Hindustan Unilever‘s quarter four result for FY25 has been a bit of a mixed story. While the company managed to post a small rise in revenues and standalone profits, it also faced challenges like lower consolidated net profit, shrinking margins, and weaker-than-expected volume growth. Investors reacted cautiously, with the stock falling around 4% after the results were announced.
Hindustan Unilever’s Quarter Four Result
According to the report, Hindustan Unilever’s quarter four result showed a consolidated net profit decline of 3.67% year-on-year. The profit slipped to ₹2,464 crore compared to ₹2,558 crore in Q4 FY24. However, on a standalone basis, the picture looked a bit better. The company recorded a 3.61% YoY increase in profit to ₹2,493 crore from ₹2,406 crore.
Revenue from operations grew by 2.7% year-on-year, reaching ₹15,416 crore against ₹15,013 crore in the same quarter last year. This modest growth signals stability but also reflects some pressure in demand and market dynamics.
Volume Growth and Margins
One of the more disappointing aspects of Hindustan Unilever’s quarter four result was the volume growth, which came in at just 2% — lower than what the market had hoped for. The EBITDA margin also saw a decline of 30 basis points, settling at 23.1%. Management has guided that margins could moderate further and stay within the 22–23% range going forward due to pricing challenges and rising commodity costs.
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Segment-Wise Performance
Breaking down the numbers gives more insight into where the company gained and where it struggled:
- Home Care brought in ₹5,818 crore in revenue, up from ₹5,715 crore YoY.
- Beauty & Wellbeing posted ₹3,113 crore, rising from ₹2,987 crore last year.
- Personal Care also showed slight improvement at ₹2,124 crore, compared to ₹2,063 crore, with a 5% increase in segment profits despite pressure on pricing.
- Foods, however, saw a minor dip in revenue, down to ₹3,886 crore from ₹3,911 crore YoY.
Overall, the company held steady in most segments but didn’t post any extraordinary gains, keeping things fairly stable.
CEO’s Outlook and Future Plans
CEO Rohit Jawa provided a long-term view of the company’s strategy and growth path. He highlighted that the company surpassed a ₹60,000 crore turnover in FY25. Underlying sales grew by 2%, and earnings per share (EPS) rose by 5%. Jawa also mentioned portfolio changes during the year through acquisitions and divestments, helping reshape the company’s future direction.
Looking ahead, he sounded cautiously optimistic, expecting demand to pick up gradually in the coming fiscal year. However, he also signaled that the focus would shift towards competitive, volume-led growth over price hikes.
Dividend Announcement
In a positive move for shareholders, the board has recommended a final dividend of ₹24 per equity share for FY25. The record date for the dividend has been fixed as June 23, 2025.
Market Reaction and Final Thoughts
Despite some positives, the market wasn’t entirely convinced by Hindustan Unilever’s quarter four result. The modest numbers and margin concerns led to a roughly 4% drop in the company’s stock price post the announcement.
In summary, Hindustan Unilever’s quarter four result was a balancing act. On one hand, it showed that the company is navigating challenges reasonably well. On the other, the numbers weren’t strong enough to spark investor enthusiasm. Going forward, all eyes will be on how the FMCG giant manages margin pressures and builds sustainable volume growth in a gradually recovering market.
