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Fast-moving consumer goods (FMCG) major Hindustan Unilever Limited (HUL) said it remains focused on driving volume-led revenue growth while absorbing a part of the input cost inflation to minimise the impact on consumers.
Speaking after the company's Q1 FY27 results, HUL Managing Director and Chief Executive Officer Priya Nair said the company passed on only half of the input cost inflation through price hikes while absorbing the remaining pressure through cost-saving measures. "Our approach is to calibrate the amount of price we pass on to consumers. In the June quarter, input inflation was around 10 per cent, but we passed on only a 5 per cent price increase. The rest is absorbed through savings and various savings programs," Nair said. She added, "We are obsessed with volume-led revenue growth, and our number one strategy remains calibrated pricing to ensure we protect our consumer franchise while continuing to meet our operating margin targets." Commenting on the company's earnings, Chief Financial Officer Niranjan Gupta said the decline in reported net profit was due to a high base effect from a one-time tax credit recorded in the corresponding quarter of the previous financial year. "If you look at profit before tax, it has actually grown by 11 per cent on an overall revenue growth of 10 per cent. The decline in reported net profit is primarily due to the high base effect of a one-off tax credit recorded in the corresponding quarter of the previous fiscal year," Gupta explained. On the Rs 115 crore restructuring expense reported during the quarter, Gupta said it was part of the company's routine supply chain reorganisation. "This is part of our regular restructuring that we keep doing, which is reorganizing our supply chain sites. So it is a small amount which we keep doing from an overall supply chain organization point of view. There is nothing major in that," he said. HUL on Tuesday reported consolidated sales of Rs 17,184 crore for the quarter ended June 30, 2026, up 10 per cent year-on-year, while revenue from operations stood at Rs 17,341 crore. The company's EBITDA rose 8 per cent year-on-year to Rs 3,947 crore, with the EBITDA margin at 23 per cent, within its guided range of 22.5-23.5 per cent. Profit after tax (PAT) stood at Rs 2,680 crore compared with Rs 2,741 crore in the corresponding quarter of the previous financial year. Among business segments, Home Care recorded sales of Rs 6,554 crore, followed by Beauty & Wellbeing at Rs 4,083 crore, Foods at Rs 3,480 crore and Personal Care at Rs 2,624 crore. (ANI)
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