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HUL Q3 Results Live Updates: PAT at Rs 2519 cr vs ET NOW poll of Rs 2724 cr; revenue at Rs 15,188 cr
19 Jan, 2024 | 04:48:44 PM IST
HUL Q3 Results: Fast-moving consumer goods sector bellwether Hindustan Unilever (HUL) reported a disappointing earnings for the quarter ended December on Friday, with the net profit rising a mere 0.6% year-on-year (YoY) to Rs 2,519 crore, and missing the ETNow poll estimate of Rs 2,724 crore.
Revenue from operations fell 0.3% YoY to Rs 15,188 crore, and also trailed estimates of Rs 15,533 crore.
Show moreRevenue from operations fell 0.3% YoY to Rs 15,188 crore, and also trailed estimates of Rs 15,533 crore.
1 New Update
HUL Q3 Results Live Updates | Outlook
Going forward, HUL aims to remain focused on driving competitive volume growth, and step up investments behind brands while maintaining operating margin in a healthy range
However, the FMCG major expects prices to trend downwards if commodity prices remain where they are.
However, the FMCG major expects prices to trend downwards if commodity prices remain where they are.
HUL Q3 Results Live Updates | FY’24: 9-month performance
- Turnover at Rs. 44,886 Crores grew 3%
- Both EBITDA and PAT (bei) grew 6% while Net Profit grew 4%
HUL Q3 Results Live Updates | Foods & Refreshment Segment: Price led growth driven by Market Development portfolio
Foods & Refreshment revenue grew 1%. Tea further strengthened value and volume market leadership. Green Tea andflavoured tea performed well. Coffee grew in double-digits driven by pricing. Health Food Drinks delivered competitive modestprice-led growth driven by Plus range. Foods Solutions, Mayonnaise and Peanut Butter continue to clock strong growths. IceCream grew in mid-single digit on a high base. During the quarter, Knorr Korean K-Pot noodles and Bru Gold in Vanilla, Carameland Hazelnut flavours were launched.
HUL Q3 Results Live Updates | Beauty & Personal Care Segment: Mid-single digit volume growth led by Hair and Premium Skin
Beauty & Personal Care revenue remained flat with mid-single digit UVG. Skin Cleansing revenue declined due to the impact of price reductions taken to pass on the benefits of lower commodity costs to consumers. Market development actions in bodywash continue to yield good results.
While delayed winter impacted Skin Care performance in the quarter, premium non-winter portfolio continued to do well. Hair Care delivered volume led double-digit growth with broad based performance across brands and future formats continuing to gain traction.
Oral Care grew mid-single digit led by Closeup. Key launches in this quarter include Glow & Lovely Powder finish crème, New active skin barrier care range by Simple, Sunsilk hair serums, Close-up naturals range and Lakme’s range of make-up products.
While delayed winter impacted Skin Care performance in the quarter, premium non-winter portfolio continued to do well. Hair Care delivered volume led double-digit growth with broad based performance across brands and future formats continuing to gain traction.
Oral Care grew mid-single digit led by Closeup. Key launches in this quarter include Glow & Lovely Powder finish crème, New active skin barrier care range by Simple, Sunsilk hair serums, Close-up naturals range and Lakme’s range of make-up products.
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 gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths 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 whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges
- Rohit Jawa, CEO and Managing Director, HUL
HUL Q3 Results Live Updates | Home Care Segment
Home Care saw a marginal decline in revenue with mid-single digit UVG in the quarter. However, on a 2-year CAGR basis, the business delivered a strong double-digit growth of 14% with high single digit UVG. Fabric Wash volumes grew in mid-single digit YoY driven by outperformance in premium portfolio. Household care volumes grew in low single digit led by Dishwash.
HUL Q3 Results Live Updates | Key Financial Highlights
HUL Q3 Results: PAT rises just 0.6% YoY to Rs 2,519 crore, trails estimate
Fast moving consumer goods sector bellwether Hindustan Unilever (HUL) reported a disappointing earnings for the quarter ended December, with the net profit rising a mere 0.6% year-on-year (YoY) to Rs 2,519 crore, and missing the ETNow poll estimate of Rs 2,724 crore.
