Hindustan Unilever (HUL) reported a 19% YoY rise in Q3FY25 net profit to ₹2,984 crore, with a 1.7% increase in total income. The company also announced the demerger of Kwality Walls and plans to acquire a majority stake in Minimalist.
Hindustan Unilever Limited (HUL), one of India’s leading fast-moving consumer goods (FMCG) companies, reported a strong financial performance for the third quarter of fiscal year 2024-25 (Q3FY25). The company saw a 19% year-on-year increase in net profit, totaling ₹2,984 crore, up from ₹2,509 crore in Q3FY24. The growth in profit was attributed to the robust performance across various segments, despite a marginal rise of 1.7% in total income to ₹16,050 crore.
HUL, a subsidiary of Unilever, is a major player in the FMCG sector, with a diversified portfolio that includes well-known brands in home care, personal care, and food & beverages. The company’s strong market position and innovation in product offerings have helped it maintain a consistent growth trajectory.
The company also reported a slight sequential increase of 15.2% in net profit from ₹2,594 crore in the previous quarter (Q2FY25). However, its total income for the quarter showed a minor decline of nearly 1% from the preceding quarter.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at ₹3,695 crore, marking a year-on-year increase of 0.8%. The EBITDA margin for the quarter was recorded at 23.7%, reflecting a slight drop of 30 basis points from Q3FY24.
Segment-wise Performance
HUL’s home care division reported a strong performance with a 6% increase in sales, driven by a high-single-digit growth in volume for both fabric wash and household care. The fabric wash category performed well, particularly with double-digit growth in the liquids range. Additionally, HUL reintroduced Rin bar with advanced technology, and Comfort was relaunched to boost its brand presence.
The beauty and wellbeing segment saw a 1% growth in sales, despite a slight decline in volumes. The hair care subcategory saw mid-single-digit growth, driven by the strong performance of brands like Dove, Tresemme, and Clinic Plus.
Personal care sales, however, saw a 4% drop, with a mid-single-digit volume decline. HUL noted that its strategic measures in skin cleansing resulted in market share gains, while the body wash segment continued to show significant double-digit growth.
Demerger and Acquisition Plans
In a major strategic move, HUL’s board approved the demerger of Kwality Walls, its ice cream business. Following the demerger, Kwality Walls will be a separately listed entity on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Shareholders of HUL will receive one share in Kwality Walls for every HUL share they own. This decision is expected to give Kwality Walls the flexibility to focus on its distinctive business model and expand in the competitive ice cream market.
In another significant development, HUL also announced plans to acquire a 90.5% stake in Minimalist, a skincare company, for a pre-money enterprise value of ₹2,955 crore. This acquisition will further strengthen HUL’s presence in the premium skincare segment.
Additionally, HUL’s board approved the acquisition of Vishwatej Oil Industries’ palm venture, aligning with its strategy to increase domestic oilseed production and reduce import dependence.
With these strategic moves, HUL aims to continue its growth while focusing on key areas such as innovation, strategic acquisitions, and expanding its footprint in the Indian market.
HUL’s Q3FY25 results highlight its resilience in a competitive FMCG landscape, driven by a strong portfolio, innovation, and strategic initiatives. The company’s plans to demerge Kwality Walls and acquire Minimalist position it well for future growth in the rapidly expanding FMCG sector in India.
