Hindustan Unilever reported domestic volume growth of 5% year-on-year during the quarter, which is lower than the CNBC-TV18 poll expectation of 6% to 7% growth.
The company’s tax expenses at the end of the June quarter stood at ₹939 crore, compared to ₹485 crore during the same quarter last year. The higher tax expenses impacted the company’s bottomline during the quarter.
How Did HUL Fare In Q1?
Hindustan Unilever’s Net profit during the quarter stood at ₹2,673 crore, which was marginally lower than the CNBC-TV18 poll of ₹2,814 crore. On a year-on-year basis, the profitability fell 3%.
Revenue for the quarter stood at ₹17,341 crore, higher than the CNBC-TV18 poll of ₹17,235 crore and 10% higher on a year-on-year basis, the fastest growth rate in 13 quarters.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹3,947 crore, largely in-line with the CNBC-TV18 poll estimate of ₹3,981 crore.
EBITDA margin for the quarter stood at 23%, while a CNBC-TV18 poll was working with a figure of 23.1%. HUL had reported an EBITDA margin of 23% during the same quarter last year as well.
Here’s how HUL’s various business segments fared during the quarter:
The company’s Home Care business reported underlying sales growth of 14%, marking the highest growth in three years, while strengthening market leadership. The figure is at the mid-point of the 12% to 16% estimate from a CNBC-TV18 poll.
Fabric wash accelerated its performance with a double-digit underlying sales growth, bars and powders, liquids also saw double-digit underlying sales growth during the quarter.
Beauty and Wellbeing business saw 12% underlying sales growth during the quarter led by double-digit growth in the Premium Skin Care and Hair Care business. Minimalist saw double-digit growth with a sequential acceleration in momentum.
Personal Care saw underlying sales growth of 4% led by pricing, as palm oil inflation persisted for the second year in a row. Skin cleansing saw single-digit sales growth, premium bars saw double digit, volume-led growth. Bodywash also saw double-digit growth momentum. The figure is lower than the 6% to 8% growth estimate.
HUL’s Foods business saw 7% underlying sales growth, in-line with expectations, led by mid-single digit underlying volume growth. Premium tea saw low-single digit underlying volume growth during the quarter as well. Boost surpassed ₹1,000 crore in annual revenue, while packaged foods saw high-single digit underlying sales growth.
“As our investments in market development, channel expansion and portfolio transformation continue to scale, we are building a stronger, future-fit business. While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth,” Priya Nair, MD & CEO of HUL said in a statement.
Shares of Hindustan Unilever are now trading 3.8% lower on Tuesday at ₹2,089 after the result announcement. The stock is still down 8% so far this year.
This is breaking news and will be updated with more.
