HUL Q3FY25 net profit rises 19% to Rs 3,001 crore, driven by Pureit divestment

On a standalone basis, net profit rose to Rs 3,001 crore, compared to Rs 2,519 crore in the same quarter last year.

Consolidated net profit also grew 19% to Rs 2,989 crore, surpassing the Rs 2,587 crore estimate from a Moneycontrol poll of nine brokerages.

Consolidated revenue for the quarter stood at Rs 15,559 crore, up from Rs 15,259 crore a year earlier.

Standalone revenue increased by 2% to Rs 15,195 crore, supported by 6% underlying sales growth (USG) in the Home Care segment, which saw high-single-digit volume growth in fabric wash and household care categories.

However, overall underlying volume growth (UVG) was flat due to a negative product mix.

CEO and MD Rohit Jawa noted subdued demand in the FMCG sector, with moderated urban growth and a gradual rural recovery.

Despite these challenges, HUL maintained a competitive edge by focusing on brand superiority and operational efficiency, achieving an EBITDA margin of 23.5%.

Profit before tax (PBT) rose 16% to Rs 3,978 crore, aided by an exceptional gain of Rs 509 crore. Excluding this gain, profit after tax before exceptional items was flat at Rs 2,540 crore.

Segment highlights

Home care: Volume-driven growth continued, with fabric wash and household care recording high-single-digit gains. Liquid detergents maintained double-digit growth, and HUL expanded its portfolio with the launch of the Sun liquid dishwash brand.

Beauty & Wellbeing: Revenue grew 1%, but volumes declined slightly due to a delayed winter affecting skincare products.

Hair care delivered mid-single-digit volume growth, led by Dove and Tresemme.

Personal Care: Revenue fell 4% due to a slowdown in skin cleansing's hygiene segment. However, body wash products posted double-digit growth, and Lifebuoy was relaunched to address the segment's challenges.

Foods: Revenue remained flat, with mid-single-digit growth in packaged foods offset by volume declines. Coffee reported double-digit growth, while tea retained its market leadership.

Strategic initiatives

HUL announced the acquisition of Minimalist, a premium beauty brand, as part of its strategy to expand into the fast-growing masstige beauty segment.

Additionally, the company completed the divestment of its Pureit business and approved a demerger of its ice cream division.

Ice cream demerger:

The board approved the demerger of its ice cream business, Kwality Wall's (India) Limited (KWIL), into a separately listed entity.

Shareholders will receive one KWIL share for each HUL share they hold.

The demerger aims to unlock value for shareholders and allow them to participate in the ice cream segment's growth independently.

Rohit Jawa expressed optimism about India's FMCG market, noting the company's strategic moves position it for long-term growth despite current consumption trends.