Hindustan Unilever Faces Profit Dip amid Urban Demand Slowdown

Hindustan Unilever Ltd (HUL) reported a 2.33% decline in net profit for Q2 2024, impacted by reduced demand in urban markets. However, product sales revenue increased by 2.36%. CEO Rohit Jawa noted moderate growth in urban FMCG and gradual rural recovery. Despite challenges, certain segments like Home Care grew significantly. The board declared dividends totaling Rs 6,814 crore.

Hindustan Unilever Ltd (HUL) reported a 2.33% drop in consolidated net profit at Rs 2,595 crore for the second quarter ending September 30, 2024, due to a dip in urban market demand. This compares to a net profit of Rs 2,657 crore during the same period last year, as per the company's regulatory filing.

Despite the profit decline, revenue from product sales rose 2.36% to Rs 15,703 crore compared to Rs 15,340 crore the previous year, with brands like Surf, Rin, and Lakmé driving growth. HUL CEO Rohit Jawa highlighted a competitive performance amid urban demand moderation and gradual rural recovery.

Underlying sales and volume growth stood at 2% and 3%, respectively. Total costs rose 3.03% to Rs 12,581 crore, with total income, including other income, increasing by 2.14% to Rs 16,145 crore. HUL also announced dividends amounting to Rs 6,814 crore.

(With inputs from agencies.)