The company’s sales increased 7% year-on-year (YoY) to Rs 14,931 crore.
An ET NOW poll of analysts had anticipated the profit figure at Rs 2,615 crore.
HUL has clocked an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 3,521 crore, up 8% YoY in the June quarter. Meanwhile, EBITDA margins improved by 40 basis points to 23.6% in the reporting period.
The company has reported underlying volume growth of 3% in the first quarter.
The home care business recorded double-digit growth on a high base with a 10% revenue jump and a mid-single-digit volume growth.
Within this segment, both fabric wash and household care rose in double-digits, led by focused market development actions and premiumization.The home care segment’s margins for the first quarter came in at 18%.
Beauty and personal care business delivered 4% revenue growth with mid-single-digit volume growth. The margins for the segment were at 26% in the reporting quarter.
Skin care and colour cosmetics saw double-digit growth on the back of strong performance in the premium portfolio, while hair care delivered mid-single-digit volume growth led by Tresemme, Indulekha, and Clinic Plus.
The foods and refreshment business reported a steady performance, led by health food drinks and food solutions. Its revenue grew 5% with near-flat volume growth.
Tea saw modest volume-led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea.
Health food drink continues to see traction competitively with both Horlicks and Boost performing well.
“We continue to manage our business dynamically to drive savings harder and provide the right price-value equation to our consumers. We remain focused on building back our gross margin and investing competitively in A&P,” HUL said in a statement.
The company has acknowledged the challenging operating enviroment but struck an optimistic note that the FMCG markets are recovering, albeit gradually.
“In the near-term, the FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand,” it said.
On Thursday, ahead of the results, HUL shares closed 1.07% higher at Rs 2,700 on NSE.
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