• Turnover: INR15,319 crores.

• Underlying Sales Growth: 2%.

• Underlying Volume Growth: 3%.

• EBITDA Margin: 23.8%.

• Profit After Tax Before Exceptional Items: Declined 2%.

• Interim Dividend: INR19 per share.

• Special Dividend: INR10 per share.

• Total Dividend Payout: INR6,814 crores.

• Gross Margin: 50.4%, declined 150 bps year-on-year.

• Home Care Segment Growth: 8% underlying sales growth.

• Beauty & Wellbeing Segment Growth: 7% intrinsic growth.

• Personal Care Segment Decline: 5% with a single-digit decline in volumes.

• Foods and Refreshment Segment Decline: 2% USD decline.

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Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hindustan Unilever Ltd (BOM:500696) reported a competitive performance with a turnover of INR15,319 crores and underlying sales growth of 2%, driven by an underlying volume growth of 3%.

• The company's EBITDA margin remained healthy at 23.8%, demonstrating strong operational efficiency.

• The Board approved an interim dividend of INR19 per share, along with a special dividend of INR10 per share, indicating a total payout of INR6,814 crores, reflecting a commitment to shareholder returns.

• Hindustan Unilever Ltd (BOM:500696) has made significant progress in strengthening its competitive position, with market share gains in recent months.

• The company is actively investing in brand development and innovation, with successful campaigns and new product launches in segments like beauty and wellbeing, which are showing strong growth.

Negative Points

• Market volume growth trajectory remained muted, with urban growth moderating and rural growth recovering gradually.

• The company faced a decline in profit after tax before exceptional items by 2% on a reported basis.

• There was a decline in the personal care segment by 5%, with a single-digit decline in volumes, indicating challenges in this category.

• The foods and refreshment segment experienced subdued performance due to continued downgrading in tea and muted consumption in nutrition drinks.

• Hindustan Unilever Ltd (BOM:500696) is facing challenges with commodity price increases, particularly in crude palm oil and tea, which could impact future pricing strategies.

Q & A Highlights

Q: Why is Hindustan Unilever separating its ice cream business, and what impact will this have on existing operations? A: Ritesh Tiwari, CFO, explained that the ice cream business, which constitutes about 3% of HUL's turnover, is high growth but also high investment and low margin. The separation will allow the ice cream business to operate with greater flexibility and enable HUL to focus on core areas like beauty, food, and health. The decision was supported by an independent committee and aims to maximize shareholder value while minimizing business disruption.