HUL Q2 net profit rises 3.8% YoY to Rs. 2,717cr
Hindustan Unilever Ltd (HUL) on October 19 released its Q2 results, showing a standalone net profit of Rs. 2,717 crore, a 3.86% rise compared to the Rs. 2,616 crore profit in the same quarter of the previous year. The company's revenue from operations also rose by 3.53% to Rs. 15,027 crore compared to the previous year's Rs. 14,514 crore in the corresponding quarter.
EBITDA grows by 9.4%, ad spend increases
The company's Q2 earnings before interest, tax, depreciation, and amortization (EBITDA) totaled Rs. 3,694 crore, a 9.4% growth compared to the same period last year. The EBITDA margin improved to 24.5% from the previous year's 22.9%. HUL's ad spend reached Rs. 1,720 crore during Q2, with ad spend to sales at 11.4%, up from 7% a year ago.
Sector-wise performance
HUL's home-care division experienced revenue growth of 3.3%, while beauty and personal care increased by 4.5%, driven by strong performance across categories. Food and refreshments grew by 2.6%, led by foods, coffee, and health food drinks (HFD).
Outlook and interim dividend announcement
HUL's CEO and Managing Director, Rohit Jawa, expressed confidence in the mid to long-term potential of the Indian FMCG sector and HUL's ability to deliver consistent, competitive, profitable, and responsible growth. The company's board declared an interim dividend of Rs. 18 per equity share of face value Re. 1 for FY24, with a record date set for November 2, 2023.
Slower volume growth
Ahead of the earnings release, HUL's stock closed at Rs. 2,548.10 per share on the National Stock Exchange, reflecting a marginal 0.01% decline. In its investor presentation, HUL reported a 2% increase in underlying volumes, marking the slowest growth in seven quarters. India's largest FMCG company, in an exchange filing, expressed optimism about a better festive season. However, it also noted that rural recovery would likely be gradual and competitive pressures would remain intense.
