Informist, Thursday, Jul. 31, 2025

By Anand JC

NEW DELHI – Hindustan Unilever Ltd. reported an underlying volume growth of 3% for the June quarter, 100 basis points less than the year-ago period, amid stable demand for fast-moving consumer goods. The consumer goods bellwether managed to register an eight-quarter high revenue growth during the reporting quarter.

HUL reported a net profit of INR 27.3 billion for the latest quarter, up nearly 8% on year. This is much higher than the analysts' estimate of INR 25.5 billion which would've translated into a 1% growth.

Its revenue from operations for the quarter under review was INR 157.5 billion, up nearly 4% on year. This is the highest year-on-year growth in HUL's top line since the 6.5% registered in the June quarter of 2023-24 (Apr-Mar). Consensus estimates had pegged HUL's revenue for the quarter at INR 159.1 billion.

Shares of the company reacted extremely positively to its June quarter financials as they traded 4% higher at INR 2,534 on the National Stock Exchange, compared with a flat movement prior to the announcement of the results.

HUL's underlying sales growth for the June quarter was 4%, higher than the 2% recorded in the year-ago quarter. Underlying sales growth is the increase in the company's turnover for the reporting period, excluding any change in turnover resulting from acquisitions and disposals. Sales growth improved 5% on a consolidated basis.

GROWTH OUTLOOK

The FMCG major's consolidated earnings before interest, tax, depreciation, and amortisation margin for the June quarter fell 130 bps on year to 22.8%, as per the company's expectations. "...(EBITDA margin fall) was in line with our guidance, as we continued to step up investments in the business. This has resulted in delivery of broad-based and competitive growth leading to consistent increase in turnover-weighted market share," the company said in a press release.

The company's consolidated EBITDA margin is expected to remain in the range of 22-23%. Gross margin could improve sequentially, which would fuel further investments, HUL said.

The first half of FY26 is expected to be better than the second half of FY25 due to "portfolio transformation" and improving macroeconomic conditions, HUL said. "If commodities remain where they are, price growth to be in low-single digit range," it added. The company said it will focus on competitive volume-led growth in the near-term.

Its consolidated profit before exceptional items for the quarter fell 5% even as the profit grew 6%. "The difference is on account of a one-off impact of re-estimation of tax provisions with respect to the potential disallowance of certain expenses pertaining to prior years," HUL said.

SEGMENTAL PERFORMANCE

The Vim-maker's home care segment earned revenue of INR 57.8 billion for the June quarter, up nearly 2% on year. It registered an underlying sales growth of 4% on the back of a high-single digit growth in its underlying volume growth. Its consolidated revenue was INR 57.8 billion, margin was 20%. Fabric wash category registered a mid-single digit underlying volume growth, while household care saw a double-digit volume growth.

The foods segment registered a revenue of INR 40.2 billion, up just over 4% on year. Its margin for the period was 16%, while sales growth was 5%. The segment's underlying volumes grew in mid-single digits. This was due to a double-digit growth in the beverages category, and a mid-single-digit growth in packaged food category.

Beauty and well-being segment's revenue for the quarter was INR 33.5 billion, up nearly 5% on year. Consolidated revenue of the segment was INR 36.3 billion, margin was 28%. Its sales growth was 7%, driven by a low single-digit growth in volumes. The hair care segment saw a mid-single-digit growth in the reporting quarter due to a high base. The skin care and colour cosmetics category was weaker, as its volumes grew in low single digits.

HUL's revenues from the personal care segment were INR 25.4 billion, up just over 6% on year. Its consolidated margin was 19%, on the back of a 6% sales growth and a low single-digit fall in volumes. Skin cleansing and oral care categories both saw mid-single-digit growth during the quarter.

INVESTMENT UPDATES

HUL expects the gradual recovery seen in the June quarter to sustain going forward. "Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter," HUL's Managing Director and Chief Executive Officer Rohit Jawa said in a release.

In an update, the FMCG major said that it has received a no-objection certificate for the demerger of its ice cream business. The National Company Law Tribunal has convened a shareholder meeting on Aug. 12 to approve the demerger scheme. The company expects the demerger to be completed by the final quarter of FY26.

During the quarter, HUL completed its acquisition of a 90.5% stake in Minimalist for INR 27.1 billion. "Workstreams (have been) mobilised to unlock synergies. (Minimalist) business delivered strong double-digit growth in JQ'25 (June quarter)," the company said. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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