Hindustan Unilever Limited, a household goods maker, saw its consolidated net profit rise by 19.18 per cent to Rs 2,989 crore in the December quarter of the current financial year. Hindustan Unilever Limited (HUL) said in a stock exchange filing on Wednesday that the company’s consolidated net profit in the same quarter of the last financial year was Rs 2,508 crore. The company’s consolidated total income in the October-December 2024 quarter stood at Rs 16,050 crore compared to Rs 15,781 crore in the same quarter of the previous financial year. The company’s total expenses increased to Rs 12,576 crore in the December quarter compared to Rs 12,305 crore in the same quarter of the last financial year.
Profit before exceptional items and tax remained flat at Rs 3,475 crore in the December quarter of FY25. However, extraordinary income of Rs 507 crore in the quarter, compared to extraordinary loss of Rs 30 crore in the year-ago period, boosted net profit. Its net profit stood at Rs 2,998 crore in the quarter ended December, compared with Rs 2,501 crore in the year-ago period, while its underlying volume growth remained flat in the quarter. The FMCG major’s revenue rose 1.6 per cent year-on-year to Rs 15,818 crore.
HUL CEO and Managing Director Rohit Java “FMCG demand trends remained subdued with continued moderation in urban growth, while rural areas witnessed a gradual recovery,” it said. “In this operating context, we drove competitive growth while maintaining healthy margins while maintaining brand superiority, investing in brands and capabilities.”
HUL also announced that it has signed a definitive agreement to acquire premium actives-led beauty brand Minimalist. He said, “In line with our strategic intent to transform our portfolio across fast-growing sectors, I am excited to announce the acquisition of premium actives-led beauty brand Minimalist. “This acquisition is another important step towards enhancing our beauty and wellness portfolio in the high-growth Mystique Beauty segment.”
Jawa said in the results announcement that HUL is making progress towards meeting the aspirations of One Billion by contemporizing its core business, driving premiumization through its future core business and initiating market-building in new demand areas. Is continuing.
The company’s PBIDT (profit before interest, depreciation and tax) rose 1.3 per cent to Rs 3,928 crore in the October-December quarter. While advertising and promotion expenses declined 7.3 per cent year-on-year to Rs 1,507 crore from Rs 1,626 crore in the year-ago period. Sequentially, HUL’s revenue was down 0.7 per cent and its net profit rose 15.7 per cent.
“While we keep a close eye on the pace of recovery and the macroeconomic outlook in the near term, we remain confident of the medium to long-term opportunities in the Indian FMCG sector and HUL’s ability to grow competitively,” Java said.
The Board of Directors of HUL has also approved the plan of arrangement between HUL and its wholly owned subsidiary Quality Walls (India) (KWIL) for demerger of HUL’s ice cream business into KWIL.
It has also approved the acquisition of Vishvatej Oil Industries’ palm venture as a part of its palm localization strategy. The palm venture is located in Kamareddy district of Telangana, the release said.
HUL also announced that it has signed a definitive agreement to acquire premium actives-led beauty brand Minimalist.
While releasing its quarterly results, Hindustan Unilever has also announced the acquisition of popular skincare brand Minimalist. On this announcement from HUL Board, CEO Rohit Java said that the company also announced that it has signed a definitive agreement to acquire premium actives-led beauty brand Minimalist. “In line with our strategic intent to transform our portfolio into fast-growing sectors, I am excited to announce the acquisition of premium actives-led beauty brand Minimalist. “This acquisition is another important step towards enhancing our beauty and wellness portfolio in the high-growth Mystique Beauty segment.”
Business Standard had told in its earlier report on this that Hindustan Unilever (HUL) is going to make a big deal soon. Quoting sources, it is reported that the company is planning to buy the popular skincare brand Minimalist. This deal can be finalized at a huge valuation of around Rs 3,000 crore. The minimalist brand was launched in 2020 and is known for its unique ingredient-based products. It had raised initial funding from Unilever Ventures and Sequoia Capital India (now Peak XV Partners). Then a HUL spokesperson said, “We are always keeping an eye on new opportunities and will provide necessary information when the time comes.”
Business Standard had already told in its report when the deal will be finalized. According to sources, HUL can finalize this deal in this quarter. The company is preparing to take majority stake in Minimalist. Interestingly, the brand’s founders, Mohit Yadav and Rahul Yadav, may retain some stake even after the deal.
The business of Minimalist has grown spectacularly. Its revenue in FY24 stood at Rs 347.4 crore, which is almost double from Rs 183.8 crore in FY23. Profit has also doubled to Rs 10.8 crore. HUL CEO Rohit Java had already said that the beauty and wellness segment is the company’s priority. The company had invested in brands like OZiva and Wellbeing Nutrition in 2022. Java also said that the light moisturizer category is growing rapidly as customers now expect more than basic moisturization. He also said that HUL has shown good growth in channels related to e-commerce and beauty.
Along with the announcement of HUL’s Q3 results, the company also informed that the Board of Directors of HUL has approved the demerger of the ice cream business of HUL into KWIL between HUL and its wholly owned subsidiary Quality Walls (India) (KWIL). The arrangement plan has also been approved.
Business Standard had reported in its earlier report that the decision to form a separate company will be taken only after the approval of the board and shareholders. This plan will be placed before the Board of Directors in the beginning of next year i.e. January 2025.
Hindustan Unilever announced plans to demerge its ice cream business in October 2024, saying an independent valuation has been conducted to ensure a fair view. HUL’s ice cream business includes brands like Kwality Walls, Cornetto and Magnum. The board of directors of HUL in its meeting held in October 2024 decided to demerge the ice cream business. The move is based on the recommendation of an independent committee that was formed in September this year.
The committee had said that the ice cream business, which contributes three per cent of the company’s turnover, has a separate operating model which limits synergy with other businesses of the company. This model includes a cold storage structure and a discrete channel scenario.
There was a decline in the cumulative net profit of the country’s largest FMCG company Hindustan Unilever (HUL) for the fourth quarter of FY 2024. The company’s net profit declined by 1.6 percent to Rs 2,558 crore in the January-March quarter of FY 2024, which was Rs 2,600 crore in the same quarter of the previous financial year. HUL’s revenue grew just 0.6 per cent at Rs 15,041 crore in Q4FY24, while sales saw only 2 per cent growth year-on-year.
Compared to the third quarter of fiscal year 2024, revenue declined by 1.7 percent in the fourth quarter, while net profit increased by 2 percent. HUL’s total expenses increased by 1.15 per cent to Rs 12,100 crore in the fourth quarter of FY 2024, from Rs 11,962 crore in the same quarter of the previous financial year. HUL’s gross margin improved by 350 basis points in the March quarter of FY24, and the company’s advertising and promotion spend increased by 200 basis points.
The consolidated net profit of the company for the entire FY 2024 was Rs 10,277 crore, which was Rs 10,120 crore in FY 2023. The total income of the company was Rs 62,707 crore in the last financial year, which was Rs 61,092 crore a year earlier in 2022-23.