Hindustan Unilever Reports 17.4% Drop in Q4 Net Profit
Hindustan Unilever Limited (HUL), the largest FMCG behemoth, recorded a 17.4% quarter-on-quarter fall in its consolidated net profit in the fourth quarter (Q4) of FY25. The firm registered a net profit of Rs 2,464 crore in the March quarter, which was lower than Rs 2,982 crore in the December quarter. On a year-on-year (YoY) basis, the net profit dipped marginally by 3.7%, versus Rs 2,558 crore in Q4 FY24.
Despite the profit dip, HUL’s total income for Q4 rose slightly by 3.5%, reaching Rs 15,979 crore, compared to Rs 15,441 crore in the same period last year. However, revenue growth remained flat when compared to the previous quarter, according to the company’s stock exchange filing.
HUL Managing Director and CEO Rohit Jawa credited the performance to a large portfolio shift, which involved ramped-up innovation in high-growth areas, stepped-up investments in emerging channels, and strategic divestments and acquisitions. The company, in particular, acquired Minimalist, divested Pureit, and chose to demerge its ice cream business. Jawa was optimistic regarding the demand environment, hoping for step-by-step improvement in the next fiscal year.
The firm's earnings before interest, tax, depreciation, and amortisation (EBITDA) grew marginally, increasing to Rs 3,466 crore from Rs 3,435 crore in the prior year corresponding quarter. But the EBITDA margin fell 30 basis points to 23.1%.
As far as dividends are concerned, HUL's board has recommended a final dividend of Rs 24 per share for FY25 over and above the interim dividend of Rs 19 and special dividend of Rs 10 announced earlier, aggregating to Rs 53 per share as total dividend payout for the year.
On the business side, HUL's performance in segments was mixed. The home care division expanded to Rs 5,818 crore, whereas the beauty and wellbeing division clocked revenues of Rs 3,113 crore. Personal care also gained momentum, with revenues expanding to Rs 2,124 crore. Nevertheless, the foods business witnessed a decline, with revenues falling to Rs 3,886 crore. The 'others' segment, covering exports and consignment sales, recorded a high growth, advancing to Rs 263 crore from Rs 181 crore.
As the challenges fade away, HUL's strategic moves and investments are likely to propel long-term growth as the company anticipates a gradual demand pick-up.
