Hindustan Unilever (HUL) delivered underlying sales growth (USG) of 1% and underlying volume growth (UVG) of 2% in the quarter ended 31 March 2024.

Profit after tax before exceptional items (PAT bei) stood at Rs 2,396 crore in the March quarter, down 3% from Rs 2,471 crore posted in Q4 FY23.

EBITDA declined marginally to Rs 3,435 crore in Q4 FY24 as against Rs 3,471 crore reported in Q4 FY23. EBITDA margin reduced to 23.4% in Q4 FY24, down 30 bps, primarily on account of 60 bps impact from termination of GSK consignment selling arrangement and investments in long term capabilities.

During the quarter, Home Care grew 1% with mid-single digit UVG. Both fabric wash and household care grew volumes in mid-single digit driven by strong performance in premium portfolio. The category continued to witness YoY price decline on account of actions taken during the year, said HUL.

The FMCG company stated that its Beauty & Personal Care business continued to witness premium portfolio growing ahead of the rest. Overall, the segment had a USG of negative 2% with flat volumes. Hair care delivered volume driven high-single digit growth led by outperformance in Dove and Tresemme.

Skin care and colour cosmetics grew in low-single digit. Premium skin care continued its strong double-digit growth trajectory led by innovations in new demand spaces and formats. Skin cleansing declined due to impact of price cuts coupled with drop in volumes in the mass and popular segments while bodywash continued to do well. Oral care saw a double-digit broad based growth driven by pricing, it added.

Foods & Refreshment had a USG of 4% with flat volume growth. Functional nutritional drinks (Horlicks & Boost) delivered high-single digit growth driven by Plus range. Tea continued to strengthen value and volume market leadership. Category continued to witness consumers downgrading to loose tea. Coffee delivered double digit growth driven by pricing. Foods grew in mid-single digit led by strong performance in Soups and Food solutions, HUL stated in the press release.

In Q4 FY24, gross margin improved 350 bps YoY. The company continued to focus on building back its gross margins through improved price coverage, mix and net productivity initiatives. Advertising & Promotion (A&P) investments increased 200 bps as the firm continued to step up investments behind its brands.

On full year basis, the company’s net profit rose 1.52% to Rs 10,114 crore on 2.45% increase in revenue to Rs 59,579 crore in FY24 over FY23.

Rohit Jawa, CEO and managing director, said, “In FY’24 we delivered a resilient performance with 3% USG and crossed Rs 10,000 crores net profit mark. We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators.”

Meanwhile, the company's board has recommended a final dividend of Rs 24 per share for the financial year ended 31 March 2024, subject to approval of shareholders at the AGM.

Hindustan Unilever is India's largest fast moving consumer goods company.