Hindustan Unilever Limited Reports 17.4% Decline in Q4 Net Profit

Synopsis

Hindustan Unilever Limited reported a significant drop in Q4 net profit, down 17.4% QoQ to Rs 2,464 crore. Total income rose slightly, but the EBITDA margin fell. The company anticipates improvement in demand conditions in the coming fiscal year.

Key Takeaways

Net profit down by 17.4% QoQ.
Total income increased by 3.5% YoY.
EBITDA rose slightly to Rs 3,466 crore.
Final dividend proposed at Rs 24 per share.
Mixed segment performance noted across various categories.

Mumbai, April 24 (NationPress) The renowned FMCG company Hindustan Unilever Limited (HUL) disclosed on Thursday a 17.4% decline in its consolidated net profit on a quarter-on-quarter basis for the fourth quarter (Q4) of FY25.

The net profit for the March quarter amounted to Rs 2,464 crore, a decrease from Rs 2,982 crore in the December quarter. On a year-on-year (YoY) basis, the profit reduced by 3.7% from Rs 2,558 crore reported in Q4 FY24.

For the March quarter, the company's total income saw a slight rise of 3.5% to Rs 15,979 crore, compared to Rs 15,441 crore during the same period last year.

However, revenue remained relatively unchanged when juxtaposed with the previous quarter, as noted in its stock exchange filing.

“This year represented a significant progression in our portfolio transformation with enhanced innovation in high-growth sectors, increased investments in future channels, acquisition of Minimalist, divestment of Pureit, and the decision to demerge the Ice Cream business,” stated Rohit Jawa, CEO and Managing Director of the company.

“Looking forward, we expect demand conditions to gradually enhance over the forthcoming fiscal year,” Jawa added.

HUL’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also experienced a slight increase, reaching Rs 3,466 crore compared to Rs 3,435 crore from the same quarter last year.

Despite this, the EBITDA margin fell by 30 basis points to 23.1%. HUL’s board has suggested a final dividend of Rs 24 per share for FY25.

This is in addition to the interim dividend of Rs 19 and a special dividend of Rs 10 declared previously, resulting in a total dividend payout for the year of Rs 53 per share.

On the business side, HUL’s segment performance varied. The home care segment grew to Rs 5,818 crore, while beauty and wellbeing revenue increased to Rs 3,113 crore.

Personal care also saw an improvement to Rs 2,124 crore. However, the foods division experienced a slight drop to Rs 3,886 crore.

The 'others' category, which includes exports and consignment sales, surged to Rs 263 crore from Rs 181 crore, as reported in the company's filings.