HUL Q3FY22 Results: Profit rises 16.8% YoY to Rs 2,243 crore

Hindustan Unilever Limited (HUL), India's largest fast-moving consumer goods company, has reported a 16.8 per cent YoY rise in net profit to Rs 2,243 crore for the quarter ended December. It had posted a profit of Rs 1,921 crore in the corresponding quarter last year.

The company's revenue from operation grew 10.4 per cent YoY to Rs 13,092 crore in December 2021 quarter against Rs 11,862 crore posted last year.

The EBITDA of the soap-to shampoo manufacturer grew 14.9 per cent YoY to Rs 3,279 crore against Rs 2,854 crore posted last year. It reported a margin of 25 per cent in Q3FY22 compared to 24 per cent posted in Q3FY21. The soap-to-shampoo maker's underlying volume growth stood at 2% for the quarter.

The company's underlying volume growth in the quarter stood at 2 per cent. HUL in filing to the bourses said, "Growth in the quarter was competitive and profitable with Domestic Consumer Growth of 11 per cent. Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments."

Home Care: Home Care growth at 23 per cent was broad-based with a strong performance in Fabric Wash and Household Care. Fabric Wash grew in strong double-digits with all parts of the portfolio performing well. Household Care sustained its robust performance and grew in high teens on a strong base. Liquids and Fabric Sensations continue to outperform driven by effective market development actions. Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the significant inflation in input costs.

Beauty & Personal Care: Beauty & Personal Care grew 7 per cent led by Skin Cleansing, Skin Care and Colour Cosmetics. Skin Cleansing delivered double-digit growth driven by strong performance in 'Lux', 'Dove' and 'Pears'. Hair Care had a steady quarter enabled by strong performance in the premium portfolio. Our brands 'Clinic Plus', 'Dove' and 'Sunsilk' were rated as the top 3 Hair Care brands in the country as per 'Kantar Brand Health Check Report'. A calibrated approach towards price increase in Skin Cleansing and Hair Care has helped protect our business model even as vegetable oils continue to inflate at record levels. Together, Skin Care and Colour Cosmetics delivered double-digit growth and are above pre-COVID levels. During this quarter, we had several innovations including 'Dove Love and Care' range of moisturizers, serums by clean beauty brand 'Simple', a new toothpaste 'Sensitive Mineral Active' launched in Tamil Nadu and 'Lakme' Volume Mascara, Liquid Concealer and Highlighter.

Foods & Refreshment: Foods & Refreshment grew 3 per cent on a very high prior-year comparator, driven by solid performance in Tea and Ice-creams. Tea continued its robust performance and grew competitively on a strong base delivering high teens 2Y CAGR. Focus on market development actions in Health Food Drinks has resulted in handsome market share and penetration gains. Ice Creams had a very strong quarter delivering 2Y CAGR in high teens enabled by impactful innovations and effective activations. Foods grew on a strong base led by Jams and Ketchup. 'Kissan Peanut Butter' and 'Hellman's Mayonnaise' innovations continue to perform well. 'Bru' launched a new product 'Bru Beaten Coffee'.

Sanjiv Mehta, Chairman and Managing Director said, 'We have delivered a strong and resilient performance in the quarter despite moderation in market growths and significant levels of commodity inflation. I am particularly pleased that the growth is extremely competitive with our market share gains being the highest in more than a decade. Our performance is reflective of our strategic clarity, the strength of our brands, operational excellence, and dynamic financial management of our business."

He added, "In the near-term, operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of the Indian FMCG sector and HUL's ability to deliver a Consistent, Competitive, Profitable and Responsible growth."

Besides, the Board of Directors based on the recommendation of the Nomination and Remuneration Committee have approved the re-appointment of Mr. Dev Bajpai, as a Whole-time Director of the Company, whose term was expiring on January 22, 2022, for a further period of five consecutive years or till such time he holds office as a Whole-time Director, whichever is earlier, with effect from January 23, 2022, subject to statutory approvals as may be applicable.