Hindustan Unilever reports 1.5% growth in revenue in Q2 FY2024, profit falls 4% 

INDIA – Hindustan Unilever Limited (HUL), one of India’s largest fast-moving consumer goods (FMCG) companies, reported a 1.5 percent rise in revenue from operations, reaching Rs 15,319 crore (US$1.8B) for the second quarter ending September 2024.  

Despite the revenue increase, the company saw its standalone net profits decline by 4 percent to Rs 2,612 crore (US$310.7M), compared to Rs 2,717 crore (US$323.1M) in the same period last year.  

The drop in profits was attributed to higher expenses and moderating demand growth in urban markets. 

“In the September quarter, FMCG demand witnessed moderating growth in urban markets, while rural continued to recover gradually. In this context, we delivered competitive and profitable performance,” said Rohit Jawa, CEO and Managing Director of HUL.  

He emphasized the company’s strategic priorities, which include transforming its portfolio while maintaining healthy EBITDA margins and generating attractive returns for shareholders. 

Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at Rs 3,647 crore (US$433.8M), slightly lower than the Rs 3,694 crore  (US$439.3M) (US$439.3M) reported in the same quarter last year. The EBITDA margin dropped by 80 basis points to 23.8 percent. 

HUL’s Home Care segment grew 8 percent, contributing Rs 5,731 crore (US$681.6M) to the total revenue. The company highlighted strong performance in its liquids portfolio, with fabric wash and household care volumes experiencing high single-digit growth. 

However, HUL’s Personal Care business recorded a 5 percent decline in revenue, falling to Rs 2,411 crore (US$286.8M) due to negative pricing and low single-digit volume decline. 

Similarly, the Foods & Refreshment segment saw a 1.24 percent dip in revenue, posting Rs 3,803 crore (US$452.3M) for the quarter, impacted by a low single-digit volume decline. 

Following the results, the company also announced the separation of its ice cream business, a decision made by its board of directors based on recommendations from an Independent Committee review.  

Additionally, HUL declared an interim dividend of Rs 29 per share, comprising Rs 19 as interim dividend and Rs 10 as a special dividend. 

Despite challenges, HUL remains focused on long-term growth and maintaining its leadership in the Indian FMCG sector. 

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