About the company:
Hindustan Unilever Limited (HUL) is India’s largest fast-moving consumer goods (FMCG) company, headquartered in Mumbai. A subsidiary of Unilever Plc, HUL operates across home care, personal care, foods, and beverages segments with popular brands like Surf Excel, Lux, Dove, Horlicks, and Brooke Bond. With a vast distribution network, strong rural presence, and focus on digital transformation, HUL continues to lead the consumer goods market in India, emphasizing sustainability, innovation, and premiumization for long-term growth.
Business Segment Performance
Home Care (37% of revenue):
+6% growth, driven by fabric wash & dishwash.
Premiumization trend strong (Surf Excel & liquids gaining share).
Beauty & Wellbeing (22% of revenue):
1% growth, impacted by delayed winter & slower skin cleansing demand.
Hair care positive; premium shampoos & serums driving growth.
Personal Care (15% of revenue):
-4% YoY due to lower hygiene segment demand (Lifebuoy).
Premium products (Dove, Pears, Lux) performing well.
Foods & Refreshments (24% of revenue):
Stable growth; nutrition & packaged foods segments gaining share.
Tea demand improving; Horlicks & Boost penetration increasing.
Key Strategic Updates
Portfolio Transformation:
Divestment of Pureit (completed), Ice Cream business demerger in progress.
Acquisition of Minimalist (premium skincare brand) to boost beauty segment.
Consumer Trends:
Small pack demand rising due to macroeconomic pressure.
Premiumization trend continues (affluent consumers driving growth).
Sustainability & Cost Efficiency:
Backward integration in palm oil for cost savings.
Net material inflation turned positive (cost pressures being managed).
Market Outlook & Guidance
Short-Term Demand Trends:
Urban growth moderating, rural demand gradually recovering.
Small pack preference expected to continue for next 1-2 quarters.
Pricing & Margins:
Low single-digit price growth expected in the near term.
EBITDA margin to remain in the 23-24% range.
Strategic Focus Areas:
Driving volume-led growth & competitive market share gains.
Investment in premium categories, digital expansion, and new product innovations.
Here is Hindustan Unilever’s financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25):
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹15,195 Cr | ₹15,027 Cr | ₹15,182 Cr |
| Underlying Sales Growth (USG) | +2% | +3% | +4% |
| Underlying Volume Growth (UVG) | Flat | +1% | +2% |
| Gross Margin | 50.0% | 50.2% | 50.6% |
| EBITDA (₹ Cr) | ₹3,565 Cr | ₹3,540 Cr | ₹3,573 Cr |
| EBITDA Margin | 23.5% | 23.6% | 23.5% |
| Profit After Tax (PAT) (₹ Cr) | ₹3,001 Cr | ₹2,950 Cr | ₹2,900 Cr |
| Earnings Per Share (EPS) (₹) | ₹12.7 | ₹12.3 | ₹12.1 |
| Home Care Growth (YoY) | +6% | +7% | +5% |
| Beauty & Wellbeing Growth (YoY) | +1% | +3% | +4% |
| Personal Care Growth (YoY) | -4% | -2% | +1% |
| Foods & Refreshments Growth (YoY) | Flat | +2% | +3% |
Recent updates:
Highlights from last con call:
Financial Performance Highlights
Revenue: ₹15,195 Cr (+2% YoY)
Underlying Volume Growth (UVG): Flat (impacted by small pack preference & moderation in urban demand)
EBITDA Margin: 23.5% (within 23-24% guidance)
Profit After Tax (PAT): ₹3,001 Cr (+19% YoY)
Gross Margin: 50% (lower due to input cost inflation)
Earnings Per Share (EPS): +19% YoY (benefit from Pureit divestment)