Transcript of the Earnings Call for the quarter and year ended 31st March, 2025
HINDUNILVR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Hindustan Unilever reported FY25 turnover of Rs. 60,680 crores with underlying sales growth of 2% and volume growth of 2%. EBITDA margin stood at 23.59% (down 30 bps YoY), while PAT grew 5% to Rs. 10,644 crores, lifted by profit from the PureIt divestment (~Rs. 600 crores unlocked). Management revised FY26 EBITDA margin guidance to 22–23% (down from 23.5–24%) to step up investments in marketing, distribution, innovation, and the Channels of Future. They expect H1 FY26 to be better than H2 FY25, driven by improving macros, tax relief, lower food and crude inflation, and a normal monsoon. A total dividend of Rs. 53 per share was declared (26% YoY increase). The 90% stake acquisition in Minimalist was completed on April 21, 2025, and the ice cream demerger is on track for FY26-end completion. Surf Excel crossed the Rs. 10,000 crore turnover milestone, while direct value-weighted distribution rose 400 bps to 69% over 18 months.
The downward revision in margin guidance signals a deliberate 'lean-in' phase prioritizing volume-driven growth over near-term profitability, which could weigh on the stock in the short term but supports long-term competitive positioning. Higher dividend payouts, strong cash flows, and a healthy balance sheet remain supportive for shareholders.