Mumbai: Hindustan Unilever (Hul) has reported 17% growth in independent profit after tax at Rs 2,243 Crore during the third quarter which ended December 31, 2021, compared with Rs 1,921 Crore in the same quarter of the previous year.
Domestic consumer growth at 11%, driven by product price increases to compensate for inflationary pressures, with a total revenue up 10% to RS 13,183 Crore.
However, the company’s strategy to combat the input cost pressure through grammage reduction in certain product packages that affect the growth of its volume, with the rural market now in the field of negative volume growth.
Nearly 30% of Hul’s business comes from a low-point package from Re 1, 5 & 10, which is mostly consumed in Indian countryside.
As a result, the underlying volume growth of 2% is the lowest he has seen Hul at a quarter since July-September 2020 when it grew at 1% year-on-year (yoy) to mark the resurrection after the first wave of Covid.
Hul said the volume growth of 2% in the latest December quarter was in front of the FMCG market, which was considered a barometer for the economy.
Commodity headwinds continue to be a significant challenge.
Hul’s Cmd Sanjiv Mehta said he expected moderation in inflation in the second half of this calendar year.
“We haven’t seen inflation like this for years.
This really has never happened before.
And it is a global phenomenon,” he said on virtual media met.
Mehta said that the increase in prices of FMCG had a minimal impact on people with higher living standards, there were a large number of consumers who had limited income.
“I believe that all the assistance provided by the government in the past two years is something that must be expanded in the new fiscal year,” said Mehta.