HUL Q3 results: Net profit rises 19% YoY to ₹2,984 crore

FMCG major Hindustan Unilever (HUL) on Wednesday reported an 19% year-on-year rise in its consolidated net profit (attributable to owners of the company) for the fiscal's third quarter ended December (Q3FY25) to ₹2,984 crore. The company had reported a profit of ₹2,509 crore in the year-ago period. Sequentially, the consolidated net profit was up 15.2%. HUL shares ended flat at ₹2,341 apiece on BSE.

HUL's consolidated total income stood at ₹16,050 crores during the quarter ended December (Q3FY25) from ₹15,781 crore in Q3FY24, a year-on-year rise of 1.7%. Sequentially, the revenue was down by nearly 1%.

The firm reported in its exchange filing that the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter ending in December was ₹3,695 crore, compared to ₹3,666 crore in Q3FY24. The EBITDA margin was recorded at 23.7%, reflecting a decrease of 30 basis points from Q3FY24.

In terms of segments, the home care division experienced a 6% increase in sales, driven by high-single-digit growth in volume for both fabric wash and household care.

The fabric wash category showed strong performance across various formats, with the liquids range continuing to achieve double-digit growth. Throughout the quarter, Rin bar was reintroduced with advanced technology to enhance the product, while Comfort underwent a complete re-launch designed to further enhance its brand superiority.

The beauty and wellbeing segment experienced a 1% increase in growth for the quarter, although volumes fell in the low single digits. Within this category, hair care achieved mid-single-digit volume growth, supported by robust performance in Dove, Tresemme, and Clinic Plus.

Personal care reported a 4% drop in sales, accompanied by a mid-single-digit decline in volume. HUL indicated that strategic measures in skin cleansing resulted in market share gains for the quarter. Body wash continued to enhance its market leadership with significant double-digit growth.

HUL demerger

On Wednesday, January 22, the HUL board approved the demerger of Kwality Wall's, an ice cream company. Following the demerger of the ice cream company, the resultant company will be listed on both the BSE and the NSE.

According to the rules of the demerger, each HUL shareholder would get one Kwality Wall share for each HUL share they currently own.

"Kwality Wall will be a leading listed ice cream company in India, with an experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business model and market dynamics, thus realising its full potential," said HUL.

Additionally, HUL would purchase a 90.5% share in Minimalist through main infusion and secondary buyouts at a pre-money enterprise value of ₹2,955 crore.

As part of HUL's palm localization plan, the board of HUL authorized the purchase of Vishwatej Oil Industries Private Limited's palm venture during its meeting today.

“This acquisition aligns with our firm belief that ‘what is good for India is good for HUL’ and gives us the opportunity to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence,” added the company.

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