FMCG major Hindustan Unilever posted a 7.86 per cent increase in consolidated net profit at ₹2,481 crore for the quarter ended December, against ₹2,300 crore in the same quarter last year
The net profit dipped 7 per cent sequentially compared to previous quarter’s profit of ₹2,670 crore.
Revenue from operations grew 16.35 per cent to ₹15,707 crore during the reporting period against ₹13,499 crore during the same quarter last year. Revenue from operations grew 2.97 per cent from ₹15,253 crore in the September quarter.
The company reported volume growth of 5 per cent against 4 per cent in the previous quarter. The home care division delivered 32 per cent revenue growth, beauty and personal care grew 10 per cent and food and refreshment delivered 7 per cent growth.
HUL also announced that its board of directors approved the proposal to enter a new arrangement with Unilever for the provision of technology, trademark licences and services to HUL. In the new agreement, the royalty and central services fee will increase and will be effected in a staggered manner over a period of three years.
“Our consistent performance is reflective of our strategic clarity, strength of our brands, excellence in execution, and dynamic financial management. I am excited about our foray into the fast evolving ‘Health and Wellbeing’ category through our strategic partnerships with OZiva and Wellbeing Nutrition. Looking forward, we are cautiously optimistic in the near term and believe that the worst of inflation is behind us. This should aid in a gradual recovery of consumer demand. We remain focused on managing our business with agility, continue growing our consumer franchise whilst maintaining margins in a healthy range,” said Sanjiv Mehta, CEO and Managing Director, Hindustan Unilever Limited.
HUL said the worst of inflation is over as the net inflation came down from 21 per cent to 18 per cent.
“The rural market has improved from what it was in the earlier quarter. Inflation has been a big contributor but the worst of inflation is behind us. There still is long way to go. Low unit price packs and layer price packs have been preferred by consumers. The icecream business has bounched back and premiunisation of products are in demand,” Mehta said addressing the media after the results.
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