Hindustan Unilever Ltd posted a consolidated web revenue of Rs 2,100 crore within the first quarter of the monetary yr 2022. This was 10.7 per cent greater than the Rs 1,897 crore posted on the similar time final yr.
Income from operations additionally improved to Rs 11,996 crore in Q1 FY22, in comparison with Rs 10,570 crore in Q1 FY21. Whereas quantity rose 9 per cent year-on-year, quantity progress slowed sequentially.
In keeping with Chief Monetary Officer, Ritesh Tiwari, the corporate delivered a sturdy efficiency in a difficult surroundings, reporting home client progress of 12 per cent, and whole gross sales progress of 13 per cent in the course of the quarter.
Phase income throughout three classes — Homecare, Magnificence & Private Care, Meals & Refreshment — posted double-digit progress in Q1 FY22 compared to Q1 FY21. “Localised lockdowns enabled us to nonetheless fulfil calls for for our prospects, as retail shops remained open, albeit for a restricted time period,” Tiwari mentioned.
Uptrend in commodity costs
Nonetheless, the corporate has continued to flag rising commodity costs as a reason behind concern, which has resulted in a calibrated value improve within the pores and skin cleaning, tea in addition to laundry phase. “We face a multi-year excessive value in palm oil, and crude oil costs have additionally elevated considerably previously yr. Tea as effectively is going through a large hike,” Tiwari defined.
Merchandise for which demand is mobility pushed, equivalent to ice cream and cosmetics, have been additionally affected by the second wave, though a couple of recovered sharply from the weak base within the first quarter of FY21. Tiwari believes that when mobility resumes, demand ought to rise strongly once more.
Premiumisation throughout all classes was additionally famous, with merchandise priced above Rs 120 faring higher in gross sales compared to cheaper items. General, the corporate is cautiously optimistic concerning the close to time period, with risky commodity costs and a surge in infections being main hurdles. Nonetheless, Tiwari maintains that inexperienced shoots stay, with rural India persevering with to indicate resilience in driving progress in July. A bumper crop and powerful monsoon are anticipated to additional speed up restoration.
Chairman, and Managing Director, Sanjiv Mehta mentioned, “In a difficult surroundings, we’ve delivered a robust efficiency throughout topline and bottomline. Our efficiency within the quarter has been resilient and is reflective of our capabilities, the agility in our operations, and the intrinsic energy of our portfolio.”
Individually, HUL’s father or mother Unilever mentioned the second wave of the coronavirus pandemic and subsequent restrictions in India have impacted gross sales within the nation.
The working surroundings throughout its markets in H1 (January-June) has seen some enhancements, however broadly stay ‘risky’, the corporate mentioned in its post-earnings assertion for the primary half.