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Published: Jan 21, 2023
Updated: Jan 21, 2023

FMCG Sector Gets a Boost: HUL's Q3 Results Show Strong Home Care Performance

Hindustan Unilever (HUL) has reported impressive financial results for Q3, with revenue growth of 16.3% to Rs 15,228 crore, net profit growth of 11.7% and volume growth of 5%. These figures demonstrate the company's resilience and adaptability in the face of ongoing economic uncertainty, providing a boost for the FMCG sector.

Riding the Wave of Home Care Demand

The driving force behind HUL's strong financial performance is the company's home care business, which saw double-digit volume growth and revenue increase of 32% from last year to Rs 5,514 crore. Despite the ongoing economic uncertainty, HUL's home care business has continued to thrive, thanks in part to the company's decision to implement calibrated price hikes in its Fabric Wash and Household Care portfolios.

Beauty and Personal Care: A Mixed Bag

HUL's beauty and personal care business also saw revenue growth of 10% to Rs 5,764 crore and volume growth in double-digits, driven by the skin cleansing portfolio. However, the skin care portfolio was impacted by the delayed onset of winter. Prices in the soaps portfolio were cut during the quarter as palm oil rates cooled off.

EBITDA Margin Under Pressure

While HUL's Q3 financial results were overall positive, the company's EBITDA margin did decline 180 basis points from last year, to 23.2%. The margin figure was also 40 basis points lower than expected.

FMCG Outlook Optimistic: HUL's Q3 Results Show Strong Performance Amidst Economic Uncertainty

Hindustan Unilever (HUL) has reported impressive Q3 results, with revenue growth of 16.3% and volume growth of 5%. This strong performance, led by the company's home care business, demonstrates HUL's resilience and adaptability in the face of ongoing economic uncertainty. The FMCG sector can take hope from these results, as they indicate that consumer demand remains strong and companies are able to adapt to changing market conditions. CEO Sanjiv Mehta has also stated that the company is seeing better improvement in the rural market compared to urban areas, and though net material inflation remains at "very high levels," it has stopped increasing and is moving downwards. These developments suggest that the FMCG sector has the potential for continued growth in the coming quarters.