FMCG major Hindustan Unilever (HUL) has reported a 9.6 per cent jump in its net profit for fiscal first quarter ended 30 June 2021, at Rs2,061 crore against Rs1,881 crore in the corresponding quarter of the previous fiscal.
Revenue from operations for the quarter rose 12.8 per cent to Rs11,915 crore against Rs10,560 crore in the year-ago quarter on the back of a 9 per cent growth in domestic volume, the company stated in a release.
“In a challenging context of Covid Wave 2, HUL delivered a strong performance with domestic consumer growth of 12 per cent, underlying volume growth of 9 per cent and profit after tax growth of 10 per cent. Performance was broad based with all 3 divisions growing competitively and in double-digits. Our business fundamentals remain strong with a large part of our business gaining penetration,” Hindustan Unilever stated in a regulatory filing.
On the operational front, EBITDA in Q1FY22 increased 7.7 per cent to Rs2,847 crore from Rs2,644 crore, while EBITDA margin weakened by 110 bps to 23.9 per cent from 25 per cent, YoY.
HUL's Home Care segment grew 12 per cent helped by double-digit growth in Fabric Wash. Household Care continued to perform well growing in high double-digits on a strong base, the company said.
Beauty & Personal Care grew 13 per cent led by Hair Care and Skin Care, both growing in high double-digits. Contextual communications in Hair Care continue to yield good results.
Skin Cleansing continued its strong momentum, soaps grew on a high base and premium segment performed well, it added.
Foods & Refreshment delivered another quarter of strong performance and grew at 12 per cent.
"Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume led competitive growth and margins in a healthy range," said Sanjiv Mehta, chairman and managing director, Hindustan Unilever.