HUL Q2: Net Profit Increases 4% YoY, Board Announces Interim Dividend

The company logged a net profit of Rs 2,717 crore for the September quarter in the current financial year against a net profit of Rs 2,616 crore in the second quarter of the previous fiscal year.

FMCG giant Hindustan Unilever Ltd (HUL) on Thursday posted a 3.86 per cent increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings. The company logged a net profit of Rs 2,717 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 2,616 crore in the second quarter of the previous fiscal year (FY23).

HUL in it’s exchange filing stated that the revenue gained nearly 4 per cent to Rs 15,027 crore in the reporting quarter, compared to Rs 14,514 crore in the corresponding quarter a year earlier. The company posted a growth of 9 per cent in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which stood at Rs 3,694 crore in Q2FY24, against Rs 3,377 crore in the same period a year earlier. EBITDA is often used by companies as an alternative to net income to better understand their finances.

The company’s board also announced an interim dividend of Rs 18 per share for the financial year ending March 2024. HUL gave a cautiously optimistic outlook in the near term. 

Rohit Jawa, CEO and managing director, commented on the performance and said, “We delivered resilient and competitive growth whilst stepping up our EBITDA margin in a challenging operating environment, marked by subdued rural demand and heightened competitive intensity. Looking forward we remain cautiously optimistic. FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services, and Government’s thrust on capex. At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels. In this context, our focus is to provide superior value to our consumers, drive competitive volume growth, and invest behind our brands. We remain confident of the mid to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.”

The company expects tailwinds from a better festive season and said that rural recovery is likely to remain gradual. On the outlook, the firm said it expects price growth to be marginally negative if commodity prices continue to stay like they are.