Q3 FY 2022 Review

Hindustan Unilever Limited reported net revenue of ₹13,439 crores for the quarter ended December 31, 2021, compared to ₹12,181 crores for December 31, 2020. EBIT and Profit After Tax were ₹3,143 crores and ₹2300 crores for the quarter ended, 31, 2021, as compared to ₹2,643 crores and ₹ 1,938 crores, during the corresponding quarter of the previous year.

Hindustan Unilever Limited - Investment Summary

Overview

• HUL is India's largest fast-moving consumer goods company with strong brands across categories and prices.

• The brands have high visibility and have sustained their market leadership in more than 80% of their business, backed by an extensive distribution network and strong advertising and marketing support.

• The company received approval for the PLI scheme for Ready to Cook/ Ready to Eat and Processed Fruits & Vegetables.

• The company has been assigned AAA/stable credit rating on a long-term bank facility.

Hindustan Unilever Limited - Quarterly Summary

Business

• HUL is India’s largest FMCG company and has a diverse product portfolio, including soaps & detergents, personal care products, and beverages. The company has owned factories and many outsourced production facilities across the country.

• The company has 14 brands with ₹1,000 crores in annual sales.

• In 2015, the company acquired the ‘Indulekha’ brand from Mosons Group for a consideration of 330 cores along.

• In 2020, the company acquired the brand ‘Vwash’ from Glenmark Pharmaceuticals Limited. The brand was launched in 2013 and has established itself as a market leader in the female intimate hygiene category.

• The amalgamation of GlaxoSmithKline Consumer Limited will enhance the market position of HUL in the foods and refreshment segment and will increase the revenue diversity in the medium term.

• HUL business segments include:

  • Beauty & Personal Care Segments:

    • Brands under this segment include:

      1. Skin Cleansing - Dove, Lifebuoy, LUX, Pears, Liril.

      2. Oral Care - Pepsodent, Closeup, Lever Auyush.

      3. Hair Care - Tresemme, Dove, Indulekha.

      4. Skincare - Glow & Lovely, Pond’s, Vaseline.

  • Home Care Segment:

    • Brands under this segment include:

      1. Household Care - Vim, Domex, Sunlight.

      2. Fabric Wash - Comfort, Wheel, Rin, Surf excel.

      3. Purifiers - Puriet.

  • Foods & Refreshments Segment:

    • Brand under this segment includes:

      1. Foods - Knorr, Kissan, Hellmann’s, Annapurna.

      2. Beverages - Lipton, Bru, Broke Bond Red Label, Taj Mahal, Taaza.

      3. Nutrition - Horlicks, Boost.

      4. Ice Cream - Kwality Walls.

• Out of the total revenue, 29.7% of revenue have generated from Health Care, 38,4% from Beauty & Personal Care, 28,1% from Food & Refreshment, and 3.9% from others % in FY 2021, compared to 34.3%, 44%, 18,7% and 3% in FY 2020 respectively.

• Out of the total revenue, 96.29% of income has been generated from India, and 3.71% from outside India in FY 2021, compared to 96.55% and 3.45% in FY 2020 respectively.

Hindustan Unilever Limited - Revenue Trend

Topline and Bottomline trend (crores)

Ratio Analysis