Hindustan Unilever Limited

rs,

ited, Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai – 400 001 Dear Sir/Madam, National Stock Exchange of India Ltd Exchange P

Rs. 60,680 crore

prioritie5 of driving volume growth and strengthening competitiveness. We delivered a turnover of Rs. 60,680 crores with an undertylng sales growth of 2.,r,, drtven by an underlying volume growth of2". Our pr

50 bps

equently, our undertylng price growth for the year was near zero. Cross margin at 50.39' was down 50 bps year-on-year, primarily on account of business mix and Increased Investments across distributio

30 basis point

ased Investments across distribution channels. EBITDA remained healthy at 2359' albeit lower by 30 basis points yeat'-On year. PAT before exceptional Items grew 19' while PAT Increased by 5'6 year on-year a

200 basis point

lerate portfolio expansion, we have delivered double-digit growth. Consequently, we have driven a 200 basis points portfolio shift from Core to Future Core and Market Makers in the year. This portfolio shift ali

80%

ompetitive brand and category growth as well as market share. As I mentioned earlier, more than 80% of our turnover Is superior to eyeball competition. Let me take an example of Surf Excel. a brand

Rs. 10,000 crore

rand with the highest UBS score. In full year 24-25, the brand has crossed a milestone tumover of Rs. 10,000 crores, growing volumes In near double digit and further strengthening Its market leadership position

45%

-digit USO In full year 24-25 and the part of this portfolio selUng on e-commerce delivered circa 45% growth In gross sales value. In this quarter, we strengthened our presence In the wellbeing seg

500 basis point

nces during the year. Consequently, our on-shelf and onUne availability have gone up by 200 and 500 basis points respectively. Recognizing the increasing consumer Pagefiof4D March Quarter and Financial Year

69%

tailer while increasing our assortment and service. With CL direct value weighted distribution of 69%, we are now servicing stores that cumulatively sell over 69% value of our relevant categol1es. Th

400 basis point

g stores that cumulatively sell over 69% value of our relevant categol1es. This Is a. significant 400 basis point step-up In direct value-weighted distribution over a period of 18 months. We have amplified our

Rs. 100 crore

acquired a majority stake In Janua,y 2023, has since scaled up Its annual revenue n.in rate from Rs. 100 crores to Rs. 400 crores. Last quarter, we announced the acquisition of 9059', stake in MinimaUsl As of

“This evening, we will be covet1ng the results of March quarter and financial year ended 31st March 2025.”

“we expect this to take around 30 minutes, leaving us with approximately an hour for the Q&A session.”

“we Intend to keep our core contemporary and healthy as these brands are the source of our deep penetration and distribution might FUture core entails bl'Qnds that are at the sweet spot of premlumlzatlon.”

“The demerger of Ice cream business Is progressing on track with regulatory requirements, and we expect It to be completed by the end of financial year 2026.”

“With proprietary formulation and advanced stain removal benerit, we aim to deliver delightful experiences to Indian consumers.”

“Going forward, we will deploy three broad vectors to step up consumption and premiumize the ca.tegory.”

“We anticipate that these combined actions will enhance consumption within this category.”

“We expect growth trends to gradually improve as a result of our accelerated portfolio transforma.tion a.ctions and Improving underlying macro conditions.”

“In this context, we expect fir.st half of financial year '26 to be better than second half of financial year '25.”

“If commodities remain where they are, we expect price growth to be In Low single digit range.”

RohlUcawa

6

Modarcdor

3

RlluhTlwart

3

Modarator

3

Speakers

1

Rlluhnwut

1

Rlluhffwart

1

RohlUawa

1

AmuMltra

1

Amabllltna

1

Speakers

Mr. Rohlt Jawa, Chief Executive Officer and Managing Director Mr. Rltesh Tlwarl, CFO, Executive Director, Finance and IT Ms. Shilpa Kedia, Group Financial Controller a. Head Investor Relations March Quarter and Financial Year 2025 Earnings call of Hindustan Unilever Limited

