Hindustan Unilever (HUL) reported 3.86% decline in standalone net profit to Rs 2,612 crore on 1.94% increase in revenue from operations to Rs 15,319 crore in Q2 FY25 over Q2 FY24.
Profit before tax (PBT) fell 2.62% YoY to Rs 3,536 crore during the quarter.The company reported an underlying sales growth (USG) of 2% and underlying volume growth (UVG) of 3%. EBITDA margin at 23.8% continued to remain healthy.
In the base quarter, there was a one-off indirect tax credit from a favourable resolution of past litigation which benefited both topline and bottomline in the Beauty and Wellbeing segment. Excluding this one-off, USG, UVG and PAT (bei) growth is 3%, 3% and 2% respectively.
During the quarter, Home Care grew 8% with high-single digit UVG. Growth was broad based with both Fabric Wash and Household care growing volumes in high-single digit. Liquids portfolio, with a strong double-digit volume growth, continues to outperform.
Beauty & Wellbeing grew 7% (1% reported) with mid-single digit UVG. Hair Care continued its growth momentum and grew in high-single digit led by outperformance in Sunsilk, Dove and Tresemme. Skin care and Colour cosmetics delivered a mid-single digit growth. Premium Skin portfolio maintained its double-digit growth trajectory.
Personal Care declined 5% with negative pricing and low-single digit volume decline. Skin cleansing 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.
Foods & Refreshment declined 2% with a low-single digit volume decline. Coffee grew in double digits. Nutrition drinks continued to gain market shares while consumption remained subdued.
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Foods grew volumes in low-single digit. 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.
On outlook front, the company expects demand trends to remain stable, EBITDA to be maintained at current healthy levels and it also anticipates low single price growth, if commodity prices remain where they are.
Rohit Jawa, CEO and managing director, said, In 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 of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders. We remain watchful of gradual recovery in consumer demand.
Meanwhile, the companys board declared an interim dividend of Rs 19 per share for FY25. It has also declared a special dividend of Rs 10 per share. The record date for the same will be Wednesday, 6 November 2024 and dividend will be paid on 21 November 2024.
Further, the committee of independent directors decided to separate the companys ice cream business. This portfolio restructuring will enable the FMCG company to sharpen focus on the core business and further strengthen its play in trending demand spaces such as Beauty, Foods, Health and Wellbeing. It will also enable the Ice Cream business to operate with greater flexibility and focus.
Ice Cream business, which contributes 3% to HULs turnover, is a high-growth category that needs significant investments to realise its full potential. It has a different operating model including cold chain infrastructure, and a distinct channel landscape, which limits synergies with rest of HUL.
Hindustan Unilever is India's largest fast moving consumer goods company.
The scrip fell 0.90% to end at Rs 2,658 on the BSE.
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