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Published
Jun 4, 2021
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HUL's beauty service unit Lakme Lever saw sales drop 19% in FY21

Published
Jun 4, 2021

Hindustan Unilever’s beauty service unit Lakme Lever saw its sales contract by 19% in the 2021 financial year as salons and non essential outlets saw extended periods of store closures. 

Lakme's salons slipped into losses in the 2021 fiscal year - I Love Lakme- Facebook

 
“The profitability for the year has been largely impacted on account of Covid outbreak,” read HUL’s annual report for the 2021 financial year, accessed by ET Bureau.

“After a stringent lock down which disrupted operations in the first half, the company in the second half of the year has sequentially improved performance to almost previous period’s revenue.”

Lakme Lever runs a total of 485 salons in India and reported sales totalling Rs 230 crore ($34.6 million) in the 2021 financial year compared to sales of Rs 284 crore in the 2020 financial year. This resulted in the business posting a loss of Rs 19 crore in the 2021 financial year compared to a profit of Rs 6 crore the year before. 
 
After being hit hard by lockdowns and social distancing regulations, the business has turned its focus to the digital medium to train workers and stay in touch with clients, it said.

The business has also been able to sell beauty products online to keep up revenue and Lakme’s beauty products such as lipsticks and eyeliners make up the most-part of its sales compared to its salon services segment, according to the business. 

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