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HUL’s Foods segment recorded flat USG, with mid-single-digit price growth countered by a decline in volume
Hindustan Unilever Limited (HUL) reported an Underlying Sales Growth (USG) of 2 per cent and a flat Underlying Volume Growth (UVG) for the December Quarter of 2024 (DQ’24). While the company’s absolute volume grew competitively, a negative product mix offset the gains. Despite this, HUL maintained a healthy EBITDA margin of 23.5 per cent, and Profit After Tax (PAT) surged by 19 per cent year-on-year to Rs 3,001 crores, primarily due to profits from the divestment of its ‘Pureit’ business. However, Profit After Tax before exceptional items (PAT bei) remained flat.
HUL’s Foods segment recorded flat USG, with mid-single-digit price growth countered by a decline in volume. The tea segment achieved low-single-digit growth, primarily driven by premium brands such as 3 Roses and Taj Mahal, maintaining its market leadership in both value and volume. Coffee delivered strong double-digit growth, boosted by organised trade performance. Nutrition drinks upheld their market leadership despite a category-wide consumption slowdown. The company implemented pricing adjustments to boost consumption in this segment.
Packaged Foods saw mid-single-digit growth, led by robust performances in future core and market maker categories. Products such as Ketchup, Mayonnaise, Food Solutions, International Sauces, and Cuisines continued to deliver strong volume performance. Ice cream revenue remained flat year-on-year. During the quarter, HUL introduced a new flavour of Knorr’s Korean Noodles and expanded Horlicks Strength Plus across India.
HUL’s overall turnover stood at Rs 45,680 crores, reflecting a 2 per cent increase driven by UVG. EBITDA margin came in at 23.7 per cent, declining by 30 basis points. While net profit saw a 6 per cent increase, PAT before exceptional items remained unchanged.
Rohit Jawa, CEO and Managing Director of HUL, acknowledged the subdued FMCG demand trends, pointing out that urban growth continued to moderate while rural areas sustained their gradual recovery.
“In this operating context, we delivered competitive growth by driving unmissable brand superiority, investing behind brands and capabilities whilst maintaining healthy margins,” Jawa stated.
Furthering its strategic ambition of expanding in fast-growing categories, HUL announced the acquisition of Minimalist, a premium actives-led beauty brand. This move aligns with the company’s focus on strengthening its Beauty & Wellbeing portfolio, particularly in the high-growth masstige beauty segment.
With this latest acquisition and steady financial performance, HUL continues to navigate market challenges while positioning itself for future growth in emerging consumer trends.