MUMBAI: In the third quarter that ended on December 31, 2022, Hindustan Unilever (HUL) reported a standalone net profit of Rs 2,505 crore, an increase of 12 percent compared to the Rs 2,243 crore reported in the corresponding quarter of the previous year. Sales increased 16% to Rs 14,986 crore, up from Rs 12,900 crore in the previous quarter, and volume increased by 5%, up from 2% in the same period. This was accomplished in light of a moderate inflation rate.
Sequentially, volume growth is also higher than the 4% seen in Q2. From 22% in Q2, net material inflation decreased sequentially to 18% in Q3. During a virtual media briefing, HUL CEO and MD Sanjiv Mehtas stated, "We feel that the worst is over, as things stand." The FMCG bellwether's Q3 performance was helped by a combination of factors other than an alleviation of input cost pressures, like an improvement in rural markets.
“In rural areas, the value growth in June was negative, while the volume growth was minus 13% and minus 12%, respectively. The good news is that this was 2 in the December quarter. positive value growth of 5% and volume growth of minus 9%, previously in the negative double digits. We are clearly focusing on things that are getting better. But there is still a long way to go before rural volumes turn positive,” Mehta stated while focusing on the FMCG market's overall expansion.
Price increases account for 11 percent of HUL's Q3 turnover growth, despite the fact that inflation remains high in comparison to the same time last year.