Hindustan Unilever’s standalone net profit for the March quarter fell to Rs 2,406 crore from Rs 2,552 crore in the same period of the previous year.
Net profit was in line with analysts’ expectations. The fall came amid subdued consumption trends and deflation in commodity prices, even as the urban markets continued to lead growth.
During the quarter, sales rose marginally to Rs 14,693 crore from Rs 14,638 crore in the year-ago period.
During the fiscal, while net profit rose to Rs 10,114 crore from Rs 9,962 crore in 2022-23, sales came in at Rs 59,579 crore against Rs 58,154 crore.
The quarter saw a stable underlying volume growth of 2 per cent. EBITDA (earnings before interest, taxes, depreciation and amortisation) margins declined by 30 basis points over the corresponding previous period to 23.4 per cent.
“We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators.
“With rising affluence, under-indexed FMCG consumption and a strong digital infrastructure, I remain very confident of the medium to long-term potential of the Indian FMCG sector,” Rohit Jawa, CEO and managing director, said.
On the performance of its product categories, HUL said that fabric care grew 1 per cent with mid-single digit underlying volume growth. While both fabric wash and household care grew in volumes in mid-single digit driven by strong performance in premium portfolio, the segment continued to witness year-on-year price decline.
HUL added that its beauty and personal care continued to grow ahead of the rest. The segment had an underlying sales growth of 2 per cent with flat volumes.
The foods and refreshment segment saw a mid-single digit growth, driven by pricing. It had an underlying sales growth of 4 per cent with flat volume growth.
At its board meeting on Wednesday, the directors proposed a final dividend of Rs 24 per share, subject to shareholder approval. Together with an interim dividend of Rs 18 per share, the total dividend for the year amounts to Rs 42 per share, an increase of 8 per cent over the previous fiscal.
