Underlying Volume Growth (UVG)
4%
+4pp YoY
UVG improved from 2% in Q4 FY24 to 4% in Q1 FY25, driven by Home Care and Hair Care.
HINDUNILVR
Consumer
23 Jul 2024
Hindunilvr Ltd — Q1 FY25
HUL reported Q1 FY25 revenue of INR 15,166 crore with 4% underlying volume growth, while underlying sales growth was 2% due to negative pricing.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
HUL reported Q1 FY25 revenue of INR 15,166 crore with 4% underlying volume growth, while underlying sales growth was 2% due to negative pricing. EBITDA margin improved 20 bps YoY to 23.8%, and PAT grew 3% to INR 2,538 crore. Volume growth was led by Home Care (high single-digit) and Hair Care (double-digit), while Personal Care saw low single-digit volume recovery after pricing actions. Management highlighted green shoots in rural demand but remains cautious on monsoon and food inflation. Guidance: near-zero pricing in short term, low single-digit positive by year-end; EBITDA margins to be maintained at current levels in near term, with modest expansion in medium term via mix improvement and operating leverage. Risk: tea inflation and potential impact on margins if commodity prices rise.
HUL ने पहली तिमाही (अप्रैल-जून 2024) में ₹15,166 करोड़ की कमाई की। बिक्री में 4% की बढ़ोतरी हुई, लेकिन कीमतों में कटौती के कारण कुल बिक्री वृद्धि सिर्फ 2% रही। कंपनी का मुनाफा (EBITDA) 23.8% रहा, जो पिछले साल से थोड़ा बेहतर है। शुद्ध मुनाफा (PAT) 3% बढ़कर ₹2,538 करोड़ हो गया। घरेलू सफाई और बालों की देखभाल के उत्पादों की बिक्री अच्छी रही, जबकि व्यक्तिगत देखभाल में धीमी सुधार दिखा। ग्रामीण इलाकों में मांग बढ़ रही है, लेकिन बारिश और खाने-पीने की चीज़ों की महंगाई से सावधानी है। कंपनी का अनुमान: कीमतें फिलहाल नहीं बढ़ेंगी, साल के अंत तक थोड़ी बढ़ सकती हैं। मुनाफा अभी इतना ही रहेगा, आगे चलकर थोड़ा बढ़ सकता है। चाय की महंगाई से मुनाफा प्रभावित हो सकता है।
Key Numbers
Gross Margin
50.9%
+170bps YoY
Gross margin expanded 170 bps YoY to 50.9%, aided by commodity deflation and savings.
Market Share Breadth (MAT Business Winning)
55%
+5pp vs Q4 FY24
Last 3-month metric at ~55%, on track to reach 60% by end of calendar year.
Premium Portfolio Contribution
300bps increase over 3 years
+300bps vs 3 years ago
Premium portfolio share increased ~300 bps over last 3 years, aiding mix improvement.
What Changed vs Last Quarter
NEW
Near-zero pricing in short term, low single-digit positive by end of FY25
Excluding one-off credit in Q2 FY24 base, intrinsic price growth expected near zero in short term, turning low single-digit positive by year-end.
NEW
EBITDA margins to be maintained at current levels in short term
Management expects to maintain current EBITDA margin levels (~23.8%) in the near term, with modest expansion in medium term.
NEW
Modest margin expansion in medium term via mix and operating leverage
Medium-term margin expansion driven by premiumization (300 bps improvement in premium mix over 3 years) and operating leverage from volume growth.
NEW
Market share breadth to reach 60% by end of calendar year
MAT business winning metric expected to return to 60% levels by end of calendar year, with last 3-month metric already at ~55%.
DROPPED
Price growth to be marginally negative if commodities stay
Management expects price growth to turn marginally negative in the near term if current commodity prices hold.
DROPPED
EBITDA margin to be maintained in a healthy range
Management aims to keep EBITDA margin in a healthy range while investing in brands and capabilities.
DROPPED
Volume recovery expected to be gradual
Management expects volume recovery to continue gradually, supported by moderating inflation and festive season.
NEW RISK
Tea price inflation could impact margins
Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.
NEW RISK
Rural recovery may be slower than expected
Despite green shoots, rural growth on a 2-year CAGR still lags urban; employment, real wages, and food inflation could delay recovery.
NEW RISK
Competitive intensity in beauty and personal care
Analyst raised concern about competitive activity in beauty; management acknowledged intense competition but expressed confidence in portfolio transformation.
