The company had logged a net profit of Rs 2,657 crore in the July-September quarter a year ago, HUL said in a regulatory filing.
New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Wednesday reported a 2.33% decline in consolidated net profit at Rs 2,595 crore for the second quarter ended on September 30, 2024, on account of demand moderation in the urban market.
The company had logged a net profit of Rs 2,657 crore in the July-September quarter a year ago, HUL said in a regulatory filing.
However, revenue from product sales was up 2.36% at Rs 15,703 crore in the September quarter from Rs 15,340 crore in the year-ago period, HUL which owns power brands such as Surf, Rin, Lux, Pond’s, Lifebuoy, Lakmé, Brooke Bond, Lipton and Horlicks 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,” HUL CEO and Managing Director Rohit Jawa said.
HUL reported an underlying sales growth of 2% and underlying volume growth of 3%. Total expenses were at Rs 12,581 crore in the September quarter, up 3.03% year-on-year.
HUL’s total income, which includes other income, was up 2.14% to Rs 16,145 crore in the September quarter of FY25.
“In the base quarter, there was a one-off indirect tax credit from a favourable resolution of past litigation which benefited both the topline and bottom line in the Beauty and Wellbeing segment. Excluding this one-off, underlying sales growth, underlying volume growth and Profit after tax (PAT) growth was 3%, 3% and 2% respectively,” HUL said in the earnings statement.
In the September quarter, HUL’s revenue from the Home Care segment grew 8% to Rs 5,731 crore.
“Growth was broad-based with both Fabric Wash and Household care growing volumes in high-single-digit. Liquids portfolio, with strong double-digit volume growth, continues to outperform,” said HUL.
HUL strengthened its liquids segment with the expansion of Rin liquid and forayed into the floor cleaner market with a superior product under the Vim brand.
Its Beauty & Wellbeing segment also reported a growth of 2.51% to Rs 3,421 crore led by a “mid-single digit” underlying volume growth.
“Hair Care continued its growth momentum and grew in high-single digits led by outperformance in Sunsilk, Dove and Tresemme. Skincare and Colour cosmetics delivered a mid-single-digit growth. Premium Skin portfolio maintained its double-digit growth trajectory,” it said.
Its personal care business declined 5% to Rs 2,411 crore in the September quarter, as against Rs 2,536 crore a year ago. This was on account of “negative pricing and low-single-digit volume decline,” said HUL.
Its skin cleansing business, in which HUL operates with brands Lux, Dove, and Pond declined primarily on account of pricing actions taken during the year.
“Premium portfolio grew ahead of the segment and within that bodywash continued to strengthen its market leadership with high double-digit growth. Oral Care (Pepsodent) delivered a competitive high-single-digit growth led by Closeup,” it said.
Similarly, HUL’s revenue from Foods & Refreshment was down 1.24% to Rs 3,803 crore due to a “low-single-digit volume decline”.
“Tea continued to cement its market leadership through value and volume share gains. Green and Functional tea maintained their strong volume growth, however, overall category volumes remained subdued. Coffee grew in double-digits,” it said.
Nutrition drinks as Horlicks continued to gain market share, while consumption remained subdued.
“Foods (such as Kissan and Knor brands) saw low-single digit volume growth. Strong volume growth in Food Solutions, Mayonnaise, Peanut Butter, and International sauces continued on the back of market development actions, range extensions and distribution expansion,” it said.
Its ice cream business, where it has brands such as Kwality Wall’s, Cornetto and Magnum – maintained its volume vis-Ã -vis last year.
HUL revenue from ‘Other Segment’, which includes Exports, Consignment, etc was down 5.24% to Rs 560 crore.
Over the outlook, Jawa said: “We remain watchful of a gradual recovery in consumer demand, while creating a sustained competitive advantage through our business fundamentals, investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigour.”
HUL’s board also approved an interim dividend of Rs 19 per share for the year ending March 31, 2025. The Board has additionally declared a special dividend of Rs 10 per share resulting in a total dividend payout of Rs 6,814 crore.
Shares of HUL on Wednesday settled at Rs 2,658 apiece on BSE, down 0.90% from its previous close.
