Hindustan Unilever Ltd. (HUL) reported net profit for the second quarter ended September 30 grew 9% to ₹2,187 crore, compared with the year-earlier period, on the back of a ‘robust broad-based performance in a challenging environment’.
HUL also reported a domestic consumer growth of 11% during the quarter. “The performance was broad-based, with all three divisions — home care, beauty and personal care, and foods and refreshment — growing competitively,” it said in a filing. “Business fundamentals remained strong with more than three-fourths of the business gaining market share,” it added.
‘Input cost inflation’
“September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments,” said CMD Sanjiv Mehta. “In this backdrop, we have delivered a strong performance, growing top-line in double digits and stepping up profitability sequentially,” he added.
“Our focused actions on net revenue management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance,” said CFO and Executive Director – Finance Ritesh Tiwari.
The board declared an interim dividend of ₹15 for the year ending March 31.
“Looking forward, we remain cautiously optimistic about demand recovery,” Mr. Mehta said. “In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus on delivering consistent, competitive, profitable and responsible growth.”
“September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments,” said Mr. Mehta. “In this backdrop, we have delivered a strong performance, growing top-line in double digits and stepping up profitability sequentially,” he said.
Mr. Mehta said large parts of the company’s business gained market shares and penetration.
“Calibrated price increases and laser sharp focus on savings have helped us protect our business model while ensuring the right price-value equation for our consumers,” he added.
During the quarter, the company’s Home Care business grew 15%, driven by high double-digit growth in Fabric Wash, while Beauty & Personal Care grew 10% led by skin care, colour cosmetics and hair care. Foods & Refreshment segment grew at 7%.
