- Hindustan Unilever Ltd (HUL) Q4 & FY25 Earnings – Full Summary
- FMCG Market Situation in FY25
- Financial Performance of Hindustan Unilever Ltd (HUL)
- Segment-wise Performance
- HUL’s Strategy and Growth Plans
- Future Outlook and Spending Plans – Hindustan Unilever
- Management’s View and Market Insights
- Market Competition Insights
- Q&A Highlights from the Call
- Risks to Watch
- Final Thoughts
- Frequently Asked Questions (FAQs)
Hindustan Unilever Ltd (HUL) Q4 & FY25 Earnings – Full Summary
Hindustan Unilever Ltd (HUL), one of India’s largest FMCG companies, shared its financial and business updates for the fourth quarter and full year of FY25. Let’s look at what happened, how different segments performed, and what the company plans ahead.
FMCG Market Situation in FY25
In FY25, demand in the FMCG sector stayed low. Rural demand improved slowly, while urban demand, especially online shopping, remained weak.
Some raw materials became expensive (like palm oil, tea, and coffee), while others like crude oil, soda ash, and skimmed milk powder saw lower prices. Even though some prices cooled down during the year, the Indian rupee got weaker against the US dollar. HUL said they are carefully watching this situation because of global uncertainty.
Financial Performance of Hindustan Unilever Ltd (HUL)
FY25 Highlights:
- Revenue: ₹60,680 crore
- Sales Growth: 2%
- Volume Growth: 2%
- Price Changes: Almost flat
- Gross Margin: 50.3% (down 0.5%)
- EBITDA Margin: 23.5% (down 0.3%)
- Profit (Before Exceptions): Up 1%
- Total Profit: Up 5% (helped by sale of Pureit)
Q4 Highlights:
- Sales Growth (Q4): 3%
- Volume Growth (Q4): 2%
- Gross Margin (Q4): 49.8% (down 1.6%)
- EBITDA Margin (Q4): 23.1%
Segment-wise Performance
Home Care
- Mid-single-digit volume growth in Q4
- Sales grew 3%
- Fabric wash brands like Surf Excel and Comfort led the growth
- Household care grew well, especially in liquid products
- Home Care liquids business crossed ₹3,000 crore with strong growth
Beauty & Wellbeing
- Grew 3% in Q4, thanks to hair care brands like Clinic Plus, Sunsilk, and TRESemmé
- Skin care and cosmetics (like Glow & Lovely) saw a small decline
- Glow & Lovely is showing improvement after relaunch
- Strong sales in e-commerce
- New products launched: Lakmé Hya Matte, Ponds Hydra Miracle, sun care items
- Focus on upgrading product range and growing brands like Minimalist and OZiva
Personal Care
- Grew 3% in Q4
- Skin cleaning products saw slight growth, with body washes performing well
- Lifebuoy was relaunched with a broader focus on skin protection and promoted during IPL
Foods & Refreshment
- Turnover down 1% in Q4
- Coffee sales saw double-digit growth
- Nutrition drinks (like Horlicks) declined due to market challenges
- Ready-to-eat foods had mid-single-digit growth
Ice Cream
- Double-digit growth in Q4
- New launches: Magnum Mini, Magnum Pistachio, Twister
- In-home ice cream range was revamped
- The demerger process is ongoing and will finish by FY26
HUL’s Strategy and Growth Plans
Business Focus Shift
Hindustan Unilever Ltd (HUL) is shifting its focus from old core products to newer and fast-growing categories called “Future Core” and “Market Makers.” These now make up ₹7,000 crore in revenue and are growing fast.
