HUL Q1 profit up 8% to ₹2,472 cr; revenue surges 7%

FMCG major Hindustan Unilever Ltd has recorded a standalone net profit of ₹2,472 crore for the quarter ending June 30, 2023, up 8% from ₹2,289 crore in the year-ago period, HUL says in a regulatory filing today.

The company's revenue for the quarter surged 7% to ₹14,931 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter was at ₹3,521 crore versus ₹3,247 crore in Q1 FY23, growing by 8%. The EBITDA margin increased by 40 bps to 23.6% as compared to same period last year.

On a consolidated basis, HUL's profit surged 7% to ₹2,556 crore in the quarter ending June 30, 2023, compared to ₹2,391 crore in the year-ago quarter. The FMCG major's consolidated revenue jumped 6% to ₹15,267 crore.

HUL says exceptional items in the quarter ending June 2023 include restructuring expenses of ₹47 crore (JQ 22: ₹8 crore), and acquisition and disposal-related savings of ₹10 crore.

Rohit Jawa, CEO and managing director, HUL says FMCG markets are recovering gradually, although the operating environment remains "challenging". "In this context we have delivered a resilient and competitive performance whilst stepping up our EBITDA margin," he adds.

According to Jawa, in the near term, the FMCG industry will continue to witness "rebalancing" of the price-volume growth equation and a "gradual recovery" in consumer demand. "We remain focused on driving our long-term strategic priorities including market development and building distinctive capabilities for the future. I am confident of the medium to long-term prospects of the Indian FMCG sector and HUL’s ability to deliver Consistent, Competitive, Profitable, and Responsible growth."

Among different segments, HUL reported double-digit growth in-home care on a high base. HUL's home care division delivered 10% revenue growth and mid-single-digit underlying volume growth. "Both Fabric Wash and Household Care grew double-digit led by focused market development actions and premiumisation," the company says.

In beauty and personal care, volume led the growth and the division delivered 4% revenue growth with mid-single-digit underlying volume growth. "Skin care and colour cosmetics grew double-digit on the back of strong performance in the premium portfolio. Hair care delivered mid-single digit UVG led by Tresemme, Indulekha, and Clinic Plus. Skin cleansing had a modest volume-led growth with Lux and Hamam continuing to outperform."

In foods & refreshments, HUL says it recorded a steady performance of 5% growth, led by health food drinks and food solutions. "Tea saw modest volume-led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. HFD continues to grow competitively with both Horlicks and Boost performing well. Foods grew in the mid-single digit led by strong performance in Ketchup and Food Solutions. Ice Cream grew in mid-single digit on an exceptionally high base."

The HUL stock closed 1.07% up at ₹2,700 on the BSE today.