HUL Q3 results: Net profit flat at Rs 2,519 crore, revenue falls marginally, misses estimates

HUL announces their Q3FY24 results.

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26 Aug, 2025 12:21

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Hindustan Unilever Limited (HUL) on January 19 reported a standalone net profit of Rs 2,519 crore for the December quarter of FY24, registering an increase of just 0.55 percent from Rs 2,505 crore in the same quarter of the previous financial year.

The net profit came below Street estimates. According to a poll of six brokerages, HUL’s Q3 net profit was likely to be at Rs  2,678 crore.

Further, the company reported a 7.28 percent fall in profit sequentially from Rs 2717 crore in the previous quarter.

The total revenue of the company is Rs 14,928 crore, falling 0.38 percent from Rs 14,986 crore in the year-ago quarter, the FMCG major said in a regulatory filing. It reported 0.6 percent fall in revenue sequentially from Rs 15,027 crore in the previous quarter.

"Looking forward we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery." said Rohit Jawa, CEO.

"In this context, our focus remains on driving competitive volume growth whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges." he added.

EBITDA margins improved by 10 basis points year-on-year to 23.7 percent. The Gross Margin and Advertising & Promotion (A&P) investments rose by 400 basis points and 270 basis points, respectively, compared to the previous quarter. The company saw an underlying volume growth (UVG) at 2 percent.

There was a slight decrease in revenue for Home Care during the quarter, accompanied by mid-single digit UVG. However, when assessed on a 2-year CAGR basis, the business exhibited robust double-digit growth of 14 percent with high single digit UVG. Fabric Wash volumes experienced mid-single digit YoY growth, primarily due to the strong performance in the premium portfolio. Household care volumes also increased in the low single digit, primarily driven by Dishwash.

Revenue in Beauty & Personal Care remained steady, marked by mid-single digit UVG. The decline in Skin Cleansing revenue was attributed to price reductions aimed at passing on the benefits of lower commodity costs to consumers. Market development efforts in body wash proved successful. Skin Care performance was affected by a delayed winter in the quarter, but the premium non-winter portfolio maintained strong performance. Hair Care achieved double-digit growth driven by volume, showcasing widespread success across brands, and future formats gaining traction. Oral Care experienced mid-single digit growth, primarily led by Closeup. Notable launches in the quarter included Glow & Lovely Powder finish crème, Simple's new active skin barrier care range, Sunsilk hair serums, Close-up naturals range, and Lakme’s lineup of makeup products.

Foods & Refreshment revenue increased by 1 percent. Tea maintained its strong position in both value and volume markets, with Green Tea and flavored tea showing notable performance. Coffee achieved double-digit growth, primarily due to pricing strategies. Health Food Drinks experienced modest price-driven growth, led by the Plus range. Strong growth was observed in Foods Solutions, Mayonnaise, and Peanut Butter. Ice Cream achieved mid-single digit growth, albeit on a high base. Notable launches in the quarter included Knorr Korean K-Pot noodles and Bru Gold in Vanilla, Caramel, and Hazelnut flavors.

Meanwhile, shares of HUL on January 19 closed 0.78 percent higher at Rs 2567.8 apiece on the National Stock Exchange ahead of the earnings.