With green shoots in rural recovery, FMCG maker Hindustan Unilever posted a 2.19 per cent increase sequentially in consolidated net profit at ₹2,612 crore for the quarter that ended in June as opposed to ₹2,556 crore reported in the same quarter last year.
The company saw an uptick in volume growth with 4 per cent as compared to the 2 per cent volume growth reported in the March quarter. The company’s net profit increased compared to the previous quarter of ₹2,561 crore.
Revenue from sales of products grew 1.68 per cent to ₹15,497 crore during the reporting period against ₹15,240 crore during the same quarter last year. Revenue from sales of products grew by 3.22 per cent from ₹15,013 crore in the March quarter.
Sectoral growth
The total sales for the company was at ₹15,523 crores and grew by 2 per cent during the quarter. The home care category grew to 5,675 crore, personal care grew to ₹2,386 crores, beauty and wellbeing grew to ₹3,199 crore while food and refreshment grew to ₹3,850 crore.
‘HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by the gradual recovery of rural markets. Our commitment to unlocking access to aspiration, market making and premiumisation supported by our distinctive capabilities is a key driver of our competitive edge. We continue to focus on driving competitive volume growth, generating fuel to invest behind our brands and making our business future fit. We remain confident of the medium to long-term potential of the Indian FMCG sector. With our strong brands, execution prowess and distribution might, HUL is well-positioned to leverage this growth opportunity as we continue transforming our business to outperform,” said Rohit Jawa, CEO and Managing Director of HUL.
Rural demand
The company stated that it has witnessed the growth of rural areas outpacing urban over the last few months.
“We are positive with the government move which is focused on rural and mass consumption in rural and urban areas. There are green shoots which we see in the rural areas. Products from our rural portfolio, and low unit price packs have clocked positive volume growth. We feel the traction in rural areas is coming back. The company will deepen its roots in the rural areas and continue to transform our business with investment including in premium products,” added Rohit Jawa