HINDUNILVR Q2 FY25 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹15,926 Cr
verified against source
Revenue YoY
2%
reported change
EBITDA
Pending
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HUL reported a muted quarter with 2% underlying sales growth (3% volume growth) in a sluggish FMCG environment. Revenue stood at INR 15,319 crore, while EBITDA margin remained healthy at 23.8%. PAT before exceptional items declined 2% due to a one-off tax credit in the base. Home care and beauty & wellbeing delivered high single-digit growth, but personal care declined 5% and foods & refreshment was subdued. Management highlighted early signs of recovery in soaps post-Stratos technology launch and expects low single-digit price growth in the near term. The ice cream business is being separated to sharpen focus. Risks include persistent commodity inflation (palm oil, tea) and muted urban demand. The company maintains its margin guidance and expects stable demand trends.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects low single-digit price growth in the coming quarters due to commodity inflation, while maintaining competitive price-value equation.
- Management aims to keep EBITDA margin at current ~23.8% levels, with some basis points fluctuation, through productivity savings and calibrated pricing.
- Board approved separation of ice cream business; mode (sale or demerger) to be decided by end of the year, with listing expected.
- ETR for H1 was 26.1%; full-year ETR expected to be marginally above 26%.
Risks flagged
- Crude palm oil and tea prices rose 10% and 25% YoY respectively, impacting gross margins. Management is taking calibrated price increases but full pass-through may not be possible.
- Urban growth moderated, while rural recovery is gradual. Management noted no further acceleration in FMCG growth, which could pressure volume growth.
- Personal care declined 5% with low single-digit volume decline. Despite formulation changes and innovation, recovery may take a couple more quarters.
- Despite 25% tea inflation, downgradation to loose tea persisted in Q2. Management expects reversal but timing is uncertain.
Key quotes
- Our MAT business winning number has already crossed 60% in September, ahead of our early estimate of December 2024.
- We are now taking calibrated price increases. Given our assessment that this price increase is here to stay, we are now taking calibrated price increases.
- We have applied for more than twenty patents, and we do believe that with that we will have basically a formulation which will be very tight in terms of its development and in terms of proprietary nature.
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