HUL vs Nestle: Here’s how two FMCG players fared in Q4FY25 results

Topline

Hindustan Unilever reported 3% sales growth based on 2% underlying volume growth during the quarter. The total sales stood at ₹15,513 crore for the quarter as compared to ₹15,077 crore in the previous year's similar quarter. The home care, food and beauty segment grew in low single digits for the quarter.

Meanwhile, Nestle India reported 3.6% YoY growth in total sales for the quarter at ₹5,447 crore as compared to ₹5,254 crore in the previous year's similar quarter. The 3.6% YoY growth was largely driven by strong double-digit growth food and confectionary business, in which 3 out of 4 products saw high double-digit growth for FY25. Apart from that, powdered and liquid beverages were the largest revenue contributors for the full year.

In both companies, the share of quick commerce has increased by more than 8% for the full financial year.

Operational performance

The standalone EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) grew by 0.9% YoY to ₹3,466 crore, and the EBITDA margin for the quarter stood at 23.1%, lower by 30 bps than the previous year's similar quarter. The poor operating performance was largely due to rising commodity inflation and low single-digit volume growth. Management further guided for similar performance if the commodity inflation persists.

On the other hand, Nestle India reported, single-digit jump in the EBITDA at ₹1,388 crore was largely driven by rising expenses, which jumped from 43% of the total sales to 44% in Q4FY25. Similar to HUL’s performance, the high commodity prices like coffee, cocoa continued to dent operating margins.

Bottomline

Hindustan Unilever’s net profit for the quarter surged by 4% YoY to ₹2,493 crore as compared to ₹2,406 crore in the previous quarter. The profit before the exceptional items stood at ₹2,493 crore. The exceptional items included acquisition and disposal related costs of ₹12 crore, restructuring expenses of ₹6 crore and loss on fair valuation of financial liability related to acquisition of ₹5 crore.

Nestle India’s net profit for the quarter ended March 2025 stood at ₹885 crore, a decline of 5% YoY against ₹934 crore. This was largely due to poor operating performance and a contraction in the margin for the company.

• Hindustan Unilever reported 2% sales growth for FY26 at ₹60,680 crore and profit after tax of ₹10,644 crore, which was marginally higher than the previous year. The company also strengthened its business with the acquisition of Minimalist, a leading beauty care brand.
• Nestlé’s leading coffee brand, NESCAFÉ, strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category. The company also launched a new product in the infant nutrition category, CEREGROW, with no refined sugar.
• Hindustan Unilever and Nestle India announced a dividend of ₹24 and ₹10 per share.
• Hindustan Unilever expects H1FY26 to be better than H1FY25, led by portfolio transformation and improving macroeconomic conditions. Further, it guided for the EBITDA margin to be in the range of 22-24%