11% Domestic Consumer Growth, 17% Profit After Tax Growth
Hindustan Unilever Limited announced its results for the quarter ended 31st December 2021.
December Quarter 2021: Strong all-round performance
Growth in the quarter was competitive and profitable with Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 17%. Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments. Underlying Volume Growth at 2% was significantly ahead of the market.
Home Care:
Home Care growth at 23% was broad based with strong performance in Fabric Wash and Household Care. Fabric Wash grew in strong double-digits with all parts of the portfolio performing well. Household Care sustained its robust performance and grew in high teens on a strong base. Liquids and Fabric Sensations continue to outperform driven by effective market development actions. Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the significant inflation in input costs.
Beauty & Personal Care:
Beauty & Personal Care grew 7% led by Skin Cleansing, Skin Care and Colour Cosmetics. Skin Cleansing delivered double digit growth driven by strong performance in ‘Lux’, ‘Dove’ and ‘Pears’. Hair Care had a steady quarter enabled by strong performance in premium portfolio. Our brands ‘Clinic Plus’, ‘Dove’ and ‘Sunsilk’ were rated as the top 3 Hair Care brands in the country as per ‘Kantar Brand Health Check Report’. A calibrated approach towards price increase in Skin Cleansing and Hair Care has helped protect our business model even as vegetable oils continue to inflate at record levels. Together, Skin Care and Colour Cosmetics delivered double-digit growth and are above pre-COVID levels. During this quarter, we had several innovations including ‘Dove Love and Care’ range of moisturizers, serums by clean beauty brand ‘Simple’, a new toothpaste ‘Sensitive Mineral Active’ launched in Tamil Nadu and ‘Lakme’ Volume Mascara, Liquid Concealer and Highlighter.
Foods & Refreshment:
Foods & Refreshment grew 3% on a very high prior year comparator, driven by solid performance in Tea and Ice-creams. Tea continued its robust performance and grew competitively on a strong base delivering high teens 2Y CAGR. Focus on market development actions in Health Food Drinks has resulted in handsome market share and penetration gains. Ice Creams had a very strong quarter delivering 2Y CAGR in high teens enabled by impactful innovations and effective activations. Foods grew on a strong base led by Jams and Ketchup. ‘Kissan Peanut Butter’ and ‘Hellman’s Mayonnaise’ innovations continue to perform well. ‘Bru’ launched a new product ‘Bru Beaten Coffee’.
Operating margins:
EBITDA margin at 25.4% improved 100 bps YoY. PAT at Rs. 2,243 Crores increased by 17% year-on-year. Profit after tax before exceptional items at Rs. 2,292 Crores was up 17%. In the context of unprecedented inflation, we continue to manage our business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of Net Revenue Management. We continue to invest competitively behind our brands.
Sanjiv Mehta, Chairman and Managing Director commented: ‘We have delivered a strong and resilient performance in the quarter despite moderation in market growths and significant levels of commodity inflation. I am particularly pleased that the growth is extremely competitive with our market share gains being highest in more than a decade. Our performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business.
In the near-term, operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.‘