Home Big Grid HUL Q2 net profit rises 22.2% to Rs 2,670 crore; revenue up...

HUL Q2 net profit rises 22.2% to Rs 2,670 crore; revenue up 16.4%

By  
SHARE

FMCG major Hindustan Unilever Ltd on Friday reported a 22.19 per cent increase in its consolidated net profit to Rs 2,670 crore for the second quarter ended September 30, mainly helped by volume growth and market gains.

The company had posted a net profit of Rs 2,185 crore in the July-September quarter of the previous fiscal. The total income increased 16.44 per cent during the quarter under review to Rs 15,253 crore. It was Rs 13,099 crore in the year-ago period, Hindustan Unilever Ltd (HUL) said in a regulatory filing.

The leading FMCG maker delivered an “underlying volume growth of 4 per cent” during the July-September quarter, said an earning statement by HUL.

“Growth was significantly ahead of the market with more than 75 per cent of the business winning value and volume market share,” it said.

Its expenses surged 18.12 per cent to Rs 11,965 crore compared to Rs 10,129 crore in the second quarter of the last fiscal.

HUL’s revenue from the sale of products in the September quarter rose 16.07 per cent to Rs 14,872 crore against Rs 12,812 crore a year ago.

Its consolidated net profit for the first half (April-September) of FY23 grew 18.1 per cent to Rs 5,061 crore. Its H1 revenue from sales of products rose 17.7 per cent to Rs 29,203 crore.

HUL CEO and Managing Director Sanjiv Mehta said: “Building on our strong momentum, we have delivered yet another quarter of solid all-round performance. In H1 2022-23, we have added an incremental turnover of more than Rs 4,000 crore. Our consistent performance is reflective of our strategic clarity, the strength of our brands, operational excellence, and dynamic financial management”.

The demand environment remains challenging with inflation impacting consumption, Mehta added.

“However, with softening in some commodities and monetary/ fiscal measures taken by the government, we are cautiously optimistic in the near term. In this scenario, we will manage our business with agility, and continue to grow our consumer franchise whilst maintaining our margins in a healthy range,” he noted.

During the quarter, HUL’s revenue from the home care segment rose 33.97 per cent to Rs 5,142 crore, led by “volumes growing in double-digit”.

“Both Fabric Wash and Household Care grew in high double-digits with all parts of the portfolio performing well. Liquid Detergents and Fabric Sensations continued to outperform driven by effective market development actions,” said HUL.

It took calibrated price increases across fabric wash and household care portfolios as input costs continue to inflate at significantly high levels.

HUL’s revenue from beauty and personal care was up 11.32 per cent at Rs 5,595 crore against Rs 5,026 crore in the corresponding quarter of the previous fiscal.

This was also led by a “double-digit growth ahead of the market,” said HUL.

Skin cleansing delivered strong double-digit growth, led by beauty and premium brands such as Lux, Dove and Pears.

“In Skin Care and Color Cosmetics, premium portfolio outperformed delivering double-digit growth. Premium Beauty Business unit, our incubator for digital brands, launched two new brands ‘Acne Squad’ and ‘Find Your Happy Place’,” it noted.

Revenue from food and refreshment grew 3.67 per cent to Rs 3,755 crore compared to Rs 3,622 crore a year ago, driven by a “steady performance led by foods, coffee and ice cream”.

“Foods delivered strong double-digit growth with volumes growing in mid-teens, led by Jams and Unilever Food Solutions business. Ice Cream had another strong quarter with double-digit growth on a very high base, led by robust performance across brands and formats,” said HUL.

Tea volume grew in the mid-single digit while turnover declined marginally due to price cuts, while coffee continues to perform well, delivering double-digit growth.

“Health Food Drinks continued to gain market share and penetration on the back of focused market development actions,” it said.

Its revenue from ‘others’, which includes export and consignments, among others, was up 16.42 per cent at Rs 652 crore against Rs 560 crore in Q2 2021-22.

Meanwhile, in a separate filing, HUL said its board on Friday declared an interim dividend of Rs 17 per equity share of the face value of Re 1 each for FY23.