In the realm of Fast Moving Consumer Goods (FMCG), Hindustan Unilever Limited (HUL) stands as a towering colossus, boasting a 90-year legacy entrenched in the fabric of India’s everyday life. As India’s largest FMCG Company, HUL is not just about products; it’s about a purpose-driven journey towards sustainable living.
A Tapestry of Brands and Purpose
At the heart of HUL lies a deep-rooted purpose: to make sustainable living commonplace. This ethos drives every facet of the company’s operations, from innovation to community engagement. With a wide-ranging portfolio of 50+ brands spanning 16 FMCG categories, HUL’s presence permeates nine out of ten Indian households. These brands are not just products; they are companions in everyday life, empowering consumers to feel good and extract more joy from life’s moments.
Manufacturing Excellence and Market Penetration
HUL’s commitment to quality is reflected in its staggering manufacturing capacity of over 75 billion units annually. These products reach consumers through a vast network of nine million retail outlets and numerous digital commerce platforms, ensuring accessibility and convenience.
Adapting to the Digital and Sustainable Era
In an era defined by digital transformation and sustainability imperatives, HUL is at the forefront of progress. The company’s purpose-led approach aligns seamlessly with evolving consumer preferences and global trends. Embracing digitization and sustainability as core pillars, HUL continues to innovate and adapt, ensuring relevance and resilience in a dynamic marketplace.
A Global Footprint
As a subsidiary of Unilever, a global leader in Food, Home Care, Personal Care, and Refreshment products, HUL benefits from a vast international network. Unilever’s presence in over 190 countries underscores HUL’s global stature and access to best practices and resources.
ESG Leadership and Employer Excellence
HUL’s commitment to Environmental, Social, and Governance (ESG) principles has earned it the coveted status of India’s top ESG-rated FMCG Company. Moreover, HUL’s reputation as the number one employer of choice across sectors reflects its people-centric ethos and commitment to talent development and inclusivity.
Hindustan Unilever Ltd (HUL) recently unveiled its financial results for the January-March quarter of fiscal 2023-24 (Q4FY24), alongside announcing a final dividend for the fiscal year. Here’s a detailed breakdown of the key highlights and insights from HUL’s Q4 performance.
Dividend Announcement
HUL’s board recommended a final dividend of ₹24 per equity share of Re 1 each for FY24. This final dividend, coupled with an earlier interim dividend of ₹18 per share in November 2023, brings the total dividend for FY24 to ₹42 per equity share.
Financial Highlights
Despite challenges in the market landscape, HUL maintained a robust financial position. The company’s standalone net profit witnessed a modest decline of six per cent, amounting to ₹2,406 crore compared to ₹2,552 crore in the same period last year. While this figure fell slightly short of market expectations, it underscores HUL’s resilience amidst economic fluctuations.
On the revenue front, HUL saw a marginal uptick with revenue from operations reaching ₹14,693 crore in Q4FY24, compared to ₹14,638 crore in the corresponding period of the previous year. This growth reflects HUL’s ability to navigate through dynamic market conditions.
Operational Metrics
HUL’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margin remained healthy at 23.8 per cent, marking a 40 basis points (bps) increase year-on-year (YoY). This improvement in EBITDA margin signifies HUL’s effective cost management strategies and operational efficiency.
Profit after tax (PAT) and earnings per share (EPS) also showed positive momentum, rising by four per cent and two per cent respectively. These figures indicate HUL’s sustained profitability and shareholder value creation efforts.
CEO’s Perspective
Rohit Jawa, CEO and Managing Director of HUL, expressed confidence in the company’s performance amidst a challenging environment. He highlighted HUL’s resilience in achieving a net profit milestone of ₹10,000 crore in FY24 and emphasized the company’s focus on operational excellence, brand investments, and long-term capabilities.
Jawa’s optimism about improving consumer demand, driven by factors like a normal monsoon and positive macro-economic indicators, reflects HUL’s proactive approach in adapting to market dynamics and fostering sustainable growth.
Conclusion
HUL’s Q4FY24 results showcase a balanced performance, with a strong emphasis on financial stability, operational efficiency, and strategic investments. As HUL continues to navigate evolving market landscapes, its commitment to driving value for stakeholders remains unwavering, positioning the company for sustained success in the future.
