Hindustan Unilever (HINDUNILVR) Q2 24/25 earnings summary

Executive summary

• Turnover for the quarter was INR 15,319 crores, with underlying sales growth of 2% and underlying volume growth of 3%, excluding one-off tax benefits in the base.

• EBITDA margin stood at 23.8%, with profit after tax before exceptional items declining 2% year-over-year; intrinsic PAT grew 2% excluding one-offs.

• Interim and special dividends totaling INR 29 per share were declared, with a total payout of INR 6,814 crores.

• Market share gains continued, with over 60% of business winning value shares and approximately 200 bps gains in the latest MAT period.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved and published, with statutory auditors issuing unmodified review reports.

Financial highlights

• Standalone sales for the quarter were INR 15,319 crores, up 2% year-over-year; consolidated sales were INR 15,729 crores, also up 2%.

• EBITDA margin was 23.8% (standalone), down 80 bps year-over-year; gross margin at 50.4%, down 150 bps year-over-year.

• Standalone PAT before exceptional items was INR 2,611 crores (down 2% YoY); consolidated PAT was INR 2,595 crores (down 2% YoY).

• Excluding a one-off credit in the prior year, standalone sales growth was 3%, EBITDA margin was flat, and PAT increased marginally.

• Dividend per share (interim + special) was 19 + 10.

Outlook and guidance

• Demand trends expected to remain stable, with low single-digit price growth if commodity prices hold.

• Focus remains on driving competitive, volume-led growth and maintaining healthy EBITDA margins.

• Ongoing cost savings and discipline through the Net Productivity Programme.

• Board approved the sale of the Water Purification business (Pureit brand), with assets and liabilities classified as held for sale.

• Decision announced to separate the Ice Cream business following an independent committee review.