FMCG major Hindustan Unilever on Thursday logged a rise of 12.74 per cent in its consolidated net profit at Rs 2,601 crore for the fourth quarter (Q4) ended March 31, 2023, led by underlying volume growth and improvement in margins. The company had posted a net profit of Rs 2,307 crore in the January-March quarter of the previous fiscal year.
HUL’s net sales during the quarter under review stood at Rs 14,926 crore, up 10.83 per cent, as against Rs 13,468 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing. “HUL delivered strong performance with turnover growth of 11 per cent and underlying volume growth of 4 per cent. Growth was competitive with more than 75 per cent of the business winning market shares,” HUL said in its earnings statement. HUL’s total expenses were at Rs 11,961 crore in Q4/FY23, as against Rs 10,782 crore.
The board of HUL also recommended a final dividend of Rs 22 for the financial year ended March 31, 2023, on equity shares of Re 1 each.
The total income of HUL in the March quarter, including – sales, service and other operating revenue, was at Rs 15,375 crore. In the March quarter, HUL’s home care segment delivered “solid performance” with 18.84 per cent revenue growth to Rs 5,637 crore. It was at Rs 4,743 crore in Q4/FY22.
“Gross margin improved 120 bps… with a reduction in price vs. cost gap. We continued to invest competitively behind our brands and stepped-up A&P investments by 80 bps… EBITDA margin at 23.7 per cent remains healthy,” the company said.
“Skin Cleansing delivered double-digit growth led by Lux. With softening in Palm Oil, further price reductions were taken in the soaps portfolio. Hair Care continued its strong competitive performance and delivered volume-led mid-single digit growth,” it said. Skin Care grew in double digits led by strong performance in the premium portfolio.
“Further progress was made on portfolio transformation through innovations and entry into fast-growing demand spaces. A new Skin Care brand ‘Novology’ in the masstige beauty segment, the new range of Hair Care products by Dove and Tresemme, a bathing range by Lux, and Lakme’s Lip and Face mousse were launched in the quarter,” it said.
In the Foods & Refreshment, HUL’s revenue in the March quarter was up 2.59 per cent to Rs 3,794 crore as against Rs 3,698 crore of the corresponding period.
The growth was led by Foods, Coffee and Health Food Drinks (HFD). Tea strengthened its value and volume market leadership. “Tea category witnessed consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. HFD continues to grow competitively and gain penetration. Coffee delivered double-digit growth. Ice Cream grew in mid-single digit with unseasonal rains impacting consumption,” it said.
HUL’s revenue from another segment, which includes exports, consignment etc was down 9.6 per cent to Rs 527 crore in the January-March period. “We have added around Rs 8,000 crores to our topline in this fiscal with volume growth in mid-single digits despite a decline in FMCG market volumes,” HUL CEO and Managing Director Sanjiv Mehta said.
Shares of HUL on Thursday were closed at Rs 2,468.20 on the BSE, down 1.46 per cent from the previous close.