Hindustan Unilever Ltd (HUL) recently unveiled its fiscal fourth-quarter earnings, revealing a profit of ₹2,475 crore. This figure, while aligning with projections, represents a 3.36% decline from the ₹2,561 crore recorded in the same quarter of FY24. The company reported a revenue of ₹15,670 crore, marking a 3.02% increase compared to ₹15,210 crore from the previous financial year’s fourth quarter.
Analyst Expectations and Insights
A recent poll conducted by CNBC TV18 had anticipated HUL’s Q4 profit at ₹2,475 crore, with revenue estimates around ₹15,161 crore. This highlights the company’s consistent performance in a competitive market.
HUL Declares Final Dividend
In a move to reward its shareholders, HUL’s board has proposed a final dividend of ₹24 for the fiscal year ending March 31, 2025. This follows an interim dividend of ₹19 per share and a special dividend of ₹10 declared on November 21, 2024. In total, the dividend payout for the financial year amounts to ₹53 per equity share, reflecting the company’s commitment to returning value to its investors.
HUL’s Overall Performance in FY25
For the financial year FY25, HUL reported a total turnover of ₹60,680 crore, which is a 2% increase from the previous year. The company noted a healthy EBITDA margin of 23.5% and a profit after tax (PAT) of ₹10,644 crore. The proposed dividends this year, including the final and interim dividends, culminate in a substantial payout of ₹12,453 crore.
Rohit Jawa, CEO and Managing Director of HUL, commented, "In FY25, we surpassed ₹60,000 crore in turnover, achieving an Underlying Sales Growth of 2% and a 5% increase in EPS. Although we experienced mid-single-digit growth in absolute volume tonnage, this was somewhat countered by a negative mix. We maintained a competitive edge, further solidifying our market leadership."
Q4 Performance Breakdown by Business Segments
Home Care Performance
The Home Care segment achieved a 3% underlying sales growth (USG), primarily driven by mid-single-digit unit volume growth (UVG). Despite facing negative price growth due to pricing strategies aimed at passing commodity benefits to consumers, the segment saw substantial growth in premium fabric wash and fabric conditioners.
Beauty & Wellbeing Insights
In the Beauty & Wellbeing sector, turnover increased by 3%, although UVG was low-single digit. HUL’s Hair Care division experienced robust double-digit growth, reflecting a broad-based expansion across various segments. However, Skin Care and Colour Cosmetics faced a slight decline due to underperformance in the mass skin market.
Personal Care Developments
The Personal Care sector reported a 3% growth, despite a low-single-digit volume drop. Skin cleansing registered low-single-digit growth, influenced by strategic pricing adjustments in response to commodity inflation. The non-hygiene segment performed better, with body wash achieving double-digit growth.
Food Segment Analysis
The Foods segment saw a 1% decline in turnover, with low-single-digit price growth failing to offset volume reductions. While tea managed low-single-digit growth through pricing strategies, coffee continued to thrive with double-digit growth. Despite facing challenges, packaged foods, particularly ketchup and mayonnaise, drove mid-single-digit growth, while ice cream achieved double-digit volume growth, spurred by innovative offerings.
Rohit Jawa further stated, "This year has marked significant progress in our portfolio transformation, with enhanced innovations in high-growth areas and strategic investments. As we look to the future, we expect demand conditions to gradually improve, reinforcing our commitment to unlocking a billion aspirations through our solid business foundations."
Conclusion
HUL’s financial performance illustrates its resilience in a challenging market landscape while continuing to prioritize shareholder value through dividends. As the company navigates future growth opportunities, it remains focused on innovation and market leadership.
