HUL Q2 Results: Profit Flat, Revenue Up 3% As Volume Growth Slows

Hindustan Unilever Ltd.'s second quarter profit remained flat, in line with analysts' estimates, as volume growth slowed.

The consolidated net profit of India's largest consumer goods maker fell 0.48% over a year earlier to Rs 2,657 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 2,603.9 crore consensus estimate of analysts tracked by Bloomberg.

HUL Q2 FY24 Highlights (Year-on-Year)

• Revenue rose 3.16% to Rs 15,623 crore (Bloomberg estimate: Rs 15,597.5 crore).

• Operating profit up 9.14% at Rs 3,797 crore (Bloomberg estimate: Rs 3,619.9 crore).

• Margin at 24.3% versus 22.9% (Bloomberg estimate: 23.2%).

HUL's volume grew at the slowest pace in the last six quarters. Underlying volume for the maker of Surf Excel grew 2% over a year ago in the July-September quarter, as compared with 3% in the preceding three months.

Segmental Revenue (YoY)

• Home care segment grew 3.22% to Rs 5,308 crore.

• Beauty and personal care segment rose 5% to Rs 5,873 crore.

• Food and refreshment rose 2.55% to Rs 3,851 crore.

• Others (includes exports, consignment, etc.) rose 10.3% to Rs 652 crore.

The home care and beauty and personal care segment saw volume-led growth on a very high base, the company said.

HUL has taken price cuts in fabric wash, household care portfolio and skin cleansing, which has offset low single-digit volume growth.

The growth of food and refreshment segment was driven by pricing.

Tea delivered modest growth as the category continued to witness consumers downgrading, while coffee grew in double digits led by pricing, HUL said.

The company expects tailwinds from a better festive season.

Rural recovery is likely to remain gradual, competitive intensity will remain high, and it will continue to watch commodity prices, HUL's management said, adding that it is focused on driving competitive volume growth.

Shares of HUL closed 0.07% higher as compared with a 0.24% decline in the Nifty 50 ahead of the earnings announcement.