On Thursday, Hindustan Unilever (HUL), India’s largest FMCG company, reported a 16.8% increase in profits YoY basis at Rs 2,243 crores for the quarter ending December 2021. Their revenue from operations grew 10.4% YoY to 12,900 crores. Its margin was at 25.4%, an improvement of 100 basis points YoY. Its EBITDA stood at Rs 3,277 crores, witnessing a nearly 15% growth YoY basis.
Its home-care segment saw a 23% growth; beauty and personal care grew 7%; the hair-care market share was at a 15-year high; health, hygiene and nutrition continued to perform well and delivered 10% growth.
“We will continue to manage our business with agility, take all steps required to protect our business model, grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident and are focussed to deliver our growth agenda,” said Ritesh Tiwari, CFO of HUL.
HUL has gained rural and urban market share in the quarter, but it has warned that the country is witnessing a rural slowdown. They also warned that rising inflation and high raw material costs could hit margins in the near future. Rural demand has lulled. FMCG companies expected the buying levels to return to pre-pandemic levels, high inflation has limited the consumers’ purchasing power pressured the company already under pressure from rising raw material costs.
Highlight by Aman Agarwal.