HUL Q3 net profit surges 1.4 per cent to Rs 2,509 crore, revenue dips to Rs 15,567 crore

Hindustan Unilever Limited (HUL) reported its third-quarter profit for the financial year 2023-24 on Friday, amounting to Rs 2,509 crore. This reflects a 1.4 per cent increase compared to Rs 2,474 crore in the corresponding quarter of the previous year.

The company's revenue from operations stood at Rs 15,567 crore, a marginal drop of 0.2 per cent from Rs 15,597 crore in the third quarter of FY23.

HUL highlighted that the EBITDA margin stood at 23.7 per cent, a 10-basis-point improvement compared to the previous year. Gross Margin and Advertising & Promotion (A&P) investments saw a significant increase of 400 basis points and 270 basis points, respectively, year-on-year. The company emphasised its ongoing dynamic management approach, ensuring the right price-value equation, competitive investments in its brands, and long-term capabilities.

Rohit Jawa, CEO and Managing Director, said, "HUL has delivered another quarter of resilient performance with strong operating fundamentals amidst a challenging operating environment. Our focus on providing the right consumer value, excellence in execution, increased investments behind brands and capabilities, premiumisation and market development continues to serve us well. Looking forward, we expect a gradual recovery in market demand to continue, aided by increased government spending, a recovery in winter crop sowing, and better crop realisation."

"Rural income growth and winter crop yields are key factors that will determine the pace of recovery. In this context, our focus remains on driving competitive volume growth while stepping up investment in our brands and long-term strategic priorities. We remain confident of the mid- to long-term potential of the Indian FMCG sector, and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges," he added.

The stock ended Friday's trading session 0.78 per cent higher at Rs 2,567.80 on the NSE.