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Hindustan Unilever Ltd (HUL), the fast-moving consumer goods (FMCG) giant, reported a 3.3% drop in consolidated net profit for the fourth quarter ended March 31, 2025, as shrinking margins offset moderate sales growth. Net profit stood at ₹2,475 crore for the quarter, compared to ₹2,561 crore in the same period last year, the company said in a regulatory filing.
Despite the profit dip, HUL posted a 2.68% year-on-year increase in revenue from product sales, reaching ₹15,416 crore in Q4 FY25, up from ₹15,013 crore a year ago. The company attributed this growth to a 3% rise in underlying sales and 2% growth in volumes. However, earnings before interest, tax, depreciation, and amortization (EBITDA) margin fell 30 basis points to 23.1%, impacting bottom-line growth.
Total income for the quarter rose by 3.48% to ₹15,979 crore, while total expenses climbed 3.12% to ₹12,478 crore.
Segment-wise, the Home Care division recorded ₹5,815 crore in revenue, marking a 1.85% rise. The modest growth came despite price reductions aimed at passing on commodity-related cost benefits to consumers. Fabric wash products showed mid-single-digit volume growth, led by premium offerings and fabric conditioners, while household care volumes surged in the high-single digits.
The company’s 'liquids' portfolio—spanning fabric wash and household care—continued its double-digit growth, supported by expanded market reach and new format launches.
The Beauty & Wellbeing segment, which includes brands like Lakmé, reported a 6.62% increase in revenue to ₹3,265 crore, though volume growth remained in the low single digits. Personal Care revenue rose 3.05% to ₹2,126 crore, despite a slight volume decline. Brands like Sunsilk, Dove, Pond’s, and Pears saw varied performances, with skin cleansing showing low-single-digit growth driven by selective price hikes.
Non-hygiene personal care categories such as body washes, shampoos, and conditioners saw high-single-digit growth, while oral care products like Closeup posted a low-single-digit increase.
Food and Refreshment revenue slipped slightly to ₹3,896 crore, down from ₹3,910 crore in the same quarter last year. Tea posted low-single-digit growth, while coffee maintained its strong double-digit momentum. The Nutrition Drinks category saw a decline due to continued market headwinds and changes in packaging and pricing. Packaged foods performed better, growing in mid-single digits, led by strong demand for ketchup, mayonnaise, and international cuisine products. Ice creams, including brands like Kwality Wall’s, Cornetto, and Magnum, posted robust double-digit growth driven by higher volumes.
Revenue from other segments, such as exports and consignment sales, jumped nearly 22% to ₹568 crore.
For the full financial year FY25, HUL’s net profit rose 3.78% to ₹10,671 crore, compared to ₹10,282 crore in FY24. Total income grew 2.28% year-on-year to ₹64,138 crore.
“Our turnover surpassed ₹60,000 crore with underlying volume growth in the mid-single digits,” said CEO and Managing Director Rohit Jawa. He added that HUL strengthened its market leadership while driving innovation and portfolio transformation, including the acquisition of Minimalist and the decision to demerge the Ice Cream business.
Looking ahead, Jawa expects demand conditions to improve gradually in the coming fiscal.
The board has proposed a final dividend of ₹24 per share. Including an interim dividend of ₹19 and a special dividend of ₹10 declared in October 2024, the total dividend for FY25 stands at ₹53 per equity share.
(Source: PTI)
