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Hindustan Unilever Q3 2021 Research Tear Sheet

Hindustan Unilever Limited is an Indian consumer goods company.  It is headquartered in Mumbai, India. This is a subsidiary of Unilever, a British company. The company was incorporated in 1931 as Hindustan Vanaspati Manufacturing Co. However, in 1956 after merger it has been named as the Hindustan Unilever Limited. The company has 50+ FMCG brands in India. The shares are traded on both BSE and NSE. The company deals in Foods, cleaning agents, personal care, skin care and water purifiers. The company has wide and diversified portfolio across 15 categories, placed uniquely.

Key Financial Highlights

ParticularsDQ’21DQ’20
Sales12,90011,682
EBITDA3,2792,854
EBITDA Margin25.40%24.40%
Net Profit2,2431,921

EBITDA margin at 25.4% improved 100 bps YoY.

PAT at Rs. 2,243 Crores increased by 17% year-on-year.

Profit after tax before exceptional items at Rs. 2,292 Crores  grew 17%.

Reported turnover grew 11% to INR 37,146 crores.

Home Care: The Homecare business grew by 23%, driven by strong performance in Fabric Wash and Household Care.  The Fabric Wash grew in strong double-digits maintaining a strong portfolio. Liquids and Fabric Sensations performed really well, driven by effective market development actions.

Beauty & Personal Care: Beauty & Personal Care grew 7%,driven by Skin Cleansing, Skin Care and Colour Cosmetics. The Skincare had a robust performance driven by n ‘Lux’, ‘Dove’ and ‘Pears. Haircare brands Clinic Plus’, ‘Dove’ and ‘Sunsilk have enabled a strong performance. Both skincare and colour cosmetic delivered a double digit growth.

Foods & Refreshment: Foods & Refreshment grew 3% , driven by solid performance in Tea and Ice-creams. Jams and Ketchup. ‘Kissan Peanut Butter’ and ‘Hellman’s Mayonnaise’ has continued to perform well.

Conference Call Highlights

Management Updates

EBITDA margins in a healthy range whilst continuing to invest in our brands.

HUL strengthened leadership position and market share gains are highest in the decade.

Domestic consumer, business increased by 11% and reported turnover grew by 10%.

Business Updates

FMCG distributors in Maharashtra have decided to stop selling select products of leading firms HUL from January 1 due to price disparity.

HUL has decided to stop the usage of coal across its operation.

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