Hindustan Unilever Limited (HUL) presented its results for the third quarter of FY 2025. The company’s performance was mixed, with a marginal growth of 2% in revenue, but the impact of weakness in urban demand was clearly visible. Despite better performance in rural areas, volume growth did not pick up significantly.
Home care segment becomes superstar
The strongest performance in this quarter was from the home care segment. Strong demand for fabric wash and household care products led the segment to deliver 5% revenue growth. Also, the 10% increase in profits made it the brightest part of the company.
The impact of winter delay was clearly visible on the beauty and well-being segment. There was a decline in sales of skin care products, although hair care products provided some relief. But overall, the segment’s profits declined by 7%.
In the personal care segment, both revenues and volumes declined due to weak sales of skin cleansing products. Oral care showed marginal growth due to increase in prices. In the food and refreshment segment, coffee recorded impressive double-digit growth, but the decline in nutrition drinks and stagnation in the ice cream business made the overall performance average.
Profits boosted by cost cuts
HUL cut its advertising spend by 7% in the quarter and also controlled other expenses. Due to this, EBITDA margin remained at 23.4%. Net profit (PAT) increased marginally to ₹2,560 crore.
keeping an eye on future strategy
The company is emphasizing on promoting its premium products and expanding into new markets. However, the weakness of urban demand still remains a cause for concern. The company said that the focus on premiumization and innovation will continue.
Expert advice
Analysts at brokerage firm Motilal Oswal believe that HUL’s long-term performance prospects are strong. Investors have been advised to buy shares of the company at a target price of ₹2,850. With the market closing on Friday, HUL shares closed at Rs 2,368.90 on BSE. According to the target given by the brokerage firm, it can give an upside of 20% in the long term.