Modarcdor

Ladles and gentlemen, good day, and welcome to Hindustan Unilever Limited Conference Call for the Results of March Quarter and Financial Year ended 31stMan:h2025.As a reminder, allparticipantlineswillbe in the listen only mode and there will be an opportunity for you to ask questions after the presenta.tlon concludes. Should you need assistance dut1ng this conference cal~ please signal an operator by pressing -.- then -o- on your touch-tone phone. Please note that this conference Is being recorded. I now hand the conference over to Ms. Shilpa Kedia, Ciroup Financial Controller and Head of Investor Relatlons. Thank you, and over to you, Ms. Shllpa Kedia. lhllpa Kedia: Thank you, Neerav. Ciood evening, everyone. Welcome to the conference call of Hindustan Unilever Umltecl. This evening, we will be covet1ng the results of March quarter and financial year ended 31st March 2025. On the call with me Is Rohlt Jclwa, CEO and Managing Director and Rltesh Tiwarl, CFO. we will start with the prep

RlluhTlwart

Thank you, Ro hit, and good evening everyone. I will walk you through our In quarter and financial year performance In more detail before closing with our outlook. Rohlt spoke to you about FMCG consumpdon trends and commodity prtce shifts witnessed In the year. Similar consumption trends have persisted In the quarter as well As far as commodity prices go for the quarter, Tea, Coffee and Palm oil have witnessed a high Inflationary trend year-on-year, while Crude oil continued to remain deflationary. In this context, we delivered a competitive performance with an underlying sales growth of 39', driven by an underlying volume growth of 2!1l Calibrated price increases taken in Skin Cleansing and Beverages were Largely offset by price reducdon taken In Home care. Gross l'TKll'gin at 49.81' was Lower by 160 bps year-on-year. This contraction in gross margin was driven by commodity inflation in Palm oi~ Tea and Coffee that wasn't fully priced for. EBllDA margin remained healthy at 23.11', alb

Modarcdor

Thank you very much. First question Is from the line of Avl from Macquarie. Please go ahead. See, I just wanted to understand this EBl1DA margin guidance a little better. We've moderated It by almost about 100 basis points despite moderation In key commodities like crude, palm oi~ which suggests there is a sharp adjustment in the price value equation versus, say, what you were discussing Last quarter. Could you A. explain if that understanding is correct? And B. which are the segments where this adjustment is done beco.use your stra.tegic position does not suggest any particular segment So, I would love to hear your thoughts on this, please.

Rlluhnwut

Yes. Thanks, Avi. so, the entire EBITDA change that we intend to do, which is basically moving from the lower end of the 23,r. - 24'6 range, which we had mentioned In the previous quarter to 22% - 23%, Is essentially not prtce versus cost adjustment. The Intention behind this change ls to dial up Investments across all the lines of the P&L We have mentioned that at this point In time, there are two things which are happening. A. there are Improving macroeconomic conditions, which will augur well for demand conditions.And B. the amount of portfolio tra.nsfonnatlon that we are ready with, to put investments behind, both put together, in our view, now is the right time to dial-up investments. SO, this 100 bps of EBITDA, let me say, from 23.1 % that we have, if a.ta.II you go back to the range of 22')(, to 23%, will mean more investments in trade channels, it will mean more investments for product quality investments, it will mean more investments in A&P, it will also mean more investments

Rlluhffwart

Okay. So let me clarify. This EBllDA margin guidance change has nothing to do with Home Care pricing and price value equa.tion. So that's number one. Number two, the reason we commented Avl that gross margin will see moderation because of the prtce value equation difference -this ls normal to happen. Remember, the pricing logic that we always follow - Whenever we see Inflation, In this case, read Inflation of Tea, Coffee and CPO, which Is Crude palm oil Impacting Skin Cleansing and Beauty & Wellbeing. We always take price Increase In smaller chunks, so that we're able to test the levels of price Inflation we need to do In correlation to commodity lnflcitlon. So you always end up having a deficit of price versus cost in inflationary categories for inflationary commodities. Parallelly, on the other side where commodities have a deflationary trend like Crude oil. there we take larger chunks of price decrease so that we're able to pass on bulk of the benefit In a quick manner to the consum