How did you see the results of Hindustan Unilever for the Dec-21 quarter?

Hindustan Unilever reported absolutely stellar results for the third quarter ending December 2021. The quarter was originally supposed to be a tough quarter but Hindustan Unilever announced solid traction on volumes, pricing power and bottom line. HUL is the largest FMCG company by market value and the fifth largest in India in terms of market cap. Here is the gist of Dec-21 quarter results of Hindustan Unilever.

Let us look at the top line performance first. For Dec-21 quarter, Hindustan Unilever reported 10.33% growth in total revenues for Dec-21 quarter at Rs.13,439 crore compared to the previous Dec-20 quarter. This consolidated performance also showed short term momentum over sequential numbers. For Q3, Hindustan Unilever delivered robust volumes growth of 2% and a robust pricing resulting. Volume growth was best in the peer group.

Let us now turn to the verticals of HUL. The company grew 23% in the home care business to revenues of Rs.4,192 crore, while beauty and personal care vertical saw revenues grow by 7.1% at Rs.5,213 crore. In terms of top line, Food and exports business was largely flat. Overall, since the pandemic, it has been the home care segment that has seen the best traction in terms of contribution to the top line of HUL.

How did Hindustan Unilever perform in operational terms. For Dec-21 quarter, profits from the core operations were up by 17.18%. This can largely be attributed to the operating profit growth in the home care business and foods business. Home care operating profits were up 33% at Rs.861 crore in Q3. It may be recollected that home care segment was also the segment that led the top line sweepstakes.

Operating profits from the food and refreshment vertical was 37% higher on a yoy basis at Rs.646 crore. This was achieved despite flat top line growth, showing good operational traction. Beauty and personal care division operating profits were almost flat at Rs.1,454 crore. As a result, the OPM expanded from 21.98% in Dec-20 quarter to 23.34% in Dec-21 quarter. In the midst of higher input costs and weak rural demand, that is commendable.

Net Profit for the Dec-21 quarter was up 18.6% yoy at Rs.2,297 crore as the operating performance got transmitted to the bottom line. PAT margins improved from 15.90% in the Dec-20 quarter to 17.09% in the Dec-21 quarter. It was also up by 35 bps on sequential basis. The input cost situation has surely improved over the Sep-21 quarter and that is visible in the sequential numbers.