HUL Q3 Results Live Updates | EBITDA at Rs 3540 cr vs ET NOW poll of Rs 3739 cr
EBIT Margin at 23.3% vs ET NOW poll of 24.07%
HUL Q3 Results Live Updates: PAT at Rs 2519 cr vs ET NOW poll of Rs 2724 cr
Revenue: Rs 15,188 cr vs ET NOW poll of Rs 15,533 cr
HUL Q3 Results Live Updates: HUL shares end nearly 0.7% higher ahead of Q3 results
Price as on 03:35:47 PM 03:35 PM, Click on company names for their live prices.
Be very selective, very frankly, because a lot of players have, as you alluded to, clearly mentioned that rural recovery might be a little bit more sticky in the next couple of quarters. And that is clearly getting played out in terms of how the volumes have grown for companies which are probably reported numbers.
- Mayuresh Joshi of William O'Neil on FMCG stocks
HUL Q3 Results Live Updates: Ahead of HUL earnings, here are top gainers from FMCG pack
Price as on 02:35:20 PM 02:35 PM, Click on company names for their live prices.
HUL Q3 Results Live Updates: Sharekhan sees muted revenue growth for HUL in Q3
- Revenue is expected to grow by ~2% y-o-y aided by 3% y-o-y growth in the Personal care and foods & refreshments categories, while Homecare is likely to decline by ~2%.
- Gross margin is expected to be higher by 500 bps y-o-y, aided by softening of raw material prices. However, OPM is expected to be up by just ~80 bps y-o-y due to higher advertisement and other expenses.
- PAT is expected to grow by ~6% y-o-y, in line with ~6% y-o-y operating profit
HUL Q3 Results Live Updates: Stock up only 0.2% ahead of Q3 results
Price as on 01:56:16 PM 01:56 PM, Click on company names for their live prices.
HUL Q3 Results Live Updates: Yes Sec sees only 2% YoY growth in revenue for HUL
We expect HUL to post UVG of ~2.5% YoY (4-yr CAGR: ~3%), this along with slight negative pricing should lead to a subdued 2% YoY revenue growth. We expect higher priced inventory to impact QoQ gross margin and thus build 52% GM (-70bps QoQ; +450bps YoY), resulting in EBITDA margin expansion of 50bps YoY to 23.7%. EBITDA and Recurring PAT are thus likely to grow by 4.1% YoY and 1.7% YoY, respectively.
HUL Q3 Results Live Updates: HUL's demand remained slow; net pricing down YoY, says JM Financial
Demand remained slow; net pricing down YoY but volume uptick yet to come through. GPM up significant yoy but higher A&P, additional royalty to parent and scale deleverage to constrict op margin expansion to just c.30bps.
HUL Q3 Results Live Updates: Nuvama's expectations from HUL Q3 results
- We expect Q3FY24 revenue/EBITDA/PAT to increase YoY by 2%/4.1%/4.2% YoY.
- We anticipate urban to outpace rural and HUL’s premium segment to perform better than the mass end.
- We anticipate volume growth of 3% YoY (versus 2% in Q2FY24; versus 5% in base) and a negative pricing of -1% YoY.
- We expect down trading in tea and lower end detergent to continue and F&R segment to post some price growth.
- Retail milk prices have not come down. We expect no price drops in Horlicks.
- We forecast EBITDA margins to expand 50bp YoY but gross and EBITDA margins to fall slightly QoQ, due to an initial spike in commodity costs due to the Israel-Hamas crisis impacting crude oil prices.
- There is a two-month lag between current costs and actual usage. Hence, in Q4FY24, we expect gross margins to again improve QoQ for HUL. HUL shall continue to invest in A&P.
HUL Q3 Results Live Updates | Parth Shah, Research Analyst, StoxBox on his expectations from HUL earnings
Hindustan Unilever Ltd. showed a decent performance in Q2FY24 with topline and volumes improving, although it missed targets due to unseasonal rains and delayed festival season. While the urban sector was leading growth for the FMCG market by 3% YoY, the rural sector’s demand remained subdued. The demand trend is expected to remain stable in Q3FY24, with market volumes recovering to mid-single digit level compared to their base period figures due to continued market share.
The price growth might tail off, given the lower input costs which FMCG players continue to pass to their customers. The food and refreshment segment might decline due to sustained input cost inflation in the coffee and health food drinks (HFD) category. When analyzing segment performance, Home Care and BPC may post single-digit revenue growth compared to Food and Refreshment due to inflation in input prices in the segment.
We anticipate EBITDA margins to have a single-digit growth driven by the home care and BPC segments. We expect moderating inflation to improve customer sentiment as we advance. However, heightened competition in the industry and volatile global prices may keep the volume recovery gradual.
