HUL Posts Strongest Quarterly Growth in Over 3 Years

Hindustan Unilever Ltd. (HUL) delivered its best quarterly performance in more than three years with underlying sales growth (USG) of 10% in the June quarter on the back of steady consumer demand, premiumisation and pricing gains across key categories.

FMCG giant reported revenue of ₹17,184 crore, up 10% YoY, with underlying volume growth (UVG) at 5%, one of the best volume performances by the company in recent quarters. EBITDA grew 8% to ₹3,947 crore with margins in the company’s guided range at 23%.

Profit after tax before exceptional items increased 9% YoY to ₹2,731 crore.  Reported profit after tax was down 2% at ₹2,680 crore, on account of a one-time tax credit booked in the same quarter last year.

The results mark HUL’s best quarterly growth in 13 quarters, indicating a slow recovery in consumer demand after a long period of muted growth across India’s FMCG industry.

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Home Care drives growth:

Home Care was the company’s best performing business, with 14% underlying sales growth, its best for three years. This segment was driven by high single digit volume growth as well as double digit growth in both Fabric Wash and Household Care.

Continued investments in market development and product innovation helped strengthen our leadership position and Vim Liquids continued to post strong double digit growth," HUL said.

Premium portfolio gains momentum:

Beauty & Wellbeing business was up 12% driven by premium skincare and premium haircare products.

Minimalist, acquired by HUL last year, continued to witness double digit growth in the quarter. The company also added to its premium portfolio with new launches under Liquid I.V. and Vaseline.

In the meantime, the Personal Care segment grew 4%, primarily driven by pricing, as higher palm oil costs continued to impact the category. Premium soap bars and Bodywash continued to show healthy momentum, and Oral Care delivered mid-single digit growth driven by innovations across Closeup and Pepsodent.

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Foods business remains resilient:

HUL's Foods business reported 7% growth, helped by strong demand in coffee and lifestyle nutrition.

Coffee recorded double-digit volume-led growth, while Lifestyle Nutrition continued to perform well. The company also announced that Boost has crossed the ₹1,000 crore annual turnover milestone, highlighting the growing scale of its nutrition portfolio.

Management remains optimistic:

Commenting on the results, Priya Nair, CEO and Managing Director said, “India’s economy has remained resilient in the face of global geopolitical uncertainty supported by fiscal and monetary policy measures. The performance is a reflection of the strength of our brands, increasing competitiveness of our portfolio and disciplined execution of our strategic priorities.”

Nair said investments in market development, distribution expansion and portfolio transformation continue to strengthen the business, reaffirming HUL's focus on delivering volume-led revenue growth.