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MUMBAI: Hindustan Unilever (HUL) has reported an 8% growth in net profit at Rs 2,472 crore in the June quarter, as compared to Rs 2,289 crore in the year-ago period as the FMCG bellwether stepped up its competitive intensity while building back its gross margins.
While sales grew 7% to Rs 14,931 crore, volume growth moderated to 3% — half of the rate it recorded in the June quarter of 2022 — failing to meet market estimates. Among other reasons attributed for the decline in volume growth is the unseasonal rains that impacted ice cream consumption during the quarter which marks the peak of summer season. As a result, food and refreshment revenues grew at 5% with near flat underlying volume growth.
Rohit Jawa, in his first media interaction after taking over as the CEO & MD ofHUL, said, assuming commodity costs stay where they are, the company expects the volumes to gradually pick up. “We do see signs in the market of improving volumes, so we are hopeful. We’ll see how the next few quarters would shape up,” he said.
On a two-year basis, HUL’s volume compound annual growth rate is about 5%, with the growth growing competitively in more than 75% of the business. “Wegrew unlike many other peers on a positive base as a company ,” he said.
Speaking specifically about the outlook for the next couple of quarters, HUL’s CFO Ritesh Tiwari said the price growth will tail off further with lapping of higher prices in the base and sequential price reductions.
EBITDA margin at 23. 6%, were up 40 bps YoY. Sequentially, gross margins rose 140 bps.
While sales grew 7% to Rs 14,931 crore, volume growth moderated to 3% — half of the rate it recorded in the June quarter of 2022 — failing to meet market estimates. Among other reasons attributed for the decline in volume growth is the unseasonal rains that impacted ice cream consumption during the quarter which marks the peak of summer season. As a result, food and refreshment revenues grew at 5% with near flat underlying volume growth.
Rohit Jawa, in his first media interaction after taking over as the CEO & MD ofHUL, said, assuming commodity costs stay where they are, the company expects the volumes to gradually pick up. “We do see signs in the market of improving volumes, so we are hopeful. We’ll see how the next few quarters would shape up,” he said.
On a two-year basis, HUL’s volume compound annual growth rate is about 5%, with the growth growing competitively in more than 75% of the business. “Wegrew unlike many other peers on a positive base as a company ,” he said.
Speaking specifically about the outlook for the next couple of quarters, HUL’s CFO Ritesh Tiwari said the price growth will tail off further with lapping of higher prices in the base and sequential price reductions.
EBITDA margin at 23. 6%, were up 40 bps YoY. Sequentially, gross margins rose 140 bps.
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