Hindustan Unilever Misses Profit Estimates
Hindustan Unilever Ltd., India’s largest consumer goods maker, reported a lower-than-expected profit for the quarter ended June 30th due to weak demand. The company’s net profit fell to Rs. 1,529 crore ($209 million) from Rs. 1,844 crore a year earlier. Analysts had expected a profit of Rs. 1,719 crore.
Revenue Decline
Revenue for the quarter declined 4.7% to Rs. 11,944 crore from Rs. 12,521 crore a year earlier. The company attributed the decline to weak demand in the domestic market. Domestic sales fell 4.2% to Rs. 10,637 crore, while exports declined 11.2% to Rs. 1,307 crore.
Impact of COVID-19
The company said the COVID-19 pandemic had a significant impact on its performance in the quarter. It said the pandemic had led to a disruption in the supply chain, a decline in consumer demand, and a shift in consumer spending patterns.
Growth in Personal Care Segment
Despite the overall decline in revenue, the company’s personal care segment reported a growth of 4.2%. This was driven by strong demand for its skin care and hair care products. The company said it had launched several new products in the quarter, which had helped to drive growth in the segment.
Decline in Home Care Segment
The company’s home care segment reported a decline of 8.3%. This was due to weak demand for its laundry and dishwashing products. The company said it had launched several new products in the quarter, but these had not been able to offset the decline in demand.
Outlook for the Future
The company said it expects demand to remain weak in the near term due to the ongoing pandemic. It said it would continue to focus on cost control and efficiency measures to mitigate the impact of the pandemic. It also said it would continue to invest in new products and marketing initiatives to drive growth in the future.
Share Price Performance
Hindustan Unilever’s share price has declined by 8.5% since the start of the year. The company’s share price has been under pressure due to the weak demand and the impact of the pandemic.
Conclusion
Hindustan Unilever reported a lower-than-expected profit for the quarter ended June 30th due to weak demand. The company attributed the decline to the disruption in the supply chain, a decline in consumer demand, and a shift in consumer spending patterns due to the COVID-19 pandemic. Despite the overall decline in revenue, the company’s personal care segment reported a growth of 4.2%. The company said it expects demand to remain weak in the near term due to the ongoing pandemic and will continue to focus on cost control and efficiency measures to mitigate the impact of the pandemic. The company’s share price has declined by 8.5% since the start of the year due to the weak demand and the impact of the pandemic.