary pressures are building up in select commodities and we will manage them judiciously," he added.
On the home care segment front, HUL said with increased mobility, Fabric Wash performance in the quarter improved sequentially, and focus on driving market development has enabled the company to grow liquids and fabric sensations segments strongly.
Household Care continued its strong performance across segments delivering double-digit growth, it added.
Beauty & Personal Care grew 9 percent with robust performance across categories and strong double-digit growths in Skin Cleansing,
Hair Care and Oral Care, said the company.
Meanwhile, Hindustan Unilever today appointed Ritesh Tiwari as Executive Director, Finance & Chief Financial Officer and a member of the board, which will be effective from May 1, 2021. "He will also take over as the Vice President Finance, South Asia, Unilever," said HUL.
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HUL shares rallied 15.8 percent in the quarter ended December 2020, and gained 23.6 percent in the last calendar year.
Hindustan Unilever share ended at Rs 2,391.30, down Rs 8.30, or 0.35 percent on the BSE.