HUL hosted a conference call on April 24, 2024. In the conference call, company was represented by, Mr Rohit Jawa- CEO and Managing Director and Mr. Ritesh Tiwari- CFO.

Key takeaways of the call

In Q4 FY24, company delivered volume growth of 2% YoY.

Company remains focused on driving operational excellence and volume growth whilst stepping up investment in brands.

The company expects consumer demand to gradually improve due to a normal monsoon and better macro-economic indicators.

Management is confident of medium to long-term potential of Indian FMCG sector owning to factors like rising affluence, under-indexed FMCG consumption and a strong digital infrastructure.

Urban growth continues to outpace rural growth.

Management expects price growth to be negative low-single digit, if commodity prices remain stable.

Company expects margins to improve driven by growth in premium products and improvement in operating leverage.

The company is focused on driving competitive volume led growth. The company has significantly expanded its advertising and promotion activities to improve sales. Company’s 60% business is winning value market share.

In Q4 FY24, home care grew 1% with mid-single digit volume growth. Both Fabric Wash and Household Care grew volumes in mid-single digit driven by strong performance in premium portfolio. Both categories continue to have negative price growth on account of pricing actions taken during the year.

In Q4 FY24, beauty & personal care continued to witness premium portfolio growing ahead of the rest. Overall, the segment had a USG of negative 2% YoY with flat volumes. Hair care delivered volume driven high-single digit growth led by outperformance in Dove and Tresemme.

In Q4 FY24, skin care and colour cosmetics grew in low-single digit. Premium skin care continued its strong double-digit growth trajectory led by innovations in new demand spaces and formats. Skin cleansing declined due to impact of price cuts coupled with drop in volumes in the mass and popular segments while bodywash continued to do well. Oral care saw a double-digit broad based growth driven by pricing. A range of innovations under Lakme cosmetics, sun-care products under Glow and Lovely, Ponds and Lakme skin, and sensitive skin cleansing range by Dove were launched in the quarter.

In Q4 FY24, foods & refreshment had a sales growth of 4% with flat volume growth. Functional nutritional drinks (horlicks & boost) delivered high-single digit growth driven by plus range. Tea continued to strengthen value and volume market leadership. Coffee delivered double-digit growth driven by pricing.

Foods grew in mid-single digit led by strong performance in Soups and Food solutions. Mayonnaise and Peanut Butter continue to gain consumer traction. Ice Cream grew in double digit led by volumes. An exciting range of innovations including Cadbury crackle feast, American nuts and Mango Duet were launched ahead of the upcoming ice-cream season.

Exceptional items in Q4 FY24 includes restructuring expenses of Rs 53 crore.

Board recommended a final dividend of Rs 24 for the financial year ended 31 March 2024 on Equity Shares of Re 1 each. Together with the interim dividend of Rs 18 per share paid on 16 November 2023, the total dividend for the financial year ended 31 March 2024 amounts to Rs 42 per share.