Hindustan Unilever Ltd on Wednesday surpassed Street estimates when it posted a 19 per cent rise in net profits for the quarter ended December 31, 2024 following a one-time gain of ₹509 crore from the divestment of the Pureit business.
The FMCG giant clocked a net profit of ₹3,001 crore during the quarter compared with ₹2,519 crore in the year-ago period. Analysts had projected a net profit of ₹2,500 crore.
HUL announced that it is demerging the ice cream business into a separate listed entity. Its board approved a scheme of arrangement between the company and its wholly-owned subsidiary, Kwality Wall’s (India) Limited (KWIL) to demerge the ice cream business into KWIL.
The company added that one equity share of KWIL will be allotted for every one share held in HUL. Upon the demerger and listing of KWIL, the entire shareholding of KWIL will be held directly by the shareholders of HUL.
During the quarter, total sales came in at ₹15,195 crore against ₹14,928 crore in the year-ago quarter. HUL added that the underlying volume growth was flat compared with the second quarter.
Rohit Jawa, CEO and managing director of HUL, said the FMCG demand trends remained subdued with continued moderation in urban growth while rural sustained its gradual recovery. "In this operating context, we delivered competitive growth by driving unmissable brand superiority, investing behind brands and capabilities whilst maintaining healthy margins.’’
Underlying sales growth in home care was 6 per cent led by fabric wash and household care.
New buy
HUL said it will acquire 90.5 per cent shareholding of Uprising Science Pvt Ltd — the firm behind the premium beauty brand Minimalist — comprising secondary buyout for a cash consideration of ₹2,670 crore at a pre-money enterprise valuation of ₹2,955 crore.
Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is a digital-first brand that combines beauty and actives-led science.