HUL Q1 profit up 2% to Rs 2,612 cr

New Delhi, Jul 23 (PTI) Hindustan Unilever Ltd (HUL) on Tuesday reported just 2.2 per cent rise in consolidated net profit at Rs 2,612 crore for April-June FY25 impacted by price reductions.

The FMCG major had posted a net profit of Rs 2,556 crore in June quarter FY24, according to a regulatory filing from HUL.

Revenue from sales of products in the quarter was marginally up 1.68 per cent to Rs 15,497 crore as against Rs 15,240 crore a year ago.

The company delivered a 4 per cent volume growth during the quarter, according to an earning statement from HUL.

"HUL delivered a robust performance in the June quarter with an underlying volume growth of 4 per cent. Underlying sales growth was 2 per cent due to the impact of price reductions taken during the year as we passed on benefits of lower commodity prices to consumers," it added.

Total expenses were at Rs 12,385 crore in June quarter FY25, up 1.8 per cent year-on-year.

Total income was higher by 1.81 per cent to Rs 15,964 crore in April-June period as against Rs 15,679 crore in the corresponding quarter.

In June quarter, HUL's home care delivered a volume-led performance across formats and segments. Revenue from the segment was up 4.64 per cent to Rs 5,673 crore during the period.

"Fabric Wash grew volumes in high-single digits led by structural actions taken across the portfolio, in both mass and premium segments. Household Care grew volumes in mid-single digit driven by strong performance in premium dishwash portfolio," said HUL.

Its Beauty & Wellbeing also reported a growth of 3.5 per cent to Rs 3,281 crore as against Rs 3,170 crore in June quarter FY24. The segment delivered a "mid-single digit" underlying volume growth.

In Hair Care segment, volume grew in double-digit driven by a strong performance in Sunsilk, Clinic Plus and Dove, However, Skincare and Colour cosmetics had a muted volume performance in the quarter driven by a decline in mass portfolio.

HUL has split ‘Beauty and Personal Care’ segment into ‘Beauty & Wellbeing’ and ‘Personal Care’ with effect from April 1, 2024, Revenue from Personal Care was down 4.48 per cent to Rs 2,386 crore as against Rs 2,498 crore a year ago. The segment delivered low single-digit volume growth. However, revenue declined on account of pricing actions taken.

"Bodywash continues to strengthen market leadership. Oral Care delivered mid-single digit growth driven by pricing," it said.

HUL's revenue from Foods & Refreshment was up 1.39 per cent to Rs 3,850 crore.

"Foods & Refreshment had a USG of 1 per cent with volumes remaining stable. The category was impacted by a harsh summer season," said HUL.

Its nutrition drinks as Horlicks and Boost had a subdued performance in the quarter, while coffee delivered double-digit growth driven by pricing.

"Foods grew volumes in low-single-digit led by outperformance in Food Solutions, Mayonnaise, Peanut Butter, and International sauces," it said.

However, ice cream in the food segment delivered double-digit volume growth aided by launches during the summer.

HUL's revenue from ‘Other Segment’, which includes Exports, Consignment, etc was down 15.24 per cent to Rs 517 crore. It was at Rs 610 crore a year ago.

Commenting on the result, CEO and Managing Director Rohit Jawa said:"HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by the gradual recovery of rural markets." In June quarter, HUL's gross margin improved 170 basis points and A&P investments increased 90 basis points.

On the outlook, Jawa said:"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." Shares of HUL on Tuesday settled at Rs 2,766.50 apiece on BSE, up 1.17 per cent from the previous close. PTI KRH KRH ANU ANU