HUL Q1 net profit rises 9.5% to ₹2,061 crore; domestic volume growth at 9%

HUL reports Q1 results Photo: ReutersPremium
HUL reports Q1 results Photo: Reuters
 2 min read . Updated: 22 Jul 2021, 02:00 PM IST Livemint

Hindustan Unilever's (HUL) Q1 standalone net profit for the quarter ended June came at ₹2,061 crore, an increase of 9.5% as compared to ₹1,881 crore in the same quarter last year. The FMCG company's total revenue from operations rose nearly 13% to ₹11,915 crore as compared to ₹10,560 crore. Its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin stood at 24% during the quarter.

''In a challenging context of COVID Wave 2, HUL delivered a strong performance with Domestic Consumer Growth of 12%, Underlying Volume Growth of 9% and Profit after tax growth of 10%. Performance was broad based with all 3 divisions growing competitively and in double-digits. Our business fundamentals remain strong with a large part of our business gaining penetration,'' the company said in an exchange filing.

HUL's home care segment grew at 12% enabled by double-digit growth in Fabric Wash, whereas its beauty & personal care segment grew 13% led by Hair Care and Skin Care, both growing in high double-digits. It said that the Foods & Refreshment delivered another quarter of strong performance and grew at 12%. During this quarter, HUL launched, ‘Pepsodent’ mouthwash that it claims fights Coronavirus, new moisturizing gels and body lotions in ‘Vaseline’ and ‘Lakme Lip Crayons’.

The company's Chairman and Managing Director (CMD) Sanjiv Mehta remains cautiously optimistic about the demand recovery. ''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.. Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume led competitive growth and margins in a healthy range,'' Mehta said.

HUL shares were up over 1% to ₹2,464 per share on the BSE in Thursday's afternoon deals.

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