Mumbai: Hindustan Unilever Ltd (HUL) reported a 2.4 percent decline in its Q2FY25 consolidated net profit, falling to Rs 2,591 crore from Rs 2,668 crore in the same quarter last year, media reports said.
The company's consolidated revenue grew 2.1 percent year-on-year to Rs 16,145 crore, reported Moneycontrol.
HUL's Q2 results were anticipated to be impacted by high commodity inflation in certain segments and subdued demand.
Analysts expected the company's margins to shrink due to increased advertising expenditure and higher royalty payments to parent company Unilever Ltd.
Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at Rs 3,647 crore, with a healthy EBITDA margin of 23.8 percent.
According to the report, CEO and Managing Director Rohit Jawa said, "In the September quarter, FMCG demand witnessed moderating growth in urban markets while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities...whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders."
In the Home Care segment, revenue reached Rs 5,737 crore, with an eight percent growth driven by strong volume momentum.
Fabric Wash and Household Care volumes grew in the high single digits, while the liquids portfolio saw double-digit volume growth.
HUL expanded its liquids segment with the launch of Rin liquid and entered the floor cleaner market under the Vim brand.
The Beauty & Wellbeing segment generated Rs 3,323 crore in revenue, growing seven percent, supported by volume growth.
Hair Care saw high single-digit growth, led by brands like Sunsilk, Dove, and Tresemme. Skin Care and Colour cosmetics reported mid-single-digit growth, while the Premium Skin portfolio maintained double-digit growth.
Personal Care achieved a revenue of Rs 2,412 crore, showing sequential improvement, although it declined five percent overall, with negative pricing and low-single-digit volume decline.
Bodywash continued to grow in double digits, while Oral Care, led by Closeup, saw competitive high single-digit growth.
Foods & Refreshment posted a slight decline in revenue to Rs 3,803 crore, down two percent, with low-single-digit volume decline.
Tea continued its market leadership, and Coffee saw double-digit growth.
Nutrition drinks gained market share, though consumption remained low, while Foods volumes grew marginally.
According to the report, Ritesh Tiwari, Executive Director, Finance and CFO of HUL, said, "There will be price increases in the December quarter in skin cleansing and tea segment amid commodity inflation."
HUL also declared a total interim dividend of Rs 29 per equity share for FY25, consisting of a regular interim dividend of Rs 19 and a special dividend of Rs 10. The record date for determining shareholder entitlement is November 6, 2024, with payment to be made on November 21, 2024.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
