HUL reports 2.7% profit rise in Q1FY25

24 Jul 2024 , 08:34 AM

Hindustan Unilever Ltd (HUL) announced its April-June quarter results for fiscal 2023-24 (Q1FY25) on Tuesday, July 23. The company reported a 2.7% rise in standalone net profit, reaching ₹2,538 Crore, compared to ₹2,472 Crore in the corresponding period last year.

Revenue from operations in the first quarter of the current fiscal year increased by 1.3%, amounting to ₹15,399 Crore, up from ₹15,148 Crore in the year-ago period. Total expenses for the June quarter FY25 rose by 1.8% year-on-year, reaching ₹12,385 Crore. The company’s total income increased by 1.81%, reaching ₹15,964 Crore.

On the operational front, HUL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the June quarter rose by 2.4%, amounting to ₹3,606 Crore compared to ₹3,521 Crore in the same period last year.

The EBITDA margin improved by 30 basis points (bps) to 23.5%, compared to 23.2% in the year-ago period. In the last one year, shares of Hindustan Unilever Ltd (HUL) witnessed a 7% gain, and 4% gain since the beginning of the year.

HUL reported an underlying volume growth of 4% in the June quarter, an improvement from the 2% growth reported in the previous three quarters. The company had reported a 3% volume growth in the April-June quarter of the last fiscal year.

The recovery in rural India significantly contributed to the revival of demand for HUL’s core business, including products like Dove shampoo.

As of the March quarter, urban sales accounted for 60% of HUL’s total sales, with rural sales contributing the remaining 40%.

Consumer goods sales began to rise in the three months ending March, with rural growth outpacing urban growth for the first time in five quarters.

Easing commodity prices have supported volume growth for branded consumer goods companies in India.

Hindustan Unilever Limited (HUL) is a British-owned Indian final goods company headquartered in Mumbai. It is a subsidiary of the British company Unilever.

HUL’s product portfolio includes foods, beverages, cleaning agents, personal care products, water purifiers, and other fast-moving consumer goods.

HUL was established in 1931 as Hindustan Vanaspati Manufacturing Co. Following a merger of constituent groups in 1956, it was renamed Hindustan Lever Limited, and in June 2007, it was renamed Hindustan Unilever Limited.