June Quarter Results
HUL reported a consolidated Underlying Sales Growth[a] (USG) of 5% and an Underlying Volume Growth[b] (UVG) of 4%. EBITDA margin at 22.8% declined by 130 bps year-on-year, in line with our guidance, as we continued to step up investments in the business. This has resulted in delivery of broad-based and competitive growth leading to consistent increase in turnover-weighted market share. Profit After Tax before exceptional items (PAT bei) declined by 5% while Profit After Tax grew by 6%. The difference is on account of a one-off impact of re-estimation of tax provisions with respect to the potential disallowance of certain expenses pertaining to prior years. On a standalone basis, HUL reported an Underlying Sales Growth of 4%, Underlying Volume Growth of 3% and a PAT growth of 8%.
Home Care: Competitive high-single digit volume growth
Home Care delivered 4% USG driven by high-single digit UVG. The segment witnessed negative pricing as we maintained competitive price-value equation and continued to pass on commodity price benefits to consumers. Fabric Wash grew volumes in mid-single digit led by Surf Excel. Household Care delivered double-digit UVG driven by dishwash. Liquids portfolio in Home Care continued its double-digit growth momentum. During the quarter, Surf Excel Matic Express with pioneering technology designed for short wash cycles was launched. Enhancing kitchen hygiene, Vim Pro Clean Liquids with revolutionary RhamnoTech was relaunched to deliver superior performance and make dishwashing more effortless and sensorial.
Beauty & Wellbeing: High-single digit growth driven by Health and Wellbeing
Beauty & Wellbeing delivered 7% USG with a low-single digit UVG. Hair Care delivered mid-single digit growth led by strong performance in Future Core and Market Makers portfolio. Skin Care and Colour Cosmetics grew in low-single digit in the quarter driven by outperformance in Ponds, Vaseline and Simple. In Health and Wellbeing, OZiva saw significant acceleration, tripling its turnover year-on-year. Within Beauty & Wellbeing, Channels of the Future continued to deliver competitive double-digit growth, providing strong returns for our continued investments. During the quarter, Future Core and Market Makers portfolio was strengthened with the launch of Nexxus, a prestige and science-backed Hair Care brand, Dove’s Peptide Bond Strength range and expansion of Lakmē Retinol range, that is specially crafted to deliver intelligent skincare solutions for Indian skin.
Personal Care: Mid-single digit broad-based growth
Personal Care grew 6%, driven by calibrated pricing actions taken due to commodity inflation. Skin cleansing grew in mid-single digit led by double-digit growth in premium bars. Bodywash sustained its competitive, double-digit growth. Oral Care witnessed mid-single digit growth led by Closeup. In the quarter, Liril, with refreshed packaging and an upgraded formula for all-day freshness, Dove Serum Bar range enriched with Nutrient Serum for deep nourishment and repair, and Closeup with an enhanced formulation and contemporary packaging, were relaunched.
Foods: Mid-single digit volume-led growth
Foods delivered 5% USG with a mid-single digit UVG. Beverages (Tea and Coffee) grew in double-digit. Tea delivered high-single digit growth driven by price and volume. Coffee continued its strong double-digit growth trajectory, led by price. Lifestyle Nutrition continued to strengthen its market leadership and saw sequential improvement in performance. Packaged Foods grew in mid-single digit with strong growth in Future Core and Market Makers portfolio. Ice Cream delivered high-single digit volume-led growth. The performance was impacted by early onset of rains. Red Label Instant Spiced Tea Mix, designed to offer a convenient and flavourful tea experience, and Boost Protein, a protein drink formulated for adults, were launched in the quarter.
Rohit Jawa, CEO and Managing Director, commented: FMCG demand has continued to remain stable, with a gradual uptick in recency. Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5%, driven by an Underlying Volume Growth of 4%, at a consolidated level.
Going forward, I expect this gradual recovery to be sustained. I am confident that the ASPIRE strategy will further strengthen our presence in segments and channels of the future, powered by unmissably superior brands, heightened innovation intensity and digital media models, to deliver competitive volume-led growth and create long-term shareholder value.