Hindustan Unilever Reports 5% Dip in Q2 Profit Before Tax Amid Pre-GST Cut Disruptions
Hindustan Unilever Ltd (HUL) reported a nearly 5% decline in profit before tax and exceptional items for the second quarter, as sales volumes were impacted ahead of the government’s goods and services tax (GST) cuts. The Indian subsidiary of UK-based Unilever said its profit before tax fell to ₹33.89 billion from ₹35.64 billion a year earlier, while revenue from product sales rose 2% year-on-year to ₹160.34 billion, aided by price hikes and steady demand in its beauty division.
The company noted that overall volume growth remained flat as distributors and retailers focused on clearing old inventory before the GST rate reductions took effect on September 22. However, HUL’s skincare and cosmetics segment showed resilience, recording “high single-digit” sales growth, driven by premium products. Shares of HUL initially rose as much as 3% following the results before settling about 1% higher.
HUL said its EBITDA margin declined by 90 basis points during the quarter but expects sales disruptions to normalize by November. Profit after tax rose 3.6%, supported by a one-time gain of ₹1.84 billion. Meanwhile, parent company Unilever beat global sales forecasts, buoyed by strong demand for its beauty products across North America and emerging markets.
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