Hindustan Unilever Limited (HUL) on July 20 reported a standalone net profit at Rs 2,472 crore for the June quarter of FY24, registering a growth of 8 percent from Rs 2,289 crore in the same quarter of the previous financial year.
However, the company reported a 10 percent fall in profit sequentially from Rs 2,552 crore in the previous quarter.
The total revenue of the company is Rs 15,333 crore, rising 6.4 percent from Rs 14,016 crore in the year-ago quarter, the FMCG major said in a regulatory filing.
Net profit and revenue missed estimates. According to a poll of brokerages, HUL’s Q1 revenue was seen at Rs 15,477 crore while net profit was Rs 2,581 crore.
The company's domestic volume growth came at 3 percent, missing estimates significantly.
Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 3,521 crore crore growing by 8.6 percent. EBITDA margins have improved by 40 bps YoY to 23.6 percent, which shows that even after price cuts and higher adverrtising spends, profitability is still healthy.
AdSpend to sales at 9.9 percent back above its levels a year ago, gross margin savings being reinvested for sales growth.
The Lifebuoy maker said the home care division grew with 10 percent revenue growth. Beauty and personal care declined 4.4 percent with broad-based performance across categories.
Food and refreshments grew 4.6percent led by foods, coffee and health food drinks (HFD).
Commenting on the quarterly performance, Rohit Jawa, CEO and Managing Director said, "FMCG markets are recovering gradually although the operating environment remains challenging."
"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.
During the press conference the FMCG's new MD and CEO expressed, "My intention going forward is to take current initiatives such as premiumisation, digitalisation, sustainability and go deeper into these initiatives."
This signals that there will be continuity in strategy after taking over from Sanjiv Mehta as the chief of India's FMCG bellwether. More details will become available at the company's next capital market day.
Meanwhile, shares of HUL on July 20 closed 1.13 percent higher at Rs 2,702 apiece on BSE ahead of the earnings.
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