HUL Q3 FY2021 turnover up 20%, PAT grows 19% to Rs 1,921 cr

Growth in the third quarter ending December 31, 2020 was competitive and profitable for Hindustan Unilever Limited (HUL), which reported turnover growth of 20%, while Profit After Tax (PAT) grew 19% at Rs 1,921 crore. Profit after tax (bei**) at Rs 1,951 crore was up 15%. EBITDA margins at 24% remained healthy.

HUL has significantly dialed up investments behind its portfolio and in building future-fit capabilities. Net revenue management and savings agenda has enabled the conglomerate drive healthy bottom line.

Domestic Consumer Growth (excluding the impact of merger of GSK CH and acquisition of ‘VWash’) grew at 7%. Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum. HUL’s business fundamentals remained strong with 86% of the conglomerate’s business gaining penetration. Health, hygiene and nutrition, which form 80% of HUL’s portfolio, continue to grow in double digits and significant improvement has been seen in discretionary categories.

Commenting on the Q3 FY2021 performance, Sanjiv Mehta, Chairman and Managing Director, HUL, said, “With COVID cases coming down sharply and increasing mobility, economic activity in the country continues to improve. The rapid rollout of vaccines will give further impetus to economic growth. Our consumer relevant innovations, market development and execution excellence have enabled us to drive broad based growth across our categories in the December quarter. I am particularly pleased with the performance of our Nutrition business and with the recovery in the discretionary segments of our portfolio; these are structurally attractive and offer immense growth potential. The near-term demand outlook is improving, and we expect to see revival in urban while rural should continue to do well. Inflationary pressures are building up in select commodities and we will manage them judiciously. I am confident that we are very well positioned to capture the growth opportunities and accelerate momentum.”

Home Care

With increased mobility, Fabric Wash performance in the quarter improved sequentially. HUL’s focus on driving market development has enabled the group to grow its Liquids and Fabric Sensations segments strongly. Household Care continued its strong performance across segments, delivering double-digit growth. HUL continues to step up innovations and has launched ‘Nature Protect’, a range of multi-category hygiene mix powered by plant-based actives. HUL also entered new demand spaces with launch of ‘Vim Matic Dishwash’, ‘Surf Excel Smart Spray’ and ‘Surf Excel Active Hygiene’ to cater to consumers’ needs.

Beauty & Personal Care

Beauty & Personal Care grew 9%, with robust performance across categories and strong double-digit growths in Skin Cleansing, Hair Care and Oral Care. Skin Cleansing performance was led by ‘Lifebuoy’ and double-digit growth in the premium segment. Skin Care portfolio growths were led by good demand pick-up in the winter portfolio. HUL’s consumer-focused portfolio interventions in Hair Care are yielding strong results. ‘Close Up’ and ‘Pepsodent’ accelerated as contextual communications drove brand salience. Color Cosmetics performance is improving sequentially. During this quarter, the group launched ‘Vaseline Anti-Bacterial Hand Cream’ and a new range of ‘Dove’ body lotions.

Foods & Refreshment

Foods & Refreshment sustained the high growth momentum, growing at 19%. In Tea, all HUL brands continue to grow in high double-digits and well ahead of the market. Coffee saw launch of ‘Bru Veda’, a new variant, with infusion of ayurvedic ingredients. In Foods, Ketchups and Soups performed strongly growing high double-digits. HUL’s Nutrition business too grew in double-digits as business returned to normalcy post restoration of disrupted supply lines. With the relaunch as ‘Plus’ range from the house of ‘Horlicks’, HUL made strategic intervention into the high sciences space of adult nutrition. Ice Creams, Foods Solutions and Vending businesses are improving progressively as out-of-home consumption occasions increase.