Under challenging market conditions, our Domestic Consumer business was flat. EBITDA margin was down 70 bps and Net Profit after Tax, (PAT) at Rs.1038 Crores grew 7%.
During the quarter, the squeeze in liquidity resulted in reduced trade pipelines and lower consumer offtake. The impact was varied across segments, channels and geographies. We responded to these adverse market conditions with speed by rejigging our supply chain, supported our channel partners by extending credit and enhanced our direct distribution coverage. We also sustained our brand building spends and our innovation initiatives. Despite the short term challenges of the quarter, the premium part of our portfolio continued to perform well.
Premium laundry performed well with sustained double digit growth in Surf. Home Care Liquids had another good quarter.
Premium Personal Care continued its growth momentum across formats. Personal Wash volumes were impacted due to calibrated price increases to manage steep inflation in commodity costs. Baby Dove range of products have been well received by consumers.
This quarter we launched ‘LEVER Ayush’- an exclusive Personal Care range of high performance products based on Ayurveda and supported by modern science. The LEVER Ayush range comprises of soaps, shampoos, tooth pastes, hand washes and face washes and has been launched across South India.
Tea delivered broad based double-digit growth led by a differentiated region wise focus. Ice Cream & Frozen Desserts delivered robust activation-led growth.
Focus on market development continued. The recently launched premium range of Kissan Jams is progressing well in the market place.
EBITDA margins down 70 bps
Cost of Goods Sold was higher by 60 bps due to rising input costs. Brand investments were maintained at competitive levels across segments. Earnings before interest, tax, depreciation and amortisation (EBITDA) was down by 5%. While Profit after tax before exceptional items, PAT (bei), at Rs. 920 Crores was down 10%, Net Profit at Rs.1038 Crores, was up 7% for the quarter on higher exceptional income.
Harish Manwani, Chairman commented: “The gradual recovery of the market was temporarily impacted by adverse liquidity conditions. However our performance demonstrated resilience and agility in this challenging environment. There are early signs of normalisation and our focus continues to remain on innovation led volume growth and improvement in margins. Our strategic agenda of delivering Consistent, Competitive, Profitable and Responsible growth remains unchanged.”
About Hindustan Unilever Limited
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods company with its products touching the lives of nine out of ten households in India. HUL works to create a better future every day.