FMCG major Hindustan Unilever Limited (HUL) registered a net profit growth of 8.9 percent year-on-year for the second quarter of FY22. HUL’s chairman and managing director Sanjiv Mehta said the September quarter witnessed sequential improvement in trading conditions. It, however, remained challenging due to unprecedented levels of input cost inflation and subdued consumer sentiments.

Here’s a look at key highlights of HUL Q2 results

Profit, revenue, margins

HUL reported a net profit of Rs 2,187 crore for the quarter ended September 30 and its revenue came in at Rs 12,724 crore, which exceeds analysts' expectations. A CNBC-TV18 poll had predicted HUL's profit at Rs 2,175 crore over revenue of Rs 12,570 crore.

The firm’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at 25 percent whereas the profit after tax (PAT) was recorded at Rs. 2,187 crore, a rise of 9 percent year-on-year.

Growth of segments

HUL’s home care segment grew 15 percent driven by double-digit growth in fabric wash, the firm said, adding that household care continued to perform well and grew on a strong base. Beauty and personal care grew 10 percent led by skin care, colour cosmetics and hair care whereas the foods and refreshment segment grew at 7 percent against a strong prior year comparator.

Interim dividend

HUL’s board has declared an interim dividend of Rs15/- per share for the year ending March 31, 2022.

COVID-19 impact

The company said that the operating environment has improved progressively post the second wave of the COVID-19 pandemic. FMCG markets have some moderation in rural in the last two months, it added.

According to the firm, its discretionary portfolio is almost back to the pre-COVID level. Out-of-home has recovered and is ahead of pre covid levels, it said.

HUL’s underlying volume growth is at 4 percent, the management said.

Digital expansion

The firm says it has captured more than 15 percent of business digitally. “Through our ‘Re-Imagine HUL’ programme, we have further strengthened the digital capabilities across our organisation,” Mehta said.

Outlook

HUL’s chairman said, “calibrated price increases and laser-sharp focus on savings has helped us protect our business model while ensuring the right price-value equation for our consumers.”

He added the firm is cautiously optimistic about demand recovery. In these times of uncertainty and unprecedented input cost inflation, the company continues to firmly focus on delivering consistent, competitive, profitable and responsible growth, Mehta said.

First Published:Oct 19, 2021 3:50 PM IST