Hind Unilever net profit jumps 20% in Q3 as economy improves

NEW DELHI: Hindustan Unilever Ltd reported a 20.3% rise in consolidated net profit to Rs 1,938 crore for the third quarter ended December 2020, helped by growth in volume and prices.

HUL's consolidated net profit was Rs 1,631 crore in the October-December quarter previous fiscal.

Its sales during the quarter increased 20.26% to Rs 11,969 crore, as against Rs 9,953 crore a year ago, Hindustan Unilever Ltd (HUL) said.

However, on like to like basis, excluding the impact of the merger of GSK CH and acquisition of VWash, its sales growth was 7%, HUL CFO Srinivas Phatak said.

"Our comparable revenue growth is 7%," said Phatak, adding "it has two components. One is volume plus mix and another one is the price. Price growth is 3% and volume plus mix, which is underlying volume growth (UVG) is 4%".

According to HUL, higher mobility, consumer-relevant innovations and investments behind market development are driving business momentum.

"We are very pleased with the performance, penetration and the volume share are going up nearly 86 of our business, which is remarkable for the company of our size and the multi-category in which we operate," said HUL CMD Sanjiv Mehta.

Health, hygiene and nutrition segment formed 80% of HUL's portfolio and continues to grow in double digits with significant improvement in discretionary categories.

"Our consumer-relevant innovations, market development and execution excellence have enabled us to drive broadbased growth across our categories in the December quarter. I am particularly pleased with the performance of our Nutrition business and with the recovery in the discretionary segments of our portfolio; these are structurally attractive and offer immense growth potential," he said.