Promises
2 promises
Promise Tracker
0 delivered, 0 close, 2 missed.
View Promises →Hindunilvr Ltd — Q2 FY25
HUL reported a muted quarter with 2% underlying sales growth (3% volume growth) in a sluggish FMCG environment.
neutral
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
HUL reported a muted quarter with 2% underlying sales growth (3% volume growth) in a sluggish FMCG environment. Revenue stood at INR 15,319 crore, while EBITDA margin remained healthy at 23.8%. PAT before exceptional items declined 2% due to a one-off tax credit in the base. Home care and beauty & wellbeing delivered high single-digit growth, but personal care declined 5% and foods & refreshment was subdued. Management highlighted early signs of recovery in soaps post-Stratos technology launch and expects low single-digit price growth in the near term. The ice cream business is being separated to sharpen focus. Risks include persistent commodity inflation (palm oil, tea) and muted urban demand. The company maintains its margin guidance and expects stable demand trends.
HUL ने एक सुस्त तिमाही दर्ज की, जिसमें बिक्री में सिर्फ 2% की बढ़ोतरी हुई (मात्रा में 3% बढ़ोतरी)। कमाई 15,319 करोड़ रुपये रही, और मुनाफा मार्जिन 23.8% पर स्वस्थ बना रहा। मुनाफा 2% घटा क्योंकि पिछले साल एक बार का टैक्स लाभ मिला था। घरेलू सफाई और सौंदर्य उत्पादों की बिक्री अच्छी रही, लेकिन व्यक्तिगत देखभाल 5% गिरी और खाद्य पदार्थों की बिक्री कमजोर रही। कंपनी ने साबुन में सुधार के संकेत देखे हैं और निकट भविष्य में कीमतों में हल्की बढ़ोतरी की उम्मीद है। आइसक्रीम कारोबार को अलग किया जा रहा है। जोखिमों में कच्चे माल की बढ़ती कीमतें और शहरी मांग में कमी शामिल है। कंपनी अपने मुनाफा मार्जिन अनुमान पर कायम है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Commodity inflation pressure
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Underlying Volume Growth (UVG)
3%
+3pp YoY
Underlying volume growth of 3% in Q2 FY25, driven by home care and beauty & wellbeing.
MAT Business Winning
60%+
Ahead of Dec 2024 target
Market share gains accelerated, with MAT business winning crossing 60% in September, ahead of schedule.
A&P Spend as % of Sales
9.5%
-100bps YoY
A&P spend was 9.5% of sales, lower than typical 10.5%, due to phasing and digital shift.
Digital Media Share
45%
Increasing
45% of working media now spent on digital, reflecting ongoing shift in media mix.
What Changed vs Last Quarter
NEW
Low single-digit price growth expected in near term
Management expects low single-digit price growth in the coming quarters due to commodity inflation, while maintaining competitive price-value equation.
NEW
Ice cream business separation by end of FY25
Board approved separation of ice cream business; mode (sale or demerger) to be decided by end of the year, with listing expected.
NEW
Full-year effective tax rate marginally above 26%
ETR for H1 was 26.1%; full-year ETR expected to be marginally above 26%.
UPDATED
EBITDA margin to be maintained at current healthy levels
Management aims to keep EBITDA margin at current ~23.8% levels, with some basis points fluctuation, through productivity savings and calibrated pricing.
DROPPED
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.
DROPPED
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.
DROPPED
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%.
NEW RISK
Commodity inflation pressure
Crude palm oil and tea prices rose 10% and 25% YoY respectively, impacting gross margins. Management is taking calibrated price increases but full pass-through may not be possible.
NEW RISK
Muted urban demand and slow rural recovery
Urban growth moderated, while rural recovery is gradual. Management noted no further acceleration in FMCG growth, which could pressure volume growth.
NEW RISK
Personal care segment decline persists
Personal care declined 5% with low single-digit volume decline. Despite formulation changes and innovation, recovery may take a couple more quarters.
NEW RISK
Tea downgradation trend may not reverse quickly
Despite 25% tea inflation, downgradation to loose tea persisted in Q2. Management expects reversal but timing is uncertain.
RISK GONE
Tea price inflation could impact margins
Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.
RISK GONE
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.
RISK GONE
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.
RISK GONE
Potential margin pressure from commodity volatility
If commodity prices rise, especially palm oil, margins could be impacted despite Stratos technology providing some insulation.
🤫 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 Q1 FY25, Q3 FY24, Q4 FY24
Despite green shoots, rural growth on a 2-year CAGR still lags urban; employment, real wages, and food inflation could delay recovery.
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 FY25, Q4 FY24
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.
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
Management expects low single-digit price growth in the coming quarters due to commodity inflation, while maintaining competitive price-value equat...
Crude palm oil and tea prices rose 10% and 25% YoY respectively, impacting gross margins.
View Risks →