INDIA – Hindustan Unilever (HUL), a leading player in the Fast-Moving Consumer Goods (FMCG) sector, announced a 2.7 percent year-on-year (YoY) increase in net profit for the quarter ending June 30, 2024.  

The net profit stood at Rs 2,538 crore (US$30.32M), compared to the same period last year. 

The company’s revenue from operations for the quarter was Rs 15,166 crore (US$181.18M), marking a 2 percent rise from Rs 14,931 crore (US$178.37M) recorded in the June quarter of 2023.  

This growth was driven by a 4.6 percent increase in the key home care segment, which includes popular products such as Cif, Vim, and Surf Excel. The home care segment’s revenue reached Rs 5,675 crore (US$67.8M), up from Rs 5,425 crore (US$64.81M) in the previous year. 

HUL’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin improved by 170 basis points, standing at 23.8 percent of the turnover. The EBITDA for the quarter increased by 2 percent to Rs 3,606 crore (US$43.08M), compared to Rs 3,521 crore (US$42.07M) in the same quarter last year. 

The total expenses incurred by the company during the reported quarter were Rs 12,116 crore (US$144.74M), a 1.5 percent increase from Rs 11,931 crore (US$142.52M) in the year-ago period. 

Rohit Jawa, CEO and Managing Director of HUL, commented on the performance, stating, “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 & premiumization supported by our distinctive capabilities is a key driver of our competitive edge.” 

HUL’s beauty and wellbeing segment also saw an uptick, with revenue increasing to Rs 3,199 crore from Rs 3,103 crore (US$37.1M) YoY. However, the personal care segment experienced a 4.4 percent decline, with revenue falling to Rs 2,386 crore (US$28.5M) from Rs 2,498 crore (US$29.8M) in the previous year.  

The food and refreshments segment reported a slight increase in revenue, rising to Rs 3,850 crore (US$45.99M) in Q1 FY25 from Rs 3,797 crore (US$45.4M) in Q1 FY24. 

Jawa added, “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.” 

HUL recently signed an agreement to sell its Pureit business in India to A. O. Smith, a global water technology company.  

This transaction aligns with HUL’s strategic intent to focus on its core categories. The deal is subject to customary closing conditions, with HUL continuing to manage the business until the transaction’s completion. 

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