For the third quarter ending December 31, 2021, Hindustan Unilever Ltd reported an 11 percent increase in domestic consumer growth and a 17 percent increase in profit after tax.
The quarter’s growth was both competitive and lucrative. The company’s fundamentals remained strong, with significant market share gains across the board, in both urban and rural markets, and across price segments.
The underlying volume growth rate of 2% was well ahead of the market. EBITDA margin increased 100 basis points year over year to 25.4 percent. PAT increased by 17% year on year to Rs2,243 crore.
The profit after tax before extraordinary items increased by 17% to Rs2,292 crore. Advertising expenditures, on the other hand, were recorded at Rs1,189 crore in Q3 FY2022, down from Rs1,388 crore in the same quarter of FY2021.
HUL continues to manage its company proactively in the face of significant inflation, pursuing savings harder across all lines of P&L and taking calibrated price moves based on Net Revenue Management principles.
Home care:
With a 23 percent increase, Home Care grew across the board, with significant results in Fabric Wash and Household Care. Fabric Wash grew by double digits, with the portfolio as a whole doing well.
On a strong foundation, Household Care maintained its strong performance and grew in the high teens. Liquids and Fabric Sensations continue to outperform as a result of successful market development efforts.
To partially offset the considerable escalation in input costs, calibrated pricing increases were implemented across the Fabric Wash and Household Care portfolios.
Beauty and personal care:
Skin Cleansing, Skin Care, and Color Cosmetics all climbed by 7% in Beauty & Personal Care. Skin Cleansing grew by double digits, owing to significant performance in the ‘Lux’, ‘Dove’, and ‘Pears’ categories. Hair Care had a solid quarter, aided by the premium portfolio’s outstanding performance.
According to the ‘Kantar Brand Health Check Report,’ HUL products ‘Clinic Plus,’ ‘Dove,’ and ‘Sunsilk’ were regarded as the top three Hair Care brands in the country.
Even as vegetable oils continue to inflate at record levels, a calculated approach to pricing increases in Skin Cleansing and Hair Care has helped safeguard the company’s economic model.
Skin Care and Color Cosmetics grew by double digits and are already above pre-COVID levels.
Food and hydration:
Foods & Refreshment increased 3% on a very high prior year comparative, owing to strong results in Tea and Ice-creams. Tea’s outstanding performance persisted, and it grew competitively on a strong foundation, with a 2Y CAGR in the high teens.
In the Health Food Drinks category, a focus on market development measures has resulted in significant market share and penetration gains. Ice Creams had a solid quarter, with a 2Y CAGR in the high teens, thanks to effective activations and significant innovations.
Foods grew on a strong foundation, with jams and ketchup leading the way. The innovations ‘Kissan Peanut Butter’ and ‘Hellman’s Mayonnaise’ are still doing well. ‘Bru Beaten Coffee’ is a new product from ‘Bru’.
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