Hindustan Unilever (HUL), India's leading FMCG company, has reported a 5% growth in total sales for the first quarter. The company's consolidated results show a steady performance amid a gradually improving demand environment.

Financial Highlights

• Total sales reached Rs. 16,323.00 crores, marking a 5% growth compared to the same quarter last year.
• Consolidated Underlying Sales Growth (USG) stood at 5%, with an Underlying Volume Growth (UVG) of 4%.
• Earnings before interest, tax, depreciation, and amortization (EBITDA) was Rs. 3,718.00 crores, with the EBITDA margin at 22.8%, declining by 130 basis points year-on-year.
• Profit After Tax (PAT) grew by 6% to Rs. 2,768.00 crores, benefiting from a favorable tax impact.

Segment Performance

HUL's performance across its business segments showed mixed results:

Strategic Moves and Outlook

HUL has made significant strategic moves during the quarter:

• Completed the acquisition of a 90.5% stake in Uprising Science Private Limited (USPL), known for its 'Minimalist' brand in skin and hair care, for Rs. 2,706.00 crores.
• Launched new products across segments, including Surf Excel Matic Express, Nexxus hair care brand, and Red Label Instant Spiced Tea Mix.

Rohit Jawa, CEO and Managing Director of HUL, commented on the results: "FMCG demand has continued to remain stable, with a gradual uptick in recency. We strategically stepped up our investments to effectively advance our portfolio transformation agenda this quarter."

Looking ahead, HUL expects a sequential improvement in Gross Margin by:

• Enhancing price vs. cost gap
• Better mix
• Accelerating end-to-end Net Productivity programme

The company aims to maintain its EBITDA margins in the 22-23% range.

Market Response

The company's focus on volume-led growth and strategic investments in future-ready portfolios appears to be well-received. HUL continues to adapt to changing consumer preferences and market dynamics, positioning itself for sustainable growth in the evolving FMCG landscape.

As HUL navigates through a gradually recovering market, its emphasis on competitive volume-led growth and long-term value creation for shareholders remains at the forefront of its strategy.

Hindustan Unilever (HUL), India's leading fast-moving consumer goods (FMCG) company, has reported a strong performance for the first quarter. The company's consolidated results show an impressive 5% Underlying Sales Growth (USG) driven by a 4% Underlying Volume Growth (UVG), surpassing market estimates of 3-4%.

Financial Highlights

HUL's total sales for the quarter reached Rs. 16,323.00 crores, marking a 5% increase compared to the same period last year. The company's consolidated profit after tax (PAT) grew by 6% to Rs. 2,768.00 crores, despite a 5% decline in PAT before exceptional items.

Segment Performance

The company witnessed growth across all its business segments:

Home Care

• Delivered 4% USG with high-single digit UVG
• Maintained competitive pricing

Beauty & Wellbeing

• Achieved 7% USG with low-single digit UVG
• Driven by strong performance in Health and Wellbeing

Personal Care

• Grew 6% with calibrated pricing actions due to commodity inflation

Foods

• Reported 5% USG with mid-single digit UVG
• Led by double-digit growth in Beverages

Strategic Investments and Portfolio Transformation

Rohit Jawa, CEO and Managing Director of HUL, commented on the results: "Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5%, driven by an Underlying Volume Growth of 4%, at a consolidated level."

Market Outlook

The company expects the gradual recovery in FMCG demand to be sustained. HUL remains confident that its ASPIRE strategy will further strengthen its presence in segments and channels of the future, powered by superior brands and heightened innovation intensity.

Margin and Profitability

The EBITDA margin for the quarter stood at 22.8%, declining by 130 basis points year-on-year. This was in line with the company's guidance, as HUL continued to step up investments in the business.

Key Developments

1. HUL completed the acquisition of 90.5% shareholding in Uprising Science Private Limited (USPL), which operates the 'Minimalist' brand in skin and hair care, for Rs. 2,706.00 crores.
2. The company launched several new products and variants across segments, including:
   • Surf Excel Matic Express
   • Nexxus (a prestige hair care brand)
   • Red Label Instant Spiced Tea Mix

Conclusion

Despite challenges in the operating environment, HUL's strong volume growth and strategic investments in portfolio transformation demonstrate its resilience and adaptability in the dynamic FMCG market. The company's focus on innovation and brand building continues to drive its performance across segments.

Note: All financial figures are based on the consolidated results for the quarter.