The FMCG behemoth Hindustan Unilever Ltd (HUL) revealed a 1.53% decrease in consolidated internet income, or Rs 2,561 crore, for the fourth region of FY24. Deflation introduced on via the decline in commodity prices is the motive for this small decline, which the employer had to address throughout the area. In spite of this, the enterprise changed into capable of maintain its internet sales at Rs 15,013 crore, nearly unchanged
Financial Performance Overview
HUL's Q4 FY24 financial overall performance demonstrates tenacity within the face of hard marketplace conditions. Compared to the equal length ultimate yr, the net profit for the sector reduced to Rs 2,561 crore from Rs 2,601 crore. The number one motive of this 1.53% marginal discount is the deflationary pressures as a result of the decreasing of commodity expenses. Ore.
Net Sales and Total Expenses
Comparing the Rs 15,013 crore in internet sales to the same area of the previous monetary year, there was actually no trade. The enterprise's typical prices rose from Rs eleven,962 crore to Rs 12, a hundred crore (1.15%) as a result of a deliberate increase in spending to enhance operational abilities and brand initiatives.
Gross Margin and EBITDA
HUL's gross margin increased by 350 basis points (bps) in a year, which was a notable gain. Pricing and cost control techniques worked well to support this improvement. To reinforce its brand presence and market share, the organization additionally upped its advertising and marketing and promotional
Nonetheless, the EBITDA margin experienced a minor fall of 30 basis points during the quarter, ending at 23.4%. The primary causes of this drop are more investments in long-term capacities and a 60-bps impact from the discontinuation of the GSK consignment selling arrangement.
Segment-wise Performance
Home Care Segment
Revenues in the home care sector reached Rs 5,709 crore, indicating a 1.27% gain. Strong results in the premium portfolio drove mid-single digit volume increase in both fabric wash and household care. Notwithstanding these improvements, the segment's prices continued to fall year over year as a result of the years' worth of strategic pricing initiatives.
Beauty and Personal Care Segment
The income of the beauty and personal care segment fell by 2.5%, from Rs 5,257 crore to Rs 5,125 crore in the prior year. With flat volumes, the segment's underlying sales growth was negative 2%. Remarkably, the hair care subsegment experienced growth in the low single digits, whilst skin care and color cosmetics saw growth in the high single digits, propelled by brands like Dove and Tresemme.
Foods & Refreshment Segment
Revenue from the meals and refreshment market increased by 3% to Rs 3,910 crore. Strong success in the tea and coffee categories as well as high single-digit gains in functional nutritional beverages like Boost and Horlicks were the main drivers of this rise. However, because of financial constraints, consumers in the tea industry were downgrading to lose tea. Conversely, coffee had double-digit growth due to price.
Other Segments
Revenue from other segments, including exports and consignment sales, declined by 11.6% to Rs 466 crore from Rs 527 crore in the same quarter of the previous fiscal year.
Annual Performance and Dividend Declaration
HUL recorded a combined net earnings of Rs 10,282 crore for the full FY24, up from Rs 10,143 crore for the FY23. Compared to the previous fiscal 12 months, which ended at Rs 61,092 crore, the overall earnings for the year climbed by way of 2.64% to Rs sixty-two,707 crore.
HUL's board encouraged, concern to shareholder approval on the AGM, a final dividend of Rs 24 in keeping with proportion on fairness shares valued at Re 1 every in light of this performance. As a end result, the dividend for the 12 months as a whole is now Rs forty-two per share, up eight% from FY23.
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