Hindustan Unilever (HUL) on Tuesday reported its fiscal first quarter earnings with profit at Rs 2610 crore, up 2.2 per cent in comparison to Rs 2554 crore recorded during the corresponding quarter of FY24, beating estimates. It posted revenue from operations at Rs 15,707 crore, up 1.4 per cent as against Rs 15,496 crore during the first quarter of previous financial year. According to a CNBC TV18 poll, HUL was expected to report Q1 profit at Rs 2481 crore and revenue for the quarter was estimated at Rs 15,100 crore. HUL’s EBITDA for the June quarter was at Rs 3606 crore, up 2.4 per cent on-year.
HUL delivered an Underlying Volume Growth (UVG) of 4 per cent. Underlying Sales Growth (USG) was 2 per cent due to the impact of price reductions taken during the year as the company passed on benefits of lower commodity prices to consumers.
Rohit Jawa, CEO and Managing Director, HUL, said, “HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by gradual recovery of rural markets. Our commitment to unlocking access to aspiration, market making & premiumization supported by our distinctive capabilities is a key driver of our competitive edge.”
“We continue to focus on driving competitive volume growth, generating fuel to invest behind our brands and making our business future fit. We remain confident of the medium to long term potential of the Indian FMCG sector. With our strong brands, execution prowess and distribution might, HUL is well positioned to leverage this growth opportunity as we continue transforming our business to outperform,” he added.
HUL’s Q1 performance across segments
Home Care: HUL’s home care segment delivered a strong performance with 4 per cent USG and high-single digit UVG. Fabric Wash grew volumes in high-single digit led by structural actions taken across the portfolio, in both mass and premium segments. Household Care grew volumes in mid-single digit.
Beauty & Wellbeing: Beauty & Wellbeing delivered 3 per cent USG with mid-single digit UVG. Hair Care grew volumes in double-digit, driven by a strong performance in Sunsilk, Clinic Plus and Dove. Skin care and Colour cosmetics had a muted volume performance in the quarter driven by decline in mass portfolio. Investments in channels as well as formats of the future and premium portfolio continued to yield healthy results.
Personal Care: HUL’s Personal Care segment delivered low-single digit UVG while USG declined by 5 per cent. Skin Cleansing had a low-single digit volume growth but revenue declined on account of pricing actions taken. Bodywash continues to strengthen market leadership. Oral Care delivered mid-single digit growth driven by pricing. During the quarter, Lux and Lifebuoy were re-launched with a superior product formulation.
Foods & Refreshment: The segment had a USG of 1 per cent with volumes remaining stable. The category was impacted by a harsh summer season. Nutrition Drinks (Horlicks & Boost) had subdued performance in the quarter albeit continuing to win competitively. Adult nutrition range performed well. Tea continued to cement its market leadership through value and volume share gains. Coffee delivered double digit growth driven by pricing. Foods grew volumes in low-single digit led by outperformance in Food Solutions, Mayonnaise, Peanut Butter, and International sauces. Ice-cream delivered double-digit volume growth aided by strong launches during the summer season.