Hindustan Unilever (HUL), one of India’s largest fast-moving consumer goods (FMCG) companies, reported a drop in its consolidated net profit for the fourth quarter of the fiscal year 2025. This decline highlights the ongoing challenges caused by subdued demand in the market. The company’s focus is now on managing its profit margins and adjusting its product portfolio to better cope with the difficult market environment. Following the announcement of these results, HUL’s stock price dropped by 3.82% and is currently trading at ₹2,330.
Key Financial Results for Q4 FY25
For the quarter ending March 31, 2025, HUL saw its consolidated net profit decrease by 3.67%, dropping to ₹2,464 crore, compared to ₹2,558 crore in the same period last year. Sequentially, the profit saw a sharper drop of 17.4%. However, HUL’s total income for the quarter rose by 3.5% year-on-year to ₹15,979 crore. Revenue from product sales increased by 2.68% to ₹15,416 crore, compared to ₹15,013 crore in Q4 FY24.
Despite these challenges, HUL achieved an Underlying Sales Growth (USG) of 3% and an Underlying Volume Growth (UVG) of 2%. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased slightly to ₹3,466 crore, but the EBITDA margin decreased by 30 basis points, reaching 23.1%. The gross margin also declined, falling 160 basis points to 49.8% compared to last year.
For the entire fiscal year 2025, HUL’s turnover exceeded ₹60,000 crore. The company experienced a 2% increase in Underlying Sales Growth and a 5% rise in Earnings Per Share (EPS). Overall, absolute volume tonnage grew in the mid-single digits, but this growth was partially offset by a negative product mix.
Segment Performance in Q4 FY25
HUL’s performance varied across different product segments in the fourth quarter:
- Home Care: Revenue increased slightly to ₹5,818 crore, with mid-single digit volume growth in Fabric Wash and high-single digit growth in Household Care. However, pricing was affected by falling commodity prices and intense competition.
- Beauty & Wellbeing: Revenue grew to ₹3,113 crore, driven by strong volume growth in Hair Care. However, Skin Care and Colour Cosmetics saw slight declines due to weaker performance in the mass market. Digital and emerging channels, however, showed impressive growth.
- Personal Care: Revenue rose modestly to ₹2,124 crore, with low-single digit price-driven growth in Skin Cleansing and Oral Care, particularly in non-hygiene categories.
- Foods: Revenue slightly decreased to ₹3,886 crore, as growth in most sub-segments was offset by a decline in Nutrition Drinks. Despite high inflation, Tea saw moderate price-driven growth, while Coffee grew in double digits.
- Other Segments (Exports and Consignment): These revenues grew significantly to ₹263 crore from ₹181 crore year-on-year, reflecting stable demand in core categories and continued investments in growth channels.
Dividends and Future Plans
HUL’s board has recommended a final dividend of ₹24 per share for FY25. When combined with the interim dividend of ₹19 and the special dividend of ₹10 paid in November 2024, the total dividend for FY25 amounts to ₹53 per share. The record date for the final dividend is set for June 23, 2025.
During FY25, HUL accelerated its portfolio transformation. This included increased innovation in high-growth segments, strategic investments in future growth channels, and important portfolio actions such as acquiring the D2C brand Minimalist, which crossed ₹500 crore in turnover, and divesting from Pureit. The company also announced plans to separate its Ice Cream business.
Looking ahead, HUL expects demand to gradually improve, with stronger growth expected in the second half of FY26. If commodity prices remain stable, the company anticipates volume growth will outpace price growth, which is expected to remain in the low-single-digit range. Inflation in palm oil and tea may lead to selective price hikes, especially in skin care products.
The company plans to increase its investments to support its transformation plans. While gross margins may face some pressure, EBITDA margins are expected to remain healthy at around 22-23%. HUL remains committed to volume-driven growth and reinforcing its leadership in the market.
Stock Performance Post-Results
Following the announcement of its results, HUL’s share price initially rose to ₹2,423.80 but eventually saw a decline of 3.82%, settling around ₹2,330 on the NSE.
