HUL Q4 Results: Domestic volume growth of 2%; FMCG demand may improve gradually

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hindustan Unilever Ltd. (HUL) reported domestic volume growth of 2% for the March quarter. The number is in-line with the CNBC-TV18 projection of 2% to 3% growth.

The company reported a net profit of ₹2,406 crore, which was in-line with the CNBC-TV18 poll of ₹2,438 crore.

Revenue for the quarter also stood in-line with expectations. The ₹14,857 crore figure was in-line with the estimate of ₹14,850 crore, from a CNBC-TV18 poll.

Earnings before Interest, Tax, Depreciation and Amortisation stood at ₹3,435 crore, which was also in-line with expectations of ₹3,430 crore. EBITDA margin stood at 23.1%, also meeting estimates.

Going forward, the management expects FMCG demand to continue to improve gradually. They also remain optimistic of mid-term impact of better monsoons and improving macro-economic conditions.

In case commodity prices remain where they are, HUL expects price growth to be negative low-single digit.

Focus on competitive volume-led growth, improving the skin cleansing business performance and stepping up investments in brands have been listed by the management as their top priorities.

Among business segments, the home care business contributed 36% to the company’s overall topline and reported underlying sales growth of 3% during the quarter. Volume growth for the business was in mid-single digits.

HUL’s beauty and personal care segment contributed 37% to the topline and reported underlying sales growth of 2%. Volume growth here stood in low-single-digits.

Foods and Refreshments contributed to a quarter of HUL’s topline and saw 4% sales growth with a low-single-digit decline in volume growth.

Shares of HUL ended little changed on Wednesday at ₹2,260. The stock has declined 10% during the last 12 months.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow