Beauty and wellbeing has delivered 6 per cent Underlying Sales Growth (USG), with low-single digit Underlying Volume Growth (UVG)
FMCG major Hindustan Unilever has reported a 121 per cent year-on-year (YoY) rise in its consolidated net profit in third quarter of the current financial year. The company’s net profit attributable to the owners of the holding company rose to Rs 6,607 crore from Rs 2,984 crore in Q3FY25.
The financial results of the company showed that HUL reported a consolidated revenue growth of 6 per cent in the December quarter. With a turnover of Rs 16,235 crore, the company delivered 5 per cent Underlying Sales Growth (USG), led by 4 per cent Underlying Volume Growth (UVG). Ebitda at Rs 3,788 crore grew 3 per cent year-on-year while Ebitda margin at 23.3 per cent remained within the guided range.
“During the quarter, demand trends reflected early signs of recovery, underpinned by supportive policy measures. We continued to build desirability at scale with our brands, accelerate market development in high-growth demand spaces and strengthen our capabilities to scale channels of the future with a dedicated organisation for quick commerce. As market leaders in FMCG, our commitment to build modern brands, lead category creation and invest disproportionately to build future moats, places us in good stead to deliver sustained volume-led growth and create long-term shareholder value,” stated Priya Nair, Chief Executive Officer (CEO) and Managing Director, HUL.
Reported net profit at Rs 6,603 crore grew by 121 per cent year-on-year primarily driven by one-off positive impact arising from ice cream demerger accounted for in accordance with the approved scheme of demerger and applicable accounting standards. Excluding exceptional items, profit after tax at Rs 2,562 crore grew by 1 per cent.
Home Care, Beauty And Wellbeing
Home care reported 3 per cent USG with mid-single digit UVG. The category continued to witness negative price impact due to pricing actions taken during the year. While fabric wash delivered mid-single digit UVG, liquids portfolio accelerated its growth momentum and grew double-digit. Household care strengthened its double-digit UVG trend led by Vim liquid.
“During the quarter, we intensified our market-development efforts to drive penetration and consumer upgradation to premium powders by sharpening focus on the Rs 99 Surf excel Easy Wash pack,” the company said in an exchange filing.
Beauty and wellbeing delivered 6 per cent USG with low-single digit UVG. Hair care reported volume-led double-digit growth and continued to strengthen its leadership position in the quarter. Growth was driven by outperformance in premium brands, Dove and Tresemmé. Skin care and colour cosmetics saw a strong performance in light moisturisers and winter portfolio offset by subdued performance in the non-winter portfolio.
Health and wellbeing recorded another quarter of robust performance, with high double-digit growth. “This quarter, we continued to build desire at scale through the launch of Tresemmé hydra matrix, powered by category-defining hydration technology. Further, Minimalist expanded its skin and face portfolio with science-backed toners and serums for barrier support and advanced anti-ageing results, respectively,” the company added.
Personal Care And Foods Segment
Personal care grew 6 per cent. Skin cleansing delivered mid-single digit growth, driven by strong double-digit growth in Pears and Dove. Bodywash portfolio continued to outperform and further strengthened its market leadership. Oral care posted doubledigit growth led by outperformance in Closeup.
Foods delivered 6 per cent USG led by high-single digit UVG. Tea delivered mid-single digit UVG, while revenue recorded low-single digit growth, reflecting the impact of price reductions taken in a deflationary commodity environment. Coffee continued its strong double-digit growth momentum supported by both price and volume.
Lifestyle Nutrition grew in high-single digit driven by both Boost and Horlicks. Packaged foods reported high-single digit growth led by volumes. The performance was broadbased across Ketchup, Mayonnaise, Soups and Unilever Foods Solutions. “We further enhanced Horlicks’ desirability by introducing Horlicks Superfoods, enriched with superfood ingredients and powered by Nutrimax technology for superior nutrient-absorption, while also introducing a zero added sugar variant,” the company pointed out.
