Hindustan Unilever (HUL) announces its fourth-quarter financial results for FY24
, reporting a 6% decline in its standalone net profit to 2,406 crore, compared to 2,552 crore during the same period last year. The earnings fell short of market expectations, as analysts had forecasted a profit of 2,435 crore on revenue totaling 14,913 crore. However, the FMCG major witnessed a slight increase in revenue from operations to 14,693 crore, as opposed to 14,638 crore recorded in the same period last year. Despite the decline in net profit, HUL’s consolidated revenue for the fourth quarter of FY24 remained relatively steady at 15,210 crore, compared to 15,215 crore in the fourth quarter of FY23. The company’s EBITDA margin remained healthy at 23.8%, with an increase of 40 bps YoY. Profit after tax (PAT) and EPS were up by 4% and 2%, respectively. During the fourth quarter, HUL witnessed a 1% growth in its home care segment, with underlying volume growth in the mid-single digits. Both Fabric Wash and Household Care saw volume growth in the mid-single digits, propelled by a robust performance in the premium portfolio segment. The beauty and personal care sector maintained its trend of premium portfolio expansion, outpacing other segments. Despite an overall USG of -2% and stagnant volumes, hair care experienced robust single-digit growth primarily fueled by Dove and Tresemme’s exceptional performance. Skin care and color cosmetics saw modest single-digit growth. Premium skin care sustained its impressive double-digit growth trajectory, driven by innovations in emerging demand areas and product formats. The food and beverage sector experienced a 4% increase in underlying sales growth alongside stagnant volume growth. Functional Nutritional Drinks, including Horlicks and Boost, saw strong single-digit growth, primarily fueled by the Plus range. Tea maintained its position as a market leader in both value and volume, while the category observed a trend of consumers shifting towards loose tea. Coffee experienced double-digit growth primarily fueled by pricing, while the Foods segment saw mid-single-digit growth, driven by robust performance in Soups and Food Solutions. Mayonnaise and Peanut Butter maintained momentum with increasing consumer interest. Ice Cream witnessed double-digit growth, driven by higher volumes. The Board of Directors at their meeting held on Wednesday, 24th April 2024 recommended a final dividend of 24/- per share, for the financial year ended 31st March 2024. Together with the interim dividend of 18 per share paid on 16th November 2023, the total dividend for the financial year ended 31st March 2024 amounts to 42/- per share. Final dividend is subject to approval of shareholders. BP Biddappa will join the HUL Management Committee as Executive Director, Human Resources and Chief People, Transformation and Sustainability Officer for South Asia. Biddappa will also join the HUL Board as a Whole Time Director, subject to shareholder approval. Anuradha Razdan, currently Executive Director, Human Resources, HUL and Chief HR Officer, South Asia will be appointed to a global role as Chief Reward & Organisation Development Officer for Unilever. This change will be effective June 1, 2024.