Hindustan Unilever (HUL) Q1FY25 Results: Key Takeaways

Hindustan Unilever (HUL), India’s largest consumer goods company, reported a 2.7% y-o-y increase in standalone net profit for  Q1FY25, reaching Rs.2,538 crore. This figure aligns with street estimates, which had forecasted a profit of Rs.2,561 crore. Revenue, encompassing product sales and other operating income, rose 1.3% y-o-y to Rs.15,339 crore, meeting analysts’ expectations of Rs.15,325 crore. EBITDA increased by 2.4% y-o-y to Rs.3,606 crore, aligning with market estimates of Rs.3,614 crore. The EBITDA margin improved by 30 basis points, reaching 23.5%.

Financial Performance

Volume Growth 

Volume growth for Q1FY25 stood at 4%, an improvement from the 3% growth seen in the same period last year and higher than the 2% growth observed in the preceding three quarters (Q2FY24, Q3FY24, Q4FY24).

Segment Performance & Brands Overview

• Home Care: The largest contributor to HUL’s topline, the Home Care division, saw a 4.6% year-on-year revenue increase to Rs.5,675 crore. Key brands in this segment include Vim, Surf excel, Domex, and Pureit.
• Foods & Refreshments: This segment experienced a 1.4% growth, bringing in Rs.3,850 crore. Notable brands here are Knorr, Lipton, Horlicks, and Kwality Walls.
• Beauty & Wellbeing: Revenue grew by 3.09% year-on-year, totaling Rs.3,199 crore. Prominent brands in this category include Dove, Lifebuoy, Pepsodent, Tresemme, and Lakme.
• Personal Care: Revenue for this segment slipped by 4.48%, down to Rs.2,683 crore. Key brands include Dove, Lifebuoy, and Lakme.

Market Reaction 

Despite positive quarterly results, HUL shares fell over 2% in early trade on the BSE following the earnings announcement, closing at Rs.2,691.35 apiece. However, shares had rallied 13.3% in the last month, closing at Rs.2,766.50 yesterday.

Conclusion: In conclusion, HUL’s Q1FY25 results show a 2.7% rise in net profit to Rs.2,538 crore, a 1.3% increase in revenue to Rs.15,339 crore, and 2.4% EBITDA growth to Rs.3,606 crore. Volume grew 4%, led by strong home care and foods & refreshments performance. Future growth seems driven by continued brand investment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.