HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend

Hindustan Unilever (HUL) on Thursday reported a 13 per cent year-on-year (YoY) rise in net profit at Rs  2,601 crore for the March quarter compared with Rs 2,307 crore in the same quarter last year.

Total sales for the quarter grew 11 per cent at Rs 14,953 crore, the FMCG major said in a BSE filing. Earnings before interest, tax, depreciation and amortization (Ebitda) for the quarter came in at Rs 3,574 crore, up 8 per cent over Rs 3,301 crore in the year-ago quarter.

On a standalone basis, profit grew 10 per cent to Rs  2,552 crore. Ebitda margin for the quarter stood at 23.7 per cent, down 90 basis points.  Volume growth for the quarter came in at 4 per cent.

Following the results, shares of Hindustan Unilever fell 1.31 per cent to Rs 2,472 level on BSE. The stock is down 3.37 per cent year-to-date.

Dividend announced

The company proposed a final dividend of Rs 22 per share, subject to approval of shareholders at the AGM. Together with interim dividend of Rs 17 per share, the total dividend for the year amounts to Rs 39 per share, up 15 per cent YoY. With the final dividend, the FMCG firm reported a total dividend of Rs 9,163 crore for FY23 against Rs 7,989 crore in FY22.

What the management says

CEO and Managing Director Sanjiv Mehta said his company delivered a year of strong and resilient performance despite geopolitical uncertainties and high commodity inflation.

For FY23, Mehta said his company added Rs 8,000 crore to its topline with volume growth in mid-single digits despite decline in FMCG market volumes. Mehta said his company continued to make steady progress in future-proofing its business through portfolio transformation and building distinctive capabilities.

"Looking forward, the near-term operating environment is likely to remain volatile. With inflation easing due to lapping of high
base and sequential softening in a few commodities, price and volume growths will rebalance. Market volumes will recover gradually as consumption habits readjust," Mehta said. 
Mehta said his company remains focused on managing business with agility and growing consumer franchise while maintaining margins in a healthy range. 

"We stay confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth,’ Mehta said.

Here's what Hindustan Unilever says on its key segments:

Home Care

The Home Care segment reported 19 per cent revenue growth. Both Fabric Wash and Household Care grew in strong double digits, HUL said adding that the premium portfolio continued to outperform driven by effective market development actions.

Beauty & Personal Care
Beauty & Personal Care grew 10 per cent with broad-based performance across categories, HUL said.  The FMCG major said Skin Cleansing delivered double digit growth led by Lux.

"With softening in Palm oil, further price reductions were taken in soaps portfolio. Hair Care continued its strong competitive performance and delivered volume led mid-single digit growth. Skin Care grew in double digits led by strong performance in premium portfolio. Further progress was made on portfolio transformation through innovations and entry into fast growing demand spaces," it said,

HUL said a new Skin Care brand ‘Novology’ in the masstige beauty segment, new range of Hair Care products by Dove and Tresemme, bathing range by Lux, Lakme’s Lip and Face mousse were launched during the quarter.

Foods & Refreshment
The Foods & Refreshment segment saw a 3 per cent  growth led by foods, coffee and health food drinks (HFD). Tea strengthened its value and volume market leadership, HUL said adding that  the Tea category witnessed consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea.

HFD continue to grow competitively and gain penetration. Coffee delivered double digit growth. Ice Cream grew in mid-single
digit with unseasonal rains impacting consumption. Foods grew in mid-single digit led by strong performance in Ketchup and

Foods Solutions

During the quarter, Millets Chocolate Horlicks and flavours in Ice Cream including Salted Caramel Brownie, Hazelnut Chocolate and ice candies were launched.

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