HUL Q1 results: Net profit rises 2.2% to Rs 2,610 crore, revenue up 1.4%

Hindustan Unilever (HUL), India’s largest fast-moving consumer goods (FMCG) company, reported a 2.2 per cent year-on-year (Y-o-Y) rise in consolidated net profit (attributable to the owners of the company) for the first quarter of 2024-25, in line with market expectations.

HUL’s net profit came in at Rs 2,610 crore in the quarter ended June, while its underlying volume growth stood at 4 per cent in the same period.

The FMCG major’s revenue was higher by 1.4 per cent year-on-year (Y-o-Y) at Rs 15,707 crore. The maker of Lux soaps said in its earnings release that it took price cuts in the year to pass on the benefit of lower commodity prices to consumers.

 

According to Bloomberg, analysts had pegged HUL’s revenue at Rs 15,586.9 crore and net profit at Rs 2,601 crore for Q1 FY25. 

“HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by gradual recovery of rural markets. Our commitment to unlocking access to aspiration, market making & premiumisation supported by our distinctive capabilities is a key driver of our competitive edge,” Rohit Jawa, managing director at chief executive office at HUL was quoted as saying in the company’s earnings release.

The company’s PBIDT (profit before interest, depreciation and tax) increased by 4 per cent in the April-June quarter, reaching Rs 3,999 crore.

Sequentially, HUL’s revenue was up 3.3 per cent and its net profit was up 2 per cent.

EBITDA margin at 23.8 per cent was up by 20 bps compared to the same quarter last year. Its gross margin improved 170 bps and A&P investments increased 90 bps.

“We continue to focus on building back gross margin through improved price coverage and net productivity measures while stepping up investments behind our brands and future-fit capabilities to win competitively,” HUL said in its release.

Jawa also said in the release, “We continue to focus on driving competitive volume growth, generating fuel to invest behind our brands and making our business future fit. We remain confident of the medium to long term potential of the Indian FMCG sector. With our strong brands, execution prowess and distribution might, HUL is well positioned to leverage this growth opportunity as we continue transforming our business to outperform.”