HUL Q2 Net profit falls 2.44% to ₹2,591 crore

Board declares interim dividend of ₹19, special dividend of ₹10 per share

In the context of moderating growth in urban India, Hindustan Unilever Ltd., for the second quarter ended September 30, reported 2.44% decline in net profit to ₹2,591 crore as compared with ₹2,656 crore in the year ago period.

The company’s sales income for the quarter at ₹15,703 crore grew 2.36% over ₹15,340 crore in the same period last year. In the quarter HUL reported an Underlying Sales Growth (USG) of 2% and Underlying Volume Growth (UVG) of 3%, the company said.

The board has declared an interim dividend of ₹19 per share for year ending March 31. The board has also declared a special dividend of ₹10 per share resulting in a total dividend payout of ₹6,814 crore, the company said in a filing.

Rohit Jawa, CEO and Managing Director, HUL said, “In September quarter, FMCG demand witnessed moderating growth in urban markets while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders.”

“We remain watchful of gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigour,” he added.

In the base quarter, there was a one-off indirect tax credit from a favourable resolution of past litigation which benefited both top-line and bottom-line in the Beauty and Wellbeing segment.

During the quarter Home Care segment grew 8% with high-single digit UVG. Beauty and Wellbeing grew 7% (1% reported) with mid-single digit UVG. Personal Care declined 5% with negative pricing and low-single digit volume decline and, Foods and Refreshment segment declined 2% with a low-single digit volume decline. 

The board also announced its decision to separate the Ice cream business. “This portfolio restructuring will enable HUL to sharpen focus on the core business and further strengthen its play in trending demand spaces such as Beauty, Foods, Health and Wellbeing,” the company said.

“It will also enable the ice cream business to operate with greater flexibility and focus. With the aim of maximising value for all shareholders, the board, based on the recommendations of the Independent Committee, will determine the mode of separation by the end of this year,” it added.

Published - October 24, 2024 12:58 am IST