- Relaunched key brands like Lifebuoy and Glow & Lovely
- Ponds is now marketed with a science-based focus
- Goal: Get over 80% of new growth from these newer areas
Acquisitions and Changes
- Bought 90.59% stake in Minimalist, which crossed ₹500 crore in revenue
- OZiva grew from ₹100 crore to ₹400 crore, now breaking even
- Sold Pureit, unlocking ₹600 crore
- Bought palm oil business from Vishwatej Oil
- Invested in plastic recycling through Lucro Plastecycle
Growing New Sales Channels
- Online sales now 7-8% of total; quick commerce about 2%
- Better product availability on shelves and online
- Improved distribution by 400 basis points in 18 months
Brand Strength and Innovation
- Over 80% of sales rated better than competition
- Surf Excel crossed ₹10,000 crore in revenue
- Spent more on digital ads and influencers
- Used global tech for launches like Vim Ultra.Pro and Dove Scalp+
- Doom Dooma factory recognized by World Economic Forum
Saving Costs and Improving Efficiency
- Saved 3.5% of revenue using AI and analytics
- Cash flow stayed strong with nearly 100% cash conversion
Future Outlook and Spending Plans – Hindustan Unilever
Profit Margin Guidance
- Expected EBITDA margin for FY26 is 22-23% (slightly lower than FY25)
- HUL plans to invest more in ads, products, and innovation instead of focusing only on short-term profit
- Long-term margin goals remain positive
- For every 1% increase in sales, about 40-50 basis points of margin gain is expected, but that gain will be reinvested
Dividend and Working Capital
- Payout ratio is more than 90%
- Receivables are higher due to credit given for distribution expansion
- Working capital is still in good shape, and cash flow is expected to stay strong
Management’s View and Market Insights
Hindustan Unilever Ltd (HUL) expects demand to improve slowly in the first half of FY26. Reasons include:
- Government support
- Lower inflation
- Better farm output
Rural demand is expected to grow faster than urban. The company is seeing better growth in premium products, though the gap between premium and mass segments is narrowing.
HUL is confident about the future. They are relying on:
- A stronger and more balanced product mix
- Faster innovation
- Leading positions in key markets
Market Competition Insights
Home Care
- Market still very competitive
- Liquids growing fastest and HUL is a leader
Skin Care
- Glow & Lovely still faces challenges, but improvement is visible
Oral Care
- Market is promoting a lot, but HUL is focused on quality and new products
Sunscreen
- Fast-growing category (60% CAGR)
- Low penetration, high value
- HUL focused on building this category
Q&A Highlights from the Call
- Margin drop is due to higher investments, especially in Beauty & Wellbeing
- No price war in Home Care or Laundry; price changes are tied to raw material prices
- Nutrition drinks are profitable but not growing fast; new formats and markets are being explored
- Glow & Lovely expected to recover, helped by new product versions
- Quick commerce is not the reason for lower margins
- EPS is expected to grow well in the medium and long term
- OZiva’s financial health has improved
- Home Care liquids (like fabric and surface cleaners) now earn over ₹3,000 crore with strong growth
Risks to Watch
- Nutrition drinks like Horlicks are seeing lower household consumption
- Raw material prices (like palm oil and tea) could hurt margins if they rise more
- Margins may stay low in the short term due to higher spending on growth
Final Thoughts
Hindustan Unilever Ltd (HUL) is choosing to grow through better products, stronger brands, and wider distribution. They are spending more now to make sure they stay ahead in the future.
Instead of chasing short-term profits, they’re focusing on building a business that can grow for many years. Their new product categories and online sales are doing well. Even with some challenges, HUL seems ready for steady growth in India’s changing FMCG market.
Frequently Asked Questions (FAQs)
What is the revenue of Hindustan Unilever Ltd (HUL) in FY25?
HUL reported ₹60,680 crore in revenue for FY25.
How much dividend did HUL declare in FY25?
HUL declared a total dividend of ₹53 per share, which is 26% more than last year.
Which HUL segment performed best in Q4 FY25?
Home Care and Ice Cream segments showed the strongest volume growth in Q4.
What are HUL’s growth plans?
HUL plans to grow by launching new products, investing in digital channels, and focusing on future-ready categories like health, wellness, and premium skin care.
Is Hindustan Unilever Ltd (HUL) focusing more on rural or urban growth?
HUL expects rural growth to pick up faster and is planning accordingly.
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I’m Rahul Chaudhary, and I write about everything related to the Share Market. From Stock Trends and Share Prices to the Latest News and IPO Updates, my articles aim to provide you with valuable insights to help you navigate the world of investing. Stay tuned for expert tips and updates to keep you informed!
