27-01-2021
Reported Turnover up 20% and PAT up 19%
Hindustan Unilever Limited (HUL) announced its results for the quarter ending 31st December 2020.
Growth in the quarter was competitive and profitable with Reported Turnover Growth of 20% and Profit after tax growth of 19%.
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. Our business fundamentals remain strong with 86% of our business gaining penetration. Health, hygiene and nutrition forming c.80% of our portfolio continues to grow in double digits and we have seen significant improvement in discretionary categories.
Operating margins:
EBITDA margins at 24% remain healthy. Profit after tax at Rs. 1,921 Crores increased by 19%, Profit after tax (bei**) at Rs. 1,951 Crores was up 15%. We have significantly dialed up investments behind our portfolio and in building future-fit capabilities. Net revenue management and savings agenda has enabled us drive healthy bottom line.
Sanjiv Mehta, Chairman and Managing Director commented: “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. “
