HUL Q1 net profit up 10.7% at Rs 2,100 cr; net sales rise 13% to Rs 11,996 cr

FMCG major Hindustan Unilever Ltd on Thursday reported a 10.7 per cent increase in its consolidated net profit at Rs 2,100 crore for the first quarter ended June, 2021 led by a volume-based growth despite challenging circumstances due to the second wave of the pandemic.

The company had posted a net profit of Rs 1,897 crore in the April-June quarter of the previous fiscal.

Net sales during the quarter under review stood at Rs 11,996 crore, up 13.49 per cent, as against Rs 10,570 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing.

"In a challenging context of Covid wave 2, HUL delivered a strong performance with domestic consumer growth of 12 per cent, underlying volume growth of 9 per cent and profit after tax growth of 10 per cent," HUL said in a post earning statement.

Performance was broad based with all three divisions -- Home Care, Beauty & Personal Care and Foods & Refreshment -- all growing competitively and in double-digits.

"Our business fundamentals remain strong with a large part of our business gaining penetration," said HUL

HUL's total expenses was at Rs 9,546 crore in the quarter under review, up 14.68 per cent from Rs 8,324 crore a year ago.

Commenting on the result, HUL CMD Sanjiv Mehta said: "In a challenging environment, we have delivered a strong performance across topline and bottomline. Our performance in the quarter has been resilient and is reflective of our capabilities, the agility in our operations and the intrinsic strength of our portfolio."

During the quarter, HUL’s revenue from the home-care segment was up 11.94 per cent to Rs 3,797 crore, as against Rs 3,392 crore in the corresponding quarter a year ago.

"Household care continued to perform well growing in high double-digits on a strong base. Liquids and Fabric Sensations continue to outperform, benefitting from robust market development initiatives," HUL said.

HUL's revenue from Beauty & Personal Care was up 13.41 per cent to Rs 4,585 crore, as against Rs 4,043 crore of the corresponding quarter.

This was led by Hair Care and Skin Care, both growing in high double-digits, said HUL.

"Contextual communications in Hair Care continue to yield good results. Skin Cleansing continued its strong momentum, soaps grew on a high base and the premium segment performed well. Hand Hygiene portfolio declined against an exceptionally high base," it said

Moreover, a calibrated approach towards price increase has helped protect its business model as vegetable oil prices remain at elevated levels.

The Food & Refreshment segment was up 12.2 per cent to Rs 3,319 crore, as against Rs 2,958 crore in the corresponding period, helped by double-digit growth in segments as tea, ketchups, soups and nutrition business.

"All our Tea brands continue to grow in high double-digits despite a very strong base in the prior year," said HUL.

Ice Creams recovered and grew on a year-on-year basis from a weak base, although performance in the quarter was impacted by limited mobility.

Revenue from the "other" segment, which includes exports, infant and feminine care was up 45.86 per cent to Rs 493 crore, compared to Rs 338 crore in the corresponding quarter a year ago.

Looking forward, Mehta said, "we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume-led competitive growth and margins in a healthy range."

Meanwhile, HUL announced retirement of its Executive Director -Legal & Corporate Affairs and company Secretary Dev Bajpai, effective from March 31, 2022.

Shares of HUL on Thursday closed at Rs 2,378.50, down 2.28 per cent on BSE.