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View Promises →Hindunilvr Ltd — Q2 FY24
HUL crossed INR 15,000 crore quarterly turnover for the first time, with underlying sales growth of 4% and UVG of 2.5%.
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HUL crossed INR 15,000 crore quarterly turnover for the first time, with underlying sales growth of 4% and UVG of 2.5%. EBITDA margin improved 130 bps to 24.6%, driven by gross margin recovery to pre-inflation levels of 52%. However, PAT growth was muted at 4% due to higher A&P spend (up 420 bps YoY) and adverse tax comparables. Rural demand remains subdued, with two-year volumes still negative, though gradual recovery is expected. Competitive intensity from regional players persists in tea and detergent bars. Management remains cautiously optimistic, guiding for marginally negative price growth if commodities stay stable, and expects volume recovery to be gradual. Key risk: uneven monsoon and volatile global commodity prices could delay rural recovery.
HUL ने पहली बार 15,000 करोड़ रुपये से अधिक की तिमाही बिक्री की है। बिक्री में 4% की बढ़ोतरी हुई, जबकि कीमतों और मात्रा के हिसाब से वृद्धि 2.5% रही। कंपनी का मुनाफा (EBITDA) 24.6% हो गया, जो पहले से बेहतर है। इसकी वजह कच्चे माल की लागत कम होना है। हालांकि, शुद्ध मुनाफा (PAT) सिर्फ 4% बढ़ा, क्योंकि विज्ञापन पर खर्च बढ़ा और टैक्स का असर पड़ा। गांवों में मांग अब भी कमजोर है, लेकिन धीरे-धीरे सुधार की उम्मीद है। छोटे क्षेत्रीय कंपनियों से चाय और साबुन में प्रतिस्पर्धा बढ़ी है। कंपनी सावधानी से आशावादी है और कहती है कि अगर कच्चे माल की कीमतें स्थिर रहीं, तो कीमतों में मामूली कमी हो सकती है। मुख्य जोखिम: अनियमित बारिश और दुनिया भर में कच्चे माल की कीमतों में उतार-चढ़ाव से गांवों की मांग में सुधार में देरी हो सकती है।
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Uneven monsoon impact on rural demand
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Read Transcript →Quarter Snapshot
Underlying Volume Growth (UVG)
2.5%
+2.5pp YoY
UVG improved from negative territory last year, driven by Home Care and BPC mid-single-digit growth.
A&P Spend as % of Sales
11.4%
+420bps YoY
A&P increased sharply to protect competitive position amid heightened media intensity.
Gross Margin
52%
+700bps YoY
Gross margin returned to pre-inflation levels due to lower input costs and pricing actions.
Rural Volume Growth (2Y CAGR)
-1%
+3pp QoQ
Rural volumes improved from -4% in Q1 to -1% on a two-year basis, indicating gradual recovery.
What Changed vs Last Quarter
NEW
EBITDA margin to be maintained in a healthy range
Management aims to keep EBITDA margin in a healthy range while investing in brands and capabilities.
NEW
Volume recovery expected to be gradual
Management expects volume recovery to continue gradually, supported by moderating inflation and festive season.
UPDATED
Price growth to be marginally negative if commodities stay
Management expects price growth to turn marginally negative in the near term if current commodity prices hold.
DROPPED
Volume growth momentum to be sustained
Management expects to sustain volume growth momentum despite transition, supported by price reductions and A&P investments.
DROPPED
Gross margin to be rebuilt and invested in A&P
Focus on rebuilding gross margins and investing competitively behind A&P; EBITDA margin will be an outcome.
NEW RISK
Uneven monsoon impact on rural demand
Uneven monsoon with 6% deficit and lower reservoir levels could affect kharif harvest and rural incomes.
NEW RISK
Sustained inflation in HFD and coffee inputs
High milk and coffee prices continue to pressure volumes in HFD and coffee, with no near-term relief expected.
NEW RISK
Global commodity price volatility
Crude oil above $90 and geopolitical tensions could reverse input cost deflation, impacting margins.
RISK GONE
Weather uncertainty and El Niño impact
El Niño has set in early, potentially impacting the latter part of the monsoon, which could affect rural demand and agri output.
RISK GONE
Delayed volume recovery due to trade destocking
Trade destocking of high-priced inventory and consumer pantry adjustments may delay volume recovery by 2-3 quarters.
RISK GONE
Sustained inflation in certain commodities
Coffee, cereals, and cleaning powder continue to see high inflation, impacting margins in the Foods & Refreshment segment.
Fast read
Guidance and risk preview
Management expects price growth to turn marginally negative in the near term if current commodity prices hold.
Uneven monsoon with 6% deficit and lower reservoir levels could affect kharif harvest and rural incomes.
View Risks →