In the second quarter, HUL profit increased by 8 percent, but failed to attract investors
FMCG major Hindustan Unilever (HUL) reported an 8% growth
FMCG major Hindustan Unilever (HUL) reported an 8% growth to ₹2,009 crores in its standalone net profit for the second quarter ending September 30. Despite the growth in its profit, the company share price dipped in red and was trading a percent lower post the results announcement.
- Despite the 8% growth in HUL’s profit, the company share price dipped in red and was trading a percent lower.
- The growth in its profit was led by the stellar growth in its foods and refreshment post the merger with GSK.
- HUL reports a 1% volume growth, excluding GSK Consumer.
The growth in its profit was led by the stellar growth in its foods and refreshment post the merger with GSK. The volumes of the company rose 1% excluding the consumer businesses acquired from GlaxoSmithKline Plc and VWash, compared to the same quarter last year.
The company said, “Foods, tea, and coffee sustained the high growth momentum and grew in double digits; our consumer-focused activations and innovations are leveraging the 'in-home consumption' trend.”
Angel Broking has highlighted that excluding the impact of the GSK merger, organic growth was 3% only. "We believe discretionary spends are still not back to pre-covid levels so these segments (Homecare segment and Beauty & Personal Care segment) have recorded a marginal drop in revenue. Although, mainly due to cost control management, all segment results improved compared to the previous year. The company also declared an interim dividend of ₹14 per share. From an investment perspective, we are bullish on HUL considering that discretionary spends are recovering back to pre-covid level, improving distribution, and focus on premium products," Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd said.