HUL Q4 RESULTS: NET PROFIT DECLINES 6%, REVENUE MARGINALLY UP; HERE ARE 4 KEY HIGHLIGHTS
FMCG major Hindustan Unilever (HUL), on April 24, announced its fourth quarterly financial results for theFY24. The FMCG major posted a 6 per cent decline in its standalone net profit to ₹2,406 crore from ₹2,552 crore last year same period.
The earnings of the FMCG company are below the market expectations. Analysts forecasted a profit of ₹2,435 crore on revenue totaling ₹14,913 crore.
During the fourth quarter, the company witnessed a slight increase in revenue from operations to ₹14,693 crore, as opposed to ₹14,638 crore recorded in the same period last year.
Also read: HUL Q4 results: Net profit falls 6% to ₹2,406 crore, announces dividend of ₹24 per share
“In FY24 we delivered a resilient performance with 3% USG and crossed ₹10,000 crores Net Profit mark. We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators,” said Rohit Jawa, CEO and Managing Director.
On the other hand, EBITDA margin remained healthy at 23.8% with an increase of 40 bps YoY. Profit after tax (PAT) and EPS was up 4% and 2% respectively.
Here are key highlights from HUL Q4 FY24 -
Revenue and operating performance
The consolidated revenue for the fourth quarter of FY24 remained relatively steady at ₹15,210 crore, compared to ₹15,215 crore recorded in the fourth quarter of FY23.
In the current quarter, Hindustan Unilever saw a year-on-year decline of 1.5% in net profit, amounting to ₹2,561 crore, inclusive of exceptional income totaling ₹78 crore. Comparatively, in the corresponding period last year, the company had recorded a profit of ₹2,601 crore.
The Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at ₹3,535 crores, compared to ₹3,574 crores in Q4 FY24, indicating a 1% decrease. Additionally, the EBITDA margin experienced a decline of 40 basis points, dropping to 23.5% from 23.9% in Q4 FY23.
Also read: Axis Bank Q4 Results: Net profit at ₹7,130 crore, NII rises 11.5% YoY
Total sales and segment-wise growth
In FY2024, the total sales amounted to ₹59,579 crores, representing a 3% growth compared to FY2023 when adjusted for disposals in the base.
Home care experienced a 1% growth, with underlying volume growth (UVG) in the mid-single digits. Both Fabric Wash and Household Care saw volume growth in the mid-single digits, propelled by a robust performance in the premium portfolio segment. The category persisted in observing a year-on-year price decline due to measures implemented throughout the year.
The beauty and personal care sector maintained its trend of premium portfolio expansion, outpacing other segments. Despite an overall USG of -2% and stagnant volumes, hair care experienced robust single-digit growth primarily fueled by Dove and Tresemme's exceptional performance. Skin care and color cosmetics saw modest single-digit growth. Premium skin care sustained its impressive double-digit growth trajectory, driven by innovations in emerging demand areas and product formats.
Food and beverage experienced a 4% increase in underlying sales growth (USG) alongside stagnant volume growth. Functional Nutritional Drinks, including Horlicks and Boost, saw strong single-digit growth, primarily fueled by the Plus range. Tea maintained its position as a market leader in both value and volume, while the category observed a trend of consumers shifting towards loose tea.
Coffee experienced double-digit growth primarily fueled by pricing, while the Foods segment saw mid-single-digit growth, driven by robust performance in Soups and Food Solutions. Mayonnaise and Peanut Butter maintained momentum with increasing consumer interest. Ice Cream witnessed double-digit growth, driven by higher volumes.
Final Dividend
The Board of Directors at their meeting held on Wednesday, 24th April 2024 recommended a final dividend of ₹24/- per share, for the financial year ended 31st March 2024. Together with the interim dividend of ₹18 per share paid on 16th November 2023, the total dividend for the financial year ended 31st March 2024 amounts to ₹42/- per share. Final dividend is subject to approval of shareholders.
Changes in key management
BP Biddappa will join the HUL Management Committee as Executive Director, Human Resources and Chief People, Transformation and Sustainability Officer for South Asia. Biddappa will also join the HUL Board as a Whole Time Director, subject to shareholder approval.
Anuradha Razdan, currently Executive Director, Human Resources, HUL and Chief HR Officer, South Asia will be appointed to a global role as Chief Reward & Organisation Development Officer for Unilever. This change will be effective June 1, 2024.
2024-04-24T13:17:00Z dg43tfdfdgfd