HUL Q4 net up 12.74 pc at Rs.2,601 cr; net sales up 10.83 pc

New Delhi: FMCG major Hindustan Unilever Ltd on Thursday reported an increase of 12.74 per cent in its consolidated net profit at Rs 2,601 crore for the fourth quarter ended March 31, 2023, led by underlying volume growth and improvement in margins.

The company had posted a net profit of Rs 2,307 crore in the January-March quarter of the previous fiscal.

Its net sales during the quarter under review stood at Rs.14,926 crore, up 10.83 per cent, as against Rs.13,468 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing.

"HUL delivered strong performance with turnover growth of 11 per cent and underlying volume growth of 4 per cent. Growth was competitive with more than 75 per cent of the business winning market shares," HUL said in its earnings statement.

HUL's total expenses were at Rs.11,961 crore in Q4/FY23, as against Rs.10,782 crore.

"Gross margin improved 120 bps... with a reduction in price vs. cost gap. We continued to invest competitively behind our brands and stepped-up A&P investments by 80 bps. EBITDA margin at 23.7 per cent remains healthy," it said.

The total income of HUL in the March quarter, including - sales, service and other operating revenue, was at Rs.15,375 crore.

In the March quarter, HUL's home care segment delivered "solid performance" with 18.84 per cent revenue growth to Rs.5,637 crore. It was at Rs.4,743 crore in Q4/FY22.

"Both Fabric Wash and Household Care grew in strong double digits. The premium portfolio continued to outperform driven by effective market development actions," said HUL.

Similarly, its revenue from Beauty & Personal Care was up 10.83 per cent to Rs 5,257 crore. It was at Rs 4,743 crore a year ago.

The double-digit growth in Beauty & Personal Care was led by a broad-based performance across categories.

"Skin Cleansing delivered double-digit growth led by Lux. With softening in Palm Oil, further price reductions were taken in the soaps portfolio. Hair Care continued its strong competitive performance and delivered volume-led mid-single digit growth," it said.

Skin Care grew in double digits led by strong performance in the premium portfolio.

"Further progress was made on portfolio transformation through innovations and entry into fast-growing demand spaces. A new Skin Care brand 'Novology' in the masstige beauty segment, the new range of Hair Care products by Dove and Tresemme, a bathing range by Lux, and Lakme's Lip and Face mousse were launched in the quarter," it said.

In the Foods & Refreshment, HUL's revenue in the March quarter was up 2.59 per cent to Rs 3,794 crore as against Rs 3,698 crore of the corresponding period.

The growth was led by Foods, Coffee and Health Food Drinks (HFD). Tea strengthened its value and volume market leadership.

"Tea category witnessed consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. HFD continues to grow competitively and gain penetration. Coffee delivered double-digit growth. Ice Cream grew in mid-single digit with unseasonal rains impacting consumption," it said.

Foods grew in the mid-single digit led by strong performance in Ketchup and Foods Solutions.

However, HUL's revenue from another segment, which includes exports, consignment etc was down 9.6 per cent to Rs 527 crore in the January-March period.

HUL's consolidated net profit was up 14.06 per cent to Rs 10,143 crore for the financial year ended March 31, 2023. It was at Rs 8,892 in FY22.

Similarly, its revenue from operations was at Rs 59,443 crore, up 15.49 per cent. It was at Rs 51,472 crore a year earlier.

“Growth was significantly ahead of the market leading to handsome market share gains. EBITDA margin remained healthy at 23.4 per cent despite the unprecedented inflation during the year,” it said.

"In challenging circumstances of geopolitical uncertainties, high commodity inflation and tepid market growths, I am pleased that we have delivered yet another year of strong and resilient performance.

"We have added around Rs 8,000 crores to our topline in this fiscal with volume growth in mid-single digits despite a decline in FMCG market volumes," HUL CEO and Managing Director Sanjiv Mehta said.

The board of HUL also recommended a final dividend of Rs 22 for the financial year ended March 31, 2023, on Equity Shares of Re 1 each.

Shares of HUL on Thursday were trading at Rs 2470.05 on BSE, down 1.38 per cent from the previous close.