Hindustan Unilever Limited (HUL) announced its results for the quarter ended 30th June 2023.
June Quarter 2023: Resilient performance in a challenging environment
HUL delivered a resilient and competitive performance in JQ’23 with Underlying Sales Growth1 (USG) of 7% and Underlying Volume Growth2 (UVG) of 3%. EBITDA margin at 23.6% was up 40 bps YoY. Profit After Tax before exceptional items (PAT bei) grew 9% and Profit After Tax (PAT) grew 8%.
Home Care: Double digit growth on a high base
Home Care delivered another quarter of strong performance with 10% revenue growth and mid-single digit UVG. Both Fabric Wash and Household Care grew double-digit led by focused market development actions and premiumisation. Comfort In Wardrobe Premium Fragrance Hangers, Vim Shudhham Cleaning Spray and Gel were launched in the quarter.
Beauty & Personal Care: Volume led growth
Beauty & Personal Care delivered 4% revenue growth with mid-single digit UVG. Skin Care and Colour Cosmetics grew double-digit on the back of strong performance in premium portfolio. Hair Care delivered mid-single digit UVG led by Tresemme, Indulekha and Clinic Plus. 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. Oral Care delivered strong double-digit growth led by Closeup. During the quarter, Dove Men+ Care range, Indulekha Soap, Pond’s Anti Pigmentation Serum were launched.
Foods & Refreshment: Steady performance led by Health Food Drinks and Food Solutions
Foods & Refreshment revenue grew 5% with near flat UVG. Tea saw modest volume led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. HFD continue to grow competitively with both Horlicks and Boost performing well. 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. Horlicks Millet Biscuits, range of Knorr Chinese Sauces and Bru Cold Coffee were launched in the quarter.
Building back gross margin and step-up in Advertising & Promotions
EBITDA margin at 23.6% was up 40 bps YoY. PAT (bei) was up 9% YoY. PAT at Rs 2,472 Crores was up 8% YoY. Sequentially vs MQ’23, gross margin was up 140 bps and A&P was stepped up by 110 bps. We continue to manage our business dynamically to drive savings harder and provide the right price-value equation to our consumers. We remain focused on building back our gross margin and investing competitively in A&P.
Rohit Jawa, CEO and Managing Director commented: ‘FMCG markets are recovering gradually although the operating environment remains challenging. In this context we have delivered a resilient and competitive performance whilst stepping up our EBITDA margin.
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. 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.‘