On the sidelines of its Q2 FY25 results, Hindustan Unilever Limited (HUL) announced that it will split its ice cream division. A committee of Independent Directors conducted a thorough evaluation before deciding to proceed with this part. This committee was in charge of figuring out the best course for this industry.
The business emphasised the ice cream category as a high-growth industry that accounts for about 3% of HUL’s overall sales in a statement submitted to the exchange. This market requires large expenditures to reach its full potential.
Local competencies will need to be established in order to assure the firm’s continuous functioning, as Unilever has declared the separation of its ice cream business and has the trademarks and experience in this field. Potential synergies with the rest of HUL’s activities are limited by the ice cream business’s unique operating model, according to the firm, which comprises specialist cold chain infrastructure and a distinctive channel environment.
Prioritising HUL’s core business areas while increasing its presence in developing industries including food, beauty, health, and wellbeing are the goals of the company’s reorganisation. HUL will maximise value for shareholders by giving that sector more freedom and concentration through the sale of the ice cream business.
During the September quarter of FY25, Hindustan Unilever (HUL), a well-known FMCG firm in India, had a decline in consolidated net profit. When compared to the same time in the previous fiscal year, the net profit for this period was Rs 2,591 crore, a 2.4% decrease.
In spite of this, the company’s underlying volume increased by 3%. The business blamed the drop in profit in its financial announcement on a one-time indirect tax credit that was obtained during the same period last year, which had a beneficial effect on the Beauty and Wellbeing segment’s revenue and profit.
Revenue for the FMCG giant climbed 1.9% year over year (Y-o-Y) to Rs 15,926 crore. In the July-September quarter, its profit before interest, depreciation, and tax (PBIDT) climbed by 0.7% to Rs 4,006 crore. HUL’s sales increased 1.4% sequentially, while its net profit decreased 0.7%.
“While rural regions continued to recover steadily, metropolitan markets saw a moderate rise in FMCG demand during the September quarter. We produced a competitive and profitable performance in this regard, stated Rohit Jawa, HUL’s managing director and CEO.
