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View Promises →Hindunilvr Ltd — Q1 FY25
HUL reported Q1 FY25 revenue of INR 15,166 crore with 4% underlying volume growth, while underlying sales growth was 2% due to negative pricing.
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HUL reported Q1 FY25 revenue of INR 15,166 crore with 4% underlying volume growth, while underlying sales growth was 2% due to negative pricing. EBITDA margin improved 20 bps YoY to 23.8%, and PAT grew 3% to INR 2,538 crore. Volume growth was led by Home Care (high single-digit) and Hair Care (double-digit), while Personal Care saw low single-digit volume recovery after pricing actions. Management highlighted green shoots in rural demand but remains cautious on monsoon and food inflation. Guidance: near-zero pricing in short term, low single-digit positive by year-end; EBITDA margins to be maintained at current levels in near term, with modest expansion in medium term via mix improvement and operating leverage. Risk: tea inflation and potential impact on margins if commodity prices rise.
HUL ने पहली तिमाही (अप्रैल-जून 2024) में ₹15,166 करोड़ की कमाई की। बिक्री में 4% की बढ़ोतरी हुई, लेकिन कीमतों में कटौती के कारण कुल बिक्री वृद्धि सिर्फ 2% रही। कंपनी का मुनाफा (EBITDA) 23.8% रहा, जो पिछले साल से थोड़ा बेहतर है। शुद्ध मुनाफा (PAT) 3% बढ़कर ₹2,538 करोड़ हो गया। घरेलू सफाई और बालों की देखभाल के उत्पादों की बिक्री अच्छी रही, जबकि व्यक्तिगत देखभाल में धीमी सुधार दिखा। ग्रामीण इलाकों में मांग बढ़ रही है, लेकिन बारिश और खाने-पीने की चीज़ों की महंगाई से सावधानी है। कंपनी का अनुमान: कीमतें फिलहाल नहीं बढ़ेंगी, साल के अंत तक थोड़ी बढ़ सकती हैं। मुनाफा अभी इतना ही रहेगा, आगे चलकर थोड़ा बढ़ सकता है। चाय की महंगाई से मुनाफा प्रभावित हो सकता है।
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Tea price inflation could impact margins
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Read Transcript →Quarter Snapshot
Underlying Volume Growth (UVG)
4%
+4pp YoY
UVG improved from 2% in Q4 FY24 to 4% in Q1 FY25, driven by Home Care and Hair Care.
Gross Margin
50.9%
+170bps YoY
Gross margin expanded 170 bps YoY to 50.9%, aided by commodity deflation and savings.
Market Share Breadth (MAT Business Winning)
55%
+5pp vs Q4 FY24
Last 3-month metric at ~55%, on track to reach 60% by end of calendar year.
Premium Portfolio Contribution
300bps increase over 3 years
+300bps vs 3 years ago
Premium portfolio share increased ~300 bps over last 3 years, aiding mix improvement.
What Changed vs Last Quarter
NEW
Modest margin expansion in medium term via mix and operating leverage
Medium-term margin expansion driven by premiumization (300 bps improvement in premium mix over 3 years) and operating leverage from volume growth.
NEW
Market share breadth to reach 60% by end of calendar year
MAT business winning metric expected to return to 60% levels by end of calendar year, with last 3-month metric already at ~55%.
UPDATED
Near-zero pricing in short term, low single-digit positive by end of FY25
Excluding one-off credit in Q2 FY24 base, intrinsic price growth expected near zero in short term, turning low single-digit positive by year-end.
UPDATED
EBITDA margins to be maintained at current levels in short term
Management expects to maintain current EBITDA margin levels (~23.8%) in the near term, with modest expansion in medium term.
DROPPED
Volume-led competitive growth focus
Focus remains on driving competitive volume-led growth across the business, with gradual demand recovery expected.
DROPPED
Skin cleansing improvement over mid-term
Actions underway to address mass skin cleansing performance, with improvement expected over the next few quarters.
NEW RISK
Tea price inflation could impact margins
Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.
NEW RISK
Rural recovery may be slower than expected
Despite green shoots, rural growth on a 2-year CAGR still lags urban; employment, real wages, and food inflation could delay recovery.
NEW RISK
Competitive intensity in beauty and personal care
Analyst raised concern about competitive activity in beauty; management acknowledged intense competition but expressed confidence in portfolio transformation.
NEW RISK
Potential margin pressure from commodity volatility
If commodity prices rise, especially palm oil, margins could be impacted despite Stratos technology providing some insulation.
RISK GONE
Slow rural recovery
Rural demand remains weak due to cumulative inflation and weak monsoon; recovery is gradual and may be impacted by rising telecom costs.
RISK GONE
Competitive intensity in mass segments
Mass skin cleansing and fabric wash liquids face increased competition from regional and global players, pressuring volumes and pricing.
RISK GONE
Commodity price volatility
Rising crude or CPO prices could reverse gross margin gains and require price increases, impacting volume growth.
RISK GONE
GSK consignment agreement impact
The end of the GSK distribution agreement will impact EBITDA by ~60bps for the next four quarters, pressuring margins.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Benign commodity environment has led to increased competition from regional players, particularly in detergent bars and tea, impacting market share momentum.
Mentioned in Q2 FY24, Q3 FY24
Management aims to maintain EBITDA margins at current healthy levels, with a focus on gross margin improvement back to pre-COVID levels.
Mentioned in Q2 FY24, Q4 FY24
Rising crude or CPO prices could reverse gross margin gains and require price increases, impacting volume growth.
Mentioned in Q1 FY24, Q2 FY24
Management expects price growth to turn marginally negative in the near term if current commodity prices hold.
Fast read
Guidance and risk preview
Excluding one-off credit in Q2 FY24 base, intrinsic price growth expected near zero in short term, turning low single-digit positive by year-end.
Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.
View Risks →