Hindustan Unilever reported a turnover of Rs 18,071 crore for the September quarter. While underlying sales growth reached a 14-quarter high of 15%, the EBITDA margin fell to 22.6%. The company said, "Commodity inflation expected to continue in the short-term," as it looks to stronger results in the coming years.
Hindustan Unilever has reported a turnover of Rs 18,071 crore for the September quarter. The company's underlying sales growth reached a 14-quarter high of 15% during this period. Despite this, the EBITDA margin has dropped to 22.6%, a decrease of 140 basis points from last year. The firm forecasts that commodity inflation will continue to challenge margins in the short term.
Hindustan Unilever expects commodity inflation to persist in the near term, keeping pressure on margins, even as it sees FY27 outperforming FY26 on the back of portfolio and channel transformation.
The consumer goods maker said consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) margin would remain within its guided range of 22-24%. Its EBITDA margin stood at 22.6% in the September quarter, a fall of 140 basis points as compared to last year. The company's underlying sales growth reached a 14-quarter high.
"Commodity inflation expected to continue in the short-term," HUL said in its mid-term outlook, while reiterating its expectation that FY27 would be better than FY26, driven by portfolio and channel transformation.
The firm reported turnover of Rs 18,071 crore for the quarter ended September 30, with underlying sales growth of 15% and underlying volume growth of 7%. EBITDA rose 8% year-on-year to Rs 4,089 crore.