HUL Shares Down 3% as Q3 PAT Falls 30% YoY to Rs 2,118 Crore
Summary of HUL’s Q3 Performance
– Share Price Decline: Hindustan Unilever (HUL) shares fell by 2.5%, closing at Rs 2,351.40 on Friday.
– Net Profit Decline: The company’s consolidated net profit from continuing operations decreased by 30% year-on-year (YoY) to Rs 2,188 crore for Q3 FY26, compared to Rs 3,027 crore in the same quarter last year.
– Overall Profit Growth: Despite the decline in net profit, HUL’s total net profit surged by 121% YoY to Rs 6,603 crore, attributed mainly to portfolio transformation actions.
– Revenue Growth: HUL reported revenue from continuing operations of Rs 16,441 crore, reflecting a 5.6% increase from Rs 15,556 crore year-on-year.
– EBITDA Statistics: Earnings before interest, taxes, depreciation, and amortization (EBITDA) for continuing operations stood at Rs 3,788 crore, a 3% rise YoY. However, the EBITDA margin shrank by 70 basis points to 23.3%.
Key Highlights of Q3
– Underlying Sales Growth: HUL recorded an underlying sales growth of 5%, supported by a volume growth of 4%.
– Market Conditions: The company anticipates macroeconomic stability and supportive policy measures will foster a conducive environment for consumer spending going forward.
Outlook for HUL
– Future Expectations: HUL’s management is optimistic about FY27 being more robust than FY26, driven by ongoing portfolio optimization and channel transformation initiatives.
– Leadership Insights: Priya Nair, CEO and Managing Director, noted positive demand trends indicating early recovery, supported by effective policy measures. HUL is committed to enhancing brand desirability and advancing its Quick Commerce strategy.
Conclusion
After revealing its earnings, HUL shares experienced a significant drop of 3%, trading lower at Rs 2,396 per share. Despite challenges in profit margins, the company’s strategic adjustments and underlying sales growth portray a cautiously optimistic future.
By focusing on its core strengths and market dynamics, HUL seeks to navigate the complexities of the FMCG sector effectively. The roadmap ahead looks promising with proactive measures to adapt to evolving consumer preferences, establishing HUL as a resilient player in the marketplace.