September Quarter 2024:
In SQ’24, HUL reported an Underlying Sales Growth[a] (USG) of 2% and Underlying Volume Growth[b] (UVG) of 3%. EBITDA margin at 23.8% continued to remain healthy. Profit After Tax before exceptional items (PAT bei) and Profit After Tax (PAT) declined by 2% and 4% respectively. In the base quarter, there was a one-off indirect tax credit from a favourable resolution of past litigation which benefited both topline and bottomline in the Beauty and Wellbeing segment. Excluding this one-off, USG, UVG and PAT (bei) growth is 3%, 3% and 2% respectively.
Home Care: Strong volume led growth momentum continues
Home Care grew 8% with high-single digit UVG. Growth was broad based with both Fabric Wash and Household care growing volumes in high-single digit. Liquids portfolio, with a strong double-digit volume growth, continues to outperform. We continued to strengthen our liquids segment with the expansion of Rin liquid and forayed into the floor cleaner market with a superior product under the Vim brand. Market development journey in fabric enhancers was bolstered by the launch of Comfort beads.
Beauty & Wellbeing[c]: High single digit intrinsic growth led by volume
Beauty & Wellbeing grew 7% (1% reported) with mid-single digit UVG. Hair Care continued its growth momentum and grew in high-single digit led by outperformance in Sunsilk, Dove and Tresemme. Skin care and Colour cosmetics delivered a mid-single digit growth. Premium Skin portfolio maintained its double-digit growth trajectory. During the quarter, Tresemme’s Lamellar Gloss range, Ponds’ Hydra Miracle Body Gel Lotion, Glow and Lovely’s Niacinamide Serum and Lakme’s on-trend collection of Lip Oil and Lip Glaze to name a few, were launched.
Personal Care: Sequential improvement in turnover led by premium portfolio
Personal Care declined 5% with negative pricing and low-single digit volume decline. Skin cleansing declined primarily on account of pricing actions taken during the year. Premium portfolio grew ahead of the segment and within that bodywash continued to strengthen its market leadership with high double-digit growth. Oral Care delivered a competitive high-single digit growth led by Closeup. Harnessing our WiMI strategy, Lux introduced a superior range of Sandalwood soap and bodywash in the quarter.
Foods & Refreshment: Strengthened market shares, marginal decline in revenue
Foods & Refreshment declined 2% with a low-single digit volume decline. Tea continued to cement its market leadership through value and volume share gains. Green and Functional tea maintained their strong volume growth however overall category volumes remained subdued. Coffee grew in double digits. Nutrition drinks continued to gain market shares while consumption remained subdued. Foods grew volumes in low-single digit. Strong volume growth in Food Solutions, Mayonnaise, Peanut Butter, and International sauces continued on the back of market development actions, range extensions and distribution expansion. Ice-cream maintained its volume vis-à-vis last year. Horlicks ₹10 sachet, Diabetes Plus chocolate flavour, Knorr’s Korean Kimchi Soup and Kissan’s 100% Fruit based spread were launched in the quarter.
Dividend: The Board of Directors declared an interim dividend of INR 19/- per share for year ending 31st March 2025. Given the business operations are well funded, and the company’s financial model continues to be strong, the Board of Directors have additionally declared a special dividend of INR 10/- per share resulting in a total dividend payout of INR 6,814 Crores.
Rohit Jawa, CEO and Managing Director commented: ‘In September quarter, FMCG demand witnessed moderating growth in Urban markets while Rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders. We remain watchful of gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigor.’
Underlying sales growth (USG) refers to the increase in turnover for the period, excluding any change in turnover resulting from acquisitions, disposal
Underlying volume growth (UVG) refers to volume growth including the impact of mix of turnover realization of products sold
Performance update for Beauty and Wellbeing segment based on Intrinsic numbers, excluding one-off tax credit in the base
