HUL Navigates Urban Demand Slump with Strategic Growth Moves

Hindustan Unilever Ltd reported a decline in Q2 net profit due to urban market demand moderation, despite revenue growth. The company aimed to drive profitability with strategic actions in various segments, continuing its market leadership. Performance varied across segments, influencing dividend decisions.

Hindustan Unilever Ltd (HUL) has announced a 2.33 per cent decline in its consolidated net profit for the quarter ending September 30, 2024. This dip to Rs 2,595 crore from Rs 2,657 crore in the same period the previous year is attributed to softened demand in urban markets.

Despite these challenges, HUL managed to increase revenue from product sales by 2.36 per cent to Rs 15,703 crore. CEO Rohit Jawa highlighted that urban demand showed moderated growth whereas rural areas indicate gradual recovery, enabling the company to secure competitive and profitable performance metrics.

Different segments showcased mixed results: the Home Care segment soared by 8 per cent while the Beauty & Wellbeing and Foods & Refreshment segments observed marginal growth or declines. The Board declared a total dividend payout of Rs 6,814 crore and shares saw a slight dip on the BSE.

(With inputs from agencies.)