HUL Reports Steady Growth, Downplays Impact of US Tariffs

2 min read     Updated on 31 Jul 2025, 12:17 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Hindustan Unilever Limited (HUL) reported a 5% increase in consolidated revenue to ₹16,296.00 crores for Q1. Profit After Tax grew by 6% to ₹2,768.00 crores. The company's management stated that US tariffs are expected to have minimal impact on operations. HUL completed the acquisition of Uprising Science Private Limited for ₹2,706.00 crores. Despite growth, EBITDA margin declined by 130 basis points year-on-year to 22.80%. CEO Rohit Jawa expressed confidence in gradual market recovery and the company's ASPIRE strategy for future growth.

15490056

*this image is generated using AI for illustrative purposes only.

Hindustan Unilever Limited (HUL), India's leading fast-moving consumer goods (FMCG) company, has reported a solid financial performance for the quarter ended June 30, while also addressing concerns about potential US tariffs.

Minimal Impact from US Tariffs

During a recent conference call, HUL management indicated that US tariffs are expected to have minimal impact on the company's business operations. This statement comes as a reassurance to investors and stakeholders amid global trade uncertainties.

Financial Highlights

HUL's financial results for the first quarter demonstrate resilience in a challenging market:

  • Consolidated revenue from operations grew by 5% to ₹16,296.00 crores
  • Underlying Sales Growth (USG) stood at 5%, with Underlying Volume Growth (UVG) at 4%
  • Profit After Tax (PAT) increased by 6% to ₹2,768.00 crores

Segment Performance

The company reported varied performance across its business segments:

Segment USG UVG Performance Highlights
Home Care 4% High single-digit Driven by Fabric Wash and Household Care
Beauty & Wellbeing 7% Low single-digit Strong performance in Health and Wellbeing
Personal Care 6% Not specified Led by calibrated pricing actions
Foods 5% Mid single-digit Growth in Beverages and Ice Cream

Strategic Moves and Market Outlook

HUL's CEO and Managing Director, Rohit Jawa, commented on the results: "FMCG demand has continued to remain stable, with a gradual uptick in recency. We strategically stepped up our investments to effectively advance our portfolio transformation agenda this quarter."

The company completed the acquisition of Uprising Science Private Limited (USPL), which owns the 'Minimalist' brand, on April 21, for a consideration of ₹2,706.00 crores. This move is expected to strengthen HUL's presence in the skincare and haircare segments.

Margin Pressure and Future Outlook

Despite the growth in revenue and profit, HUL faced some margin pressure:

  • EBITDA margin declined by 130 basis points year-on-year to 22.80%
  • The company attributes this to increased investments in the business

Looking ahead, Jawa expressed confidence in the gradual recovery being sustained, stating, "I am confident that the ASPIRE strategy will further strengthen our presence in segments and channels of the future, powered by unmissably superior brands, heightened innovation intensity and digital media models, to deliver competitive volume-led growth and create long-term shareholder value."

HUL's ability to maintain growth while navigating global trade concerns and investing in future capabilities demonstrates its strong market position and strategic foresight in the Indian FMCG sector.

Historical Stock Returns for Hindustan Unilever

1 Day5 Days1 Month6 Months1 Year5 Years
-0.75%-2.16%+4.43%+5.81%-8.58%+13.23%
Hindustan Unilever
View in Depthredirect
like18
dislike

HUL Reports 5% Growth in Q1, Expects Sequential Gross Margin Improvement

1 min read     Updated on 31 Jul 2025, 10:16 AM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Hindustan Unilever (HUL) achieved 5% total sales growth in Q1, reaching Rs. 16,323.00 crores. Consolidated Underlying Sales Growth was 5% with 4% Underlying Volume Growth. EBITDA stood at Rs. 3,718.00 crores with a 22.8% margin. PAT grew 6% to Rs. 2,768.00 crores. Segment performance varied, with Beauty & Wellbeing leading at 7% USG. HUL completed acquisition of 90.5% stake in Uprising Science Private Limited for Rs. 2,706.00 crores. The company launched new products across segments and expects sequential improvement in Gross Margin.

15482819

*this image is generated using AI for illustrative purposes only.

Hindustan Unilever (HUL), India's leading FMCG company, has reported a 5% growth in total sales for the first quarter. The company's consolidated results show a steady performance amid a gradually improving demand environment.

Financial Highlights

  • Total sales reached Rs. 16,323.00 crores, marking a 5% growth compared to the same quarter last year.
  • Consolidated Underlying Sales Growth (USG) stood at 5%, with an Underlying Volume Growth (UVG) of 4%.
  • Earnings before interest, tax, depreciation, and amortization (EBITDA) was Rs. 3,718.00 crores, with the EBITDA margin at 22.8%, declining by 130 basis points year-on-year.
  • Profit After Tax (PAT) grew by 6% to Rs. 2,768.00 crores, benefiting from a favorable tax impact.

Segment Performance

HUL's performance across its business segments showed mixed results:

Segment USG UVG Key Drivers
Home Care 4% High-single digit Strong performance in dishwash and liquids portfolio
Beauty & Wellbeing 7% Low-single digit Led by hair care and health & wellbeing products
Personal Care 6% Not specified Growth in premium bars and bodywash
Foods 5% Mid-single digit Supported by double-digit growth in beverages

Strategic Moves and Outlook

HUL has made significant strategic moves during the quarter:

  • Completed the acquisition of a 90.5% stake in Uprising Science Private Limited (USPL), known for its 'Minimalist' brand in skin and hair care, for Rs. 2,706.00 crores.
  • Launched new products across segments, including Surf Excel Matic Express, Nexxus hair care brand, and Red Label Instant Spiced Tea Mix.

Rohit Jawa, CEO and Managing Director of HUL, commented on the results: "FMCG demand has continued to remain stable, with a gradual uptick in recency. We strategically stepped up our investments to effectively advance our portfolio transformation agenda this quarter."

Looking ahead, HUL expects a sequential improvement in Gross Margin by:

  • Enhancing price vs. cost gap
  • Better mix
  • Accelerating end-to-end Net Productivity programme

The company aims to maintain its EBITDA margins in the 22-23% range.

Market Response

The company's focus on volume-led growth and strategic investments in future-ready portfolios appears to be well-received. HUL continues to adapt to changing consumer preferences and market dynamics, positioning itself for sustainable growth in the evolving FMCG landscape.

As HUL navigates through a gradually recovering market, its emphasis on competitive volume-led growth and long-term value creation for shareholders remains at the forefront of its strategy.

Historical Stock Returns for Hindustan Unilever

1 Day5 Days1 Month6 Months1 Year5 Years
-0.75%-2.16%+4.43%+5.81%-8.58%+13.23%
Hindustan Unilever
View in Depthredirect
like20
dislike
More News on Hindustan Unilever
Explore Other Articles
Bombay Dyeing Reports Revenue Decline and EBITDA Loss in Q1 1 minute ago
Majestic Auto Limited Reports Robust Q1 Performance with ₹13.30 EPS and 100% Total Dividend 2 minutes ago
Mangalam Cement Files $5.4M Insurance Claim for Non-Delivered Petroleum Coke Cargo 20 minutes ago
Veefin Solutions Secures ₹8.43 Crore Capital Infusion Through Promoter Warrant Conversion 26 minutes ago
Gateway Distriparks Secures 15-Year Exclusive Deal for Ankleshwar Logistics Park 25 minutes ago
Goldiam International Secures ₹40 Crore Order for Lab-Grown Diamond Jewellery 54 minutes ago
2,498.60
-18.90
(-0.75%)