HUL Q3 Results: Profit Up 1%, Subdued Rural Demand Hurts Revenue Growth
The consolidated net profit of India’s largest consumer goods maker increased 1% over the preceding year to Rs 2,508 crore in the quarter ended December
Hindustan Unilever Ltd.’s third-quarter profit rose but missed analysts' estimates on account of weak demand, especially in the hinterlands.
The consolidated net profit of India’s largest consumer goods maker increased 1.1% over the preceding year to Rs 2,508 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 2,664.5 crore consensus estimate of analysts tracked by Bloomberg.
HUL Q3 Highlights (Consolidated, YoY)
Revenue fell 0.2% to Rs 15,567 crore (Bloomberg estimate: Rs 15,642.2 crore).
Operating profit dropped 0.8% to Rs 3,666 crore (Bloomberg estimate: Rs 3,734.2 crore).
Margin at 23.5% versus 23.7% (Bloomberg estimate: 23.9%).
The revenue miss came as HUL cut prices of several products, including detergents and household care products, to pass on the benefit of easing commodity prices. As a result of this, pricing growth tapered off further.
Volume for the Surf Excel-maker grew 2% over a year ago in the December quarter, with more than 75% of the business gaining market share, the company said.
Segmental Revenue (YoY)
Home care segment fell 1% to Rs 5,448 crore, registering a mid-single-digit volume growth. Margin stood at 18%.
Growth in beauty and personal care was flat at Rs 5,705 crore. Margin stood at 26%, while volume grew in mid-single-digit.
Food and refreshment grew 1% to Rs 3,733 crore, with a low single-digit decline in volume on account of high inflation. Margin was at 19%.
Shares of HUL closed 0.78% higher, as compared with a 0.75% gain in the benchmark Nifty 50 ahead of the earnings announcement.
