HUL’s home care business reported topline of ₹6,554 crore, indicating underlying sales growth of 14% compared to the same quarter last year.
The home care business contributed to nearly 39% of Hindustan Unilever’s overall topline during the June quarter.
In its post-earnings statement, Hindustan Unilever stated that its home care business saw underlying volume growth in the “high-single-digits. “Disciplined market development and customer-centric innovations, not only enabled the highest growth in three years for this business, but also strengthened the market leadership of the company and maintained volume resilience.
Within the home care business, the Fabric Was division saw double-digit underlying sales growth, which was aided by underlying volume growth which was in the higher single digits.
Liquids continuing to grow in double digits enabled the bars and powders division to continue their sustained growth trajectory.
“Household care delivered double-digit underlying sales and volume growth with Vim Liquids continuing to scale and focused initiatives seen boosting penetration and thereby delivering strong double-digit growth,” HUL said in its post-earnings statement.
For the June quarter, Hindustan Unilever missed street expectations on the volume growth front, with the 5% number turning out to be lower than the CNBC-TV18 poll expectation of 6% to 7% growth.
While the company’s topline was marginally higher than expectations, the company’s Earnings Before Tax (EBITDA), and margins were largely in-line to marginally below the CNBC-TV18 poll expectation.
Shares of Hindustan Unilever are trading 4.7% lower on Tuesday after the results announcement at ₹2,072.7. The stock is now down 10% so far this year. The stock is also the top loser on the Nifty 50 index.
