HUL Q1 Results: Profit jumps 8% but misses estimates; revenue rises 6%

FMCG major Hindustan Unilever (HUL) on Thursday reported a 8 percent year-on-year (YoY) jump in its June quarter profit at Rs 2,472 crore and 6.5 percent rise in its quarterly revenue at Rs 14,931 crore. The Q1FY24 results missed estimates as a CNBC-TV18 poll of analysts had seen the bottomline at Rs 2,620 crore.

During the April-June period, HUL saw a volume growth of 3 percent. A CNBC-TV18 poll expected the company to report volume growth between 5-6 percent.

HUL's gross margin improved 140 basis points quarter-on-quarter.

Operating profit or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at Rs 3,521 crore was lower than the CNBC-TV18 poll of Rs 3,650 crore, while margins came in at 23.6 percent, as against 23.2 percent YoY, up 40 bps.

HUL has reported underlying volume growth of 3 percent in the quarter under review.

The company said its home care segment delivered another quarter of strong performance with 10 percent revenue growth and mid-single digit underlying volume growth (UVG). Both Fabric Wash and Household Care grew double-digit led by focused market development actions and premiumisation, it said.

The home care segment's margins for the first quarter came in at 18 percent.

The beauty & personal care segment delivered 4 percent revenue growth, as Skin Care and Colour Cosmetics business grew doubledigit on the back of strong performance in premium portfolio. Skin Cleansing had a modest volume-led growth with Lux and Hamam continuing to outperform. Further price reductions were taken in soaps portfolio in this quarter.

The beauty & personal care segment's margins for the first quarter came in at 26 percent.

Foods & refreshment business revenue grew 5 percent with near flat UVG. 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.

The foods & refreshment business margins for the first quarter came in at 18 percent.

"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," said CEO and Managing Director Rohit Jawa.

Jawa further said the company remains focused on driving its 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 said.