Views on Hindustan Unilever Q4 FY24 Result

HindustanUnileverposted a weak efficiency as main metrics decline additional in the course of the quarter attributable to subdued consumption tendencies, bumpy climate patterns and lack of commodity worth progress not simply within the quarter however over the fiscal. Volume progress throughout segments continued to stay subdued, with low to adverse single digit progress. The demand in rural areas remained below stress as a result of inflationary setting, uneven climate patterns and intense competitors from the native and regional gamers. As within the earlier quarter, the premium section has been doing effectively in comparison with the mass section which we consider ought to proceed in future owing to increased disposable earnings with city inhabitants. The magnificence and private care divisions had the very best margins amongst segments, as customers proceed to want premium items to mass-produced ones. We consider that the easing client worth inflation and the corporate’s shift in focus in the direction of excessive progress areas by altering its portfolio combine would assist in worth assist and support demand restoration in future. We stay optimisticonthe corporate from a medium to long run perspective, owing to an-above-normal monsoon forecast, normalization of rural wages and comfy valuation vis-à-vis historic averages.

HindustanUnileverLtd. Q4FY24ResultFirst Cut – Lacklustre efficiency; Expectations of quantity restoration forward

• HindustanUnileverLtd. posted consolidated revenues of Rs. 14,693 crores (down 1.5% QoQ / up 0.4% YoY) which missed market estimates of Rs. 14,913 crores. This was primarily attributable to decelerate throughout segments.
• The firm reported consolidated EBITDA of Rs. 3,435 crores (down 2.9% QoQ / down 1% YoY).
• The firm reported an EBITDA margin of 23.4% in 4QFY24 in comparison with 23.7% posted within the earlier quarter and 23.7% within the yr in the past interval. The beneficial properties in gross marginonthe again of internet productiveness and blend enchancment was offset by enhance in digital spends, increased worker profit bills and a rise in different working earnings.
• PAT stood at Rs. 2,406 crores in comparison with Rs. 2,541 crores within the earlier quarter and Rs. 2,552 crores in Q4FY23. PAT got here marginally decrease than the road estimates of Rs. 2,462 crores.
• The homecare section reported a segmental margin of 19%, whereas the underlying gross sales grew by 1% and quantity progress skilled mid-single-digit quantity progress. Both material wash and family care sub-segments reported mid-single digit quantity progress and had adverse worth progressonaccount of pricing actions taken earlier.
• The BPC section reported a adverse gross sales progress of two% and flat quantity progress. However, it reported a segmental margin of 26% which is the very best amongst segments. Hair care and Oral care classes carried out higher than skincare & color cosmetics and pores and skin cleaning sub-segments.
• The meals and refreshment section reported a 19% segmental margin. The gross sales grew the very best at 4% pushed by pricing, whereas quantity progress remained flat in the course of the quarter. Functional vitamin drinks and ice-cream classes delivered high-single digit and double-digit progress, respectively. In drinks sub-segment, tea noticed some downtrading whereas espresso portfolio continued to carry out effectively. Foods class posted mid-single digit progressonrobust efficiency from soups and meals options classes.
• The firm introduced a last dividend of Rs. 24 per share.

Disclaimer: This press launch serves for informational functions solely and doesn’t represent skilled recommendation. Any reliance on the data offered is on the reader’s discretion.