Hindustan Unilever Q2 results: Profit jumps to Rs 2,717 crore, Rs 18 dividend declared

Sales for the quarter rose 3.53% YoY to Rs 15,027 crore from Rs 14,514 crore, the company said in a BSE filing.

The domestic volume growth came in at 2%, compared to CNBC-TV18's poll of 3-4% growth.

Segment-wise, the home care business grew 3% with mid-single digit UVG. Fabric Wash had mid-single digit volume growth with the premium portfolio continuing to outperform. Household care volumes grew in high single digit led by Dishwash. Further price reductions were taken in both Fabric Wash and Household Care.

The Beauty & Personal Care segment grew 4% with mid-single digit UVG. Skin Cleansing had a low-single digit volume growth with Lux and Hamam continuing to outperform. Revenue declined as further price reductions were taken in soaps.

The Foods & Refreshment sector grew 4%. Tea delivered a modest growth as the category continued to witness consumers downgrading. Coffee grew in double-digits.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter under review grew over 9% on-year to Rs 3,694 crore, while operating margin expanded by 130 basis points to 24.2%.

In the quarter, there was a one-off credit from favourable resolution of past indirect tax litigation benefiting both topline and bottomline, the company said in a filing.

The company's board announced an interim dividend of Rs 18 per equity share of face value of Re 1 each for financial year ending March 31, 2024.

The record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed as Thursday, November 2, 2023, and the dividend will be paid to the shareholders on or after Thursday, November 16, 2023.

"We delivered a resilient and competitive growth whilst stepping up our EBITDA margin in a challenging operating environment, marked by subdued rural demand and heightened competitive intensity," said CEO and Managing Director Rohit Jawa.

"Looking forward we remain cautiously optimistic. FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services and Government’s thrust on capex. At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels. In this context, our focus is to provide superior value to our consumers, drive competitive volume growth, and invest behind our brands," Jawa said.

The CEO remains confident of the mid to long term potential of Indian FMCG sector and HUL’s ability to deliver a consistent, competitive, profitable and responsible growth.