HUL Reports 19% Profit Growth in Q3, Purchases 90.5% Stake in Minimalist for Rs 2,955 Cr
Click to start listening
Synopsis
Hindustan Unilever Ltd (HUL) has announced a 19% rise in net profit for Q3 FY, reaching Rs 3,001 crore. The company also acquired a 90.5% stake in Minimalist for Rs 2,955 crore, as part of a strategic long-term growth plan.
Key Takeaways
- 19% increase in net profit
- Acquisition of 90.5% stake in Minimalist
- Profit before tax excluding exceptional items rose 16%
- Revenue growth of 2% in Q3
- Operating profit increased 1% year-on-year
New Delhi, Jan 22 (NationPress) Hindustan Unilever Ltd (HUL) reported a 19 percent surge in its net profit for the third quarter of this fiscal year, reaching Rs 3,001 crore, up from Rs 2,519 crore during the same period last year.
The nation's leading FMCG company also unveiled its acquisition of a 90.5 percent share in the direct-to-consumer (D2C) beauty brand Minimalist for Rs 2,955 crore, with plans to purchase the remaining 9.5 percent stake from its founders, Rahul and Mohit Yadav, within a two-year timeframe.
The substantial profit growth in Q3 was primarily attributed to a one-time gain of Rs 509 crore from the divestment of the company’s Pureit business. Excluding this exceptional gain, the profit before tax (PBT) rose 16 percent to Rs 3,978 crore, as stated in the company’s exchange filing.
Rohit Jawa, CEO and Managing Director of HUL, explained, “The acquisition of Minimalist and the demerger of the ice cream division are integral to our long-term growth strategy within the Indian FMCG landscape.”
Nonetheless, the profit after tax, excluding exceptional items, remained stagnant during Q3 at Rs 2,540 crore compared to the previous year.
HUL’s revenue for the third quarter climbed by 2 percent, totaling Rs 15,195 crore. The home care segment witnessed a 6 percent increase in underlying sales growth.
According to Jawa, trends in FMCG demand have remained subdued, with urban growth continuing to moderate while rural markets are gradually recovering.
“In this operational landscape, we achieved competitive growth by enhancing brand superiority, investing in brand capabilities, and maintaining healthy profit margins,” he remarked.
Categories such as fabric wash and household care were the driving forces behind volume growth in this sector. However, the overall volume growth for HUL was flat due to an unfavorable product mix.
Operating profit experienced a modest year-on-year increase of 1 percent to Rs 3,570 crore, yet the company’s margins fell by 20 basis points to 23.5 percent.
On Wednesday, HUL's shares closed at Rs 2,340 on the NSE, reflecting a slight decline.
na
