Hindustan Unilever Q2 profit up 9% to Rs 2,187 crore, revenue grows at 11.2%
FMCG Giant Hindustan Unilever reported an 8.9 percent YoY growth in standalone profit at Rs 2,187 crore for the quarter ended September 2021 .
Price hikes supported the operating profit margin .Revenue from operations grew 11.2 percent to Rs 12,724 crore in Q2FY22 from the year-ago period. On quarter-on-quarter basis, the topline growth was 6.8 percent and bottomline at 6.1 percent.
The performance is broad-based with all three divisions growing competitively.
The company’s board has declared an interim dividend of Rs 15 a share for the year ending March 2022.
In this backdrop, it has delivered a strong performance, growing topline in double digits and stepping up profitability sequentially .
The homecare segment, which contributed 30 percent to the total revenue, delivered a 15.7 percent year-on-year growth in the quarter at Rs 3,838 crore, driven by high double-digit growth in fabric wash.
Household care continued to perform well and grew on a strong base. Liquids and fabric sensations continue to outperform. Calibrated price increases were taken across fabric wash and household care portfolios to partly offset the high inflation in input costs,” HUL said.
The beauty and personal care segment’s contribution to the revenue was at 39 percent. The company clocked 10.3 percent YoY growth in the segment at Rs 5,000 crore led by skin-care, colour cosmetics and hair-care divisions.
Skin care and colour cosmetics delivered high double-digit growths as mobility improved. Soaps grew on a high base led by strong growths in beauty and premium segment. Hand hygiene portfolio declined against a a strong performance in the previous year, it said
Foods and refreshment business clocked 7.2 percent increase at Rs 3,622 crore compared to year-ago period.
Tea grew on a very strong base and further strengthened its market leadership. Focus on market development in nutrition is yielding good results. Health food drinks volumes grew double-digit and continued to gain penetration sequentially.
Ice creams recovered strongly, driven by effective communications and innovations, it said.
Editorial comments: The scrip now at Rs. 2499 is in short term down trend and correction.