Hindustan Unilever Q3 Results: Net Profit Surges 19% YoY on Exceptional Gains
Q3 Net Profit Increase
Hindustan Unilever Limited (HUL) reported a 19% year-on-year increase in net profit for the quarter ended December 2024 (Q3 FY25), driven by a one-time exceptional gain from the divestment of its Pureit business. The company's standalone net profit stood at ₹3,001 crore, significantly higher than the ₹2,519 crore reported in the same quarter last year.
Revenue Growth and Underlying Volume Growth
HUL’s standalone revenue for the quarter rose by 2% to ₹15,195 crore, supported by a 6% underlying sales growth (USG) in the Home Care segment, which benefited from high-single-digit volume growth in categories like fabric wash and household care. However, overall underlying volume growth (UVG) was flat, reflecting a negative product mix.
Management Commentary
Rohit Jawa, CEO and Managing Director of HUL, noted that FMCG demand trends remained subdued, with continued moderation in urban growth while rural sustained its gradual recovery. Despite this, the company delivered competitive growth by driving unmissable brand superiority, investing behind brands and capabilities, and maintaining healthy margins.
EBITDA and Profitability
HUL maintained a healthy EBITDA margin of 23.5%, despite a 20-basis-point contraction compared to the year-ago period. Profit before tax (PBT) grew 16% to ₹3,978 crore, aided by an exceptional gain of ₹509 crore. Excluding this gain, profit after tax before exceptional items was flat year-on-year at ₹2,540 crore.
Stock Performance
Hindustan Unilever share price ended flat at ₹2,343 on NSE today ahead of the results announcement.
Segment-wise Performance
- Home Care: This segment saw strong volume-led growth, with fabric wash and household care delivering high-single-digit growth. Liquid detergents continued their double-digit growth trajectory, while the launch of the Sun liquid dishwash brand marked a strategic push into the mass market.
- Beauty & Wellbeing: Segment revenue grew 1%, though volumes saw a low-single-digit decline due to a delayed winter impacting the skincare portfolio. Hair care delivered mid-single-digit volume growth, driven by products like Dove and Tresemme.
- Personal Care: Revenue in this segment declined by 4%, with a mid-single-digit volume drop due to a slowdown in the hygiene segment of skin cleansing. However, body wash products registered strong double-digit growth, and Lifebuoy was relaunched to address the hygiene segment's challenges.
- Foods: Segment revenue remained flat, with mid-single-digit growth in packaged foods offset by a decline in volumes. Coffee registered double-digit growth, while tea maintained its market leadership.
Strategic Actions
HUL announced the acquisition of Minimalist, a premium beauty brand, to expand 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. According to Rohit Jawa, these strategic initiatives position the company well for long-term growth in the Indian FMCG sector. The company remains optimistic about the medium-to-long-term opportunities in India's FMCG market.
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