Hul: HUL Q1 profit rises 8%, volume growth halves

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MUMBAI: Hindustan Unilever (HUL) has reported an 8% development in internet revenue at Rs 2,472 crore within the June quarter, as in comparison with Rs 2,289 crore within the year-ago interval because the FMCG bellwether stepped up its aggressive depth whereas constructing again its gross margins.
Whereas gross sales grew 7% to Rs 14,931 crore, quantity development moderated to three% — half of the speed it recorded within the June quarter of 2022 — failing to satisfy market estimates. Amongst different causes attributed for the decline in quantity development is the unseasonal rains that impacted ice cream consumption throughout the quarter which marks the height of summer season season. In consequence, meals and refreshment revenues grew at 5% with close to flat underlying quantity development.
Rohit Jawa, in his first media interplay after taking on because the CEO & MD ofHUL, mentioned, assuming commodity prices keep the place they’re, the corporate expects the volumes to progressively decide up. “We do see indicators out there of enhancing volumes, so we’re hopeful. We’ll see how the subsequent few quarters would form up,” he mentioned.
On a two-year foundation, HUL’s quantity compound annual development fee is about 5%, with the expansion rising competitively in additional than 75% of the enterprise. “Wegrew in contrast to many different friends on a constructive base as an organization ,” he mentioned.
Talking particularly concerning the outlook for the subsequent couple of quarters, HUL’s CFO Ritesh Tiwari mentioned the worth development will tail off additional with lapping of upper costs within the base and sequential value reductions.
EBITDA margin at 23. 6%, have been up 40 bps YoY. Sequentially, gross margins rose 140 bps.

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