Last updated: 22 Jul, 2021 | 02:07 pm
Profits misses estimates: Hindustan Unilever's has reported a 9.5% on-year to Rs 2,061 crore in Apr-Jun 21 period, as compared to ₹1,881 crore in the same quarter last year. This was below analyst estimates of Rs 2,213.3 crore. On a sequential basis, net profits plunged by 3.8% from Rs 2,143 crores last quarter. HUL said that its focused actions on net revenue management and savings enabled the company to manage inflationary pressures and deliver a healthy bottom-line performance.
Revenue below expectations: Revenue from operations fell 1.8% to Rs 11,915 crore for Apr-Jun 21 quarter against Rs 12,132 crore last quarter. Analysts had estimated a revenue of Rs 12,168.4 crore. However, on a yearly basis, the revenues grew by 9% led by the foods and refreshment and personal care segment with both segments recording double-digit growth.
Hindustan Unilever results: Segment-wise revenue
Margins contract : On the operating front, the company’s EBITDA earnings rose 8% on-year to Rs 2,847 crore. However, its operating margins shrank from 24.4% to 23.9% sequentially due to higher raw material costs and Covid restrictions.
Segmental Growth : HUL delivered a strong performance with Domestic Consumer Growth of 12% and Underlying Volume Growth of 9%,YoY. Performance was broad based with all 3 divisions growing competitively and in double-digits. HUL's home care segment grew at 12% enabled by double-digit growth in Fabric Wash, whereas its beauty & personal care segment grew 13% led by Hair Care and Skin Care, both growing in high double-digits. It said that the Foods & Refreshment delivered another quarter of strong performance and grew at 12%. Overall growth was led by a premium portfolio.
Hindustan Unilever Earnings Review
Hindustan Unilever has delivered a decent set of numbers for the Apr-Jun period, in the context of disruptions due to the second wave. Going forward, India’s largest FMCG brand remains cautiously optimistic about the demand recovery. Their focus firmly remains behind delivering volume led competitive growth and margins in a healthy range. Rural demand which was impacted during the second wave has recovered and is now growing ahead of urban. Domestic sales grew by 12% from the previous year. Most brokerages were penciling in a profit growth in the range of 7-15 per cent YoY while revenue projections ranged between 11-20 per cent.
Discretionary products and out of home products might continue to face some pressure, however, they do not form a major portion of the revenue. A strong balance sheet and a diverse portfolio with market leadership in many segments gives HUL an advantage. While the ongoing environment remains uncertain, HUL is well-placed to continue to post resilient growth in topline and bottomline going forward.