NEW RISK
Potential margin pressure from commodity volatility
If commodity prices rise, especially palm oil, margins could be impacted despite Stratos technology providing some insulation.
RISK GONE
Uneven monsoon impact on rural demand
Uneven monsoon with 6% deficit and lower reservoir levels could affect kharif harvest and rural incomes.
RISK GONE
Resurgence of small players in mass segments
Small and regional players are growing faster in tea and detergent bars, pressuring HUL's market share in those pockets.
RISK GONE
Sustained inflation in HFD and coffee inputs
High milk and coffee prices continue to pressure volumes in HFD and coffee, with no near-term relief expected.
RISK GONE
Global commodity price volatility
Crude oil above $90 and geopolitical tensions could reverse input cost deflation, impacting margins.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24
Management expects price growth to turn marginally negative in the near term if current commodity prices hold.
Mentioned in Q1 FY24, Q2 FY24
Small and regional players are growing faster in tea and detergent bars, pressuring HUL's market share in those pockets.
Management Guidance
Near-zero pricing in short term, low single-digit positive by end of FY25
Excluding one-off credit in Q2 FY24 base, intrinsic price growth expected near zero in short term, turning low single-digit positive by year-end.
Management guidance revenueEBITDA margins to be maintained at current levels in short term
Management expects to maintain current EBITDA margin levels (~23.8%) in the near term, with modest expansion in medium term.
Management guidance marginsModest margin expansion in medium term via mix and operating leverage
Medium-term margin expansion driven by premiumization (300 bps improvement in premium mix over 3 years) and operating leverage from volume growth.
Management guidance marginsMarket share breadth to reach 60% by end of calendar year
MAT business winning metric expected to return to 60% levels by end of calendar year, with last 3-month metric already at ~55%.
Management guidance growthKey Risks
Tea price inflation could impact margins
Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.
medium · management_commentaryRural recovery may be slower than expected
Despite green shoots, rural growth on a 2-year CAGR still lags urban; employment, real wages, and food inflation could delay recovery.
medium · management_commentaryCompetitive intensity in beauty and personal care
Analyst raised concern about competitive activity in beauty; management acknowledged intense competition but expressed confidence in portfolio transformation.
medium · analyst_questionPotential margin pressure from commodity volatility
If commodity prices rise, especially palm oil, margins could be impacted despite Stratos technology providing some insulation.
low · data_observationNotable Quotes
We continue to hold on to most of the circa 200 basis points of market share gain that we gained during inflation.
Stratos is a first of its kind, groundbreaking technology developed and patented by our R&D team. This technology, that took us about 5 years to develop with 20+ patents filed, makes it possible to reformulate soap with a proprietary mix...
Our last three-month metric is already at circa 55% levels, providing compelling evidence that our strategic actions are driving the desired results for us.
Frequently Asked Questions
What was Hindunilvr's revenue in Q1 FY25?
Hindunilvr reported revenue of ₹15,166 Cr in Q1 FY25, representing a — change compared to the same quarter last year.
What guidance did Hindunilvr management give for FY26?
Near-zero pricing in short term, low single-digit positive by end of FY25: Excluding one-off credit in Q2 FY24 base, intrinsic price growth expected near zero in short term, turning low single-digit positive by year-end. EBITDA margins to be maintained at current levels in short term: Management expects to maintain current EBITDA margin levels (~23.8%) in the near term, with modest expansion in medium term. Modest margin expansion in medium term via mix and operating leverage: Medium-term margin expansion driven by premiumization (300 bps improvement in premium mix over 3 years) and operating leverage from volume growth. Market share breadth to reach 60% by end of calendar year: MAT business winning metric expected to return to 60% levels by end of calendar year, with last 3-month metric already at ~55%.
What are the key risks for Hindunilvr in FY26?
Key risks include Tea price inflation could impact margins — Tea prices are currently inflationary due to harsh summer impacting produce; full impact depends on monsoon season.; Rural recovery may be slower than expected — Despite green shoots, rural growth on a 2-year CAGR still lags urban; employment, real wages, and food inflation could delay recovery.; Competitive intensity in beauty and personal care — Analyst raised concern about competitive activity in beauty; management acknowledged intense competition but expressed confidence in portfolio transformation.; Potential margin pressure from commodity volatility — If commodity prices rise, especially palm oil, margins could be impacted despite Stratos technology providing some insulation..
Did Hindunilvr meet its previous quarter's guidance?
Of 2 tracked promises, management 0 met, 0 close, 2 missed.
Where can I read the full Hindunilvr Q1 FY25 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.