HUL Q3 earning meet expectations
Shares of Hindustan Unilever (HUL) fell 3% on Thursday’s trade despite the Lux bathing soap maker reported a 19% YoY jump in December quarter profit. Lower sales volume growth and the management’s focus on revenues over margins, though positive for the long-term, is expected to weigh on stock price.
HUL reported net profit of Rs 1,921 crore in the October-December quarter. While HUL’s revenue from operations surged 20% on-year to Rs 11,682 crore during the quarter. The domestic volume growth—excluding the contribution of GSK Consumer products—jumped 7%.
Higher mobility, consumer relevant innovations and investments behind market development are seen driving business momentum.
Operating margin for the quarter stood at 24%, which was 90 basis points lower than the year-ago quarter, reflecting the impact of higher input costs.
The soap-to-shampoo makers homecare products operations grew in double-digits in the December quarter, while its beauty and personal care segment clocked 9% on-year rise in revenues. Foods & refreshment sustained the high growth momentum growing at 19%. The nutrition business, too, grew in double-digits as business returned to normalcy post restoration of disrupted supply lines.
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