FMCG major Hindustan Unilever on Thursday reported 17% jump in net profit at Rs 2,243 crore for the quarter ending December 31, 2021 as it gained market share in both urban and rural areas as India emerged from coronavirus-related lockdowns.. It posted net profit of Rs 1,921 crore in year-ago period.
Growth in the quarter was competitive and profitable with domestic consumer growth of 11%. Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments. Underlying volume growth at 2% was significantly ahead of the market, the company said in a stock exchange filing.
Sanjiv Mehta, Chairman and Managing Director, HUL 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 highest in more than a decade. Our performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business."
In the near-term, operating environment will continue to remain challenging, said HUL CMD
"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 Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth," Mehta added.
On Thursday, the company's scrip on BSE closed 2% lower at Rs 2,261.60.
Sales from products increased 10% to Rs 12,900 crore as against Rs 11,682 crore a year ago.
Consumer goods makers had expected buying to pick up as pandemic restrictions eased, but high inflation has limited consumers' spending power and piled pressure on companies already grappling with rising raw material and shipping costs.
HUL's earnings before interest, taxes, depreciation and amortization margin, a key measure of profitability, was 25.4% in the third quarter, above analysts' estimates of 24.69%.
The company, which owns more than 50 brands in India spanning breakfast spreads to personal hygiene products, said sales from its beauty and personal care segment rose 6.9%, while those from home care jumped 23%.
"Calibrated price increases were taken across fabric wash and household care portfolios to partly offset the significant inflation in input costs," the company said.
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