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Indicating the impact of inflation on household spending, Hindustan Unilever Ltd. (HUL) reported fourth-quarter standalone net profit declined 6% to ₹2,406 crore from ₹2,552 crore in the year-earlier period. Sales inched up during the quarter to ₹14,693 crore.
For the quarter ended March, India’s leading fast moving consumer goods (FMCG) maker reported Underlying Sales Growth (USG) of 1% and Underlying Volume Growth (UVG) of 2%, with the company citing subdued consumption trends, an absence of price growth and urban sales leading growth.
USG refers to the increase in turnover for the period, excluding any change in turnover resulting from acquisitions, disposals and UVG refers to volume growth including the impact of mix of turnover realisation of products sold.
The Beauty and Personal Care segment saw USG shrink by 2% on flat volumes, notwithstanding HUL’s premium portfolio growing ahead of the rest.
Home Care grew 1% with mid-single digit UVG. Both Fabric Wash and Household Care grew volumes in mid-single digit driven by strong performance in premium portfolio. The category continued to witness YoY price decline on account of actions taken during the year, it said.
Foods and Refreshment had a USG of 4% with flat volume growth.
For FY24, net profit rose 1.52% to ₹10,114 crore, from ₹9,962 crore. Top line for the financial year grew 2.45% to ₹59,579 crore.
“In FY24 we delivered a resilient performance with 3% USG,” said CEO and MD Rohit Jawa. “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 Indian FMCG sector,” he added.
The Board has proposed a final dividend of ₹24 per share. Together with an interim dividend of ₹18 per share, the total dividend for the year amounts to ₹42 per share, an increase of 8% from FY23.
