HUL’s Q4 net falls 6% to ₹2,406 crore as pockets are squeezed by inflation

Hindustan Unilever Ltd. (HUL) said fourth-quarter standalone net profit fell 6% to ₹2,406 crore from ₹2,552 crore in the year-earlier period, indicating the impact of inflation on family spending. During the quarter, sales increased marginally to ₹14,693 crore.

India’s top manufacturer of fast-moving consumer goods (FMCG) reported 1% and 2% underlying sales growth (USG) and underlying volume growth (UVG) for the quarter that ended in March. The business attributed the rise to sluggish consumption trends, lack of price growth, and urban sales leading the way.

UVG refers to volume growth that takes into account the impact of mix of turnover realisation of products sold, whereas USG refers to the rise in turnover for the period, excluding any change in turnover arising from acquisitions, disposals, or other changes in the business.

USG shrank by 2% in the Beauty & Personal Care area on flat volumes, despite HUL’s premium portfolio outpacing the rest with growth.

With mid-single digit UVG, home care increased by 1%. Strong performance in the premium portfolio drove volume growth in the mid-single digits for both Fabric Wash and Household Care. Because of the efforts made during the year, the category’s YoY price drop persisted, according to the report.

Foods and Refreshment saw flat volume growth and a USG of 4%.

Net profit increased by 1.52% to ₹10,114 crore in FY24 from ₹9,962 crore. The financial year’s top line increased 2.45% to 59,579 crore.

CEO and MD Rohit Jawa stated, “We delivered a resilient performance with 3% USG in FY24.” As we move forward, I think that better macroeconomic data and a regular monsoon will lead to a progressive improvement in consumer demand. “I remain extremely confident of the medium to long-term potential of the Indian FMCG sector, given the rising affluence, under-indexed FMCG consumption, and a robust digital infrastructure,” he continued.

The final dividend of ₹24 per share has been proposed by the Board. The overall dividend for the year is ₹42 per share, up 8% from FY23, when combined with an interim dividend of ₹18 per share.