FMCG major HUL on Tuesday reported a 9 per cent year-on-year (YoY) growth in net profit at Rs 2,009 crore for the second quarter ended September 30, 2020. A subsidiary of British-Dutch firm Unilever PLC, the company had posted net profit of Rs 1,848 crore in the corresponding quarter last year.
Total sales of the company jumped 16.1 per cent to Rs 11,276 crore during the quarter under review from Rs 9,708 crore in corresponding period last year. Underlying domestic consumer business sales (excluding the impact of business combinations) grew 3 per cent YoY in the September quarter.
"Strong savings funnel, judicious and calibrated pricing in Tea, synergies in nutrition have enabled to successfully manage headwinds of commodity inflation and adverse mix. We have significantly increased investments behind brands and spends continue to be competitive," HUL management said on financial performance during September quarter.
The Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) rose by 17 per cent to Rs 2,869 crore compared to Rs 2,443 crore in the year-ago period.
The profit before tax (PBT) was at Rs 2,661 crore as against Rs 2,308 crore in the same period last year, registering a year-on-year growth of 15 per cent.
"In the context of a challenging economic environment, our growth has been competitive and profitable. We continue to demonstrate execution prowess, agility, adaptability, resilience, and passion of our people. We have expanded our portfolio with consumer-relevant innovations and have invested strongly behind our brands. Our operations and service levels are now back to pre-COVID levels and we have accelerated the pace of digitising our operations under the 'Re-imagine HUL' agenda," said Sanjiv Mehta, Chairman, and Managing Director.
HUL's board has declared an interim dividend of Rs 14 per equity share of face value of Rs 1 each for the financial year ending March 31, 2021.The record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed on October 29, 2020, and dividend will be paid to the shareholders on or after November 12, the company said.
Going forward, the company said its near-term outlook remains cautiously optimistic as rural markets remain resilient. The urban demand outlook, however, remains uncertain, it said
Meanwhile, shares of HUL were trading at Rs 2,159.85 apiece, down 0.87 per cent, against previous closing price of Rs 2,178.80 on the BSE.