Hindustan Unilever Ltd (HUL), a leading company in the fast-moving consumer goods (FMCG) industry, has announced a 4% increase in its independent net profit, reaching INR 2,717 crore for the quarter concluding in September 2023, compared to INR 2,616 crore in the corresponding quarter of the previous year.
In the reporting period, the company experienced a 4% year-on-year (YoY) increase in its sales, reaching INR 15,027 crore.
The board has announced an interim dividend of INR 18 per equity share for the fiscal year ending in 2024, with the record date for this dividend scheduled for November 2.
The underlying volume growth for the September quarter was 2%, falling short of analysts’ anticipated 3%.
The EBITDA for the quarter reached 3,694 crore, with margins at 24.18%, surpassing the estimated figures of INR 3,609 crore and 23.5%, respectively.
Breaking it down by segments, the home care business saw a 3% increase, driven by mid-single-digit volume growth. Within this sector, fabric wash experienced mid-single-digit volume growth, and the premium portfolio continued to deliver strong results. Household care volumes grew in the high single digits, primarily due to the performance of the dishwasher segment.
In the second quarter, the beauty and personal care business achieved a 4% growth, primarily driven by mid-single-digit volume growth. Skin cleansing, on the other hand, experienced low-single-digit volume growth, with Lux and Hamam brands consistently delivering strong results.
Revenue decreased due to additional price reductions in the soap segment. However, there was double-digit growth in skin care and color cosmetics, attributed to strategic efforts in exploring new demand areas and future channels.
Hair care registered robust high-single digit growth, with Clinic Plus and Indulekha brands maintaining their strong performance.
“We delivered resilient and competitive growth whilst stepping up our EBITDA margin in a challenging operating environment, marked by subdued rural demand and heightened competitive intensity,” said Rohit Jawa, CEO and MD, HUL.
Within the foods and refreshment business, which expanded by 4%, the tea segment experienced moderate growth as consumers continued to opt for lower-priced options. In contrast, the coffee segment saw a double-digit increase.
Looking ahead, HUL expressed a cautious optimism, expecting a gradual recovery in FMCG demand. This positive outlook is bolstered by the approaching festive season, sustained strength in services, and the government’s emphasis on capital expenditure.
“At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels,” the FMCG major added.
On Thursday, HUL shares closed flat at INR 2,550 on NSE.