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Hindustan Unilever Limited (HUL) announced its financial results for Q3 FY24-25 on January 22, 2025. The unaudited consolidated financial results, approved by the Board of Directors, highlight a revenue growth of 2.7% year-on-year (YoY), reaching ₹15,559 crore. Net profit for the quarter stood at ₹2,989 crore, reflecting a significant 19.2% YoY increase. The company maintained its strong market position across segments despite inflationary pressures.
Revenue Growth: Total income increased by 2.7% YoY to ₹15,559 crore in Q3 FY24-25.
Net Profit: Rose to ₹2,989 crore, up 19.2% YoY from ₹2,508 crore in Q3 FY23-24.
Home Care Revenue: ₹5,739 crore, growing by 5.4% YoY.
Beauty & Wellbeing Revenue: ₹3,556 crore, up by 2.6% YoY.
Foods & Refreshments Revenue: ₹3,745 crore, marginally up by 0.3% YoY.
Earnings Per Share (EPS): ₹12.70 compared to ₹10.68 in Q3 FY23-24.
The quarterly results demonstrate steady growth across key financial metrics, with a focus on premiumisation, cost efficiency, and innovation. Revenue reached ₹15,559 crore, while total expenses were ₹12,576 crore. Profit before tax stood at ₹3,982 crore, reflecting resilience amidst macroeconomic challenges.
Home Care:
Revenue: ₹5,739 crore (+5.4% YoY).
Growth driven by strong demand for cleaning products.
Beauty & Wellbeing:
Revenue: ₹3,556 crore (+2.6% YoY).
Supported by increased market penetration and innovative offerings.
Foods & Refreshments:
Revenue: ₹3,745 crore (+0.3% YoY).
Maintained steady demand across product categories.
Others (Exports and Miscellaneous):
Revenue: ₹535 crore, showcasing stable performance.
HUL's performance is consistent with the FMCG sector's expectations, which forecasted a revenue growth of 2-4% for the quarter. Key trends influencing the sector include:
Rural Market Recovery: Rural demand showed signs of improvement, benefiting revenue.
Premiumisation: HUL capitalised on premium product offerings to drive growth.
Cost Management: Stable input costs helped offset inflationary pressures.
The company shared its focus on localisation, sustainability, and premiumisation as drivers for long-term growth. HUL’s palm localisation strategy further reinforces its commitment to enhancing supply chain resilience and contributing to India's National Mission on Edible Oils.
Particulars | Quarter Ended 31st Dec 2024 (Unaudited) | Quarter Ended 31st Dec 2023 (Unaudited) | Nine Months Ended 31st Dec 2024 (Unaudited) | Nine Months Ended 31st Dec 2023 (Unaudited) | Year Ended 31st Mar 2024 (Audited) |
Revenue from Operations | 15,559 | 15,259 | 46,759 | 45,839 | 60,852 |
- Sale of Products | 15,703 | 15,259 | 60,852 | 45,839 | 60,852 |
- Sale of Services | 31 | 35 | 83 | 86 | 114 |
- Other Operating Revenue | 228 | 273 | 609 | 761 | 930 |
Other Income | 232 | 214 | 708 | 580 | 811 |
Total Income | 16,050 | 15,781 | 48,159 | 47,266 | 62,707 |
Expenses | |||||
- Cost of Materials Consumed | 4,749 | 5,027 | 14,628 | 14,646 | 19,257 |
- Purchases of Stock-in-Trade | 2,829 | 2,667 | 8,471 | 7,946 | 10,514 |
- Changes in Inventories of Finished Goods, Work-in-Progress, and Stock-in-Trade | 123 | (215) | (144) | (89) | (11) |
- Employee Benefits Expense | 743 | 706 | 2,221 | 2,177 | 3,009 |
- Finance Costs | 112 | 91 | 315 | 229 | 334 |
- Depreciation and Amortisation Expense | 341 | 313 | 1,008 | 896 | 1,216 |
- Advertising and Promotion | 1,507 | 1,626 | 4,689 | 4,873 | 6,489 |
- Other Expenses | 2,172 | 2,090 | 6,354 | 6,005 | 7,975 |
Total Expenses | 12,576 | 12,305 | 37,542 | 36,683 | 48,783 |
