Hindustan Unilever Ltd.'s second-quarter profit fell 2.3% year-on-year, meeting analysts' estimates.
The consolidated net profit of India's largest consumer goods maker fell to Rs 2,595 crore in the quarter-ended September, according to an exchange filing. That compares with the Rs 2,693-crore consensus estimate of analysts tracked by Bloomberg.
HUL Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 1.9% to Rs 15,926 crore versus Rs 15,623 crore (Bloomberg estimate: Rs 15,753 crore).
Ebitda down 0.1% to Rs 3,793 crore versus Rs 3,797 crore (Estimate: Rs 3,728 crore).
Margin narrows to 23.81% versus 24.3% (Estimate: 23.7%).
Net profit down 2.3% to Rs 2,595 crore versus Rs 2,657 crore (Estimate: Rs 2,693 crore).
HUL To Separate Ice Cream Business
HUL's board has given its nod for the separation of the company's ice cream business, which does not significantly contribute to profitability. The details related to the separation plan are expected to be shared by 2024-end, according to an exchange filing.
HUL had, last month, formed a committee of independent directors to evaluate the option of separating the ice cream business. The committee found that ice cream is a "high-growth category that needs significant investments to realise its full potential," the company said in a release.
HUL's ice cream business, which contributes only 3% to the company's turnover, includes brands like Kwality Walls, Magnum, and Cornetto.
HUL, while logging an Ebitda margin of 23.8%, reported a 2% climb in underlying sales and a 3% increase in underlying volume growth in the September quarter.
However, the slip in net profit was primarily due to the absence of a one-off indirect tax credit that had boosted both topline and bottomline in the corresponding period last year, according to the company's management.
Sharing the segment-wise performance, the management said home care business grew by 8%, supported by volume gains in fabric wash and household care. Similarly, beauty and wellbeing segment registered a 7% growth in revenue, led by higher sales in hair care and the premium skin portfolio.
The personal care segment, however, clocked a 5% decline due to pricing actions, it said. The foods and refreshment segment also reported a 2% drop in revenue, according to the management.
Apart from releasing the September quarter financial results, HUL's board on Wednesday also declared an interim dividend of Rs 19 per share and a special dividend of Rs 10 per share. This will result in a total dividend payout of Rs 6,814 crore.
Shares of HUL closed 0.9% lower at Rs 2,658 apiece on the BSE, compared to a 0.17% decline in the benchmark Sensex.
Also Read: HUL Forays Into Health & Wellbeing
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