Hindustan Unilever, an FMCG conglomerate, released subdued Q3 FY25 results. After remarkable gains, the quarter's net profit fell 2.7 per cent year over year to Rs 2,540 crore from Rs 2,612 crore in the same quarter last year. The pre-exceptional gain net profit increased 19 per cent year over year to Rs 3,001 crore.

With acquisition and disposal gains of Rs 574 crore and restructuring expenses of Rs 70 crore, the company reported an exceptional gain of Rs 509 crore.

The overall revenue growth for the quarter was a modest 1.7 per cent YoY at Rs 15,195 crore compared to Rs 14,928 crore. In Q2 FY25, the revenue was Rs 15,319 crore, which was essentially unchanged sequentially. At Rs 5742 crore and Rs 3,438 crore, respectively, the home care and beauty & wellbeing segments reported marginal growth of 4.6 per cent and 1.4 per cent YoY.

Operating profit Q3 FY25

The operating profit, or EBITDA, for the quarter increased 2.32 per cent year over year to Rs 3,570 crore from Rs 3,540 crore in the prior quarter of the same year.

The EBITDA margins for the quarter also decreased 20 basis points to 23 per cent in Q3 FY25. This was mostly caused by slower revenue growth, even though the main raw material costs were kept under control.

Plans finalised for demerger of ice cream business

Additionally, the board approved a demerger plan for its ice cream company, which will now be listed as a distinct business. Kwality Walls the ice cream company, will become a distinct listed company, and each current shareholder will receive one share of the new company for every share they currently own in Hindustan Unilever.

New acquisition

At a cash consideration of Rs 2,670 crore and an enterprise value of Rs 2,955 crore, the company announced its acquisition of Uprising Science Private Limited, also referred to as Minimalist.

Following the acquisition, the company will own 90.5 per cent of the company's shares. Minimalist will become part of their Beauty & Wellbeing division's robust portfolio of brands.