Hindustan Unilever Limited (HUL) announced its results for the quarter ended June 30, 2023.
HUL delivered a positive performance in JQ’23 with underlying sales growth (USG) of seven percent and underlying volume growth (UVG) of three percent. EBITDA margin at 23.6 percent was up 40 bps year-on-year. Profit After Tax before exceptional items (PAT bei) grew nine percent and Profit After Tax (PAT) grew eight percent.
Home care: Double digit growth on a high base
Home Care delivered another quarter of positive performance with 10 percent revenue growth and mid-single digit UVG. Both Fabric Wash and household care grew double-digit led by focused market development actions and premiumisation. Comfort In Wardrobe Premium Fragrance Hangers, Vim Shudhham Cleaning Spray and Gel were launched in the quarter.
Beauty and personal care: Volume led growth
Beauty and personal care delivered 4 percent revenue growth with mid-single digit UVG. Skin care and colour cosmetics grew double-digit on the back of strong performance in premium portfolio. Hair care delivered mid-single digit UVG led by Tresemme, Indulekha and Clinic Plus. Skin cleansing had a modest volume-led growth with Lux and Hamam continuing to outperform, stated the company in a press note. Further price reductions were taken in soaps portfolio in this quarter. Oral Care delivered a double-digit growth led by Closeup. During the quarter, Dove Men+ Care range, Indulekha Soap, Pond’s Anti Pigmentation Serum were launched.
Foods and Refreshment: Steady performance led by health food drinks and food solutions
Foods and refreshment revenue grew 5 percent with near flat UVG. Tea saw modest volume led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. HFD continue to grow competitively with both Horlicks and Boost performing well. Foods grew in mid-single digit led by strong performance in ketchup and food solutions. Ice cream grew in mid-single digit on an exceptionally high base. Unseasonal rains impacted ice cream consumption in the quarter. Horlicks Millet Biscuits, range of Knorr Chinese Sauces and Bru Cold Coffee were launched in the quarter.
Building back gross margin and step-up in advertising and promotions
EBITDA margin at 23.6 percent was up 40 bps YoY. PAT (bei) was up 9 percent year-on-year PAT at Rs 2,472 Crores was up 8 percent year-on-year Sequentially vs MQ’23, gross margin was up 140 bps and A&P was stepped up by 110 bps.
Rohit Jawa, CEO and managing director, commented, “FMCG markets are recovering gradually although the operating environment remains challenging. In this context we have delivered a resilient and competitive performance whilst stepping up our EBITDA margin.”
“In the near-term, FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand. In this environment we will continue to provide superior value to our consumers and invest behind our brands. We remain focused on driving our long-term strategic priorities including market development and building distinctive capabilities for the future. I am confident of the medium to long term prospects of the Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth,” he added.