Hindustan Unilever Limited (HUL) on Wednesday reported its fiscal fourth quarter profit at Rs 2558 crore, down 1.6 per cent on-year in comparison to Rs 2600 crore during the same period last year, surpassing estimates. It posted revenue from operations during the quarter at Rs 15,210 crore, up 24.5 per cent as against Rs 12,215 crore during the quarter ended March 31, 2023. According to a CNBC TV18 poll, HUL was expected to post Q4 profit at Rs 2,438 crore and revenue for the quarter in review was estimated at Rs 14,850 crore.
While the total income for the quarter came in at Rs 15,441 crore, total expenditure incurred during the period was at Rs 12,100 crore.
The company board also recommended a final dividend of Rs 24 for the financial year ended 31st March, 2024 on equity shares of Re 1 each. The company had earlier paid an interim dividend of Rs 18 per share on 16th November, 2023. The total dividend for the said period amounts to Rs 42 per equity share of face value of Re 1 each.
Rohit Jawa, CEO and Managing Director, said, “In FY24, we delivered a resilient performance with 3 per cent USG and crossed Rs 10,000 crores net profit mark. We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities.
“Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators. With rising affluence, under-indexed FMCG consumption and a strong digital infrastructure, I remain very confident of the medium to long-term potential of the Indian FMCG sector,” he added.
HUL’s performance across business segments
Home Care: HUL’s Home Care segment grew 1 per cent with mid-single digit UVG. Both Fabric Wash and Household Care grew volumes in mid-single digits driven by strong performance in the premium portfolio. The category continued to witness YoY price decline on account of actions taken during the year.
Beauty & Personal Care: HUL’s Beauty & Personal Care continued to witness premium portfolio growing ahead of the rest. Overall, the segment had a USG of -2 per cent with flat volumes. Hair care delivered volume driven high-single digit growth led by outperformance in Dove and Tresemme. Skin care and colour cosmetics grew in low-single digit. Premium skin care continued its strong double-digit growth trajectory led by innovations in new demand spaces and formats. Skin cleansing declined due to impact of price cuts coupled with drop in volumes in the mass and popular segments while bodywash continued to do well. Oral care saw a double-digit broad based growth driven by pricing.
Foods & Refreshment: Foods & Refreshment had a USG of 4 per cent with flat volume growth. Functional Nutritional Drinks (Horlicks & Boost) delivered high-single digit growth driven by Plus range. Tea continued to strengthen value and volume market leadership. Coffee delivered double digit growth driven by pricing. Foods grew in mid-single digit led by strong performance in Soups and Food solutions. Mayonnaise and Peanut Butter continue to gain consumer traction. Ice Cream grew in double digits led by volumes.
Analyst Views
Reacting to the company’s performance, Amnish Aggarwal, Head of institutional research-Prabhudas Lilladher said, “The numbers are in line with estimates. The Q4FY24 reported volume growth was 2% with negative realisation for a consequent second quarter. We expect slow and modest recovery resulting in gradual pick up in volumes with realisations turning positive in H2FY25. We believe heightened competitive intensity will limit any meaningful recovery in both volumes and margins in the near term. We retain Hold and the stock trades at 44x FY26 EPS.”