THE WHAT? Hindustan Unilever has reported its results for the quarter ended July 19th, 2022, referred to as the June Quarter (JQ’22). The Indian arm of the FMCG giant saw turnover grow 19 percent yoy and underlying volume growth rise 6 percent.
THE DETAILS The manufacturer of TRESemme said that that it had maintained a healthy EBITDA margin of 23.2 percent, despite unprecedented inflation, with prices rising for all key commodities.
Beauty & Personal Care saw growth of 17 percent thanks to a high double-digit uptick from hair care. Soaps delivered price-led double-digit growth with Lux, Dove and Pears particularly strong. Skin Care and Color Cosmetics performed well, HUL said, the premium portfolio in Skin Care growing significantly ahead of pre-Covid-levels.
THE WHY? Hindustan Unilever declared its performance as a ‘strong start to the year’ and said that, in the near term, it expected growth to be price led with margins under pressure. Sanjiv Mehta, CEO and Managing Director commented, “In an environment which remains challenging, marked by unprecedented inflation and consequential impact on consumption, we have delivered yet another quarter of robust topline and bottom-line performance. We have grown competitively whilst protecting our business model by maintaining margins in a healthy range. While there are near term concerns around inflation, the recent softening of commodities, forecast of a normal monsoon, and monetary/ fiscal measures taken by the government augur well for the industry. We are confident of the medium to long term prospects of the Indian FMCG sector and remain focused on delivering a Consistent, Competitive, Profitable and Responsible growth.”