Profit Before Exceptional Items and Tax | 3,474 | 3,476 | 10,617 | 10,583 | 13,924 |
- Share of Profit/(Loss) of Equity Accounted Investee, Net of Tax | 1 | (1) | (7) | (4) | (4) |
Profit Before Exceptional Items and Tax | 3,475 | 3,475 | 10,610 | 10,579 | 13,920 |
- Exceptional Items [Net Credit/(Charge)] | 507 | (30) | 443 | (72) | 6 |
Profit Before Tax | 3,982 | 3,445 | 11,053 | 10,507 | 13,926 |
Tax Expenses | |||||
- Current Tax | (978) | (898) | (2,771) | (2,651) | (3,521) |
- Deferred Tax | (15) | (39) | (86) | (135) | (123) |
Profit for the Period (A) | 2,989 | 2,508 | 8,196 | 7,721 | 10,282 |
Other Comprehensive Income (B) | |||||
- Fair Value of Cash Flow Hedges | 11 | (9) | 3 | (5) | (1) |
- Tax on Above | (2) | 1 | (0) | (1) | (3) |
Other Comprehensive Income for the Period (B) | 9 | (7) | 3 | 10 | 25 |
Total Comprehensive Income for the Period (A+B) | 2,998 | 2,501 | 8,199 | 7,731 | 10,307 |
Source: Hindustan Unilever Limited Q3 Financial Results FY’24-25 Submitted on BSE
Hindustan Unilever Ltd (HUL) is scheduled to release its Q3FY25 results today, 22 January 2025, after 6 PM. HUL is expected to report muted growth for Q3 FY25, with a 2% YoY revenue increase and a modest 3% YoY rise in profit after tax (PAT). Volume growth is forecasted at 1%, possibly impacted by price hikes in soaps and tea. Analysts expect urban demand to remain weak, while rural demand shows signs of gradual improvement.
Revenue Growth: Estimated at 2% YoY
Profit After Tax (PAT): Projected to rise by 3% YoY
Volume Growth: Expected to remain at 1%
Gross Margin: Likely to contract by ~115 bps YoY to 50.3%
EBITDA Margin: Expected to stabilise around 23%
Health and Hygiene: Growth estimated at 3.5% YoY
Beauty and Personal Care: Expected to grow by 2.75% YoY
Food and Refreshments: Estimated to grow by 2% YoY
The estimates are based on analyst insights from The Economic Times.
Earnings Announcement
Hindustan Unilever Ltd (HUL) is scheduled to release its Q3FY25 results today, 22 January 2025, after 6 PM. Analysts anticipate muted growth amid challenging market conditions. Revenue may grow by around 2% year-on-year (YoY), while profit after tax (PAT) could rise by a modest 3% YoY. Underlying volume growth is estimated to remain at 1%, potentially impacted by price hikes in soaps and tea.
Urban Demand Weakness: Urban markets may continue to face pressure, although rural demand appears to be gradually improving.
Price Adjustments: Modest price hikes in key categories might dampen overall volume growth.
Adverse Product Mix: A shift towards smaller pack sizes and subdued seasonal demand could limit revenue growth.
Higher Input Costs: Increases in palm oil and agricultural commodity prices may weigh on margins.
Health and Hygiene: Growth may reach 3.5% YoY.
Beauty and Personal Care: Expected to grow by 2.75% YoY.
Food and Refreshments: Revenue might rise by around 2% YoY.
Gross margins may contract by approximately 115 basis points YoY to 50.3%.
EBITDA margins are expected to stabilise around 23%, aided by cost-saving measures.
Key areas of investor focus include:
Consumer response to reformulated Lux and Lifebuoy products.
Updates on rural vs urban demand trends.
Insights into competitive positioning and future strategies.
HUL’s Q3 results are expected to reflect the challenges of weak urban demand and rising costs. Investors will be keen on management’s commentary regarding market recovery and margin outlook for the coming quarters.
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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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