Margin pressure hits HUL in Q4
New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a decline of 3.35 per cent in its consolidated net profit at Rs2,475 crore for the fourth quarter ended March 31, 2025 on lower margins. The company had logged a net profit of Rs2,561 crore in the January-March quarter a year ago, the company said in a regulatory filing.
However, revenue from product sales was at Rs 15,416 crore in the March quarter, led by volume growth, up 2.68 per cent from Rs 15,013 crore in the year-ago period. 'HUL reported an Underlying Sales Growth (USG) of 3 per cent and an Underlying Volume Growth (UVG) of 2 per cent,' said HUL in its earnings statement.
However, the EBITDA margin, which was at 23.1 per cent, declined 30 bps year-on-year, it added. HUL's total expenses in the March quarter was at Rs 12,478 crore, up 3.12 per cent and total income, which includes other revenue, was up 3.48 per cent to Rs 15,979 crore. In the March quarter, HUL's revenue from the Home Care segment grew 1.85 per cent to Rs 5,815 crore on account of price cuts. 'The segment witnessed negative price growth on account of pricing actions taken to pass on commodity-led benefits to consumers,' it said.
The fabric wash category delivered mid-single digit volume growth led by premium fabric wash and fabric conditioners, while household care volumes grew in high-single digit. The '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. The company's 'beauty & wellbeing' segment reported a growth of 6.62 per cent to Rs 3,265 crore.
The segment, which houses brands as Lakme etc, had a low-single digit volume growth in the March quarter. Investment in channels of the future continues to yield positive results with the segment delivering double-digit competitive growth in these channels. Similarly, HUL's revenue from Personal Care was up 3.05 per cent to Rs 2,126 crore. The segment, which has brands as Sunsilk, Dove, Pond's, Pears, Rexona, Closeup etc has a low-single digit volume decline. 'Skin cleansing grew in low-single digits driven by calibrated pricing actions taken due to commodity inflation,' it said.
Non-hygiene segment, which includes body washes, shampoos, conditioners, delivered high-single-digit growth, while oral care witnessed low single-digit growth led by Closeup. However, HUL's revenue from food was marginally down in the March quarter to Rs 3,896 crore due to volume decline.
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