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Weather uncertainty and El Niño impact
View Risks →Hindunilvr Ltd — Q1 FY24
HUL reported a resilient Q1 FY24 with underlying sales growth of 7% (UVG 3%) on a high base, despite a challenging operating environment.
neutral
high
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HUL reported a resilient Q1 FY24 with underlying sales growth of 7% (UVG 3%) on a high base, despite a challenging operating environment. EBITDA margin improved 40 bps YoY to 23.6%, while PAT grew 8% to INR 2,472 crore. More than 75% of the business gained market share. The company is navigating a transition period as commodity inflation moderates, leading to price reductions and increased competitive intensity. Management expects price growth to be near flat or marginally negative in the next couple of quarters, with volume-led growth. Rural recovery is underway but weather risks (El Niño) remain a key watch. The focus is on rebuilding gross margins and investing in A&P to maintain share of voice. Risk: delayed volume recovery due to trade destocking and consumer pantry adjustments.
HUL ने पहली तिमाही (अप्रैल-जून 2023) में अच्छा प्रदर्शन किया। मुश्किल हालात के बावजूद बिक्री में 7% की बढ़ोतरी हुई। कंपनी का मुनाफा (PAT) 8% बढ़कर 2,472 करोड़ रुपये हो गया। 75% से ज्यादा उत्पादों की बाजार हिस्सेदारी बढ़ी है। कच्चे माल की कीमतें कम हो रही हैं, जिससे कंपनी को अपने उत्पादों के दाम घटाने पड़ रहे हैं और मुकाबला बढ़ रहा है। आने वाले महीनों में कीमतें स्थिर या थोड़ी कम रह सकती हैं, और बिक्री ज्यादा मात्रा पर निर्भर करेगी। गांवों में मांग सुधर रही है, लेकिन मौसम (अल नीनो) का खतरा बना हुआ है। कंपनी मुनाफा बढ़ाने और विज्ञापन पर खर्च करने पर ध्यान दे रही है।
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Underlying Volume Growth (UVG)
3%
-3pp YoY
UVG was 3% in Q1 FY24 vs 6% in Q1 FY23, reflecting a high base and transition to lower price growth.
Gross Margin
49.2%
+140bps QoQ
Gross margin improved 140 bps sequentially to 49.2%, driven by softening commodity costs.
A&P Spend as % of Sales
~10%
+300bps vs 3 quarters ago
A&P spend increased to ~10% of sales from ~7% three quarters ago, as media intensity normalizes.
Market Share Winning Business
75%+
flat
More than 75% of HUL's business gained market share in both value and volume terms.
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Guidance and risk preview
If commodities remain at current levels, HUL expects price growth to be near flat or marginally negative, with growth fully led by volume.
El Niño has set in early, potentially impacting the latter part of the monsoon, which could affect rural demand and agri output.
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