HUL reports strong broad-based performance in Q4 FY2021; turnover up 34%

Growth in the fourth quarter ended March 31, 2021 was competitive and profitable for Hindustan Unilever Limited, as the conglomerate reported turnover growth of 34% and profit after tax (PAT) growth of 41% at Rs 2,143 crore. Domestic consumer growth was at 21% with underlying volume growth of 16%. Health, hygiene and nutrition, forming 80% of the business, grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially.

EBITDA for Q4 FY2021 stood at Rs 2,957 crore, witnessing a growth of 43%. EBITDA margin grew by 150 bps Vs MQ 20.

Home Care:

Home Care growth at 15% was enabled by a strong recovery in Fabric Wash. Household Care continued its strong performance delivering double-digit growth. Liquids and Fabric Sensations continue to outperform benefitting from robust market development initiatives.

Beauty & Personal Care:

Beauty & Personal Care grew 20% with Skin Cleansing, Hair Care and Oral Care delivering high double-digit growths. Skin Cleansing performance was led by ‘Lifebuoy’ and premium segment. A calibrated approach towards price increase has helped protect HUL’s business model even as vegetable oils continue to inflate at record levels. Consumer-focused innovations and contextual communications in Hair and Oral Care continue to yield good results. Skin Care portfolio registered strong performance in Hand & Body Care and Face Cleansing segments. Colour Cosmetics performance improved sequentially.

Foods & Refreshment:

Foods & Refreshment delivered another quarter of strong performance and grew at 36%. All of HUL’s Tea brands continue to grow in high double-digits. Ketchups, Soups and Ice Creams also performed well with double-digit growths. Ice Creams recovery in the quarter was aided by multiple product innovations. Nutrition volumes grew in double digits and HUL launched Rs 2 sachets in Horlicks and Boost. The goal remains to drive penetration in this category.

Operating margins:

EBITDA margins at 25% remain healthy. Profit after tax at Rs 2,143 crore increased by 41%. HUL continues to invest behind its brands and portfolio, and in future-fit capabilities. “Our focused actions on net revenue management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance,” the group said in a release issued.

Financial Year 2020-21: Growth competitive and profitable

Turnover at Rs 45,311 crore grew by 18%, Domestic Consumer Growth was 6%. Profit after tax at Rs 7,954 crore was up 18%. HUL managed COVID challenges well and sustained strong cash generation.

Sanjiv Mehta, Chairman and Managing Director, HUL, commented, “Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY’21 our business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain. We have delivered on our multi stakeholder business model. Our purpose-led brands and capabilities were further strengthened during the year and this positions us well to serve our consumers during this turbulent period. Our focus firmly remains behind delivering volume led competitive growth.”

“The recent surge in COVID cases is of serious concern and ensuring safety and wellbeing of people remains our top priority. We will continue to work closely with governments, health authorities and our partners to support the needs of the society and the Nation to overcome this adversity.  #HULStandsWithTheNation,” he added.