HUL Q4 results: Profit slips 2% to Rs 2,561 crore; Rs 24 dividend announced

Hindustan Unilever Ltd on Wednesday reported a drop in its fourth-quarter (Q4 FY24) profit. "Profit after tax for the (March 2024) quarter at Rs 2,561 crore (Q4 FY23: Rs 2,601 crore) declined by 2 per cent, the Indian arm of UK's Unilever said.

"Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter at Rs 3,535 crore (Q4 FY23: Rs 3,574 crore) declined by 1 per cent. EBITDA margin at 23.5 per cent declined by 40 bps vs Q4 FY23," HUL stated.

Total sales for Q4 FY24 at Rs 15,041 crore was up by 1 per cent vs Q4 FY23, it added.

The company has also recommended a final dividend of Rs 24 for FY24 on equity shares of Re 1 each. "The company had earlier paid an interim dividend of Rs 18 per share on November 16, 2023. The total dividend for the said period amounts to Rs 42 per Equity Share of face value of Re 1 each," HUL said.

"Exceptional items in Q4 FY24 include restructuring expenses of Rs 53 crore (Q4 FY23: Rs 27 crore), gain on fair valuation of financial liability related to acquisition Rs 132 crore (Q4 FY23: nil), acquisition and disposal related cost nil (Q4'23: Rs 26 crore), net proceeds from disposal of surplus assets Rs 1 crore loss (Q4'23: Rs 133 crore gain)," HUL noted.

"During FY24, total sales rose 2 per cent to Rs 60,966 crore. EBITDA grew 4 per cent, profit after tax grew 1 per cent," it further stated.

Amnish Aggarwal, head of institutional research at Prabhudas Lilladher, said, "Numbers were in line with estimates. Q4 FY24 reported volume growth was 2 per cent with negative realisation for a consequent second quarter. We expect slow and modest recovery resulting in gradual pick up in volumes with realisations turning positive in 2HFY25. We believe heightened competitive intensity will limit any meaningful recovery in both volumes and margins in the near term. Retain 'HOLD'."

The Q4 FY24 earnings were declared post-market hours today. HUL shares settled 0.16 per cent lower at Rs 2,259.15.