Reported Turnover Up 34% And Profit After Tax Up 41%
Hindustan Unilever Limited announced its results for the quarter and year ending 31st March 2021.
March Quarter 2021: Strong broad-based performance
Growth in the quarter was competitive and profitable with reported turnover growth of 34% and Profit after tax growth of 41%. Domestic consumer growth* was at 21% with underlying volume growth of 16%. Health, hygiene and nutrition forming c.80% of business grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially.
Home Care growth at 15% was enabled by a strong recovery in Fabric Wash. Household Care continued its strong performance delivering double-digit growth. Liquids and Fabric Sensations continue to outperform benefitting from robust market development initiatives.
Beauty & Personal Care:
Beauty & Personal Care grew 20% with Skin Cleansing, Hair Care and Oral Care delivering high double-digit growths. Skin Cleansing performance was led by ‘Lifebuoy’ and premium segment. A calibrated approach towards price increase has helped protect our business model even as vegetable oils continue to inflate at record levels. Consumer-focused innovations and contextual communications in Hair and Oral Care continue to yield good results. Skin Care portfolio registered strong performance in Hand & Body Care and Face Cleansing segments. Color Cosmetics performance improved sequentially.
Foods & Refreshment:
Foods & Refreshment delivered another quarter of strong performance and grew at 36%. All our Tea brands continue to grow in high double-digits. Ketchups, Soups and Ice Creams also performed well with double-digit growths. Ice Creams recovery in the quarter was aided by multiple product innovations. Nutrition volumes grew in double digits and we launched Rs. 2 sachets in Horlicks and Boost. Our goal remains to drive penetration in this category.
EBITDA margins at 25% remain healthy. Profit after tax at Rs. 2,143 Crores increased by 41%, We continue to invest behind our brands and portfolio, and in future-fit capabilities. Our focused actions on net revenue management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance.
Financial Year 2020-21: Growth competitive and profitable
Turnover at Rs. 45,311 Crores grew by 18%, Domestic Consumer Growth* was 6%. Profit after tax at Rs. 7,954 Crores was up 18%. We managed COVID challenges well and sustained strong cash generation. The Board of Directors have proposed a final dividend of Rs. 17 per share, subject to approval of shareholders at the AGM. Together with interim dividend of Rs. 14 per share, the total dividend for the financial year ending 31st March 2021 amounts to Rs. 31 per share. During the year, special dividend of Rs. 9.5 per share was also paid.
Sanjiv Mehta, Chairman and Managing Director commented:
“Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY’21 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. The recent surge in COVID cases is of serious concern and ensuring safety and wellbeing of people remains our top priority. We will continue to work closely with governments, health authorities and our partners to support the needs of the society and the Nation to overcome this adversity. #HULStandsWithTheNation”
* excluding the impact of merger of GSK CH and acquisition of ‘VWash’