Hindustan Unilever Ltd (BOM:500696) Q3 2025 Earnings Call Highlights: Strategic Moves and ...
In This Article:
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Revenue: INR 15,195 crore with underlying sales growth of 2%.
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Gross Margin: 50% for the quarter.
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EBITDA Margin: 23.5%, within the range of 23% to 24%.
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Profit After Tax (PAT): INR 2,540 crore, flat year on year.
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Earnings Per Share (EPS): Grew 19% year on year.
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Homecare Segment Revenue Contribution: 37% of total revenue.
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Beauty and Wellbeing Segment Revenue Contribution: 22% of total revenue.
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Personal Care Segment Revenue Contribution: 15% of total revenue.
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Foods Segment Revenue Contribution: 25% of total revenue.
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Homecare Segment Margin: 18%.
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Beauty and Wellbeing Segment Margin: 29%.
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Personal Care Segment Margin: 18%.
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Foods Segment Margin: 20%.
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Homecare Underlying Sales Growth (USG): 6% driven by high single-digit UVG.
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Beauty and Wellbeing Growth: Modest growth of 1% year on year.
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Foods Category Revenue: Stable year on year.
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Nutrition Drinks: Gained both value and volume share.
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Ice Cream Revenue: Remained flat year on year.
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Acquisition Announcement: Majority stake in Minimalist at a pre-money enterprise value of INR 2,995 crore.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hindustan Unilever Ltd (BOM:500696) reported a competitive underlying sales growth of 2% driven by pricing, despite challenging market conditions.
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The company maintained healthy margins with a gross margin of 50% and an EBITDA margin within the range of 23% to 24%.
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Hindustan Unilever Ltd (BOM:500696) continues to gain turnover-rated market shares, indicating strong competitive performance.
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The acquisition of a majority stake in Minimalist, a premium beauty brand, aligns with the company's strategy to expand its presence in high-growth demand spaces.
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The company has successfully maintained a strong performance in its homecare segment, delivering a 6% underlying sales growth driven by high single-digit volume growth.
Negative Points
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Overall FMCG volume growth has slowed down, indicating subdued demand, particularly in urban areas.
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The company experienced a flat underlying volume growth, with negative mix effects impacting overall performance.
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There is significant volatility in commodity prices, including crude palm oil and tea, which could impact future cost structures.
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The beauty and wellbeing segment experienced modest growth of 1% year-on-year, impacted by delayed winter and mass skin performance.
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The company faces challenges in its skin cleansing segment, with a decline in hygiene-related products impacting overall revenue.