Mumbai: Hindustan Unilever Limited (HUL) announced its results for the quarter ended 30th June 2024. In JQ’24, HUL showed strong performance with 4% UVG and 2% USG impacted by price reductions passing on commodity cost benefits. EBITDA margin increased to 23.8% YoY by 20 bps. PAT bei and PAT grew by 3% YoY.
Home Care had a strong performance with 4% USG and high-single digit UVG. Fabric Wash volumes grew in high-single digit due to actions taken in mass and premium segments. Household Care saw mid-single digit growth driven by premium dishwash performance. The core dishwash portfolio was reinforced by Vim bar’s relaunch. Rin liquids helped enhance the premiumisation of fabric wash liquids.
In Beauty & Wellbeing, 3% USG and mid-single digit UVG were achieved. Hair Care saw double-digit volume growth thanks to Sunsilk, Clinic Plus, and Dove. Skin care and Colour cosmetics had lower volumes due to mass portfolio decline. Investments in future channels and premium portfolio were fruitful. New products like Dove glycolic hydration range, Vaseline gluta-hya overnight lotion, and Lakme innovations were introduced.
Personal Care achieved low-single digit UVG with a 5% decline in USG. Skin Cleansing saw volume growth, but revenue dropped due to pricing actions. Bodywash maintained market leadership. Oral Care showed mid-single digit growth due to pricing strategies. Lux and Lifebuoy were re-launched in the quarter with improved product formulations.
Food & Beverage USG was 1%, stable volumes. Impact from harsh summer. Nutrition Drinks (Horlicks & Boost) performed weakly, but competitive. Adult nutrition did well. Tea maintained market lead. Coffee saw double-digit growth from pricing. Foods grew in low-single digits driven by Food Solutions, Mayonnaise, Peanut Butter, and International Sauces. Ice-cream volumes grew double-digit with strong summer launches. New launches: Bru’s ‘Southern Trails,’ Kwality Walls’ Strawberry Sundae, Hellman’s 5-in-1 mayonnaise mix.
EBITDA margin rose to 23.8%, up by 20 bps from JQ’23. Gross Margin increased by 170 bps, with A&P investment up by 90 bps. Our efforts are directed at enhancing gross margin through better pricing and productivity measures, while also boosting investments in our brands and future capabilities to stay competitive.
Rohit Jawa, CEO and Managing Director commented: “HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by gradual recovery of rural markets. Our commitment to unlocking access to aspiration, market making & premiumization supported by our distinctive capabilities is a key driver of our competitive edge. We continue to focus on driving competitive volume growth, generating fuel to invest behind our brands and making our business future fit. We remain confident of the medium to long term potential of Indian FMCG sector. With our strong brands, execution prowess and distribution might, HUL is well positioned to leverage this growth opportunity as we continue transforming our business to outperform.”
