HUL Q2 Results: Net profit drops 4% to ₹2,612 crore, dividend declared; Ice cream biz to be separated

HUL Q2 Results: Hindustan Unilever Ltd (HUL) announced its July September quarter results for fiscal 2024-25 (Q2FY25) on Wednesday, October 23, reporting a drop of four per cent in its standalone net profit at ₹2,612 crore, compared to ₹2,717 crore in the corresponding period last year.

The FMCG giant's revenue from operations in the same second quarter of current fiscal rose 1.5 per cent to ₹15, 508 crore, compared to ₹15,276 crore in the year ago period.

The Board of Directors declared an interim dividend of Rs. 19/- per equity share of face value of Re.1/- each for the financial year ending 31st March 2025 and Special Dividend of Rs. 10/- per equity share of face value of Re.1/- each at its meeting held on 23rd October 2024. The record date for the purpose of determining the entitlement for payment of interim and special dividend is fixed as 6th November 2024.

The Board of Directors at their meeting held on 15th July 2024 approved the sale and divestment of the Company’s Water Purification business carried under the brand ‘Pureit’, subject to customary closing conditions. Accordingly, the relevant assets and liabilities have been classified as held for sale as at 30th September 2024.

On 6th September 2024, the Board of Directors appointed an Independent Committee to evaluate in detail the prospects of the Company’s Ice Cream business and to make recommendations to the Board on the best way forward. Basis the Independent Committee’s recommendation, the Board of Directors at its meeting held on 23rd October 2024 has announced its decision to separate the Ice Cream business. This has no impact on the financial results for the period ended and as at 30th September 2024.

Rohit Jawa, CEO and Managing Director commented: ‘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 while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigor."

Home Care segment 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. We continued to strengthen our liquids segment with the expansion of Rin liquid and forayed into the floor cleaner market with a superior product under the Vim brand. Market development journey in fabric enhancers was bolstered by the launch of Comfort beads.

Beauty & Wellbeing segment 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. During the quarter, Tresemme’s Lamellar Gloss range, Ponds’ Hydra Miracle Body Gel Lotion, Glow and Lovely’s Niacinamide Serum and Lakme’s on-trend collection of Lip Oil and Lip Glaze to name a few, were launched.

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. Oral Care delivered a competitive high-single digit growth led by Closeup. Harnessing our WiMI strategy, Lux introduced a superior range of Sandalwood soap and bodywash in the quarter.

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