HUL Q4 profit jumps 45% to ₹2,191 cr
April 29, 2021
A pedestrian walks past the Hindustan Unilever Limited (HUL) headquarters in Mumbai - REUTERS×
FMCG behemoth posts a total income of ₹12,542 crore for the quarter
Hindustan Unilever Limited (HUL) on Wednesday posted a consolidated net profit of ₹2,191 crore in the fourth quarter ended March 31, 2020, a 45 per cent increase from the corresponding quarter last year.
The domestic consumer growth was at 21 per cent with underlying volume growth of 16 per cent, said HUL. The health, hygiene and nutrition segment forming around 80 per cent of the company’s business grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially, it added.
Hindustan Unilever (HUL), the country s largest consumer goods company, reported a 41 per cent year-on-year (YoY) jump in net profit to Rs 2,143 crore for the quarter ended March 31, 2021 (Q4), aided by a low base and an all-round recovery across segments.
Bloomberg consensus estimates had pegged Q4 net profit at Rs 1,967.9 crore. A year ago, HUL’s net profit stood at Rs 1,519 crore.
Sequentially, HUL reported a 11.6 per cent growth in net profit, though revenue wasn’t able to hold up that well, growing 2.3 per cent only versus the December quarter. Revenue includes net sales plus other operating income. HUL’s stock closed at Rs 2,409.05 per share on the BSE on Thursday, remaining largely flat compared to the previous day s close.
Updated Feb 09, 2021 | 17:31 IST
Low unit packs (LUPs) are small packets of goods that cost anything between Re 1 to Rs 20. And, FMCG companies are banking on them to drive growth. Low unit packs are packing a punch in India s FMCG story
Key Highlights
Rural segment is constantly outpacing the growth of urban demand
In these small markets, low unit packs or LUPs are a big hit!
A 500 ml bottle of shampoo with a fancy pump has no place in the hinterland. Nor does a chocolate bar strewn with roasted almonds, which costs around Rs 100. The Bharat within India is constantly in search of ‘value for money’ products, and this is where low-unit packs (LUPs) pack a punch.
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The FMCG major added that it will hike prices in a judicious manner even if there is a short-term hit on margins and that the company is more focused on capturing consumer demand as people step out more.