HUL Q4 profit jumps 45% to ₹2,191 cr

Hindustan Unilever Limited (HUL) on Wednesday posted a consolidated net profit of ₹2,191 crore in the fourth quarter ended March 31, 2020, a 45 per cent increase from the corresponding quarter last year.

The domestic consumer growth was at 21 per cent with underlying volume growth of 16 per cent, said HUL. The health, hygiene and nutrition segment — forming around 80 per cent of the company’s business — grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially, it added.

The profits were up 13.05 per cent compared to the preceding quarter of the year. It had posted a consolidated net profit of ₹1,938 crore in the third quarter of the fiscal year. The total income during the fourth quarter stood at ₹12,542 — a 2.5 per cent increase compared to the third quarter’s total income of ₹12,235 crore and 32.36 per cent compared to Q4FY20’s total income of ₹9,475 crore.

Resilient performance

“Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY21 our business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain. We have delivered on our multi stakeholder business model. Our purpose-led brands and capabilities were further strengthened during the year and this positions us well to serve our consumers during this turbulent period. Our focus firmly remains behind delivering volume-led competitive growth,” said Sanjiv Mehta, Chairman and Managing Director, HUL India.

The Board of Directors of the company has proposed a final dividend of ₹17 per share, subject to approval of shareholders at the AGM. Together with interim dividend of ₹14 per share, the total dividend for the financial year ending March 31, 2021 amounts to ₹31 per share. During the year, special dividend of ₹9.5 per share was also paid, it said. The company’s home care segment posted a growth of 15 per cent, the beauty and personal care segment posted a growth of 20 per cent, and the foods and refreshment segment posted a growth of 36 per cent.

“Nutrition volumes grew in double digits and we launched ₹2 sachets in Horlicks and Boost. Our goal remains to drive penetration in this category,” said HUL.

For the full year, HUL delivered sales of around ₹45,000 crore, said Srinivas Phatak, CFO, HUL.

‘Augurs well for the sector’

Naveen Kulkarni, Chief Investment Officer, Axis securities, said HUL being the largest FMCG conglomerate doing well does bode well for the sector. However, operating performance with the impact of higher raw material prices, pricing power and premium portfolio could differ across companies. Nonetheless, the recovery shown by HUL is good and its management of cost structure quite strong.

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