HUL Q4 Results: Volume grows 2%, CEO expects demand conditions to gradually improve – check top highlights; shares fall over 4%

The results were declared in the first half. Shares of the FMCG giant dropped as much as 4.23% to ₹2,321.10 apiece on the NSE.

The company reported a 3.6% rise in its standalone net profit at ₹2,493 crore, against ₹2,406 crore logged in the year-ago period.

Revenue from operations came in at ₹15,000 crore, up 2.08% against ₹14,693 crore in the year-ago period.

HUL's earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter were ₹3,466 crore, up 0.9% YoY. Its EBITDA margin stood at 23.1%, down 30 bps YoY as compared to the March 2024 quarter.

The company added that exceptional items in the quarter under review include acquisition and disposal-related costs of ₹12 crore. This was nil in the year-ago period. It also included restructuring expenses of ₹6 crore [March 2024 quarter: ₹53 crores] and a loss on fair valuation of financial liability related to the acquisition of ₹5 crore [in the March 2024 quarter, there was a gain of ₹37 crore].

Also, net proceeds from the disposal of surplus assets were nil in the March 2025 quarter. In the March 2024 quarter, it incurred a loss of ₹1 crore.

Volume Growth

Dividend Update

The company's board has recommended a final dividend of ₹24 per share for the financial year ending March 31, 2025. Together with the interim dividend of ₹19 per share and special dividend of ₹10 per share paid on November 21, 2024, the total dividend for the financial year ended March 31, 2025, amounts to ₹53 per share.

Further, together with the interim dividend of ₹19 per share and the special dividend of ₹10 per share declared in Oct 2024, the total dividend payout for the year will be ₹12,453 crore.

Minimalist acquisition update

The company said that, according to the approval of the Board of Directors at their meeting held on 22nd January 2025, the company signed and executed a share purchase and subscription agreement for the acquisition of 90.5% of the shareholding of Uprising Science Private Limited ['USPL]. USPL is engaged in the business of skin care and hair care under the brand 'Minimalist'.

The company completed the acquisition of the aforesaid stake on April 21, 2025, for a consideration of ₹2,706 crore. This has no impact on the results for the period ended, and as of March 31, 2025, the company added.

Kwality: Ice-cream business update

HUL said that its board, at their meeting held on January 22, 2025, approved a scheme of arrangement between Hindustan Unilever Limited, Kwality Wall's [India] Limited ['KWIL'] and their respective shareholders to demerge HUL's ice cream business into KWIL.

The scheme is subject to necessary statutory and regulatory approvals, including from the Honourable National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013. The scheme has been filed with the stock exchanges for their no-objection certificate. This has no impact on the financial results for the period ended and as of March 31, 2025, HUL said in its press release.

FY25 update

HUL reported a turnover of ₹60,680 crore, up 2%, driven by UVG of 2%. EBITDA margin was at 23.5%. PAT at ₹10,644 crore grew 5% year-on-year, while PAT (bei) grew by 1%. The Board of Directors has proposed a final dividend of ₹24 per share, subject to approval of shareholders at the AGM.

Consolidated numbers (March quarter)

On a consolidated basis, its total sales stood at ₹15,446 crore, up 3% YoY during the quarter, while profit after tax (PAT) for the quarter was ₹2,475 crore, down 3% YoY.

EBITDA for the quarter came in at ₹3,619 crore, up 2.37% YoY against ₹3,535 crore logged in the year-ago period. EBITDA margin at 23.4% declined by 10 bps as compared to the March 2024 quarter.

CEO statement

Rohit Jawa, CEO and Managing Director, commented: "In FY'25, our turnover surpassed ₹60,000 crore, with an underlying sales growth of 2% and an EPS growth of 5%. While absolute volume tonnage grew in the mid-single digits, it was partially offset by a negative mix."

"We delivered a competitive performance, further strengthening our 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, the acquisition of Minimalist, the divestment of Pureit, and the decision to demerge the ice cream business. Looking ahead, we anticipate demand conditions to gradually improve over the next fiscal year. We are committed to the strategic objective of unlocking a billion aspirations supported by our robust business fundamentals to continue winning competitively," the CEO added.

Segment-wise details

Home Care delivered 3% USG, driven by mid-single-digit UVG. The segment witnessed negative price growth on account of pricing actions taken to pass on commodity-led benefits to consumers. Fabric Wash delivered mid-single-digit volume growth, led by Premium Fabric Wash and Fabric Conditioners. Household Care grew volumes in high single digits. 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. Further, Surf Excel Smart Shots with superior formulation and benefits were relaunched in the quarter, the company said.

Beauty & Wellbeing turnover grew by 3% with low-single-digit UVG. Hair care delivered double-digit growth, led by volume. The growth was broad-based across Core, Future Core, and Market Makers segments. Skin care and colour cosmetics declined in low-single-digit growth, impacted by mass skin performance.

Personal Care grew 3% with a low-single-digit volume decline. Skin cleansing grew in the low single digits, driven by calibrated pricing actions taken due to commodity inflation. The non-hygiene segment delivered high-single-digit growth, and body wash continued to strengthen market leadership with double-digit growth.

The Foods segment turnover declined by 1% with low-single-digit price growth offset by volume decline. 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 the transitional impact of the pack-price architecture change.

Packaged foods grew in the mid-single digits, led by outperformance in ketchup, mayonnaise, and international cuisines. Ice cream delivered double-digit volume-led growth, fuelled by innovations and activations.

"Expanding our Future Core and Market Makers portfolio, 3 new flavours of Hellman’s Mayonnaise, ready-to-drink Bru tetra pack, and an exciting range of Ice Creams, including Magnum Pistachio and Kwality Walls Twister, were launched in the quarter," HUL said in its investor presentation.

Looking ahead: Cautious commentary

• The company expects growth to gradually improve during the year, led out of portfolio transformation and improving macroconditions. It expects the first half of FY26 to be better than the second half of the previous fiscal year (FY25);

• If commodities remain where they are, price growth is expected to be in the low-single-digit range;

• The company continues to focus on driving volume-led competitive growth.

Margins

• The company said its gross margin is expected to moderate as it continues to deliver the "right price-value proposition."

• The company says it is stepping up investments to land portfolio transformation in high-growth demand spaces, supported by a strong innovation pipeline. "Consequently, the EBITDA margin is expected to be within a healthy range of 22-23%," it added.