The Fast-Moving Consumer Goods (FMCG) companies manufacture and distribute essential consumer products that are sold quickly at relatively low costs. These products include food and beverages, personal care items, cleaning products, and other household goods, which are typically consumed or replaced frequently, making them essential to everyday life.
The FMCG sector, India’s fourth-largest, has been growing at a healthy rate over the years due to rising disposable income, a growing youth population, and increased brand awareness.
Household and personal care products account for 50 percent of FMCG sales in India, making the industry a significant contributor to the country’s GDP.
Stock Performance:
With a market capitalisation of Rs. 6.86 lakh crores, the shares of Hindustan Unilever Limited (HUL) surged 0.4 percent on BSE to hit an intraday high at Rs. 2,970.65 on Tuesday, as compared to its previous closing price of Rs. 2,959.4.
The stock has delivered positive returns of nearly 18.3 percent of returns in one year, as well as around 27.8 percent returns in the last six months. So far in 2024, the shares of Hindustan Unilever have given positive returns of about 10 percent.
Financials
The company reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 2 percent, rising from Rs. 14,931 crores in Q1 FY24 to Rs. 15,166 crores in Q1 FY25.
During the same period, the company’s net profit rose marginally from Rs. 2,472 crores to Rs. 2,538 crores, representing a growth of 3 percent YoY.
On a year-on-year basis, EBITDA increased from Rs. 3,521 crores in Q1 FY24 to Rs. 3,606 crores in Q1 FY25, registering a growth of 2 percent, while the company’s EBITDA margins grew to 23.8 percent in Q1 FY25, up by 20bps YoY from 23.6 percent in Q1 FY24.
Revenue Split
In FY23-24, HUL’s total segment revenue amounted to Rs. 61,896 crores, reflecting a 2.2 percent increase from Rs. 60,580 crores in FY22-23.
The largest portion of revenue, 36.3 percent, was generated by the Beauty & Personal Care segment, followed closely by the Home Care segment at
35.4 percent. The Foods & Refreshment segment accounted for 24.7 percent, while other sources, including exports and consignment, contributed the remaining 3.6 percent.
According to the revenue by geographical market, HUL’s revenue from India in FY24 reached Rs. 59,629 crores, reflecting an increase of 2.5 percent YoY from Rs. 58,172 crores in FY23. In comparison, revenue from outside India amounted to Rs. 2,267 crores, a decrease of 5.8 percent from Rs. 2,408 crores in the same period.
Future Growth
Looking ahead, HUL remains committed to driving competitive volume-led growth, investing in its brands and long-term strategic priorities, and maintaining cost savings and discipline through the Net Productivity Programme. The company also remains confident in the medium to long-term potential of the Indian FMCG sector.
According to the management, HUL will continue to focus on rebuilding its gross margin through improved price coverage and net productivity measures, while also increasing investments in its brands and future-ready capabilities to compete effectively.
About the Company:
Hindustan Unilever Limited (HUL) is in the Fast Moving Consumer Goods (FMCG) business comprising primarily of home care, beauty & personal care, and foods & refreshment segments.
It is India’s largest FMCG company and one of the country’s largest Foods and Refreshment businesses with brands including Brooke Bond, Lipton, Horlicks, Boost, Bru, Kissan, Knorr, and Magnum.
Written by Shivani Singh
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