The price growth might tail off, given the lower input costs which FMCG players continue to pass to their customers. The food and refreshment segment might decline due to sustained input cost inflation in the coffee and health food drinks (HFD) category. When analyzing segment performance, Home Care and BPC may post single-digit revenue growth compared to Food and Refreshment due to inflation in input prices in the segment.
We anticipate EBITDA margins to have a single-digit growth driven by the home care and BPC segments. We expect moderating inflation to improve customer sentiment as we advance. However, heightened competition in the industry and volatile global prices may keep the volume recovery gradual.
HUL Q3 Results Live Updates: Key monitorable from HUL earnings
- Rural consumption is critical for FMCG players, and, therefore, comments on demand trends in this segment will be closely monitored by analysts.
- HUL’s pricing strategy and raw material pricing trends will also be eyed as this would help gauge margin performance for the ensuing quarters.
- Analysts will also track the company’s guidance on advertising spends in the coming quarters.
HUL Q3 Results Live Updates: Nomura on expectations from HUL volume growth
Volume growth is likely to remain anaemic on no material change in discretionary demand despite a festive quarter. Pricing has also started being in the negative zone, pulling down overall value growth.
HUL Q3 Results Live Updates: HUL among top picks of brokerage Anand Rathi from FMCG pack
Uneven rainfall, a delayed winter and liquidity issues for the trade weighed on demand sentiment in Q3. Rural demand recovery was slow for most FMCG companies (barring Dabur). Even the festival and wedding seasons (auspicious dates in the Hindu calendar) didn’t provide any major upswing to the demand momentum. The gross margin gains, though, are expected to continue for most FMCG manufacturers, aided by the sharp fall in input prices of major commodities. This would partly be utilised for more brand investments to drive faster volume growth. EBITDA margin expansions, however, should have persisted for most. We expecthealthy volume-led growth for FMCG companies in FY24/25, with margin tailwinds driving healthy earningsgrowth. We have Buy recommendations on HUL, GCPL, Emami and Zydus Wellness.
HUL Q3 Results Live Updates: How HUL fared in Q2
FMCG major Hindustan Unilever Ltd (HUL) reported a 4% growth in its standalone net profit at Rs 2,717 crore for the quarter ended September 2023. The same stood at Rs 2,616 crore in the year-ago quarter. The company's sales rose 4% year-on-year (YoY) to Rs 15,027 crore in the reporting period. The profit beat the ET Now estimate of Rs 2,590 crore, while revenue was slightly below expectations.
HUL Q3 Results Live Updates: HUL shares trade marginally higher ahead of Q3 results today
Price as on 10:10:28 AM 10:10 AM, Click on company names for their live prices.
HUL Q3 Results Live Updates: Operational performance to be muted
Besides a moderate topline growth and subdued volumes, the operational performance of HUL is also expected to be constrained by a rise in raw material costs amid the geopolitical tensions between Israel-Hamas, and price cuts taken by the company in some of the key categories in the last quarter. Earnings before interest, taxes, depreciation and amortisation or EBITDA is likely to rise nearly 4% YoY to Rs 3,672 crore but fall by around 1% sequentially.
HUL Q3 Results Live Updates: Volume growth likely to be affected in Q3
Factors affecting volume growth: Uneven rainfall, a warmer-than-expected winter, and subdued rural demand despite an extended festival season.
Expectations: HUL is widely expected to report a mere 2% growth in volumes in the December quarter on a base of 5%. This will be similar to that seen in the September quarter and would be the slowest growth that the FMCG major has seen in five quarters.
Expectations: HUL is widely expected to report a mere 2% growth in volumes in the December quarter on a base of 5%. This will be similar to that seen in the September quarter and would be the slowest growth that the FMCG major has seen in five quarters.
HUL Q3 Results Live Updates: Profit to rise 6% YoY, revenue just 1%, shows analysis
HUL is expected to report a 6% year-on-year (YoY) growth in net profit to Rs 2,653 crore, on the back of a moderate 1% growth in revenue to Rs 15,378 crore, the average of estimates given by 13 brokerages showed. Sequentially, the bottomline is seen falling 2.4%, while the topline growing at a moderate 0.7%.
HUL Q3 Results Live Updates: D-Street expects muted numbers from HUL
Hindustan Unilever Ltd (HUL) is expected to report muted numbers for the quarter ended December in the backdrop of weak volume growth, price cuts, and rising advertising costs.
HUL Q3 Results Live Updates | HUL to post Q3 results today post market hours
