Hindustan Unilever Limited (HUL) is an Indian fast-moving consumer goods company, headquartered in Mumbai. It is a subsidiary of the Anglo-Dutch company Unilever. Hindustan Unilever is in the 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.
The company enjoys an exceptional market reach with 9/10 Indian households using one or more of our brands every day, making it one of the most pervasive consumer brands in India. The company's products are available in more than 80 lakh stores in the country and there will not be any household where one or the other product of the company is not used. HUL's sales of products' primary destination is India and 96% of its revenue comes from inside India and the remaining revenue is earned from outside India.
As of the latest available data, HUL has a market cap of ₹5,49,640 crores, which is down 8.15% in 1 year. The company delivered solid financial performance in FY25, with the company's standalone net profit jumping 5.24% to Rs 10,644 crore on a 1.84% rise in revenue from operations to Rs 60,680 crore in FY25 over FY24.
For the latest quarter (Q4 FY25), the company reported a 3.61% jump in standalone net profit to Rs 2,493 crore in Q4 FY25, compared with Rs 2,406 crore in the corresponding quarter last year. Revenue from operations rose 2.08% to Rs 15,000 crore in Q4 FY25, compared with Rs 14,693 crore in Q4 FY24.
The company has a portfolio of over 50 brands, spanning 16 FMCG categories, including 19 brands with a turnover of more than Rs. 1,000 Cr PA. The business is organized into three primary segments:
**Home Care Segment:** This includes fabric washing and household care products. Home Care grew 1% with mid-single digit UVG. Both Fabric Wash and Household Care grew volumes in mid-single digit driven by strong performance in premium portfolio.
**Beauty & Personal Care:** Beauty & Personal Care continued to witness premium portfolio growing ahead of the rest. Overall, the segment had a USG of -2% with flat volumes. Hair care delivered volume driven high-single digit growth led by outperformance in Dove and Tresemme.
**Foods & Refreshment:** Foods & Refreshment had a USG of 4% with flat volume growth. Functional Nutritional Drinks (Horlicks & Boost) delivered high-single digit growth driven by Plus range.
The company maintains a promoter holding of 61.9%, indicating strong backing from its parent company Unilever. The company demonstrates strong shareholder returns with a healthy dividend payout of 101%. The company's board has recommended a final dividend of Rs 24 for the financial year ended 31 March 2025 on equity shares of Rs 1 each.
HUL has undertaken significant strategic initiatives in recent times. In January 2025, Hindustan Unilever Limited announced it has signed an agreement to acquire the premium actives-led beauty brand Minimalist, as we continue to evolve our Beauty & Wellbeing portfolio towards higher growth and demand spaces in India.
The company is also restructuring its portfolio through divestments. Magnum HoldCo is set to acquire 61.9% stake in Kwality Wall's post HUL ice cream business demerger. This strategic move is part of the broader global Unilever strategy as the separation of Ice Cream is on track to complete by the end of 2025.
The Company has manufacturing facilities across the country and sells primarily in India. The company's operational infrastructure is well-established with Hindustan Unilever's corporate headquarters located in Andheri, Mumbai. The campus is spread over 12.5 acres of land and houses over 1,600 employees.
Despite facing some headwinds, the company has delivered a poor sales growth of 9.67% over past five years, indicating challenges in maintaining historical growth rates. However, the stock is trading at 11.1 times its book value, suggesting reasonable valuation metrics.
This year marked a step up in our portfolio transformation with increased innovation in high-growth spaces, amplified investments in channels of the future, acquisition of Minimalist, divestment of Pureit, and the decision to demerge the ice cream business. Looking ahead, we anticipate demand conditions to gradually improve over the next fiscal year. We are committed to the strategic objective of unlocking a billion aspirations supported by our robust business fundamentals to continue winning competitively.
The company continues to maintain its leadership position in the Indian FMCG sector, leveraging its extensive distribution network, strong brand portfolio, and strategic focus on premium segments to drive sustainable growth in the evolving consumer landscape.
