Hindustan Unilever net profit Q4 dips 1.53% to Rs 2,561 crore

Hindustan Unilever Q4: FMCG giant Hindustan Unilever reported a marginal decrease of 1.53 per cent in its consolidated net profit to Rs 2,561 crore for the fourth quarter of FY24, attributed to deflationary pressures stemming from the softening of commodity prices. This compares to a net profit of Rs 2,601 crore in the corresponding period of the previous fiscal year, as disclosed in a regulatory filing from HUL.

Net sales remained nearly unchanged at Rs 15,013 crore during the March quarter. Total expenses edged up by 1.15 per cent to Rs 12,100 crore, compared to Rs 11,962 crore in the same period last year. The company's total income remained flat at Rs 15,441 crore, mirroring the Rs 15,375 crore recorded a year earlier.

HUL's earning statement highlighted a resilient performance in Q4, with underlying sales growth of 1 per cent and underlying volume growth of 2 per cent, alongside an EBITDA margin of 23.4 per cent. Despite challenges, the company witnessed a 350 bps improvement in gross margin, with a simultaneous increase of 200 bps in advertising and promotional investments aimed at bolstering brand presence.

However, the EBITDA margin experienced a decline of 30 bps, primarily due to the termination of the GSK consignment selling arrangement and investments in long-term capabilities. In terms of segment performance, the home care segment grew by 1.27 per cent to Rs 5,709 crore, driven by mid-single-digit volume growth in fabric wash and household care.

Conversely, the beauty and personal care segment experienced a 2.5 per cent decline to Rs 5,125 crore, with a flat volume growth. The hair care segment witnessed high-single-digit growth, while skincare and colour cosmetics reported low-single-digit growth.

The foods & refreshment segment saw a 3 per cent revenue growth to Rs 3,910 crore, with a flat volume growth of 4 per cent. Among other segments, revenue decreased by 11.6 per cent to Rs 466 crore, compared to Rs 527 crore in the same quarter of the previous fiscal year.

For the entire FY24, HUL reported a consolidated net profit of Rs 10,282 crore, up from Rs 10,143 crore in FY23, with total income rising to Rs 62,707 crore from Rs 61,092 crore.

The board of HUL proposed a final dividend of Rs 24 per share, subject to shareholder approval at the AGM, bringing the total dividend for the year to Rs 42 per share, an 8 per cent increase compared to FY23.

CEO and Managing Director Rohit Jawa expressed confidence in the company's performance, underlining their focus on operational excellence and investment in brands and long-term capabilities. He cited optimism for improving consumer demand, driven by expectations of a normal monsoon and favourable macroeconomic indicators.

Shares of HUL closed marginally lower at Rs 2,259.15 apiece on the BSE.

(With PTI inputs)