HUL: HUL Q1 profit up 8%, volume growth halved – Times of India

MUMBAI: India unilever ,their) reported an 8% rise in net profit to Rs 2,472 crore in the June quarter, as against Rs 2,289 crore in the year-ago period, as the FMCG giant ramped up its competitive intensity while building back its gross margin.
While sales rose 7% to Rs 14,931 crore, volume growth declined to 3% – half the rate recorded in the June quarter of 2022 – which failed to meet market estimates. Other factors responsible for the decline in volume growth include unseasonal rains, which affected ice cream consumption during the quarter, which marks the peak of the summer season. As a result, food and refreshment revenue grew 5% with nearly flat underlying volume growth.
javanese spiritsIn his first media interaction after taking over as CEO and MD of HUL, he said, assuming that commodity prices remain where they are, the company expects volumes to pick up gradually. “We are seeing signs of recovery in volumes in the market, so we are optimistic. We will see how the next few quarters shape up,” he said.
On a two-year basis, HUL’s volume compound annual growth rate is around 5%, with more than 75% of the business growing competitively. “As a company, we grow on a positive basis unlike many of our peers,” he added.
Speaking specifically about the outlook for the next few quarters, HUL CFO Ritesh Tiwari said that price increases will come down further with lack of higher prices across base and sequential price cuts.
EBITDA margin at 23.6% was up 40 bps year-on-year. Sequentially, Gross Margin Rose 140 bps.