Published
Jan 19, 2022
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HUL expected to report double-digit rise in net profit in Q3 FY22

Published
Jan 19, 2022

Hindustan Unilever is preparing to release its performance report for the third quarter of the 2022 financial year and is expected to see a double-digit rise in net profit, as well as a rise in overall sales.

Hindustan Unilever runs a wide range of personal care and beauty brands in India - Unilever


“We expect net revenue growth of 8% year-on-year with volume growth of 2%,” said brokerage firm HDFC Institutional Equities, ET Markets reported. “We model 8% growth in home-care segment, 9% growth in beauty and personal care category (BPC), and 5% year-on-year growth in food business. We have built a 138 bps year-on-year dip in gross margin as raw material inflation sustained during the quarter. Ebitda margin is expected to expand 32 bps year-on-year to 24.4%.”
 
One reason for projected revenue growth is that the business has raised the prices of numerous products. This move is in line with the industry at large as increased raw materials prices, logistics issues, and other problems pertaining to the pandemic have led to price hikes in most fast moving consumer goods categories.

HUL has also run numerous cost-saving initiatives recently which will contribute to increased profitability, according to the analysts. The business is scheduled to publish its third quarter results on January 20.  

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