Hindustan Unilever Ltd (HUL) on Wednesday reported its fiscal second quarter earnings with a profit decline of 2.4 per cent at Rs 2591 crore in comparison to Rs 2656 crore during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 15,926 crore, up 2.2 per cent as against Rs 15,587 crore during the same period of previous financial year.
According to a CNBC TV18 poll, HUL was expected to report Q2 profit at Rs 2675 crore and revenue for the quarter in review was estimated at Rs 15,665 crore. On a standalone basis, HUL’s Q2 revenue stood at Rs 15,508 crore and profit came in at Rs 2612 crore. The company EBITDA stood at Rs 3647 crore.
Rohit Jawa, CEO and Managing Director, said, “In the September quarter, FMCG demand witnessed moderating growth in Urban markets while Rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders. We remain watchful of gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigor.”
During the quarter, HUL reported an Underlying Sales Growth (USG) of 2 per cent and Underlying Volume Growth (UVG) of 3 per cent. EBITDA margin at 23.8 per cent continued to remain healthy.
In the base quarter, HUL said, there was a one-off indirect tax credit from a favourable resolution of past litigation which benefited both topline and bottomline in the Beauty and Wellbeing segment. Excluding this one-off, USG, UVG and PAT growth is 3 per cent, 3 per cent and 2 per cent respectively.
HUL’s Q2 performance across segments
Home Care segment grew by 8 per cent with high-single digit UVG. Growth was broad based with both Fabric Wash and Household care growing volumes in high-single digit. Liquids portfolio, with a strong double-digit volume growth, continued to outperform.
Beauty & Wellbeing grew 7 per cent (1 per cent reported) with mid-single digit UVG. While Hair Care continued its growth momentum and grew in high-single digit led by outperformance in Sunsilk, Dove and Tresemme, Skin care and Colour cosmetics delivered a mid-single digit growth. Premium Skin portfolio maintained its double-digit growth trajectory.
Personal Care declined 5 per cent with negative pricing and low-single digit volume decline. While Skin cleansing declined primarily on account of pricing actions taken during the year, Premium portfolio grew ahead of the segment and within that bodywash continued to strengthen its market leadership with high double-digit growth. Oral Care delivered a high-single digit growth led by Closeup.
Foods & Refreshment declined 2 per cent with a low-single digit volume decline. Tea continued to perform well through value and volume share gains. Green and Functional tea maintained their strong volume growth however overall category volumes remained subdued. Coffee grew in double digits. Nutrition drinks continued to gain market shares while consumption remained subdued. Foods grew volumes in low-single digit. HUL said, “Strong volume growth in Food Solutions, Mayonnaise, Peanut Butter, and International sauces continued on the back of market development actions, range extensions and distribution expansion. Ice-cream maintained its volume vis-à-vis last year.”
Dividend announcement
HUL board also declared a total interim dividend of Rs 29 per equity share of face value of Re 1 each (which includes a regular interim dividend of Rs 19 and special dividend of Rs 10 per equity share) for the financial year ending 31st March, 2025. “As intimated vide our letter dated 10th October, 2024, the record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed as Wednesday, 6th November, 2024, and dividend will be paid to the shareholders on 21st November, 2024,” it said in a regulatory filing.