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Hindustan Unilever Limited (HUL) reported a 19 percent 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 Rs 3,001 crore, significantly higher than the Rs 2,519 crore reported in the same quarter 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, 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.

Rohit Jawa, CEO and Managing Director, said, “FMCG demand trends remained subdued with continued moderation in urban growth while rural sustained its gradual recovery. In this operating context, we delivered competitive growth by driving unmissable brand superiority, investing behind brands and capabilities whilst maintaining healthy margins.”

HUL maintained a healthy EBITDA margin of 23.5 percent, despite a 20-basis-point contraction compared to the year-ago period. Profit before tax (PBT) grew 16 percent to Rs 3,978 crore, aided by an exceptional gain of Rs 509 crore. Excluding the gain, profit after tax before exceptional items was flat year-on-year at Rs 2,540 crore.

Hindustan Unilever share price ended flat at Rs 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 percent, though volumes saw a low-single-digit decline due to a delayed winter impacting the skin care 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 percent, 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 action: An acquisition, and a divestment

HUL announced the acquisition of Minimalist, a premium beauty brand, as part of its strategy 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. “Our strategic initiatives, including the Minimalist acquisition and ice cream demerger, position us well for long-term growth in the Indian FMCG sector,” said Rohit Jawa.

Going ahead, while the company watches the consumption trends and pace of recovery, it remains optimistic about the medium- to long-term opportunities in India's FMCG market, he said.

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