FMCG major Hindustan Unilever Limited (HUL) on Friday posted its third quarter profit for the financial year 2023-24 at Rs 2509 crore, up 1.4 per cent in comparison to Rs 2474 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 15,567 crore, marginally dropping by 0.2 per cent as against Rs 15,597 crore during the third quarter of FY23.
EBITDA margin, HUL said, was at 23.7 per cent, improved by 10 bps versus last year. Gross Margin and A&P investments increased by 400 bps and 270 bps respectively on-year. We continue to manage our business dynamically by ensuring the right price-value equation and investing competitively behind our brands and long-term capabilities.
Rohit Jawa, CEO and Managing Director, said, ‘HUL has delivered another quarter of resilient performance with strong operating fundamentals amidst a challenging operating environment. Our focus on providing the right consumer value, excellence in execution, increased investments behind brands and capabilities, premiumisation and market development continues to serve us well.”
“Looking forward, we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery. In this context, our focus remains on driving competitive volume growth whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of the Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges,” he added.
HUL’s Q3 performance across businesses
HUL’s Home Care segment posted volume led performance on a very high base. Home Care saw a marginal decline in revenue with mid-single digit UVG in the quarter. However, on a 2-year CAGR basis, the business delivered a strong double-digit growth of 14 per cent with high single digit UVG. Fabric Wash volumes grew in mid-single digit YoY driven by outperformance in the premium portfolio. Household care volumes grew in the low single digit led by Dishwash.
Beauty & Personal Care revenue remained flat with mid-single digit UVG. Skin Cleansing revenue declined due to the impact of price reductions taken to pass on the benefits of lower commodity costs to consumers. Market development actions in bodywash continue to yield good results. While delayed winter impacted Skin Care performance in the quarter, premium non-winter portfolio continued to do well. Hair Care delivered volume led double-digit growth with broad based performance across brands and future formats continuing to gain traction. Oral Care grew mid-single digit led by Closeup. K
Foods & Refreshment revenue grew 1 per cent. Tea further strengthened value and volume market leadership. Green Tea and flavoured tea performed well. Coffee grew in double-digits driven by pricing. Health Food Drinks delivered competitive modest price-led growth driven by Plus range. Foods Solutions, Mayonnaise and Peanut Butter continue to clock strong growths. Ice Cream grew in mid-single digits on a high base.