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On April 27, Hindustan Unilever Limited (HUL) announced a standalone net profit of Rs 2,552 crore for the March quarter of FY23, indicating a 9.66 percent increase from the same quarter in the previous fiscal year, where the profit stood at Rs 2,327 crore.
The FMCG major stated in a regulatory filing that its total revenue for the year-ago quarter was Rs 13,584 crore, whereas for the current quarter, it reached Rs 15,053 crore, indicating a growth of 10.81 percent.
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HUL’s standalone Q4 net profit of Rs 2,552 crore was in line with expectations, but revenue missed the projected Rs 15,277 crore. The poll of brokerages estimated revenue growth at 9% due to price hikes and volume growth at 5%, which was the same as the previous quarter. However, underlying volume growth for Q4 was only 4%, which fell below expectations.
HUL’s board has recommended a final dividend of Rs 22 per share for the financial year ending on March 31, 2023, after paying an interim dividend of Rs 17 per share in November 2022. The company reported a strong 19% revenue growth in the home care division, with double-digit growth in both fabric wash and household care. The beauty & personal care segment also grew 10%, with solid performance across categories.
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In the latest quarter, HUL’s Foods & Refreshment segment grew by 3%, driven by the growth of foods, coffee, and health food drinks. The company’s gross margin improved by 120 basis points quarter on quarter due to a reduction in the price vs. cost gap. The CEO and Managing Director, Sanjiv Mehta, stated that the company is making progress in future-proofing its business through portfolio transformation and building distinctive capabilities. He added that the near-term operating environment is expected to remain volatile, but inflation is likely to ease due to the lapping of a high base and a sequential softening in a few commodities, leading to a rebalance in price and volume growth.
“Market volumes will recover gradually as consumption habits readjust. We remain focused on managing our business with agility and growing our consumer franchise whilst maintaining margins in a healthy range.” stated HUL’s spokesperson following the earnings announcement. As of 12:20 PM, HUL’s share price had declined by 1.56% to reach Rs 2,465.60 on the BSE.
