HUL Q4 Profit Falls 3.35% To ₹2,475 Crore Despite Volume Growth; Margins, Food Sales Weigh

New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a decline of 3.35 per cent in its consolidated net profit at Rs 2,475 crore for the fourth quarter ended March 31, 2025 on lower margins.

The company had logged a net profit of Rs 2,561 crore in the January-March quarter a year ago, the company said in a regulatory filing.

However, revenue from product sales was at Rs 15,416 crore in the March quarter, led by volume growth, up 2.68 per cent from Rs 15,013 crore in the year-ago period.

"HUL reported an Underlying Sales Growth (USG) of 3 per cent and an Underlying Volume Growth (UVG) of 2 per cent," said HUL in its earnings statement.

However, the EBITDA margin, which was at 23.1 per cent, declined 30 bps year-on-year, it added.

HUL's total expenses in the March quarter was at Rs 12,478 crore, up 3.12 per cent and total income, which includes other revenue, was up 3.48 per cent to Rs 15,979 crore.

In the March quarter, HUL's revenue from the Home Care segment grew 1.85 per cent to Rs 5,815 crore on account of price cuts. "The segment witnessed negative price growth on account of pricing actions taken to pass on commodity-led benefits to consumers," it said.

The fabric wash category delivered mid-single digit volume growth led by premium fabric wash and fabric conditioners, while household care volumes grew in high-single digit.

The 'liquids' portfolio in fabric wash and household care continued to grow in double-digits driven by sustained market development activities and expansion into new formats and segments.

The company's 'beauty & wellbeing' segment reported a growth of 6.62 per cent to Rs 3,265 crore. The segment, which houses brands as Lakme etc, had a low-single digit volume growth in the March quarter.

Investment in channels of the future continues to yield positive results with the segment delivering double-digit competitive growth in these channels.

Similarly, HUL's revenue from Personal Care was up 3.05 per cent to Rs 2,126 crore. The segment, which has brands as Sunsilk, Dove, Pond's, Pears, Rexona, Closeup etc has a low-single digit volume decline.

"Skin cleansing grew in low-single digits driven by calibrated pricing actions taken due to commodity inflation," it said.

Non-hygiene segment, which includes body washes, shampoos, conditioners, delivered high-single-digit growth, while oral care witnessed low single-digit growth led by Closeup.

However, HUL's revenue from food was marginally down in the March quarter to Rs 3,896 crore due to volume decline. This was at Rs 3,910 crore in the corresponding January-March quarter.

"Tea delivered low-single digit growth driven by pricing and maintained its value and volume leadership. Coffee sustained its double-digit growth momentum. Nutrition Drinks turnover declined, impacted by continued category headwinds and transitionary impact of pack-price architecture change," it said.

Its packaged foods segment grew in mid-single digit led by outperformance in ketchup, mayonnaise and international cuisines.

HUL's ice cream business, where it operates with brands as Kwality Wall's, Cornetto and Magnum -- delivered double-digit volume-led growth.

HUL revenue from 'Other Segment', which includes exports, consignment, etc was up 21.88 per cent to Rs 568 crore in Q4 of FY'25.

For the financial year ended March 31, 2025 HUL's net profit was up 3.78 per cent to Rs 10,671 crore. It was at Rs 10,282 crore in FY'24.

The company's total income in FY'25 was up 2.28 per cent to Rs 64,138 crore, as against Rs 62,707 crore a year before.

"In FY'25, our turnover surpassed Rs 60,000 crores, with an Underlying Sales Growth of 2 per cent and an EPS growth of 5 per cent. While absolute volume tonnage grew in mid-single digits, it was partially offset by a negative mix," HUL CEO and Managing Director Rohit Jawa said.

Jawa further noted that the company delivered a competitive performance, further strengthening its market leadership during the year.

"This year marked a step up in our portfolio transformation with increased innovation in high-growth spaces, amplified investments in channels of the future, acquisition of Minimalist, divestment of Pureit, and the decision to demerge Ice Cream business," he said.

Over the outlook, Jawa said, he anticipates demand conditions to gradually improve over the next fiscal year.

Meanwhile, in a separate filing HUL informed its board in a meeting held on Thursday has proposed a final dividend of Rs 24 per share.

Together with interim dividend of Rs 19 per share and special dividend of Rs 10 per share declared in October 2024, the total dividend for the said period amounts to Rs 53 per equity share of face value of Re 1 each.

Shares of HUL on Thursday were trading at Rs 2,329.90 apiece on BSE, down 3.81 per cent.

Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.