Hindustan Unilever Limited’s quarter (Q2) Net Profit Jumps 8.7 per cent, says report

On Tuesday, Fast-moving consumer goods (FMCG) major Hindustan Unilever Limited (HUL) said the worst of the fallout from the coronavirus (covid-19) epidemic is over as India’s largest household goods maker has reported an 8.7 per cent growth in quarterly profit. The manufacturer of the Lifebuoy soaps (HUL) said that the rural markets have emerged powerful but alerted that demand in urban markets could take a while to improve.

Hindustan Unilever Limited has reported a 9% year-on-year (YOY) growth in net profit at Rs.2, 009 crore for the second quarter ended September 30, 2020 and the company had also posted a net profit of Rs.1, 848 crore in the corresponding quarter last year. Moreover, the revenue for the quarter upsurge 16 per cent to Rs.11, 442 crore from Rs.9, 852 crore.

In a statement, the company said “Growth in the quarter was competitive and cost-effective with reported turnover growth of 16 per cent and domestic consumer growth of 3 per cent (excluding the impact of the acquisition of the Horlicks and Boost brand portfolio, and accretion of ‘VWash’).

The chairman and managing director, Sanjiv Mehta told the reporters that there is “very clearly and improvement between the June quarter and September quarter. The (HUL) with its extensive scope of products spanning beauty and personal care, home cleaning goods and packaged foods is a proxy for India’s household consumption.

However, the Hindustan Unilever Ltd’s business in the June quarter was dented as India’s strict lockdown imposed in March crushed out-of-home consumption due to coronavirus and impacted the sales of discretionary beauty and personal care products.

The organization had reported a 7% year-on-year decline in its domestic business, in the June quarter and its growth for the September quarter was, however, led by strong performance in its foods and refreshment business that had reported a 19% sales growth, excluding the GSK merger impact particularly tea and coffee which registered double-digit growth.