FMCG giant Hindustan Unilever announced a 3.17 per cent decline in its consolidated net profit for the June quarter, reaching Rs 2,680 crore, even as the company achieved its highest sales growth in 13 quarters with revenue surging 10.26 per cent to Rs 17,149 crore.
Key Points
- Hindustan Unilever Ltd (HUL) reported a 3.17 per cent year-on-year decline in consolidated net profit, reaching Rs 2,680 crore for the June quarter.
- Despite the profit dip, HUL's revenue from product sales increased by 10.26 per cent to Rs 17,149 crore, achieving its highest growth in 13 quarters.
- The company's EBITDA margin remained stable at 23 per cent, with EBITDA increasing 8 per cent year-on-year to Rs 3,947 crore.
- CEO Priya Nair noted a stable underlying demand environment, attributing performance to strong brands and disciplined execution.
- HUL's total expenses for the quarter rose 10 per cent year-on-year to Rs 13,822 crore.
FMCG major Hindustan Unilever Ltd (HUL) on Tuesday reported a 3.17 per cent year-on-year decline in consolidated net profit to Rs 2,680 crore for the June quarter.
The company had logged a net profit of Rs 2,768 crore in the April-June quarter a year ago, according to a regulatory filing from HUL.
Sales Performance and Growth Drivers
Revenue from the sale of products rose 10.26 per cent to Rs 17,149 crore in the June quarter of FY27, compared with Rs 15,552 crore in the corresponding quarter a year ago.
This was its "highest growth in 13 quarters, with USG (Underlying Sales Growth) of 10 per cent," said HUL in its earnings statement.
Its EBITDA margin stood at 23 per cent in the June quarter, remaining within the guided range despite a volatile operating environment, the company said.
Its EBITDA increased 8 per cent year-on-year to Rs 3,947 crore, HUL said.
Financial Overview and Outlook
HUL's total expenses for the quarter rose 10 per cent year-on-year to Rs 13,822 crore. Total income, including other income, increased 9.84 per cent to Rs 17,529 crore.
Commenting on the results, CEO and managing director Priya Nair said, "The underlying demand environment remained stable during the quarter.
"Against this backdrop, HUL delivered a turnover of Rs 17,184 crore and 10 per cent USG, driven equally by volume and price."
The performance reflects the strength of HUL brands, increasing competitiveness of its portfolio, and disciplined execution of strategic priorities, she added.
"While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth," she said.
Shares of HUL were trading at Rs 2,101.75 apiece on the BSE during early morning trade on Tuesday, down 3.36 per cent.
