FMCG major Hindustan Unilever Ltd posted a 2.3 per cent decrease in consolidated net profit at ₹2,595 crore for the quarter ended in September against .₹2,657 crore reported in the same quarter last year.

HUL saw a dip in volume during the quarter to 3 per cent as compared to a 4 per cent growth reported in the June quarter. A 2 per cent growth in sales was reported during the quarter.

The company’s net profit decreased by 0.65 per cent compared to the previous quarter of ₹2,612 crore reported in June.

Total income up

The company’s total income was up by 2 per cent to ₹16,145 crore during the reporting period against ₹15,806 crore during the same quarter last year. The income grew by 1 per cent from ₹15,964 crore in the June quarter.

The company declared an interim dividend of ₹19 per share and the board of directors additionally declared a special dividend of ₹10 per share resulting in a total dividend payout of ₹6,814 crore.

The home care category grew to ₹5,731 crore, personal care dipped to ₹2,411 crore, beauty and wellbeing grew to ₹3,4211 crore while food and refreshment dropped ₹3,803 crore. The company also pointed out that it implemented a calibrated price increase in skincare products due to the increase in raw material prices.

“In the September quarter, FMCG demand witnessed moderating growth in urban markets while rural continued to recover gradually. We remain watchful of a gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigour,” said Rohit Jawa, CEO and Managing Director, HUL.

Separating ice-cream biz

Further, the company announced that it will separate its ice cream business. Ice Cream, which contributes 3 per cent to HUL’s turnover, is a high-growth category that needs significant investments to realise its full potential. Given Unilever owns the trademarks and know-how and has announced the separation of its ice-cream business, local capabilities will need to be developed to continue running the business.

“Ice cream has a different operating model including cold chain infrastructure, and a distinct channel landscape, which limits synergies with the rest of HUL,” the company stated.

The company is expecting the outlook to remain the same in the December quarter.

“We see the outlook in line with what we have seen during this quarter,” added Rohit.

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