Friday, June 14, 2024

HUL posts Rs 2,406 crore net profit in Q423 vs Rs 2,552 crore in Q422

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Hindustan Unilever Ltd (HUL) recorded a 6% decrease in standalone net profit, amounting to Rs 2,406 crore, compared to Rs 2,552 crore in the corresponding period last year, according to the company’s financial results for the fiscal fourth quarter declared April 24. However, HUL’s sales witnessed a marginal increase, reaching Rs 14,693 crore for the same quarter, albeit with a 2.7% decline in revenue within the beauty and personal care segment, which stands as a significant area of focus.

Despite these figures falling slightly short of analysts’ expectations, the company maintained a steady dividend payout strategy. Hindustan Unilever declared a final dividend of Rs 24 per share for FY24, adding to the interim dividend of Rs. 18 per share paid on November 16, 2023. Consequently, the total dividend for FY24 stands at Rs 42 per equity share of face value of Rs. 1 each.

The company’s homecare segment, its biggest one, which houses brands like Surf Excel and Comfort, posted mid-single-digit percentage volume growth led by outperformance in Vim liquid.

Rohit Jawa, CEO and Managing Director, expressed optimism about the company’s performance, highlighting a resilient 3% USG and surpassing the Rs 10,000 crore Net Profit milestone in FY24. He emphasized the strategic focus on operational excellence, gross margin improvement, and increased investment in brands and long-term capabilities.

Jawa outlined the company’s forward-looking approach, anticipating a gradual improvement in consumer demand driven by favorable factors such as a normal monsoon and positive macro-economic indicators. He underscored confidence in the medium to long-term potential of the Indian FMCG sector, citing rising affluence, under-indexed FMCG consumption, and robust digital infrastructure as key drivers.

In alignment with their strategic vision, Hindustan Unilever is committed to a transformative journey labeled ‘Transform to Outperform.’ This initiative is characterized by core objectives including enhancing brand superiority, market expansion, premiumization, portfolio optimization, and leadership in future channels.

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