NEW DELHI: FMCG major Hindustan Unilever has posted a standalone profit of Rs 1,881 crore for the quarter ended June - a growth of 7.2 per cent compared to the previous quarter, thanks to integration of Horlicks to its portfolio.
Excluding the impact of merger with GSK Consumer Healthcare India, its volumes fell 7 per cent year-on-year as home care, beauty and personal care segments of the company fell prey to the viral pandemic. Food and refreshment segment benefited from Horlicks' acquisition as revenue soared 51.7 per cent to Rs 2,958 crore, while revenue from home care dipped 2.1 per cent to Rs 3,392 crore. Revenue from the beauty and personal care segment, too, was down 12 per cent to Rs 4,052 crore.
Chairman and Managing Director, Sanjiv Mehta said the products that saw highest demand during the lockdown were coffee, santisers, deep cleaning and Kissan products, even as cosmetics, ice cream, skin care, deos, food solutions and vending businesses were severely affected due to coronavirus-led closures of restaurants and eateries.
"Even as the beauty and personal care category saw sales plunge during the quarter, skin clean cleansing led by Lifebuoy delivered strong double-digit growth across formats. We have significantly stepped up capacities in both hand wash and hand sanitizers to meet the consumer needs. Lifebuoy is making the ‘good habit of handwashing’ viral with campaigns across platforms, he added. Health, hygiene and nutrition comprising 80 per cent of its portfolio grew six per cent, while discretionary items saw a de-growth of 45 per cent during the quarter.
Revenue from operations during the quarter stood at Rs 10,560 crore, increasing 4.4 per cent compared to Rs 10,114 crore in corresponding period last year.
The rural market has been more resilient compared to urban, said Srinivas Pathak, chief financial officer, HUL. The negative impact of adverse mix and higher Covid-related costs were deftly managed by dialing up savings and unlocking synergies of GSK-CH merger enabling HUL to sustain healthy EBITDA margins of 25 per cent, the company said.
“While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, we remain well positioned to drive competitive, profitable and responsible growth. The long-term structural opportunity of FMCG in India also remains intact," Mehta said. The board of directors also approved the distribution by means of a special dividend of Rs 9.50 per equity share face value of Re 1 each resulting in total dividend payout to Rs 2,232 crore. Shares of HUL ended in red at Rs. 2,316.65.