HUL: Q2 net profit rises 9%
Shares of Hindustan Unilever (HUL) edged lower Wednesday, despite reporting strong performance for the July-September quarter.
On Tuesday, after market hours, the Lux soap maker posted an 8.6% rise in consolidated net profit at Rs 1,974 crore during the quarter under review as against a net profit of Rs 1,818 crore in the same quarter a year ago.
Revenue from sales of products came in at Rs 11,510 crore, up 15.19% from Rs 10,223 crore a year ago.
The board also declared an interim dividend of Rs 14 per share.
HUL’s performance has to be evaluated in the light of the challenging economic environment. It’s growth has been competitive and profitable, which continue to demonstrate execution prowess, agility, adaptability, resilience.
Its operations and service levels are now back to pre-Covid levels and have accelerated the pace of digitizing the operations under the ‘re-imagine HUL’ agenda.
HULs’ household care segment delivered strong performance across all segments led by continued penetration gains. While in fabric wash, they have reduced the prices to pass on benefits of lower commodity costs to consumers, the category consumption of laundry has been adversely impacted due to confined living.
The skin cleansing segment grew in double digits on back of a very strong performance in ‘Lifebuoy’ and a good delivery in ‘Lux’.
The hand sanitizers and handwash segments continued to gain penetration and have delivered robust growths. Its oral care grew in double digits with accelerated momentum in ‘Close Up’, while hair care also grew in double digits.
Strong savings funnel, judicious and calibrated pricing in tea, synergies in nutrition have enabled HUL to successfully manage headwinds of commodity inflation and adverse mix.
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