Hindustan Unilever Q2 net profit up 8.9% at Rs 2,187 crore
22 Oct 2021
Consumer goods major Hindustan Unilever Ltd (HUL) has reported an 8.9 per cent increase in its net profit, at Rs2,187 crore, for the July-September quarter of the current fiscal, compared to the second quarter of the previous financial year.
HUL also reported an 11.2 per cent year-on-year increase in revenue at Rs12,724 crore for the second quarter of the current financial year.
HUL delivered a strong performance in the quarter with domestic consumer growth of 11 per cent and profit after tax (PAT) growth of nearly 9 per cent. Performance was broad based with all three divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration.
HUL said revenue from the home care segment increased 15.7 per cent to Rs3,838 crore, and that from the beauty and personal care business rose 9.3 per cent to Rs5,000 crore. Revenue from the foods and refreshment unit for the quarter stood at Rs3,622 crore, against Rs3,379 crore a year ago.
HUL reported earnings before interest, taxes, depreciation and ammortisation (EBITDA) of Rs3,132 crore, while EBITDA margin rose to 24.6 per cent from 24 per cent in the quarter ended 31 March 2021.
The company witnessed sequential improvement in trading conditions in the July-September period, though the environment remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiment, said Sanjiv Mehta, chairman and managing director, HUL.
"In this backdrop, we have delivered a strong performance growing topline in double digits and stepping up profitability sequentially. Large parts of our business continue to gain market shares and penetration. 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 said.
Mehta also said the company is cautiously optimistic about demand recovery going forward.
The company's board declared an interim dividend of Rs15 per share for current financial year.
HUL said it is cautiously optimistic about demand recovery. “In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus on delivering consistent, competitive, profitable and responsible growth.”