Hindustan Unilever Q4 Results: (HUL) PAT Declines 6% YoY

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Synopsis:

With Hindustan Unilever announcing its Q4 results for FY24, it can be seen that the company gave tough competition to its peers. The company’s Profit After Tax (PAT) before exceptional items (PAT bei) at INR 2396 Crore and Profit After Tax (PAT) at INR 2406 Crore saw a decline of 3% and 6% respectively. Segment-wise growth was better in some segments than the others. The better performing segments included Home Care and Foods & Refreshment with revenues of INR 5715 Crores and INR 3911 Crores respectively. The EBITDA was however maintained within a healthy range despite headwinds at 23.4%.

Introduction

Hindustan Unilever is a subsidiary of Unilever, one of the world's leading suppliers of Food, Home Care, Personal Care and Refreshment products with sales in over 190 countries. Being India's largest Fast Moving Consumer Goods (FMCG) Company, Hindustan Unilever also has a 90-year heritage in the country. The company has a huge portfolio consisting of over 50 brands. These brands span across 16 FMCG categories, forming a part of the daily life of consumers across India. Hindustan Unilever happens to be India's top ESG-rated FMCG Company. Apart from this, the company also happens to be the number 1 employer of choice across sectors. With 19 brands under their wing, they bring in a turnover of INR 1000 crore every year.

Explore: Hindustan Unilever Share Price

5 Key Financial Highlights

Hindustan Unilever’s Q4 FY2023-24 results have shown how resiliently the company has performed in the fourth quarter. Here are the five key financial highlights of Hindustan Unilever Q4 results:

  • Underlying Sales Growth stands at 1% 

  • Underlying Volume Growth stands at 2%

  • EBITDA maintained at a healthy range of 23.4%

  • Profit After Tax (PAT) at INR 2406 Crore saw a decline of 6%

  • Profit After Tax (PAT) before exceptional items at INR 2396 Crore saw a decline of 3%

Additional Read: 129 Indian Companies to Release Q4 Results

Key Business Updates:

  • 19 brands under the Hindustan Unilever wing have recorded a combined turnover of more than INR 5000 Crore.

  • 8 of the most valued brands under the HUL banner have recorded a combined turnover of more than INR 3000 Crore.  

  • Vim Liquid saw a double-digit volume growth in FY24 with the highest penetration gains in 10 years.

  • The beauty segment of the brand also saw a 50% growth where e-commerce is concerned

Profitability Analysis:

In FY’24 HUL delivered a resilient performance with 3% USG and crossed Rs. 10,000 crores Net Profit mark. The company is focused on furthering operational excellence. This is being done by building back on the gross margins and stepping up investment in brands and long-term capabilities. With the EBITDA at a healthy range despite headwinds at 23.4%, the company looks forward to evolving according to the Indian consumers’ needs 

Additional Read: Quarterly Results

Major Operational Metrics - Consolidated Q4 (FY2023-24) Financial Results of Hindustan Unilever (in ₹ Crore)




Metrics

Q4FY24

Q4FY23

Growth %

Sales

14693

14638

1%

EBITDA

3435

3471

-1%

EBITDA Margin

23.4%

23.7%

-30bps

Other Income (Net)

118

136

 

Exceptional Items

-17

80

 

PBT

3247

3425

-5%

Tax

841

873

 

Net Profit

2406

2552

-6%

PAT before exceptional items

2396

2471

-3%

Source: BSE India

The Future of Hindustan Unilever  

Hindustan Unilever is focused on driving competitive volume-led growth. The company is also keen on unlocking fuel for growth and stepping up investments behind its brands and long-term strategic priorities. HUL also looks forward to maintaining EBITDA margin at the current levels. The company’s focus is going to be on Brand Superiority, Market making, and Premiumisation, Re-shaping its portfolio to high growth spaces, and Leadership in Channels of the future.

Additional Read: Annual Read

Conclusion

Being India's largest Fast Moving Consumer Goods (FMCG) Company, Hindustan Unilever also has a 90-year heritage in the country. The company has a huge portfolio consisting of over 50 brands. HUL is looking forward to building back Gross Margin and stepping up in Advertising & Promotion to help the company stay steady on its growth trajectory in the years to come.   

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Frequently Asked Questions

What was the Hindustan Unilever Net Profit Earned for Q4?

Answer Field

The net profit earned by Hindustan Unilever in Q4 stands at INR 2406 Crore with a fall of 6% 

 

The net profit earned by Hindustan Unilever in Q4 stands at INR 2406 Crore with a fall of 6%

Answer Field

Hindustan Unilever is focused on driving competitive volume-led growth. The company is also keen on unlocking fuel for growth and stepping up investments behind its brands and long-term strategic priorities. HUL also looks forward to maintaining EBITDA margin at the current levels.

What are some of the main business updates for Hindustan Unilever?

Answer Field

Though the growth of HUL may not have been as expected and hoped for, the company did see quite a few business updates in FY24. Here are some of the main business updates of the company:

  • 19 brands under the Hindustan Unilever wing have recorded a combined turnover of more than INR 5000 Crore.

  • 8 of the most valued brands under the HUL banner have recorded a combined turnover of more than INR 3000 Crore.  

  • Vim Liquid saw double-digit volume growth in FY24 with the highest penetration gains in 10 years.

  • The beauty segment of the brand also saw a 50% growth where e-commerce is concerned

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