Hindustan Unilever’s third-quarter results have shown a significant increase in net profit, surging by 19% year-on-year to Rs 3,001 crore.
Hindustan Unilever Limited (HUL) announced a remarkable 19 percent year-on-year increase in net profit for the quarter ending December 2024 (Q3 FY25). This growth was primarily driven by a one-time exceptional gain from the divestment of its Pureit business.
On a standalone basis, net profit reached Rs 3,001 crore, a significant increase from the Rs 2,519 crore reported in the same quarter last year. Consolidated net profit also saw a surge of 19 percent to Rs 2,989 crore. A Moneycontrol poll of nine brokerages had predicted HUL’s October-December quarter to report net profit at Rs 2,587 crore.
Furthermore, consolidated revenue for the quarter ending December 31 stood at Rs 15,559 crore, up from Rs 15,259 crore in the same period last year. HUL’s standalone revenue for the quarter rose by 2 percent to Rs 15,195 crore, supported by a 6 percent underlying sales growth (USG) in the Home Care segment. This growth was driven by high-single-digit volume growth in categories like fabric wash and household care. However, overall underlying volume growth (UVG) remained flat, reflecting a negative product mix.
Rohit Jawa, CEO and Managing Director of HUL, commented on the results, stating, “FMCG demand trends remained subdued with continued moderation in urban growth while rural areas sustained gradual recovery. In this operating context, we achieved competitive growth by emphasizing brand superiority, investing in brands and capabilities, and maintaining healthy margins.”
Despite a 20-basis-point contraction compared to the year-ago period, HUL maintained a healthy EBITDA margin of 23.5 percent. Profit before tax (PBT) grew by 16 percent to Rs 3,978 crore, with the help of an exceptional gain of Rs 509 crore. Excluding the gain, profit after tax before exceptional items remained
Beauty & Wellbeing: Despite a 1 percent increase in segment revenue, volumes experienced a slight decline due to a delayed winter affecting the skin care portfolio. Hair care, on the other hand, saw a mid-single-digit volume growth, driven by popular products like Dove and Tresemme.
Personal Care: Revenue in this segment decreased by 4 percent, with a mid-single-digit drop in volume attributed to a slowdown in the hygiene segment of skin cleansing. However, body wash products showed strong double-digit growth, and the relaunch of Lifebuoy aimed to address challenges in the hygiene segment.
Foods: Segment revenue remained steady, with mid-single-digit growth in packaged foods offset by a decline in volumes. Coffee experienced double-digit growth, while tea maintained its market leadership.
Strategic Actions: Acquisition and Divestment
HUL announced the acquisition of Minimalist, a premium beauty brand, to expand its presence in the high-growth masstige beauty segment. The company also completed the divestment of its Pureit water purification business and approved a scheme for the demerger of its ice cream division. Rohit Jawa stated, “Our strategic initiatives, including the Minimalist acquisition and ice cream demerger, position us well for long-term growth in the Indian FMCG sector.”
Looking ahead, the company remains optimistic about medium- to long-term opportunities in India’s FMCG market, closely monitoring consumption trends and the pace of recovery.
Demerger of Ice Cream Business
HUL announced that the company’s board has approved the demerger of its ice cream business, Kwality Walls (India) Limited (KWIL), into an independently listed company.
The board approved the scheme of arrangement for shareholders involving the demerger of the ice cream business. The company finalized the share ratio post-demerger of the ice cream for investors in a 1:1 ratio. Shareholders will receive 1 share of the new ice cream company for every share they own in unilever
The Hindustan Unilever share price remained unchanged at Rs 2,343 on the NSE today as investors awaited the results announcement.
Performance by Segment
Home Care: This segment experienced robust growth driven by increased volume, particularly in fabric wash and household care, which saw high-single-digit growth. Liquid detergents continued to show double-digit growth, and the introduction of the Sun liquid dishwash brand represented a strategic move into the mass market.
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